UNIT 1
This stakeholder group provides finance in return for ownership.
Who are shareholders?
This organizational structure has few management layers.
What is a flat structure?
This process involves dividing consumers into groups with similar characteristics.
What is market segmentation?
This formula is used to calculate contribution per unit.
What is Selling Price – Variable Cost?
In a SWOT analysis, a strong brand reputation would be classified as this.
What is a Strength?
This business sector transforms raw materials into finished goods.
What is the secondary sector?
The transfer of authority from managers to employees is called this.
What is delegation?
A business collects information directly from customers through surveys and focus groups. What type of market research is this?
What is primary market research?
A business has current assets of $80,000 and current liabilities of $50,000. Calculate its working capital.
What is $30,000?
A business plans to sell an existing product in a new country. According to Ansoff, which growth strategy is this?
What is Market Development?
A social enterprise prioritizes this alongside profit.
What is a social objective/social impact?
A manager asks employees for input before making decisions. This leadership style is called?
What is democratic leadership?
A sportswear company creates one advertising campaign specifically for teenagers and another for adults. Which marketing concept is being applied?
What is market segmentation/target marketing?
A company produces 2,000 identical bottles every week before switching to a different flavor. Which production method is being used and why might it be preferred over flow production?
What is batch production because it provides greater flexibility and variety?
A product has high market share but operates in a low-growth market. According to the BCG Matrix, what is it called?
What is a Cash Cow?
A business wants rapid expansion but risks losing control of quality and culture. This growth method is being used.
What is internal growth?
A company is experiencing slow communication and duplicated work due to many management levels. Identify the likely organizational structure.
What is a tall organizational structure?
A product has reached the maturity stage of the Product Life Cycle. Explain one challenge managers are likely to face.
What is increased competition, slower sales growth, or pressure on profits?
A profitable business cannot pay suppliers on time and has negative working capital. Explain why this situation is possible.
What is a liquidity/cash flow problem? Profit does not always mean cash is available to meet short-term obligations.
A government introduces stricter environmental regulations that increase production costs. Which two STEEPLE categories are most relevant?
What are Political and Environmental factors?
A company increases profits by automating production, causing layoffs. Name two stakeholder groups likely to have conflicting interests.
Employees and shareholders (or owners).
A business wants faster decisions, greater employee empowerment, and local responsiveness. Should it centralize or decentralize? Justify.
Decentralize because local managers can respond more quickly and employees gain autonomy.
A luxury fashion brand wants to increase sales but maintain its exclusive image. Evaluate whether lowering prices would be an effective strategy.
What is No, because lower prices may damage the brand's premium image and reduce perceived exclusivity?
A business has fixed costs of $150,000. It sells a product for $60 and variable costs are $30 per unit. Calculate the break-even output and explain one limitation of the result.
What is 5,000 units?
Break-even = 150,000 ÷ (60 − 30)
A company sells premium handmade watches at prices far above competitors. Using Porter's Generic Strategies and Hofstede, explain why this strategy may be more successful in some countries than others.
What is Differentiation? Success may vary because cultural values (Hofstede) influence how much consumers value prestige, status, quality, and luxury products.