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decisions. -Eq. Competitors actions, such as cheaper prices or better quality products SWOT Analysis can build strengths Didentify and eliminate + Opportunities can be exploited • time taken to evaluare so decisions made • Advantages o •Disadvantages / • time consuming. - Slows down - • factors affecting Quality decisions/ + Human resources weaknesses no decision making Technology → no quarantee. correct + info could quickly be outdated. Dngid Structure. stifies creativity - - Spreadsheets on a ar decision is made - Staff resistance to change rash The training, experience managers to make good decisions 22 and ability of can improve the accuracy q calculations using formulae I'what it' emails can be used. to communicate decisions quickly to employees. + Other factors - lack of opportunity for consultation may mean decisions are poor | badly received by staff Can restrict the time taken or that time constraints to decide a courire of action 23 on implement a final decision - the quality of the information available be may poor Role of managers 0 C 9 Plan • Looking ahead, seeing potential opportunities. or problems, setting targets | strategies 9 Organise + management employees that to makes sure •Command achieve set targets. all must set need to • Co-ordinates/ resources of the organisation are in the right place at the right time in the right quantities. • managers should + management. resources out tasks for other be carried out of the should issue instructions duties to subordinates other. must bring together the 다 to achieve the business overall objectives the that all working towards the and all 24 or they have set, same aims activities filting in with each Control • managers need to ensure they are measuring and correcting the activities of the organisation • Managers look at what is being done and checks this against what was expected → Supervising and checking wond where necessary Modem day roles of managers. • Delegate + give subordinates the carry out authority to management - level tasks + this helps to lessen the managers! Workload • Motivate + give their team their work 3 0 plan 2 0 organise (1-5 [6-7] Control a reason C C Co-ordinate command to enicy (Henni fayol] (modem day roles] 25 delegate M motivate Evaluating effectiveness of Decisions • Looking at qualitative information. • ask employees for views. effective they think it is on • Looking at D quantitative information. rates sales cr profit fiqueres • Looking at employee → form of - Seeing whether G + productivity absense rates of quantitative information an there is in the number decrease employees take off and Measuring the number within the workplace. - to see whether of or not increased or decreased + primary research -> this will give their goinion how 다. 26 increase or days employees motivation the decision has this Asking customers for their opinion by carrying. out research conducting research 1st hand info from Pestec • Political Coverment Changing laws introducing new legislation -changing minimum wage - restrictions on trading hours Changing income tax and vat rates - lower tax gives consumers more disposable may increase income, so • Economic - The economy -Inflation -affects sales salaries • disposable income • price of raw materials C • High unemployment rares • makes recruitement easier people have less money to spend in business your 27 changes in exchange rates. - affects the amount of one currency that can be bought with another currency Strong £ - exports become less desirable but imports become cheaper - ксак к A exports become more attractive abroad but imports are more expensive •Social- opinions, values, beliefs. • changes in tastes and trends > -taking advantage of new opportunities. to suit changes in demand will increase sales changes in demographics the number of people living in a particular location e.q.aging population in the uk Access to new customers who were previously not accessible will increase sales but it wall can be costly to Set up new branches This has seen the rise of igney pound? of wealthier. Dan increased number. older people with disposable income • Technological E-commerce buying and selling through websites increase customers and market share allows for fast communication 28 - Automation S-selling - buying and selling through social network sites -6.q. Facebook is becoming more popular to - machines working instead of people + Tablet computers come of the use it gops to communicate de usiness • Environmental > Changes in the weather - changes in demand depending on the attractiveness of the product in not cold or weather - bald weather causes distribution problems resulting in unhappy customers. + Pressure to be environmentally friendly -business can market the fact that they and environ- are socially responsible mentally friendly (recycle) cost of recycling will reduce profits. Rivals New competitor entering the market -Competitive behaviour - &.q. reducing prices 8 • Competitive 29 L providing loyalty schemes high advertising Competitor introducing a new product. - customers have increased choices which could affect sales of an existing product develop new ideas businesses may have to +Imitation products and price wars - can have a negative impact on profits 0 Government intervention Economic policy -Fiscal policy ~ Tax rates set by govt. which affects. public spending ~Higher tax means less disposeable income - Monetary Policy D Control supply of money into the economy €.q. varying interest rares ~High interest rates lead to greater saving and less spending • Competition Policy Aims to reduce companies in 30 the power of ilfew a market - Ctives customers more choice and reduces prices Govt can prevent companies from no price fixing. ~D paying suppliers poony no merging • Asda i Sainsbouris (2019) *Internal factors. •Things within an organisation that have an the success of an organisation Organisation are able to control these factors impact an P G •Information • good info (market research) helps a business meet their customers' needs and make more informed decisions 31 Finance * without finance they can't purchase raw materials or introduce new products expand, develop new tech + if production has to stop, orders would be delayed cancelled and customers would be unhappy → could lead to delayenna, downsizing to cut • HR Management experience and enterprise. -good management motivates staff to be More productive - lack of experience is kills lead to poor decision making. Employee skills / experience - having skills lexperience of doing a job should result in a good standard o high quality of work Training -well trained employees efficient ~ motivated ~ productive poor staff are make mistakes management of there Technology could be a are DE-commerce - Global -Apps risk taking reluctance to take risks, or conversely, taking too much. risk and causing the org. problems a hinderance as they or give poor customer service + more: Machinery -out of date machinery makes production process in effective 32 -could break down, affecting production, or causing fault to the practucts being made - high tech machinery could be expensive 2417 market - create a digital presence keeping customers up to date and providing an interactive forum. Email - improves speed of communication preserves environment use of paper by saving on the •Corporate Culture -> values, believes and customs people in an organisation →→ + Company values shared by set by founder of the organisation developed through sharing clear vision and aims with staff - Ex: Clear CSR + Design of stores, logos and uniforms (corporate identity] - used to enforce the corporate identity. of the organisation. -E.q. Easyjet's use of orange corporate colour as their + Office Layout -open-plan layout encourage relaxed atmosphere where communication and team work is easy - including social areas can also help. - E.q. touchdown areas, & reading pods → Policies and procedures -These lay down the corporate expectations and behaviour expected will have an impact on the corporate culture • Advantages of Strong corporate culture -Staff are more loyal Staff turnover decreases ~ staff absense rates are laver - image and identity improves and sharendders dearly see this 1 consistancy across the organisation Staff can move between branches if needed 34 attract high quality staff • Problems with developing corporate culture. -hard to introduce unless firmly established by founders - Staff may resist any chances being made to the organisation - if the culture. established is too laid back, management may lose focus and control changes and attempt to - staff may see 'bribe' them *Organisational Structure C Factors affecting structure. o size -as an 6 narder Structure →→Product organisation to is needed -having a structure Market customers means. control ・if market Small number grows, it becames So is small and local entrepreneurial structure would be used Staff knowledge and skills if nighly skilled - Structure Tall CHierarchical] - many levels of management. - more chance of promotion - long chain of command - Communication I decision making is slow a of large flat or matrix • narrow span of control. -managers know their Workers well more formal skilled then a less formal can exist BOD managing directors heads of dept assistant dephead of Supervisors Workers - Advantages D -specilisation can occur - Staff know their role and who they report to - managers support their staff well - more promotional opportunities is motivational Disadvantages - Communication and decision making is slow. Dhas to go through all levels & react to market changes slow to - - Manager scrutiny puts staff under pressure - less staff to share ideas Flat -o fewer layers of management - less chance of promotion. shan chain of command - communication and decision making is fast - Wide span of control BCD managing directors Hedas d departments Workers -managers have more work to do could lead to stress and → Advantages -info is communicated quickly between levels - respond quickly to changes in market conditions. managers can delegate tasks (good for morale Staff involved in decision making empowerment Disadvantages - less chance of promotion for staff staff tumover may be nigh delegation can lead to staff being under pressure. - • managers under pressure with lots Ch their time i less time for planning decisions • Matrix Project A Manager L Shap i less time for staff Project B manager Project C manager features SP operations - Places employees project reams with all employees have responsibility Finance + the 37 of demand marketing certain skills into same level at Advantages - Teams made up of specialised staff Increased job satisfaction - Complex problems can be saved •Entrepreneurial Disadvantages - More managers (across teams) lead higher wage cost - Duplication of resources. Staff can be confused on who to report to. employee -employee DI decision maker -owner decisions are made quickly with little to no consultation + Only suitable for small - Advantages - Disadvantages - If owner - Heavy workload and motivation Quick decisions - Staff know who to report to - High quality decisions mode by experienced. decision maker Decision Maker Stifles creativity. Demotivating to 38 to employee organisations an decision maker is busy, decisions can't be made other staff 0 Centralised C All control lou Little delegation to - Advantages Benefit from strong leadership from. the top 1 and top management in Head Office Sub-ordinates Decisions are made with a view of Whole firm, not only specific department Top managers have more experience of making decisions bisadvantages. - less responsibility for sub actinates leads demotivation to decisions don't reflect local markets. external factors. - slow reaction to 39 decision making is done - Advantages Decentralised - All control and decision making is delegated to subordinates 1 - -belegation can increase motivation -Sub-ordinates have the 1st hand knowledge to make better decisions Decisions are mode quicker → Disadvantages -overall contra is lost if everyone operates differently. -add- training required for middle managers to make decisions - local branches may begin to compete with each other • Changes in org. Structuring. 0 - De-layering - reducing staff revels by removing layers of management - tall to flat - Advantages Limproved communication quicker decisions Tempowerment to staff - Disadvantages Staff redundancies fewer chances of - Downsizing - removes certain areas of the business through closing it down or merging promotion divisions together - could lead to outsourcing. Advantages Disadvantages cut costs and increase profits empower remaining staff I became more efficient and competitive 40 LLOse valuable skills i Lose valuable experience. Clower Staff morale. + Empowerment -giving responsibility to staff over their own work and decision making -dren occurs after downsizing or delayering took place - Advantages Chigher motivation and productivity Lenhanced promotional chances I greater skills being developed. - Disadvantages SURRY not all staff want to be empowered i managers may not be willing to give up power ( costly to train staff с *Stakeholders • people who have an interest or influence in the business and the way it is nun. 40 Intemal Stakeholders Downers -Want profit to receive a return on their investment O - can choose to invest more monell - can make Important decisions. 42 managers may be given bonuses, pay rises or on the organisations promotions based performance - can make decisions • employees -want job security and perhaps a pay hise - can affect the standard of work action can take industrial Extemal stakeholders - Customers -demand a quality product or service and value for money - can take their custom elsewhere - can spread good/bad word to others Suppliers -want continued business and paid dolot - can change prices -can adjust the quality of supplies - can change account terms - banks 43 -want repayment of loans to be paid - companies pay interest which give the bank money — - Local community provided with jobs and services, without they lose jobs and convinience - without community they lose workers. and customers Government -help economy and set licences and fees -Set tax/interest rates. -creates legislation. •Interdependence. why a Stakeholder needs another - and conflict ţ Downers 44 +Owners/managers and employees Owners need employees to carry out tasks and employees need owners to pay wages owners need empicypes to be as productive as they can and employees need owners to provide the necessary training the dissagreements that can occur between different stakeholders - - owners want to pay as low wages as possible to improve profits but employees want high wages to work more -owners want employees as hours employees want to work as possible few hours and customers anners need customers + to buy profits and be loyal to increase market share need owners to Bengroques customers want rewards. provide products and for loyalty le.g. discounts) -owners want to maximise profits by charging higher prices and cut casts, customers want to get the best possible senice for the lowest passible price • Employees and customers -employees need customers to buy from the org. So they get paid and customers need employees to provide them with good customer service DOwners and suppliers cuners решна suppliers tо products on time and suppliers to spend as - employees want customers much as possible to increase their commision at customers want as much as pessible discounts. -- owners want supplies for the price passible and pay but provide quality at a suitable price owners' repeat orders. to prevent cash flow problems. need - 3 and to be 45 Suppliers want -D Owners and banks - Owners need banks a long time. lowest max profits paid a quickly as possible. to provide them with affordable loans and banks need owners. wand make repayments in time owners want interest rates on loans to be as low as possible whereas banks wants to make as much profit as possible by charging higher interest rates Downers and government ∙owners need the govt. to have low tax rates and provide grants and the govt. needs owners to provide jobs and generate local communities and unused piecies of land 46 -owners want low tax rates to maximise profits but the govt. Wants taxes to invest in the country leq. NHS) owners want to dominate the mancet but govt. wants competition to encourage lower prices for customers. -D Claners and local community -owners need local communities to support their business and the local communities want I needs the owners to provide idos to decrease unemployment Owners want to keep costs low to maximise profit but local communities Want businesses to invest in community projects.