6 Business and its environment
Identify two reasons why a government might privatise a business in the public sector
to raise finance for the government, to make the business more competitive by operating with a profit motive
give and explain one non financial motivatior
job enrichment, rotation, enlargement, etc
What is a dog in the boston matrix?
Low market growth, low market share
Identify two reasons why a government might nationalise a business in the private sector
to protect employment, to provide a service nationally to the population
Identify two purposes of an organisational structure
show who is responsible to whom in an organisation, it shows formal channes of vertical and horizontal communication
Explain one benefit to a business of being a monopoly
able to raise prices as it is the only supplier and as there are no close competitors
Identify two advantages of a centralised structure.
lead to coordinated/consistent decisions and strategies for all departments, it reduces risk by keeping delegation to a minimum
How can a business extended the product life cycle?
New designs, features, brand deals, marketing, etc
Explain the difference between autocratic culture and democratic culture
autocratic - leader makes all decisions themselves
democratic - involves workers, often have votes and discussions
Identify three barriers of communication
misleading message, poor attitudes, physical/technical problem
Explain two likely effects on a business of an ageing population
The need to provide products for older consumers, which will be a growing market.
The need to recruit/retain older employees as there might be an inadequate supply of younger workers.
Explain what delegation means
passing authority down the organisational hierarchy
What is contribution-cost pricing?
setting prices based on the variable costs of making a product, in order to make a contribution towards fixed costs and profit
Identify one example of a multinational business that operates in our country. Identify two benefits to our country from these multinational businesses operating there.
Unilever
creation of employment, increased exports of products
What are two ways to measure the number of employees required
forecast demand, productivity level, objectives, laws, labour turnover
give two marketing objectives a business may have
share of the market, new customers, sales, etc
what is herzbergs two factor theory?
there are two factors that impact worker motivation - hygeine factors & motivators
Explain two potential advantages to a business of developing a new product
an innovative product could be patented to give monopoly power, the USP of a new product might allow higher prices to be charged
what are two limitations of digital promotion?
Time consuming, skill and training needed, global competition, complaints easier
For each barrier of communication mentioned by your friends, explain one way in which it might be overcome
*students own answers*
draw a demand and supply curve
see diagrams
draw maslows hierarchy of needs
see triangles
What is one benefit and one negative to a business of using dynamic pricing?
benefit: can charge consumers different prices as demand changes
negative: consumers can feel that they are treated unfairly if they pay more than someone else for the same product/service
Identify an economic objective of the government, what policy is being used to achieve this objective, and how the policy is conducted/applied.
low inflation -> monetary policy
Identify and explain two situations in which effective communication would improve business efficiency and help to achieve the required goal
*students' own answers*