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Management Activities

Terms in this set (28)

Planning
Sets goals for the business to achieve in the future and comes up with business strategies to achieve those objectives
SWOT
Strengths-something the business owns or does well that gives advantages. Examples: excellent staff, up to date machines
Weaknesses-something the business does badly. Examples:Not enough money, out of date machines
Opportunities-something in the outside world that the business can make money or benefit from. Examples:new countries join the EU chance to sell more
Threats: things that prevent the business from succeeding. Examples: competition from new countries joining the EU
Organisation
Arranging all the resources into the most suitable form to achieve its objectives
Contingency planning
Planning for unexpected or unforeseen circumstances
Tactical planning
more specific, shorter-term planning that derive from the strategic plan
Mission Statement
a statement of the organization's purpose and its values
Strategic Planning
Planning by senior management of long-term goals from the mission statement
The principles of a good plan
Specific
Measurable
Agreed/ Achievable
Realistic
Time bound
Benefits of Planning
1. Provides a focus
2. Reduces uncertainty
3. Attracts investors
4. Aids performance assessment
Functional structure
people with similar occupational specialties are put together in formal groups
Benefits of a functional organisational structure
- Specialisation
- Clear chain of command
- Improved communication
- Clear promotional path
-Wider span of control possible
Product structure
A structure that divides business operations on the basis of the products that it sells
Benefit of a product organisational structure
- Competition
- Resources focused effectively
- Improved flexibility
Geographic Structure
An organisational structure based on region.
Benefits of a geographic structure
- Can react to local trends
- Tailor needs to locals
- Improvements to logistics
- Competition between regions
Matrix structure
An organisational structure that combines traditional departments seen in functional structures with project teams.
Benefits of a matrix organisational structure
- Greater unity
- Improved decision making
- Improved relationships
- Responsibility is shared
Chain of command
the line of authority that moves from the top of a hierarchy to the lowest level
Span of control
the number of subordinates who report directly to a manager
Factors affecting a business' span of control
Type of work
Expertise of the manager
Ability of the employees
Nature of the product
Controlling
The process of comparing outcomes or results with the original plans and measuring performance
Efficiencies achieved with control
Minimize costs and time
Avoids loss of reputation
More satisfied customers
Motivates staff
Evaluates Business performance
Main areas of business control
Stock control
Quality control
Credit control
Financial control
Stock control
Keeping the optimum levels of stock so that the business doesn't have too much or too little stock
Quality Control
Reviewing and inspecting work done to ensure it meets the required standards
Reasons for credit control
1. Assess customers creditworthiness
2. Set appropriate credit limits and credit periods
3. Policy for late payments
4. Incentivise cash/ early payments
Financial control
Make sure that the business is profitable and always has enough money available
Advantages of Controlling
1. makes sure that the business achieves its objectives
2. reduces the business's costs
3. Improves its cash flow
4. increases a business's sales and profits
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