Pages in this set

Page 1

Preview of page 1
Managing
a Business
BUSS 2

Malachy Smyth

Page 2

Preview of page 2
Managing a Business

Contents
Finance .................................................................................................................................................... 2 1
Using Budgets ..................................................................................................................................... 2
Improving Cash Flow ........................................................................................................................... 4
Measuring and Increasing Profit ......................................................................................................... 5
People in Business................................................................................................................................... 7
Improving Organisational Structures .................................................................................................. 7
Measuring the Effectiveness of the Workforce ................................................................................ 10
Developing an Effective Workforce: Recruitment, Selection & Training .......................................... 11…

Page 3

Preview of page 3
Managing a Business

Finance
2
Using Budgets
The Benefits & Drawbacks of Using Budgets
Benefits
Provide direction and co-ordination. They ensure spending is geared towards the aims of the
individual, and they can ensure a united approach within an organisation.
They motivate staff. The responsibility and recognition gained from meeting…

Page 4

Preview of page 4
Managing a Business

Analysing Profits Budgets
Profits below budget are likely to be a cause of concern for most businesses. These can be caused by 3
excess expenditure, by revenue falling short of expectations, or by a combination of these factors.
This scenario may prompt managers to examine means of…

Page 5

Preview of page 5
Managing a Business


Improving Cash Flow 4

Causes of Cash Flow Problems
Most cash flow problems are caused by lack of planning but there are other unforeseen factors,
which can contribute:
Overtrading ­ this occurs when a business expands rapidly without organising and setting
aside funds to finance the expansion.…

Page 6

Preview of page 6
Managing a Business


Measuring and Increasing Profit 5

Calculation & Understanding of Net Profit Margin
Profit is an important objective for many businesses and it is one way of measuring the success of a
business. When judging a businesses profit is two factors should be taken into account for:
1.…

Page 7

Preview of page 7
Managing a Business

Reduce the number of substandard products
If a business produces products which aren't of the right quality then it incurs additional costs. This is 6
because it has produced goods, which it cannot sell. These must be reworked or scrapped to make
them sellable. In either case,…

Page 8

Preview of page 8
Managing a Business

People in Business
7
Improving Organisational Structures
Key Elements of an Organisational Structure
An organisational structure is the way in which a business is arranged to carry out its activities. The
organisational structure sets out:
The routines by which communication passes through the business
Who has authority,…

Page 9

Preview of page 9
Managing a Business


Advantages of Delegation 8
- Management time is freed up
- Employees are more motivated as they have more authority
- Flexibility
- Staff development
- Local knowledge (subordinates might have a better local knowledge of local conditions)

Disadvantages of Delegation
- Customers may prefer to deal…

Page 10

Preview of page 10
Managing a Business

Team Leaders
Team leaders are similar to supervisors but they imply that a business is run in a different way. Team 9
leaders make less use of authority than supervisors and are used in a role, which supports shop-floor
workers, and help junior employees to attain the…

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »