AS Business Past Paper PDF

Business Objectives aims or targets that a business works towards Corporate social responsibility when businesses consider the int...

Business Objectives aims or targets that a business works towards Corporate social responsibility when businesses consider the interests of society by taking responsibility for the impact of their decisions and activities on customers , employees communities , and the environment Pressure Group organisations created by people with a common interest or aim , who put pressure on businesses and governments to change policies so that an objective is received Objectives of private sector businesses : 1) Profit maximisation 2) Profit satisficing 3) Growth 4) Increasing market share 5) Survival 6) Corporate Social Responsibility (CSR) 7) Maximising short-term revenue Increasing 8) shareholder value ↳ pursuing strategies to increase returns to shareholders PROFIT MAXIMISATION profits are essential for rewarding investors in business and for financing · a further growth XProfit Maximisation : 1) focus on high short term profits may encourage competitors to enter the market 2) many businesses seek to maximise sales to gain higher market share, rather than to maximise profits Profit Satisficing achieve aiming to enough profit to keep the owners satisfied XGrowth : I expansion that is too rapid can lead to cash flow problems 2) can result in a loss of focus and direction for the whole organisation Being a brand leader with the highest market share: 1) retailers will be keen to stock and promote the best selling brand 2) products can be supplied to retailers at a low discount rate Objectives of social enterprises : 1) economic /financial) 2) 3) social environmental S aka "triple bottom line" Objectives of public sector businesses : 1) to provide an efficient, reliable service to the public 2) to encourage economic and social development 3) to achieve high environmental standards 4) to meet financial targets set by the government SMART Objectives objectives that are specific , measurable, achievable , realistic and time limited S- Specific objectives should focus on what the business does and should apply directly to that business M - Measurable objectives that have quantitative value A- Achievable impossible setting objectives that are almost in the time frame given & - Realistic and Relevant realistic when compared with the resources of the company. Should be expressed in terms that are relevant to the people who have to carry out the objectives T-Time limited Important to assess whether the objective has actually been met factors that determine business objectives : 1) Business culture 2) Size and legal form of the business 3) Private sector or Public Sector 4) Number of years business has been operating 5) Ethics HIERARCHY OF OBJECTIVES will be converted into ↑ SMART Objectives Business aim long term goal that a business hopes to achieve Mission Statement a brief description of the businesses core aims , phrased in a way to motivate employees and to stimulate interest from outside groups Annual (company) report document that gives details of a companies activities over the year, including its financial accounts Business Strategy long term plan of action for a business , designed to achieve a particular objective Tactic short term action as part of an overall strategy Role of objectives in the stages of business decision making : 1) Make the strategic decision 2) Plan and implement the decision 3) Set objectives to provide focus for strategic decisions How objectives might change over time : 1) The competitive and economic environment might change 2) Short term objective of growth in sales or market share might be adapted to a longer term objective of maximising profits from the higher level of sales Target short term goal that must be reached before an Overall objective can be achieved Budget detailed financial plan for the future Communicating Objectives : 1) employees and managers have a greater understanding of both individual and company-wide goals 2) employees understand the overall plan and how their individual goals fit into the companies objectives Ethical Code and a document detailing a companies rules guidelines behaviour that must be followed all on staff by employees XFollowing a strict ethical code in decision-making in the short term : 1) can add to business costs 2) not taking bribes to secure business contracts means failing to secure significant sales 3) limiting the advertising of toys to just adults , so that children do not pester them to buy result in , may lost sales VActing ethically 1) avoiding potentially expensive : court cases can reduce the cost of fines 2) ethical businesses are more likely to be awarded government contracts 3) ethical policies can lead to good publicity and increased sales Stakeholders individuals or groups who can be affected by , and have an interest in any action taken by an organisation External Stakeholders individuals or groups who are separate from business but affected the are by or interested in its operations Internal Stakeholders individuals or groups who work within the business, or own it and are affected by the operations of the business Main stakeholders of a business : 1) Owners 2) Customers 3) Suppliers 4) Employees 5) Local Communities 6 Government and government agencies 7) Special Interest groups 8) Lenders Stakeholders roles , rights and responsibilities : 1) Customers ↳ Roles : to purchase goods and services - to provide revenue from sales Rights : - to receive goods and service that meet local laws regarding health and safety - to be offered replacements repairs or , compensation in the event of failure of the product or service > Responsibilities : - to be honest - not to steal 2) Suppliers > Roles : - to supply goods and services to allow the business to offer its products to its own customers > Rights : - to be paid on time as stated in the service agreement between the business and suppliers to be treated and not be fairly exploited - by the customer business > Responsibilities : to supply goods and services ordered by the business in the time and condition laid down by the purchase contractor suppliers service agreements 3) Employees > Roles : - to provide manual and other labour services to the business > Rights : - to be offered employment contracts that meet legal standards to be treated and in the paid ways - described in the employment contract > Responsibilities : - to be honest - to observe the ethical code of conduct 4) Local Community < Roles : - to provide the labour services required by the business > Rights : - to be consulted about major changes that affect it > Responsibilities : - to cooperate with the business , where reasonable to do so, on expansion and other plans ↓ 5) Local government > Roles : - to provide local services and infrastructure to the business to allow it to operate , produce and sell within legal limits Rights : not to have the communities lives badly affected by the businesses activities > Responsibilities : - to meet reasonable requests from the business for local service such as public transport for employees and waste disposal 6) Government < Roles : - to pass laws that restrain many aspects of business activity to provide law and order and economic - Stability to allow business activity to take place < Rights : - to expect the business to meet all legal constraints > Responsibilities : totreat business equally under the law to prevent unfair competition - that could damage chances of business survival 7) Lenders Roles : - to provide finance to the business in different form > Rights : - to be repaid on the agreed date - to be paid finance charges Responsibility : to provide the agreed amount of finance 8) Managers < Roles : - to control , command and direct resources > Rights : - to have contract of employment ; to have sufficient authority to fulfill roles Responsibility : - to report to stakeholders; to act legally and ethically 9) Owners/Shareholders > Roles : - to provide finance > Rights : - to receive accurate reports on business performance > Responsibility: - to set targets for managers ; give managers adequate time and resources to meet targets Trade Unions an organisation of working people with objectives of improving the pay and working conditions of its members and providing them with support and legal services Stakeholder Concepts the view that businesses and their managers have responsibilities to a wider range of not just groups shareholders Impact of business decisions on stakeholders and their reactions : => I ↓ Business accountability to stakeholders and how stakeholder aims impact business decision: 1) Responsibilities to customer= quality design · durability · consumer protection · 2) Responsibilities to supplier- - quality supplies are on time · prompt payments · supplier loyalty · credit terms · 3) Responsibilities to employees -- provide training job security · paying rates · employee loyalty · · low labour turnover 4) Responsibilities to local community- · secure employment of local use suppliers to · generate more income keeping environmental · effects to a minimum 5) Responsibilities to government - business should meet legal responsibilities taxes on time · pay Accepting responsibilities to : government I developing good relations with government 2) more likely to receive valuable government contracts Conflicts arising from different stakeholder aims : D attempts to meet obligations to other stakeholders will conflict with the businesses legal duty to its shareholders 2) any non-essential costs will reduce profit 3) Compromise is often the answer in conflicts Impact on stakeholders of changing business objectives 1) Job losses 2) Customers will have lesser choice Human Resources Management strategic approach to the effective of that management employees ↳" HRM" so they help the business gain a competitive advantage Aim of HRM : recruit capable , flexible and committed people - Focuses of HRM : 1) dismissal and redundancy of employees 2) measuring and monitoring employee performance 3) preparing employment contracts for employees 4) recruitment and selection of appropriate new employees Workforce planning forecasting the numbers of workers and the skills that will be required by the organisation to achieve its objectives Workforce audit check on the skills and qualifications of all existing workers/managers Reasons for and role of a workforce plan : 1 Human resource departments need to calculate the future employment needs of the business 2) number of employees required 3) skills of the workers required Factors affecting the number of employees required : 1) Forecast demand of a product 2) Productivity level 3) Objectives of the business 4) Changes in the law regarding workers rights 5) Labor turnover and absenteeism rate Factors affecting the skills of workers required: 1) Pace of technological change in the industry 2) need for flexibility or multi-skilled workers as businesses try to avoid excessive specialisation Labor turnover the rate at which employees are leaving the organisation · number of 1 year employees leaving in X 100 number of people employed average XHigh labor turnover : 1) costs of recruiting selecting , and training new Staff 2) difficult to establish team spirit /High labor turnover : 1) low-skilled and less productive staff who leaves could be replaced with more selected workers carefully 2) new ideas and practices brought into an organisation by new workers Recruitment and selection will be necessary when 1) the business is expanding and needs a bigger workforce 2) employees leave and need to be replaced Recruitment process of identifying the need for a new to be filled and the employee , defining the job type of person needed to fill it , and attracting Suitable candidates for the job Selection series of steps by which candidates are interviewed , tested and screened to choose the most suitable person for a vacant post Recruitment agency business that offers the services of recruiting applicants for vacant posts ↓ Recruitment and selection process includes : 1) Establishing the exact nature of the job and drawing up a job description job title · details of the tasks to be performed · · responsibilities involved conditions working · 2) Drawing a person specification analysis of the qualities, skills and qualifications that · will be looked for in suitable applicants helps in eliminating applicants who don't match · the necessary requirements Person specification detailed list of the qualities , skills , and qualifications that a successful applicant will need to have 3) Preparing a job advertisement requirements of the job and the person · reflects the specification most common way to apply is by an application form · Application form set ofquestions answered by a job applicant to give a potential employer information about the applicant, e g educational background and work. experience 4) Making a shortlist of applicants 5) Selecting between applicants ↓ Curriculum Vitae (CV) detailed document highlighting all of a persons professional and academic achievements , work experiences and awards Resume less detailed document than a CV which itemises work experience , educational background and special skills relevant to the job being applied for Reference comment from trusted person about a an applicants character or previous work performance Assessment centre place where a range of tests is used to judge job applicants on their potential ability to perform a particular role G point plan of Interviewers (Selecting between the applicants) : 1) Achievements C) Intelligence 3) Skills 4) Interests 5) Personal matter 6) Personal circumstances Internal recruitment when businesses aims to fill a vacancy from within its existing workforce External recruitement When business aims to fill a a vacancy with a suitable applicant from outside the business VInternal recruitment I) : applicants may already be known to the selection team 2) quicker than external recruitment External recruitment : 1) wider choice of potential applicants, not just limited to internal staff 2) avoids resentment sometimes felt by existing staff if one of their colleagues is promoted above them Employment contracts legal document that sets out terms and conditions governing a workers job Typical employment contract will contain : 1) Employees main responsibilities and the main tasks to be undertaken 2) Whether the contract is permanent or temporary 3) Holiday entitlement and other benefits such as pensions 4) Number of days' notice that must be given by the worker or the employer Redundancy when a job is no longer required , the employee doing the job becomes unnecessary through no fault of his own Dismissal being dismissed or fired from a job due to incompetence or breach of discipline Unfair dismissal employment contract for ending a workers a reason that the law regards as being unfair - · - To show that a dismissal is fair , employers need to be able to is true to show that one of the following the employee : 1) inability to do the job even after training has been given 2) continuous negative attitude at work 3) bullying other employees Some reasons for dismissal that can be considered unfair breach of employment law : 1) Pregnancy 2) Discriminatory reason ↳ race , religion gender , of a worker 3) Being a member of a union  Employee Morale overall outlook , attitude and level of Satisfaction of employees when at work Employee Welfare employees health , safety , and level of morale when at work ~ · # Worklife balance situation in which employees are able to allocate the right amount of time and effort to work and to their personal life out of work Methods used by some businesses to allow employees to have more of their lives control working : 1) Flexible working 2) Teleworking 3) Job sharing 4) Sabbatical periods Teleworking working from home for some of the working week Job sharing allows 2 people full-time vacancy to fill one although each worker will only receive a proportion of the full time pay Sabbatical periods an extended period of leave from work to 12 months up Equality policy practices and processes aimed at achieving a fair organisation where everyone is treated in the same way without prejudice and has fulfill their potential the opportunity to Diversity policy practices and processes aimed at creating a mixed workforce and placing a positive value on diversity in the workplace Promoting equality in the workplace impacts on business by : 1) Creating an environment with high employee morale and motivation 2) developing good reputation and the ability to recruit top talent based on fairness 3) promoting diverse language skills allows , the business to sell products internationally Training work related education to increase workforce skills and efficiency Types of training : 1) Induction 2) On the job 3) Off the job Induction training introductory training programme to familiarise new recruits with the ↓ systems used in the business and the layout of the business site On thejob training instruction at the place of work on how a job should be carried out Off the undertaken away from job training training the place of work Impact of training on a business and its employees : 1) Training can be expensive 2) Cost of NOT training are also substantial 3) Multi-skilling workers can be a great benefit to the business Multi-skilling training of employees in several skills to allow greater flexibility within the business yearly - Employee appraisal process of assessing the effectiveness Of an employee judged against a pre-set objectives ↓ Most employees can demonstrate intrapreneurship if they are : 1) Encouraged to be independant thinkers and creative 2) Given opportunities to mix and work with other skilled employees from different departments 3) Encouraged to start with small ideas and innovations /Cooperation between management and workforce : * D Fewer days are lost through strikes and other forms of industrial action 2) Contribution of workforce is likely to be recognised by management 3) Agreement on more efficient operations will increase the of the business competitiveness Industrial action taken the workforce measures by or trade union to put pressure on management to settle an industrial favor of dispute in employees Collective bargaining process negotiating terms of of employment between an employer and a group of workers who are usually represented by a trade union Official Trade union recognition when an employee formally agrees to conduct negotiations on pay and working conditions with ↓ a trade union rather than bargaining individually with each worker Reasons for a worker to join a trade union : 1) Unions provide legal support to employees who claim unfair dismissal or poor working conditions 2) Puts pressure on employers to ensure that all legal requirements are met V Collective Bargaining : 1) Employers can negotiate with the trade union officer rather than with individual workers 2) Union officials can provide a use ful channel of communication with the workers Trade Union leaders can use several forms of industrial action during a dispute with employers over improvements in and conditions pay : 1) Continue collective bargaining 2) Go slow 3) Overtime bans 4) Strike action Employers can use various methods to try to resolve an industrial strike : 1) Negotiations 2) Threats of redundancies 3) Changes of contract 4)Closure of the business