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AS Business - Coggle Diagram

- - - - Idenitify needs of customers
      - purchase resources needed to produce goods
      - Produce g + s which satisy consumer needs
    - - Labour
        
        skilled
        
        permanent
        
        temporary
        
        unskilled
      - Enterprise
        
        coordinators
        
        Risk takers
        
        decision makers
      - Capital
        
        Machines
        
        Factories/offices
        
        Finance
      - Land
        
        Site for buildings
        
        Raw materials
      - Government
        
        Roads/rail/airports
        
        Schools/colleges
        
        Law and order
    - - New competitors
      - legal changes
      - economic changes
      - technological changes
    - - Good understading of customer needs
      - Effecient management of operations
      - Flexible desicion making to adapt to new situations
      - Appropriate and sufficient sources of finance
    - - poor record keeping
      - Lack of cash
      - Poor management skills
    - - Innovative
      - COmmited and self motivated
      - multi-skilled
      - Leadership skills
      - Self confidence and ability to bounce back
      - Risk taking
    - - Lack of business opportunity
      - lack of finance
      - cost of good locations
      - competition
      - Lack of customer base
    - - EMployemnt creation
      - Economic growth
      - Business survival
      - Innovation and tech change
      - exports
      - Personal development
      - Increased social cohesion
    - - Whats in them
        
        executive summary
        
        Description of business opportunity
        
        Marketing and sales stratagy
        
        Management team and personnel
        
        operations
      - Benefits
        
        forces owner to think seriously
        
        Gives owners a clear plan of action
      - Limitations
        
        dosent guarantee anything
        
        MUST be detailed and supported by evidence otherwise not helpful
        
        Might make leaders inflexible as the are sticking to the plan
  - - - Advantage
        
        Easy to set up
        
        Owner has complete control
        
        Owner keeps all profits
        
        Flexible working hours
        
        Owner can establish good relationships with staff
        
        Business can be based on owners interests or skills (fishing)
      - Disadvantages
        
        Unlimited liability
        
        Often intense competition
        
        Owner unable to specialise in areas that they like as they are responsible for all aspects of management
        
        Difficult to earn money
        
        Long hours
    - - Advantages
        
        Partners may be specialised
        
        SHared desicionmaking
        
        Additional capital
        
        Loss is shared
        
        Fewer legal formalities than PLC or LTD
      - Disadvantages
        
        Unlimited liability
        
        Profits shared
        
        NO continuity
        
        All partners are bound by the desicions of any one of them
        
        cant raise capital by selling shares
        
        ST to P will lose control
    - - Advantages
        
        Limited liabilities
        
        Seprate legal personality
        
        Continuity
        
        Original owner is able to retain control
        
        company is able to raise capital from sale of shares to family anf reinds
        
        Company has greater status
      - Disadvantages
        
        legal formalities
        
        capital cannot be raised by the sale of shares to the genral public
        
        DIfficult to sell shares
        
        EOY accounts are sent to govt - accessible to public = less secrcy
    - - Advantages
        
        Limited liability
        
        separate legal identity
        
        Continuity
        
        Easy to buy and sell shares
        
        substantial capital can be made through the issue of shares
      - Disadvantages
        
        Legal formalities
        
        High cost of paying for advice advice from consultants
        
        share price are subject to fluctuation
        
        Legal requirements
        
        risk of takeover
        
        Directors can be influeneced
    - - Advantages
        
        Buying in bulk
        
        Working together to solve problems
        
        Good motivation as profits shared
      - Disadvantages
        
        Poor management
        
        Capital shortage - cannot sell share to non-members
        
        Slow decision making
    - - Advantages
        
        Less likely to fail as well known brand
        
        Advice and training is offerd by franchiser
        
        Franchiser pays for national advertising
        
        supplies ate obtained from good quality suppliers
        
        the franchiser agrees not to open another branch in local area
      - DIsadvantages
        
        Share of profit goes to franchiser
        
        Initial licence fee can be expenisive
        
        local promotions must be paid for
        
        Franchisee can not choose which suppliers to get supplies from
        
        strict rules with pricing - reduce control
    - - have social aims and use ethical ways of achieving them
      - they need to make a profit to survive as they cannot rely on donations as charities do
  - - - Sales revenue
      - Capital employes
      - Market capitalisation
        
        current share prise x total number of shares issued
      - Market share
        
        Total sales / total sales of industry x 100
      - Other measures
        
        Number of beds (for hotels)
        
        Number of shops
        
        TOtal floor sales
        
        number of units sold
    - - medium
        
        51-250 employees
        
        $20 mill - $50 mill revenue
        
        $20 mill - $70 mill capital employed
      - Small
        
        11-50 employees
        
        4 mill - 20 mill revenue
        
        4 mill - 20 mill Capital Employed
      - Micro
        
        10 - 1 employees
        
        up to 4 mill in revenue
        
        up to 4 mill capital employed
    - - Advantages
        
        Can be managed and controlled by owner
        
        can adapt quickly
        
        Offers personal service - custumer loyalty
        
        Easy to know each worker
        
        if family owned - cultuer in informal = fun
        
        Can be started with small amount of capital
      - Disadvantages
        
        Limited accsess to finance
        
        Owner has alot of responsibilty - unable to afford specialist managers
        
        if owber or important is ill others must have enogh skill to operate
        
        may not be diversifie
        
        few opportunities for economies of scale
    - - Advantages
        
        Commitment
        
        reliability and pride
        
        Knowledge continuity
      - Disadvantages
        
        Succsession/continuity problem
        
        formality problems
        
        Tradition
        
        Conflict
    - - Organic (internal)
        
        New branches
      - External
        
        Mergers
        
        Takeovers
        
        Backward Vertical Integration
        
        Same industry - with a supplier business
        
        Advantages
        
        COnrol over quality
        
        Joint research
        
        May control supply to competitors
        
        Disadvantages
        
        May lack exspearience
        
        become complacent due to guaranteed customer
        
        Impact on stakeholders
        
        Workers
        
        have mire opportunities :)
        
        consumers
        
        have improved quality :)
        
        competitors
        
        control over supply may limit compitition :)
        
        Share holders
        
        Profit may rise :)
        
        Foward vertical Integration
        
        Same industry - with customer business
        
        Advantages
        
        can control promotion and pricing
        
        secure outlet for products
        
        Disadvantages
        
        lack experience
        
        Impact on stakeholders
        
        Workers
        
        Greater job security :)
        
        more opportunitys :)
        
        Conglomerate Intergration
        
        Different Industry
        
        Advantages
        
        Diversifies
        
        Spread risk
        
        Disadvantages
        
        Lack if experience
        
        Lack of focus
        
        Impact on stakeholders
        
        workers
        
        More opportunities :)
        
        Job security :)
        
        Horizontal integration
        
        Same Industry - Same Stage of production
        
        Advantages
        
        Eliminates competitor
        
        EOS
        
        Increased power over suppliers
        
        Can focus on one product rather than 2
        
        Disadvantages
        
        Bad publicity and redundencies
        
        Customer opposition tp less competition and less choice
        
        lead to monopoly investigation
        
        Effect on stakeholders
        
        Consumers
        
        less choice :(
        
        Workers
        
        Less job security :(
        
        suppliers
        
        forced to lower prices :(
  - - - Sense of direction
      - Specific targets
      - Gives a means of assessing success and failure
    - - Profit Maximisation
      - Profit satisfaction
      - Growth
      - Increasing Market share
      - Survival
      - CSR
      - Maximising short-term revenue
    - - Triple bottom line
        
        Economic
        
        Social
        
        Enviromental
    - - Effecientcy and reliability
      - Encourage economic and social development
      - Preventing major job losses
      - meet financial targets
      - achieve environmental standerds
    - - Business culture
      - SIze and legal form
      - Private or Public sector
      - Number of years the business has been operating
    - - Business objectives
        
        'Grow revenue by 15% p.a. in each of the next 5 years
      - Marketing objectives
        
        'Increase UK market share to 17%'
      - Marketing stratagies
        
        'Refocus product range on high margin items'
      - Marketing tactics
        
        'Improve agreements with key supplyers '
      - Marketing Budgets
        
        'Financial targets for each group of sales employees'
    - - a breif statement of the businesses core aims, phrased in a way to motivate employees and to stimulate interest from outside groups
      - Advantages
        
        Inform external groups
        
        Motivate employees
        
        Establishes what the business is really about
      - Disadvantages
        
        Too vage
        
        PR statement to make stake holders feel good
        
        impossible to analyse and disagree with
  - - - ROLES
        
        Purchase Goods and Services
        
        Provide revenue
      - RIGHTS
        
        Recieve g + s that meet laws
        
        Offered replacements, repairs ext.
      - RESPONSIBILITY
        
        to be honest
        
        No stealing
        
        No false claims
    - - ROLES
        
        Supply materials
      - RIGHTS
        
        Paid on time
        
        Treated fairly
      - RESPONSIBILITY
        
        provide in time
        
        in good condition
    - - RESPONSIBILITY
        
        to be honest
        
        Meet conditions of employment contract
        
        cooperate with management
        
        tp observe ethical code of conduct
      - ROLES
        
        provide labour anf follow employment contract
      - RIGHTS
        
        offered employment contact
        
        paid and treated as described in the contract
        
        join a trade union
    - - ROLES
        
        provide people as workers
      - RIGHTS
        
        to be consulted on any major changes
      - RESPONSIBILITY
        
        cooperate with business
    - - RIGHTS
        
        not to have the communities lives badly affected by the business activities
      - ROLES
        
        provide local services and infrastructure
      - RESPONSIBILITY
        
        to meet reasonable requests from the business
    - - RIGHTS
        
        expect the business to meet all laws
      - ROLES
        
        pass laws
        
        provide law and order
      - RESPONSIBILITY
        
        teast businesses equally
        
        prevent unfair competition
        
        to establish good trading links
    - - ROLES
        
        provide finance to business
      - RIGHTS
        
        to be repaid on agreed date
        
        to be paid intrest
      - RESPONSIBILITY
        
        provide agreed amount of finance
    - - ROLES
        
        to control and command and direct resources
      - RIGHTS
        
        contract of employment
      - RESPONSIBILITY
        
        to report to stake holders
        
        act ethically and legally
    - - RIGHTS
        
        Receive a share of profits
      - ROLES
        
        to provide finance
      - RESPONSIBILITY
        
        set targets for managers tand give the adequate time and resources
- - - - workforce planning
      - recruitment and selection
      - training employees
      - employment contracts
      - dismissel and redundency
      - monitering and imporving employees morale abd welfare
      - payment schemes
      - monitoring employment performance
    - - forecasting the number of workers and the skills that will be required by the organisation to achieve its objectives
      - Why do it?
        
        it tells you the number of employees required
        
        Forecast demand
        
        Productitivity levels
        
        Objective of the business
        
        Changes in law regarding workers rights
        
        labour turnover and abseteeism
        
        The skills of the workers required
        
        pace of tech change
        
        need for flexible or multi-skilled workers
      - Labour turnover
        
        average number of employees leaving in one year / average number of people employed x 100
        
        Costs of having high labour turnover
        
        cost of recruiting, selecting and training new staff
        
        poor output levels due to staff vacancies
        
        difficult to establish customer loyalty
        
        no team spirit
        
        Possible benefits to high labour turnover
        
        Low-skilled and less productive staff may eave and be replaced with better people
        
        new ideas and practices may be adopted
        
        can help reduce employee numbers of that is what the business wants
    - - The process
        
        What is the nature of the job and drawing up a job description
        
        Job title
        
        details of tasks to be preformed
        
        responsibiities
        
        Place in hierachiel structure
        
        working condiitons
        
        how the job will be assessed and how performance is measured
        
        Drawing up a a person specification
        
        A detailed list of the qualities, skills and qualifications that a successful applicant will need to have
        
        preparing job advert
        
        with an application form
        
        a set of questions answered by a job applicant to give a potential employer info about the applicant, such as education and work experience
        
        Making a short list of applicants
        
        Selecting between the applicants
        
        Curriculum Vitae (CV)
        
        a detailed doc highlighting all of a person's professional and academic achievements, work exspearience and awards
        
        Resume
        
        a less detailed doc than a CV which itemises work experience, educational background, and special skills relevant to the job being applied for
        
        Reference
        
        Comment from a trusted person about the applicants character ot previous work performance
      - Internal vs External Recruitment
        
        Internal
        
        Applicants may already be known to selection team
        
        applicant knows the organisation - no need for induction training
        
        corperate culture in known and understood
        
        quick
        
        cheaper - no advertising
        
        gives staff a opportunity - increase motivation
        
        worlers wont have to get used to a different management style if the vacancy is a managing
        
        External
        
        applicants have new ideas
        
        wider choice of applicants
        
        avoids resentment
        
        standard of applicants can be higher
      - Employment Contracts
        
        a legal doc that sets oit the T&Cs governing a workers job
        
        Contains:
        
        responsibilities
        
        contract permanent or temparay
        
        working hours
        
        holdiay entitlement
        
        number of days notice
    - - Redundency - when a job is no longer required, the employee doing the job becomes unnecessary through no fault of their own
      - Dismissal - being dismissed or fired from job due to incompetence or breach of discipline
      - Unfair Dismissal - ending a workers employment contract for a reason that the law regards as being unfair
        
        pregnancy
        
        race, gender, religeon
        
        Being a member of a union
    - - Work life balence
        
        A situation in which employees are able to allocate the right amount of time and effort to work and their personal life
        
        Flexible working hours
        
        teleworking
        
        job sharimg
        
        sabbatical period
      - Impact of diversity and equality in the workplace
        
        Equality policy - practices and processes aimed at achieving a fair organisation where everyone is treated the same way without prejudice and has the opportunity to fulfil their potential
        
        Creates fun happy enviroment
        
        good rep
        
        Diversity policy - practices and processes aimed at creating a mixed workforce and placing a positive value on diversity in the workplace
        
        bigger market share as consumers like diverse sales force
        
        increased creativity - different backgrounds
        
        different cultures - improved knowledge of forign markets
        
        diverse language skills - can reach international markets
    - - induction
        
        Introductory training program to familiarise new recruits with the systems used in the business and the layout of the business
      - On the job
        
        instruction at the place of work on how a job should be carried out
      - Off the job
        
        training undertaken away from the place of work
  - - - Low labour turnover
      - low absenteesism
      - Prepared to accept responsibility
      - make suggestion and improvements
      - High productivity
    - - Social connection
        
        Work in groups or teams
      - Challenge
        
        provide different work tasks and chance of promotion
      - Significance
        
        Praising and recognising performance
      - Certainty
        
        Different work tasks and chance of promotion
    - - Taylor (Scientific Management)
        
        Money is main motivator
        
        Method
        
        Select the right workers
        
        Observe performance
        
        Find the best Method
        
        Apply piece rate
      - Mayo - Hawthorne Effect
        
        Changes in Work conditions and pay levels dont help
        
        Consulting with workers helps
        
        Team spirit can improve productivity
        
        Giving workers control over work loves helps (can decide when to have a break)
        
        Groups can establish own targets
      - Maslow
        
        Self-actualisation
        
        having a sense of satisfaction from growing and learning
        
        Esteem Needs
        
        Respect from others
        
        Social Needs
        
        Trust, acceptance, friendship, belong to a group
        
        Saftey Needs
        
        Protection from harm = job security, health and saftey at work
        
        Basic Needs
        
        Food, shelter, water, rests
        
        Critisisims of Maslows Theory
        
        Not everyone has the same needs
        
        In practice it can be hard to identify the degree at which each need has been met
        
        Money can help with every level
        
        Self-actualisation will never be achieved
      - Herzberg
        
        Job satisfaction is achieved with motivators
        
        Motivators
        
        Sense of Achievment
        
        Recognition for effort
        
        nature of the work
        
        responsibility
        
        Promotion and Improvement
        
        To avoid job dissatisfaction you need Hygiene factors
        
        Hygiene Factors
        
        Adequate working conditions
        
        Supervision
        
        Pay
        
        INterpersonal Relations
        
        Company rules
      - McClelland
        
        Achievement
        
        Sets and accomplishes challenges and risk
        
        Takes calculated risk
        
        likes to recieve regular feed bak on their progress
        
        Likes to work alone
        
        Authority
        
        Wants to control and influence others
        
        Likes to win arguements
        
        Enjoys competition and winning
        
        Enjoys status and recognition
        
        Affiliation
        
        Wants to belong in a group
        
        Wants to be liked and will go with the flow
        
        Prefers collaboration over competition
        
        Dosent like high risk or uncertainty
      - Vroom
        
        Valence
        
        The value of an employee for an extrinsic reward such as money or an intrinsic reward such as satisfaction
        
        Expectancy
        
        the degree to which people believe that effort will lead to a given level of performance
        
        Instrumentality
        
        the belief that they will actually get the reward, even if it has been promised by the manager
    - - Financial Motivators
        
        Time based wage rate
        
        Advantages
        
        offers security
        
        Can be changed with workers
        
        Disadvantages
        
        No incentive to increase output
        
        Labour cost can vary
        
        Salery
        
        Advantages
        
        Security
        
        Different amounts
        
        Suitable for all industries
        
        Labour costs easy to forcast
        
        Disadvantages
        
        little motivation
        
        Piece Rate
        
        Advantages
        
        Motivate workers to increase output
        
        Easy to calculate
        
        Disadvantages
        
        Low quality
        
        Many jobs output cant be calculated
        
        No security
        
        Stressed workers
        
        Commission
        
        Advantages
        
        Incentives
        
        Security
        
        Disadvantages
        
        No teamwork
        
        Lots of pressure
        
        Bonus Payment
        
        Advantages
        
        Incentives to do well
        
        security
        
        Disadvantages
        
        Resentment if no bonus
        
        Damage team spirit if some people get bonus but not others
        
        low motivation if no bonuses
        
        Performance related pay
        
        Advantages
        
        Encourage meeting targets
        
        can reach business aim
        
        Disadvantages
        
        Constant targets
        
        High value
        
        emphasize favouritism
        
        Profit Sharing
        
        Advantages
        
        Insentives
        
        Commitment
        
        More ideas = more sales
        
        Disadvantages
        
        Small % = little motivation
        
        Shareholders object
        
        reduces profits retained
        
        Share-ownership Schemes
        
        Advantages
        
        Reduce conflict between owners and workers
        
        commitment rise
        
        more participation in decision making
        
        DIsadvantages
        
        Needs value
        
        Share may be sold on so not long term commitment
        
        Managers may get more = resentment
      - Non Financial Motivators
        
        Job rotation
        
        Advantages
        
        releive bordom
        
        Give workers skills
        
        Disadvantages
        
        if all similar not motivating
        
        Job enlargement
        
        Opportunities for promotion
        
        Job redesign
        
        Job enrichment
        
        Advantages
        
        Gaining skills = status = motivate
        
        Disadvantages
        
        Could be stressfull
        
        must be planned
        
        training and development
        
        Advantages
        
        Increase skill set = flexible
        
        More skills = status
        
        Self actualisation
        
        workers feel valued
        
        Disadvantages
        
        expensive
        
        Take employees away from work
        
        more skills can find better jobs
  - - - Fayol
        
        Planning
        
        planning needed to achieve business objectives
        
        Organising
        
        Recruitment of employees, delegate appropriately
        
        Senior managers must ensure that the structure allow clear division of the tasks
        
        Coordinating
        
        Coordinate between different departments
        
        Goals of each branch, division, region and employee must work together
        
        Commanding
        
        guiding, leading and overseeing employees to ensure that objectives are completed
        
        Employee development will help motivate
        
        Controlling
        
        Establish clear objectives for the business and for each section within
      - Mintzberg
        
        Interpersonal
        
        Figurehead
        
        Symbolic leader
        
        Leader
        
        motivation subordinates selecting and training staff
        
        Liaison
        
        Linking with other managers and leaders
        
        Informational
        
        Moniter
        
        Collecting data
        
        Disseminator
        
        Sending info
        
        Spokesperson
        
        Comunicating to external groups
        
        Decisional
        
        Entrepreneur
        
        Looking for new opportunities
        
        Negotiator
        
        Representing the business when negotiating
        
        Resource allocator
        
        decides the spending of the business
        
        Disturbance handler
        
        Responds to changing situations that put the business at risk
    - - Autocratic
        
        Main Features
        
        leaders make all decisions
        
        workers get little info
        
        supervise workers closely
        
        One way communication
        
        Limitations
        
        demotivating
        
        decisions are not benefited from employees input
        
        Where to use it
        
        Defence forces
        
        times of crisis
      - Democratic
        
        Main Features
        
        participation is encouraged
        
        two way communication
        
        workers get info then can have input
        
        Limitations
        
        consultation with workers takes time
        
        on occasion quick decision making will be required
        
        some issues may be too serious to share with workers
        
        Where to use it
        
        workplaces that need new thinking and are competitive
        
        with an experienced workforce
      - Lassez-faire
        
        Main Features
        
        managers delegate nearly all authority and decision making power
        
        very broad limits staff must work within
        
        Limitations
        
        workers may not like the lack of structure
        
        lack of feedback = demotivating ?
        
        Where to use it
        
        managers are too busy or lazy
        
        research institutions when ideas are needed
      - Paternalistic
        
        Main Features
        
        managers that know best
        
        occasional consultation with workers
        
        managers want workers to be happy
        
        Limitations
        
        workers may be disappointed with not having any input or control
        
        Where to use it
        
        managers who have genuine concern for workers and feel they know best
        
        when workers are young and inexspearienced
    - - Theory X
        
        The view that some managers believe employees are lazy, fear-motivated and in need of constant direction
      - Theory Y
        
        the view that some managers believe employees are internally motivated, enjoy their work and are prepared to take on additional responsibilities
- - - - Examples
        
        Gain market share
        
        total sales
        
        average number of items purchased for customer visit
        
        frequency f shopping by loyal customers
        
        percentage of customers who return
        
        number of new customers
        
        customer satisfaction
        
        brand identity
      - To be effective marketing objectives should:
        
        be linked to corperate objectives helping achieve overall targets
        
        determined by senior management
        
        be smart
      - Why are they important
        
        sense of focus
        
        can be measured for succses
        
        they can be broken down into regional and product sales targets
        
        firm a basis of marketing stratagy
        
        market strategy - a plan of action giving details of how a business intends to achieve its marketing objectives by creating competitive advantages
    - - market segments - a subgroup of a whole market in which consumers have similar characteristics
      - Industrial markets - the selling of products by bueinesses to other businesses, also known as B2B
      - Consumer market - the selling of products by businesses to the final end user, also known as B2C
      - Orientation
        
        Customer orientation - an outward-looking approach that bases product decisions on consumer demand, established by market research
        
        Product Orientation - an inward-looking approach that focuses on making products that can be made - or have been made for a long time - and then trying to sell them
      - Market growth