Organisational Structure
What diagram shows the job roles within a business and how they relate to each other?
An organisational chart.
What leadership style involves a manager making decisions alone without consulting their staff?
Autocratic leadership.
What type of production method would have high costs at the beginning but slowly will decrease overtime?
Flow Production
What type of budget predicts the total money expected to come into the business from sales?
An income budget.
Define a what a policy is and give an example of a policy that isn't code of conduct/health and safety.
A policy is a set rule or guideline setting expectations.
Social media policy, alcohol and drug use policy, time off.
Define CSR.
When a business includes social and environmental responsibilities in its everyday operations.
What specific organisational structure model does Cookie Time use overall, dividing its workforce into core managers, contractors, and flexible labour?
A Shamrock organisation structure.
What type of organisational structure features small levels of hierarchy and large spans of control?
A flat structure.
What style of leadership gives employees total freedom to decide how to complete their work with very little direct oversight?
Laissez-faire leadership.
What operational problem is where there are less products being produced than what the factory can deal with. Machines and staff will be idle (not working).
Under capacity.
What is the key financial difference between fixed costs and variable costs?
Fixed costs remain the same regardless of output levels (e.g., rent), while variable costs change in direct proportion to the volume produced (e.g., raw materials).
What type of policy outlines employee behavior standards, including professional expectations and dress code?
Code of Conduct
What term describes operating a business in a way that protects natural resources for future generations?
Sustainability
How does Cookie Time structure its professional core workforce (Leaf 1) at headquarters?
As a Functional structure
Name the 3 types of staff groups in a Shamrock organisation.
Independent contractors
Temporary Hires
What are the four core functions of management typically involved in running business operations?
Planning, Organising, Leading, and Controlling.
What is an disadvantage of having Batch Production?
Each batch can be subject to strict quality control, potentially causing increased employee downtime
Increased storage costs for large quantities of produced products
Errors with the batch produced will incur wasted time and cost.
What financial process involves comparing budgeted targets against actual business performance to identify differences?
Variance analysis.
Why are procedures important?
It informs staff who will do what, what steps you need to take and which forms or documents to use.
What is philanthropy in a business context?
Giving time, money, or resources to assist the local community through donations or volunteering.
What production method combination does Cookie Time use to make its cookies at the main Christchurch factory?
Combination of batch dough mixing and continuous automated baking flow lines.
What term describes a structure where employees work in temporary project teams made up of people from different specialist departments?
A matrix structure.
What management function involves monitoring staff as they work and adjusting goals or methods if targets are not being met?
Controlling.
What operations concept describes an approach focused on eliminating waste, cutting costs, and maximizing efficiency? (Double: points if you can name all 7 areas)
Lean Production
- Transport, Inventory, Motion, Waiting, overproduction, overprocessing, defects
Other than financial institutions and manager who else has an interest in the financial information of a business?
Owners, employees, the community, IRD, suppliers.
How does maintaining strict quality control procedures benefit amanufacturing business?
It ensures goods meet established standards before reaching customers, preventing costly mistakes and maintaining business reputation.
How can ethical sourcing of raw materials affect both a business's operational costs and consumer brand perception?
It usually increases production costs due to higher fair-trade supplier prices, but it enhances brand perception, building trust and customer loyalty.
What are two specific Corporate Social Responsibility (CSR) initiatives implemented by Cookie Time?
Funding youth initiatives (e.g., Cookie Time Charitable Trust, Dyslexia Foundation, KidsCan), reducing plastic through paper tape, biosteam cleaning to save water, or developing plant-based products.
How does a business structure differ when decision-making is centralised versus decentralised?
In a centralised structure, major decisions are made at the centre/top of the business, whereas in a decentralised structure, decision-making is passed down the chain of command.
What is the primary functional difference between a manager and a leader?
Leaders inspire and set a visionary future goal for people to follow, while managers plan, organize, and control resources to implement those goals.
List some Internal examples of Economies of Scale (within the business).
Marketing - spread their making costs over a large output.
Technical - purchasing more machinery
Purchasing - Gaining bulk discounts from suppliers.
What is the difference between a favourable variance and an unfavourable variance?
A favourable variance improves financial performance (e.g., higher sales or lower costs than planned), while an unfavourable variance worsens financial performance (e.g., lower sales or higher costs).
How do clear Health and Safety procedures directly impact operational performance and workplace productivity?
They reduce workplace accidents, prevent costly operational delays, reduce staff absenteeism, and avoid legal compliance fines.
What are two distinct business benefits of actively engaging in Corporate Social Responsibility?
Improved brand reputation/publicity, higher staff morale, and increased customer loyalty leading to potential sales growth.
How does Cookie Time adjust its operational capacity during seasonal spikes such as the Christmas Cookie campaign?
By introducing temporary evening and night shifts and hiring seasonal university student workers
What is a key advantage of a matrix structure?
Employees are chosen according to the needs of the project.
Project managers are directly responsible for completing the project within a set deadline and budget.
How does a paternalistic leader approach decision-making compared to a democratic leader?
A paternalistic leader listens to staff views but ultimately makes the final decision themselves for the staff's good, whereas a democratic leader actively includes staff in the decision-making process.
What is the difference between efficency and productivity?
When a business performs in a way that maximises revenue while minimising costs, whereas productivity measures the efficiency of input usage (output per unit of input over time).
What is a main financial advantage and a main disadvantage of using strict budgets in a business?
An advantage is that it controls expenditure and provides direction; a disadvantage is that it can create rivalry between departments competing for funds and restrict flexibility
Why are documented policies and procedures essential when a business needs to take disciplinary action or terminate an employee?
They ensure legal compliance, establish clear grounds for standards of behavior, and prove that all employees were treated fairly and consistently.
What is a key financial argument against heavy investment in Corporate Social Responsibility activities?
It increases operational expenses, takes time, and can distract management from core profit-making objectives.
Who makes up Leaf 2 of Cookie Time’s Shamrock structure, and how do they distribute products across New Zealand?
Independent Franchised Distributors, who purchase direct from Cookie Time and sell/deliver directly to local stores and supermarkets.