Dedication / About The Author... v Author s acknowledgements...vi About This Book... vii

Transcription

1 Contents viii Dedication / About The Author v Author s acknowledgements...vi About This Book... vii 1.1 Introduction to business management 1 The role of businesses... 1 Business sectors... 3 The role of entrepreneurship and intrapreneurship... 6 Reasons for starting up a business... 7 Steps in the process of starting up a business... 8 Problems that a new business may face The elements of a business plan Introduction to Business Management and the CUEGIS concepts Types of organizations 15 The private and public sectors Profit-based organizations For-profit social enterprises Non-profit social enterprises Types of organizations and the CUEGIS concepts Organizational objectives 31 Vision statements and mission statements Aims, objectives, strategies and tactics The need for changing objectives Ethical objectives SWOT analysis The Ansoff matrix Organizational objectives and the CUEGIS concepts Stakeholders 51 Internal stakeholders External stakeholders Stakeholder conflict Mutual benefits of stakeholders interests Stakeholders and the CUEGIS concepts External environment 61 STEEPLE analysis Social opportunites and threats Technological opportunities and threats Economic opportunities and threats Environmental opportunities and threats Political opportunities and threats Legal opportunities and threats Ethical opportunities and threats The external environment and the CUEGIS concepts... 76

2 1.6 Growth and evolution 79 Economies and diseconomies of scale Small versus large organizations Internal (organic) growth External (inorganic) growth External growth methods The role and impact of globalization The growth of multinational companies The impact of MNCs on the host countries Growth and evolution and the CUEGIS concepts Organizational planning tools 105 Fishbone diagram Decision trees Force field analysis Gantt charts Organizational planning tools and the CUEGIS concepts Functions and evolution of human resource management 117 Human resource planning Labour turnover Internal and external factors that influence human resource planning Recruitment and selection Training Appraisal Dismissal and redundancies Changing employment patterns and practices Outsourcing, offshoring and re shoring Human resource planning and the CUEGIS concepts Organizational structure 151 Organizational structure Levels of hierarchy Bureaucracy Centralization and decentralization Organizational charts Project-based organization Handy s Shamrock organization Impact of culture and ICT on communication in organizations Organizational structure and the CUEGIS concepts Leadership and management 173 Key functions of management The difference between management and leadership Management versus leadership. AO Leadership styles Leadership, management and the CUEGIS concepts Motivation 183 Motivation ix

3 Motivation theories Financial rewards Non-financial rewards Motivation and the CUEGIS concepts Organizational (corporate) culture 205 Organizational culture Elements of organizational culture Types of organizational culture Cultural clashes within organizations Individuals and organizational culture Organizational culture and the CUEGIS concepts Employer and employee relations 219 Employee and employer representatives Industrial/employee relations methods used by employees Industrial/employee relations methods used by employers Conflict Conflict resolution Resistance to change Industrial/employee relations and the CUEGIS concepts Sources of finance 233 The role of finance for business Internal sources of finance External sources of finance Short-, medium- and long-term finance Sources of finance and the CUEGIS concepts Costs and revenues 245 Types of cost Revenue Costs, revenues and the CUEGIS concepts Break-even analysis 255 Contribution Break-even analysis Changes in break-even Benefits and limitations of break-even analysis Break-even analysis and the CUEGIS concepts Final accounts 269 The purpose of final accounts The principles and ethics of accounting practice The profit and loss account The balance sheet Intangible assets Depreciation [Higher Level] Final accounts and the CUEGIS concepts x

4 3.5 Profitability and liquidity ratio analysis 291 Ratio analysis The purpose of ratio analysis Profitability and efficiency ratios Liquidity ratios Uses and limitations of ratio analysis Profitability and liquidity ratios and the CUEGIS concepts Efficiency ratio analysis 303 Efficiency ratios Efficiency ratios and the CUEGIS concepts Cash flow 311 The difference between cash and profit The working capital cycle Cash flow forecasts Investment, profit and cash flow Strategies to deal with cash flow problems Cash flow and the CUEGIS concepts Investment appraisal 327 Payback period Average rate of return (ARR) Net present value [Higher level] Investment appraisal and the CUEGIS concepts Budgets 339 The importance of budgets Cost and profit centres Variance analysis Budgets and the CUEGIS concepts The role of marketing 351 Definition and nature of marketing Marketing goods and services Market and product orientation Commercial marketing and social marketing The market Market share Marketing objectives Marketing strategies and changes in customer preferences The role of marketing and the CUEGIS concepts Marketing planning 371 Elements of a marketing plan The 4 Ps of the marketing mix The marketing mix and marketing objectives Target markets and market segments Targeting, segmentation and consumer profiles Niche and mass markets xi

5 Position (perception) maps Unique selling point (USP) Differentiation Sales forecasting 395 Sales, trends and forecasting Benefits of sales forecasting Limitations of sales forecasting Sales forecasting and the CUEGIS concepts Market research 405 The role of market research Primary market research Secondary research Ethical considerations of market research Qualitative and quantitative market research Sampling methods Results from data collection Market research and the CUEGIS concepts The four Ps (product, price, promotion, place) 425 Product in the marketing mix Product life cycle Extension strategies and the product life cycle Boston Consulting Group (BCG) matrix Branding Aspects of branding Packaging Product and the CUEGIS concepts Price Promotion Above the line promotion Below the line promotion Promotional mix Technology and promotion Social media marketing Guerrilla marketing Promotion and the CUEGIS concepts Place (distribution) Channels of distribution Place and the CUEGIS concepts The extended marketing mix 481 The marketing of services People Processes Physical evidence The extended marketing mix and the CUEGIS concepts xii

6 4.7 International marketing 487 Entry into international markets Opportunities and threats of international marketing The implications of international marketing Cultural differences in international marketing Globalization and international marketing International marketing and the CUEGIS concepts E-commerce 501 Features of e-commerce E-commerce and the marketing mix Types of e-commerce The benefits of e-commerce The costs of e-commerce E-commerce and the CUEGIS concepts The role of operations management 515 Operations management and business functions Operations management and the provision of goods and services Operations management strategies and practices The role of operations management and the CUEGIS concepts Production methods 523 Job production Batch production Mass production Flow production Cellular manufacturing The appropriateness of different production methods The role of production methods and the CUEGIS concepts Lean production and quality management 533 Features of lean production Methods of lean production Cradle to cradle design and manufacturing Methods of managing quality Lean production, quality management and the CUEGIS concepts Location 551 Factors affecting location decisions Reorganizing production Location and the CUEGIS concepts Production planning 565 The supply chain process Just in time (JIT) and Just in case (JIC) Stock control Capacity utilization Productivity Cost to buy (CTB) and Cost to make (CTM) xiii

7 Production planning and CUEGIS concepts Research and development 585 Research and development (R&D) R&D and customers unmet needs Types of innovation Adaptive creativity and innovative creativity Research & development and the CUEGIS concepts Crisis management and contingency planning 597 Crisis management Factors affecting effective crisis management The advantages and disadvantages of contingency planning Crisis management, contingency planning and the CUEGIS concepts Concept-based learning: Introducing the CUEGIS concepts 609 What is concept-based learning? Concept-based learning in Business Management Concept-based learning Give it a go Further resources to help teachers Final thoughts on CBL and Business Management Internal assessment 623 Top tips for the Internal Assessment [HL] Top tips for the Internal Assessment [SL] Top tips from students [HL and SL] Theory of knowledge 629 The aim of Theory of knowledge What is TOK about? How do you know what you know? TOK and Business Management Extended Essay 635 The Extended Essay (EE) Final top tips for writing a good Extended Essay Exam technique 641 Command words Tackling the exam papers Top tips for improving evaluation in Business Management Evaluation frameworks Top five exam preparation tips Revision and Study Tips Final message from the author Index 654 xiv