Management Basics
What are the four traditional functions of management?
Planning, organizing, directing/coordinating, and controlling
What managerial error involves not staying current with industry changes?
Failure to anticipate industry trends
What is the main goal of delegation?
Leaving details to others while keeping responsibility
What is the foundation of effective aviation marketing?
Understanding the local aviation market
What are the four main forms of profit?
Reward for effort, reward for risk, return on investment, and profit-to-sales ratio
What is management defined as?
Getting things done through others
What managerial issue is highlighted by constant interruptions every 8 minutes?
Poor time management
What delegation rule assigns tasks to employees who are 80% ready?
The 80:20 Rule
What is one method of growing a general aviation business?
Offering new products to existing customers
How is ROI calculated?
Net profit divided by equity
What is the true purpose of business management?
Keeping customers satisfied while maintaining profitability
What leadership style works best when time is limited and the leader is most knowledgeable?
Authoritarian leadership
What should managers avoid while monitoring delegated work?
Micromanging
What are the four product classification categories?
Convenience, shopping, specialty, and unsought goods
What profit objective focuses on the point of diminishing returns?
Profit maximization
What are common traits of an effective manager?
Problem-solver, visionary leader, and caretaker of systems
What leadership style encourages group input and higher-quality decisions?
Participative leadership
What elements make delegation effective?
Clear instructions, timelines, and progress checks
What is a market niche?
A specific share of the total market where a business fits
What occurs when payments are delayed 30 to 90 days?
Cash flow lag
What distinguishes managing from doing?
Focusing on management tasks instead of doing all the work personally
What leadership style gives the least guidance and can reduce motivation?
Delegative
What should managers avoid when choosing what to delegate?
Delegating tasks that are too critical or complex
What are common tools used in promotion?
Television, social media, radio, and trade publications
What are key steps in planning for positive cash flow?
Forecasting sales, forecasting expenses, and monthly cash-flow analysis