Introduction to B&M, Types of Organisations, Organisation Objectives, Stakeholders Flashcards Preview

IB Business and Management - 2016 Syllabus > Introduction to B&M, Types of Organisations, Organisation Objectives, Stakeholders > Flashcards

Flashcards in Introduction to B&M, Types of Organisations, Organisation Objectives, Stakeholders Deck (18)
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role of:

operation management

marketing department

finance and accounts department

HR department

operation management: manufacturing of product, delivery. and execution of service

marketing department:  developing customer interest and awareness and monitoring performance

finance and accounts department: manage and report economic sustainability

HR department: organising employees to achieve objectives and determine appropriate culture


enterpreneurship vs. intrapreneurship


  • uses skills to create business
  • has freedom
  • has less resources


  • uses skills to innovate for someone's else business
  • needs to ask managers
  • has more resources


reasons for setting up a business

  1. becoming artistically and financialy independent
  2. persue a passion
  3. increased control over their future
  4. satisfying a market opportunity
  5. self-discovery by trying something new 


problems of start-ups

  • lack of finance
  • lack ability to prepare and monitor financial accounts, marketing, etc.
  • incorrect pricing
  • bias, inaccurate market research


elements of a business plan

  • aim
  • existing and potential competition
  • amount of funding, with a time line
  • finance that is needed under different scenarios of external factors
  • time line of implementation and action
  • marketing plan with sales forecast
  • projected revenue and profit; cash flow


key features of different types of business


private vs. public sectors

The private sector focuses solely on profit maximisation

The public sector tries to provide a service to consumers whatever the cost


factors affecting which type of organisation is appropriate

  • the objectives in terms of growth, profit, vision and mission
  • the degree of control
  • the degree of transparency (public vs. private)
  • competing either in national or global markets
  • speed and degree of flexibility in decision-making


definition of co-operative

an organisation that is owned by the people who use it, and managed for their best interests


mission vs. vision statement

mission statement: the reason of existence

vision statement: where the company sees itself in the future


benefits of mission and vision statements

  • gives purpose to stakeholders (motivation)
  • clear goal


typicall business objectives

objective: a step to help achieve the aim (their vision)


  • surivial or break-even
  • cost minimisation
  • growth
  • profit maximisation


definitio of CSR

a continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the local community


quadruple bottom line

environmental, econiomic, cultural and spiritual impacts of business activity


limitations of CSR and enviromental audits

they take up valuable time and resources, adding to the reporting and administrative burden of businesses, especially start-ups

this could force them to increase prices to consumers to recoup these epxenses

HOWEVER, lets no forget the true cost of damanging the enviromental and social structures, which can be minimised by taking up some of their "valuable" time to do something ethcial...


SWOT analysis

useful when planning strategic aims

Tesla Motors


good hardcore engineering


very expensive expansion plants to ramp the the production


decrease price of the cars with increased economies of scale and vertical intergration


oil lobbying, not receiving goverment subsidies, competition


Ansoff matrix for different growth strategies

market penetration -- aiming to increase market share, least risky

market development -- targeting existing products into new markets (e.g. new geographics), risky

product development -- developing new products to existing markets (good when strong brand loyalty), risky

diversification -- new product and new market, most risky


examples of external and internal stakeholders

a person, group or system affected by organisation's activity


  • employees 
  • shareholders
  • CEO


  • suppliers
  • customers
  • competitors
  • local goverment