Business Foundations
What is the primary objective of a Sole Trader?
To make a profit through the provision of goods or services.
Define motivation
Motivation is the willingness of an individual to expend energy and effort in completing a task.
Manufacturing vs Service business
tangible vs intangible, capital intensive v labour intensive, can be stored as inventory, cannot be stored as inventory..
Define “business change”
Business change is the alteration of behaviours, policies, and practices of a business.
Definition of 'official corporate culture'
involves the shared views and values that a business aims to achieve, often outlined in a written format
Identify one advantage and one disadvantage of a Partnership.
Adv: shared expertise and resources, keep all the profits. Disadvantage: Partners have unlimited liability, meaning personal assets are at risk
What is Maslow’s first level?
Maslow’s first level is physiological needs (basic survival, like food and water). In the workplace, managers can satisfy the physiological needs of their employees by paying them a living wage
Define Just In Time
an inventory control approach that delivers the correct type and quantity of materials as soon as they are needed for production
when a business changes to avoid future problems or take advantage of an opportunity to gain a competitive advantage. ADDITIONAL TERMS
Identify a strategy to develop real corporate culture
Type of employees, Workplace environment, Business rituals, Management styles
Identify a difference between a Private Limited Company and a Public Listed Company.
A Private Limited Company (Pty Ltd) has restricted share ownership and cannot sell shares to the public. A Public Listed Company (Ltd) can issue shares on the stock exchange and has stricter regulatory requirements.
Name all four drives in Lawrence and Nohria’s Four Drive Theory
Drive to learn, Drive to defend, Drive to bond and Drive to acquire
Definition of Total Quality Management (TQM)
A holistic approach whereby all employees are committed to continuously improving the business’s operations system to enhance quality for customers.
What KPI does this describe: measures the amount of injuries and unsafe incidents that occur at a work location over a specific period of time.
Number of workplace accidents
Describe Senges 'team learning' principle
is the collective learning that occurs when teams share their experience, insights, knowledge, and skills to improve practices
Explain the role of the shareholders in a business.
Shareholders are the owners of a company and invest money/capital in exchange for shares. They control major decisions via voting and receive dividends as a share of profits.
Identify a performance management strategy
Management by objectives, Performance appraisals, Self-evaluation, Employee observation
Identify 3 waste minimisation strategies
Reduce, Reuse, Recycle
Identify the key principles of the force field analysis (in order)
Weighting, Ranking, Implementing a Response, Evaluating the response.
Identify 5 management strategies to respond to KPI's
staff training, staff motivation, change in management styles or management skills, increased investment in technology, improving quality in production, cost cutting, initiating lean production techniques, redeployment of resources (natural, labour and capital), innovation, global sourcing of inputs, overseas manufacture and global outsourcing
Explain the importance of corporate culture in achieving business objectives.
Corporate culture shapes staff behaviour, motivation, and decision-making. A strong culture fosters alignment with business goals, improving performance and helping achieve objectives.
Other than autocratic and laissez-faire, identify a management style and its affect on motivation
participative, persuasive, consultative
Name all the lean management strategies
Pull, one-piece flow, takt, zero defects
One similarity between proactive and reactive approaches to change
• Both approaches are utilised by a manager or business to implement change.
• Both approaches involve the business undertaking change for future benefits, such as growth, progression, and to improve or restore its brand image.
• Both approaches require the support of the manager, who must utilise management and leadership skills if the change is to be implemented successfully.
• Both approaches can be used to respond to stakeholder conflicts.
Identify all low risk and high risk strategies
Communication, Empowerment, Support, Incentives. Manipulation and Threats.