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 method of production involves creating a single, customized product from start to finish for a specific customer?
Job Production
What type of budget predicts the total money expected to come into the business from sales?
An income budget.
What is the main difference between a policy and a procedure?
A policy is a set rule or guideline setting expectations, while a procedure is the step-by-step method used to carry out a task or policy.
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 many levels of hierarchy and small spans of control?
A tall 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 type of production method would have high costs at the beginning but slowly will decrease overtime?
Flow Production
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).
Which is a policy and which is a procedure? Uniform Standard and Staff Induction.
Uniform Standard = Policy
Staff induction = Procedure
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
What term describes a structure where employees work in temporary project teams made up of people from different specialist departments?
A matrix structure.
What are the four core functions of management typically involved in running business operations?
Planning, Organising, Leading, and 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
What financial process involves comparing budgeted targets against actual business performance to identify differences?
Variance analysis.
What type of policy outlines employee behavior standards, including professional expectations and dress code?
Code of Conduct
What is philanthropy in the context of business operations?
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 refers to the number of subordinate employees directly reporting to a manager?
Span of control.
What management function involves monitoring staff as they work and adjusting goals or methods if targets are not being met?
Controlling.
What occurs when a business experiences economies of scale?
The average (unit) cost of production falls as the scale of output increases.
Why would external financial institutions, such as banks, want to examine a business's financial statements?
To assess the business's financial health and determine whether it can afford to repay a loan.
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.
What operational problem is a factory facing if its machines and staff are working 24/7, leading to potential machinery breakdowns and employee stress?
Over capacity.
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 disadvantage of a flat organisational structure regarding career potential and management span of control?
The lack of management layers reduces career advancement opportunities, and wide spans of control can overload managers and lead to inconsistent decision-making.
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 production and productivity?
Production is the total quantity of output produced, 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.