Unit 1
Name an organizational planning tool
Gantt Chart, Fishbone Diagram, Force Field Analysis, Decision Tree
Name types of organizational culture
Power culture, role culture, task culture, person culture
There are three categories for the variances in a company. Name one of the variances
Revenue variance, cost variance, profit variance
What is the Y value?
Sales Three-Part moving average
Month 1 9
Month 2 12 Y
Month 3 15 15
Month 4 18 18
12 (Three-part moving average = (9 + 12 + 15) / 3 = 12)
Name and explain 3 types of waste in lean production
Transportation – moving components between work stations or from suppliers
Inventory – building up excessive stocks, resulting in storage costs.
Motion – staff risking injury while making the product.
Waiting – delays in the production process.
Over-processing – adding features to a product that are not required by the customer and therefore do not add value.
Over-production – producing an inventory of finished goods before they are needed. This can lead to wastage in fast-moving markets.
Defects – finished goods that do not meet quality control standards.
A company wants to discover the origin of a problem in the company by using a fishbone diagram. Name the six Ms used to analyze the origin of the problem
manpower, environment, machines, method, money, measure
Name an industrial relations method used by employees on employers to negotiate ideas and benefits in the workplace
Collective bargaining, go-slow, work-to-rule, overtime ban, strike action
What are potential strategies that can improve the stock/inventory turnover ratio
lower prices, Increased promotion, Stocking only fast-selling items, Just-in-time stock method, Better sale forecasting
Which method of entry into international markets requires the least commitment from a company?
Exporting (Franchising, joint ventures and direct investment all require planning of the operations abroad, and control over the marketing in the new country)
Which method of quality management focuses on inspecting products at the end of the production process? (Total quality management, quality assurance, quality improvement, quality control)
Quality control
A company is preparing an advertising campaign for TV. They will use a Gantt Chart in order to organize their time and function. How can the Gantt Chart be divided to make the work more efficient?
Research (focus group, etc), Formulate and select theme, Write a script, Prepare music, Hire actors, Filming, Editing, Negotiate airtime contract, run advertisement
Name a source of conflict that is found in the workplace
values, communication, power, insufficient resources, perceptions, change, performance
A company has $17 million owed in debts and a sales revenue of $200m. What is its debtors day ratio?
31 days
A major fast-food restaurant has decided to expand into your country. Unsure if its brand will be successful, it decides to open just a single outlet in the capital. This store will be owned and operated by a local businessperson who has paid for the right to use the restaurant's brand name.
Which method of entry does this describe?
Franchising
Total output 500 units
Total Cost $5,500
Total number of workers 36
Productive capacity 600 units
What is the company's unit cost?
$11 (Unit cost= $5,500/ 500)
What is the Force Field Analysis used for?
Used to study the factors that are driving change and those that oppose it.
A company is having conflicts and constant issues with their employees. What are some approaches they should consider in order find a resolution to their conflicts
conciliation, arbitration, no-strike agreement, single union agreement
What is the creditors day formula used for?
Creditors days= (Creditors/Cost of goods sold)365
Calculates the average number of days it takes the company to settle its debts.
What is a major risk of franchising (for the brand owner)?
Loss of control (The franchisee is trusted to operate a store and uphold the brand image. If this is not done, customer satisfaction may fall and the entire brand could be damaged)
Draw the product life cycle
Development, Introduction, Growth, Maturity, Decline
A company wants to expand their factory which costs $10M. The debate comes from weather or not they should do the expansion. There is a 0.6 chance of success from the expansion and a 0.4 chance of failing. Draw a decision tree to evaluate which decision the company should take and why.
Expand Factory: 0.6 (20) 0.4 (8) Not expand: 0.6 (10) 0.4(7)
Name key elements that are necessary to create an organizational culture
Values, people, history, vision/mission, practices
A hotel would like to expand their market and have new resources in their facilities for their future clients. What are some examples of profit centres they can use?
restaurant, spa, ballroom, event center, gymnasium, gardens
Benefit and limitation of Direct Investment
Benefits: Full control is maintained. Profits are not shared.
Limitations: Large investment costs. Lack of local partner could reduce local knowledge
Write the cost to buy and cost to make formulas
Cost to buy: Price × Quantity = $______
Cost to make: Fixed costs + (Variable costs × Quantity) = $______