Podcast
Questions and Answers
What is one of the advantages of autocratic leadership?
What is one of the advantages of autocratic leadership?
- High employee morale
- Increased employee creativity
- Quick decision-making (correct)
- Collaborative team environment
Which of the following best describes the focus of smaller businesses?
Which of the following best describes the focus of smaller businesses?
- Targeting a broad market segment
- Maximizing profits at any cost
- Building strong customer relationships in niche markets (correct)
- Minimizing environmental impact only
What is one of the ethical objectives of a business?
What is one of the ethical objectives of a business?
- Focus solely on product development
- Reduce regulatory compliance requirements
- Maximize short-term profits regardless of impact
- Create a positive work environment and ensure employee welfare (correct)
In the Ansoff Matrix, which strategy involves selling existing products to new markets?
In the Ansoff Matrix, which strategy involves selling existing products to new markets?
What is a potential disadvantage of democratic leadership?
What is a potential disadvantage of democratic leadership?
What is the primary goal of for-profit organizations?
What is the primary goal of for-profit organizations?
Which organizational structure primarily emphasizes teamwork and flexibility?
Which organizational structure primarily emphasizes teamwork and flexibility?
What is a key advantage of mergers and acquisitions?
What is a key advantage of mergers and acquisitions?
What is a common disadvantage of joint ventures?
What is a common disadvantage of joint ventures?
Which of the following is NOT a feature of for-profit organizations?
Which of the following is NOT a feature of for-profit organizations?
Multinational corporations (MNCs) typically have influence in which areas?
Multinational corporations (MNCs) typically have influence in which areas?
What is the primary purpose of adopting a modular structure in an organization?
What is the primary purpose of adopting a modular structure in an organization?
Why might a business choose to remain small?
Why might a business choose to remain small?
Flashcards
For-profit organization
For-profit organization
A business aiming to generate profits for owners/shareholders.
Hierarchical structure (org)
Hierarchical structure (org)
Traditional organizational structure with clear levels of authority.
Multinational Corporation (MNC)
Multinational Corporation (MNC)
Large company operating in multiple countries.
Mergers and Acquisitions (M&As)
Mergers and Acquisitions (M&As)
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Joint Venture
Joint Venture
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Lower start-up costs
Lower start-up costs
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Functional structure
Functional structure
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Divisional structure
Divisional structure
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Small Business Advantages
Small Business Advantages
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Ethical Business Objectives
Ethical Business Objectives
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Autocratic Leadership
Autocratic Leadership
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Democratic Leadership
Democratic Leadership
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Ansoff Matrix
Ansoff Matrix
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Study Notes
For-Profit Organizations
- Purpose: Generate profit for owners/shareholders
- Key elements: Profit motive, ownership (individuals, groups, or corporations), legal structures (sole proprietorships, partnerships, corporations, LLCs), financial goals (revenue, cost reduction, ROI), risk and reward (owners balance risk and potential profit)
Organizational Structure
- Hierarchical: Clear levels of authority
- Functional: Groups employees by role/function
- Divisional: Business divided by product, region, or customer
- Matrix: Combines functional and divisional structures
- Team: Flexible roles, emphasizes teamwork
- Flatarchy: Decentralized, few management layers
- Holacracy: Self-management, authority distributed
- Network: Loose network of independent organizations
- Modular: Outsources non-core functions
Multinational Corporations (MNCs)
- Large corporations operating in multiple countries
- Significant economic and political influence
External Growth Methods
- Mergers & Acquisitions
- Advantages: Rapid growth, market share increase, access to resources.
- Disadvantages: High cost, integration challenges, potential conflict
- Application: Used to improve struggling companies' financial performance
- Evaluation: Short-term gains are seen with greater market share and revenue; long-term implications for sustainability and competitive advantage are crucial
- Joint Ventures
- Advantages: Shared risks, local knowledge, resources
- Disadvantages: Conflict potential, loss of control
- Application: Used to enter new markets or develop new products by collaborations
- Evaluation: Short-term gains in market reach and product offerings; long-term strategic partnerships drive growth
Reasons for Small Businesses
- Lower startup costs
- Greater flexibility (adaptable to change)
- Niche market focus (stronger customer relationships)
- Personal satisfaction/Autonomy
- Fewer regulations
Business Objectives (Ethical)
- Profit maximization, with ethical considerations
- Customer satisfaction (ethically produced goods and services)
- Employee welfare (positive work environment, fair practices)
- Social responsibility (reducing environmental impact, societal contribution)
- Long-term sustainability (viable business, ethical principles)
Leadership Styles
- Autocratic
- Advantages: Quick decision-making, clear direction
- Disadvantages: Low morale, limited creativity
- Application: Crisis situations, strict control needed
- Evaluation: Short-term efficiency, potential long-term decreased motivation and turnover
- Democratic
- Advantages: High morale, increased creativity
- Disadvantages: Slower decision-making, potential for conflict
- Application: Teamwork, collaboration, innovation
- Evaluation: Short-term increased employee engagement; long-term improved decision-making and problem-solving
Ansoff Matrix
- Strategic planning tool for identifying growth opportunities
- Two dimensions: Product and Market
- Market Penetration: Existing products to existing markets.
- Market Development: Existing products to new markets.
- Product Development: New products to existing markets.
- Diversification: New products to new markets.
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