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People In Business, Understanding Business Activity, Operations…
People In Business
Organisation structure
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Chain of command - Chain of command which allows instructions to be passed down from seniors to lower levels
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Supervisors are junior managers who have direct control over the employees below them in the organisational structure.
Staff managers are specialists who provide support, information and assistance to line managers.
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Training
Induction training
intro given to new staff that explains the firm’s staff activities, customs, procedures. It sets the new staff up to be able to work and function.
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- Time consuming and generates no income but costs the firm
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Off-The-Job Training
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A broad range of skills can be taught here by specialists outside of work hours leading to new qualifications for staff
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Motivation Methods
Taylor - Thought that the autocratic style were the best. Where the people were only motivated by pay, they were naturally lazy and don’t really want to be there.
Piece-rate = People who are motivated by money. To make them produce more,Pay them by how much they produce.
Maslow - Needs, human beings have various needs he organised the needs in five levels. Motivate your staff by giving them a mixture of the lower needs and giving them the opportunity to give them the next higher needs.
Self actualisation - the realization or fulfilment of one's talents and potentialities, especially considered as a drive or need present in everyone.
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Social needs - Colleagues who support each other, have activities together to create a bond.
Safety need - people want to feel safe. Contract, counseling service
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Motivation and rewards
Motivation is the desire to take action to achieve a goal. It is the stimulus for working hard/ effectively.
Comes from enjoyment of work itself and/or from desire to achieve certain goals e.g. earn more money or achieve promotion.
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Operations Managements
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Costs
Costs, Scale of production and break-even analysis
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Fixed costs - do not change, month to month e.g rent, utilities, interest payment
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Break even
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contribution per unit, contributing to the fixed cost.
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Break even point is the point where the costs of the business and the revenue are the same. Is is used for the business to see if they make a profit or not.
Margin Of Safety
Margin of safety = the amount of units sold after break even. E.g = margin of safety = 200units. Sold 220 units. Margin of safety = 20 units sold next month = 180 margin of safety = -20
Location Decisions
Market - locating near to the market, the further it is, the more expensive transportation becomes.
Government influence - when a government wants to encourage businesses to locate in a particular area it ill offer state-funded grants to encourage firms to move there,
Technology - The internet presence must be important as technology is where most people will find information about the business. Have good internet presence and adds
Legislation - In some countries there may be laws restricting the trading or marketing of goods in particular areas.
Marketing
Market research Methods
Quantitative = Find out the numbers, how many people, how many, the numbers.
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Business approach
Market Orientation - Focused on what the market wants. - Rubber gloves, Sanitizer
Product Orientation - Oriented and focused on the product, have so much confident in yourself and develop products without further research. - Apple, High fashion brands.
Types of sources
Internal sources
Sales data (pricing, customer records, loyalty card data)
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Market share - The percentage of the market in a particular industry that one business controls. You need to sell more than your competitor.
