Bussiness

• The BCG matrix helps businesses analyze their product portfolio, dividing products into Stars, Question marks, Cash cows, and Dogs based on market share and growth rate
• Stars are high market share, high growth rate products; Question marks are high growth rate, low market share; Cash cows are low growth rate, high market share; Dogs are low growth rate, low market share
• Managers can use the Blake Mouton Managerial Grid to understand their leadership style based on concern for people and task, identifying styles like Impoverished, Country Club, Task, Team, and Middle of the Road Management
• Primary research methods include quantitative data collected through surveys and qualitative data collected through experiments, focus groups, individual depth interviews, human observation, and case studies
• Shareholders play a role in financing, operations, governance, and control of a business, gaining financial rewards through dividends and share value growth
• Factors affecting share price include the number of shares available, business expansion, investment decisions, publicity, e-commerce, and economic conditions like a recession
• The external business environment affects costs and demand, influenced by factors like natural disasters, interest rates, market conditions, competition, incomes, demographic factors, and environmental issues
• Managers plan, organize, and coordinate resources, while leaders decide on the firm's direction and motivate staff; management styles can be influenced by various factors
• The Blake Mouton Managerial Grid is a tool that helps managers understand their leadership style based on concern for people and concern for task

  
• Managers high in concern for people focus on creating a positive work environment, while those high in concern for task focus on getting the job done
• The grid identifies five leadership styles: Impoverished Management, Country Club Management, Task Management, Team Management, and Middle of the Road Management
• McGregor's Theory X is an authoritarian leadership approach assuming workers dislike work and need to be controlled, while Theory Y assumes workers have initiative and self-control to achieve business goals
• Leadership styles include Authoritarian, Democratic, Paternalistic, and Laissez-faire, each with different approaches to power and decision-making
• Tannenbaum-Schmidt Continuum Theory identifies leadership styles like Tells, Sells, Consults, and Joins, based on the degree of authority used by the leader and the freedom available to non-managers
• Decision making can be based on scientific methods like setting objectives, gathering information, selecting options, implementing decisions, and reviewing outcomes
• Intuition in decision making involves understanding without conscious reasoning, often used in quick decision-making scenarios or by smaller businesses
• Decision trees are structures that help in choosing between courses of action, estimating probabilities, and calculating likely outcomes to make informed decisions
• Influences on decision making include the business mission, ethics, risk, external environment, resource constraints, and stakeholder interests
• Stakeholders are individuals with an interest in the business, including customers, employees, investors, suppliers, shareholders, owners, competitors, government, local communities, environmental groups, and the media
• Stakeholder mapping considers the power and purpose of stakeholders to prioritize their needs and manage potential conflicts
• Stakeholder needs vary from employees seeking a happy environment to shareholders expecting dividends, with potential conflicts arising from differing interests
• Factors influencing stakeholder relationships include product quality, communication, status, customer service, power, and workplace environment
• The UK economy is divided into two main sectors: the private sector (sole traders, partnerships, companies, cooperatives) and the public sector (public corporations, nationalised industries, local authorities, state services)

  
• The Blake Mouton Managerial Grid helps managers understand their leadership style based on concern for people and task, identifying five styles: Impoverished, Country Club, Task, Team, Middle of the Road Management

  
• Primary research methods include surveys for quantitative data and experiments, focus groups, individual depth interviews, human observation, and case studies for qualitative data

  
• The BCG matrix helps businesses analyze their product portfolio, categorizing products into Stars, Question marks, Cash cows, and Dogs based on market share and growth rate

  
• Factors influencing marketing objectives and decisions:

  • External influences: economic environment, competitor actions, market dynamics, technological change, social and political change
  • Internal influences: corporate objectives, finance, human resources, operational issues, business culture
• Market research:

  • Primary research involves collecting original data through methods like focus groups, interviews, surveys, and product testing
  • Secondary research uses existing data from sources like government publications, newspapers, competitors, and the internet
• Sampling in marketing:

  • Random sampling gives each member of the target population an equal chance of being chosen
  • Quota/Stratified sampling reflects the types of consumers the business wants information from, like gender or age
• Interpreting marketing data:

  • Confidence intervals measure the probability that a population parameter falls between two set values
  • Extrapolation makes predictions based on present or known situations, but it can be less reliable if fluctuations occur
• Technology in marketing decision making:

  • Big Data involves collecting and analyzing large data sets to identify trends and patterns for decision-making
  • Technology enables analytics, dynamic pricing, audience reach, customer relationship management, campaign testing, and competitor analysis
• Price Elasticity of Demand (PED) measures the responsiveness of quantity demanded for a product to a change in price, calculated as percentage change in quantity demanded divided by percentage change in price
• The Blake Mouton Managerial Grid identifies five leadership styles: Impoverished Management, Country Club Management, Task Management, Team Management, Middle of the Road Management

  
• Price Elasticity of Demand (PED) measures the responsiveness of quantity demanded for a product to a change in price
• Firms use PED to predict the effect of a change in price on total revenue and expenditure, price volatility in a market following supply changes, the effect of an indirect tax on price and quantity demanded, and for price discrimination
• Values of PED:

  • If PED = 0, demand is perfectly inelastic
  • If PED is between 0 and 1, demand is inelastic
  • If PED = 1, demand is unit elastic
  • If PED > 1, demand is elastic
• Factors affecting PED include the number of close substitutes, cost of switching between products, necessity or luxury status of the good, % of consumer's income spent on the good, time period following a price change, habitual consumption, peak and off-peak demand, breadth of definition of the good or service
• Income Elasticity of Demand (YED) measures the relationship between a change in quantity demanded for a good and a change in real income
• Most products have a positive income elasticity of demand, luxury goods have YED > +1, inferior goods have negative YED
• Market Segmentation splits a market into segments to better target products, advantages include better matching of customer needs, enhanced profits, better growth opportunities, retaining more customers, targeted marketing communications