Unit 3 Management General Question Answer Guidelines

1.Evalute the contribution that stock and credit control make to the successful management of a business. Use examples in the answer. 20 marks 8 minutes
Control
Requires a manager makes sure the business is on target.  If the business is off target the manager must take corrective action.

·         Improves business reputation

By always having adequate stock and not going below minimum stock level the business will always have stock on hand to meet customers demands
In my opinion having stock and a good reputation is important for a business because customers will return if they know the business can satisfy their demands. 
Example: Large supermarkets like Tesco have more choice than smaller store like Costcutters.  Customers will do their shopping in these big stores.

·         Ensures cash flow in the business

By using a Just in time system in the business the business will not have cash tied up in stock.
In my opinion having cash in the business is important for the business' working capital.  Cash can also earn the business interest.
Example: Mint Cottage restaurant order stock just as they need it rather than too far in advance, in this way stock stays fesh, they don't have storage issues and their cash stays in their account as long as possible

·         Reduces business costs

By making sure debts are paid by debtors the business will avoid the cost of bad debts. 
In my opinion reducing cost such as bad debt is important in order to keep expenses down and profit up.
Example: Greyhound bins lost a lot of customers to City Bins, in order to get customers to pay money owed they send out regular invoices and reminders to encourage people to pay their bill and not to become a bad debt

·         Helps the business achieve its objectives

Good credit control will ensure the commercial business meets its objective to make a profit and not go bankrupt

 

In my opinion it is important that a business meets its objectives and makes a profit as it is so  important to the economy that business survive and do well

Example: Tell ltd ensure that they collect all money due to them promptly and this had help the success of their business.

2. Describe how stock and quality control achieve efficiences in business. 20 marks 8 minutes
Control
Requires a manager makes sure the business is on target. If the business is off target the manager must take corrective action.

· Improves business reputation

By always having adequate stock and not going below minimum stock level the business will always have stock on hand to meet customers demands

· Ensures cash flow in the business

By using a Just in time system in the business the business will not have cash tied up in stock
  
· Reduces business costs
By using quality inspectors the business will avoid wastage cost.

· Helps the business achieve its objectives
Quality circles help the business achieve its objective of Total Quality Management. Staff will give feedback if standards are not reached.
 

3. 'Controlling is the most important management activity' Do you agree with this statement. Support your answer with examples. 20 marks 8 minutes

Controlling

Requires a manager makes sure the business is on target.  If the business is off target the manager must take corrective action.

·         Reduces business costs

By controlling areas such as stock (never going above maximum stock level) the business will reduces costs such as storage and Insurance. 
By making sure debts are paid by debtors the business will avoid the cost of bad debts. 
By using quality inspectors the business will avoid wastage cost.

·         Improves business reputation

By always having adequate stock and not going below minimum stock level the business will always have stock on hand to meet customers demands
By selling goods on credit will attract trade for a business
A business that can attain quality awards such as ISO 9000 will have an excellent reputation

·         Ensures cash flow in the business

By using a Just in time system in the business the business will not have cash tied up in stock
By making sure debtors pay on time (send bill promptly, sending letters, making phone calls etc) then the business have cash to pay creditors
Quality is remembered long after price and business with good quality products will have returning custom and thus increased receipts.

·         Helps the business achieve its objectives

Good stock control will ensure the business meets its objective of customer satisfaction and to make profits as areas such as theft will be eliminated.
Good credit control will ensure the commercial business meets its objective to make a profit and not go bankrupt
Quality circles help the business achieve its objective of Total Quality Management.  Staff will give feedback if standards are not reached.

4. Evaluate the motivational theory of McGregor. 20 marks 8 minutes

Motivation : managers ensuring employees and providing them with appealing incentives.

 
·         Divides managers into 2 categories

Mc Gregor said there are 2 types of managers, Theory x manager and theory y manger.

In my opinion there are numerous types of managers.  Very importantly managers should adapt their style according to the situation.

·         Their beliefs

A theory x manager believes that his employees don’t like to work at all. 
 
Theory y manager believes that his employees enjoy working

In my opinion a manager can change an employees attitude about their job.

·         Makes presumptions about workers

Theory x managers presume workers are lazy, with no ambition and that they prefer to be told what to do.
Theory y managers presume staff have ambition and want to get on in the business.  They enjoy responsibility

In my opinion a manager should be open minded and allow staff to prove themselves rather than make presumptions about their attitude

·         Types of motivation they use

Theory x motivates with money.  He promises them more money to work harder.
Theory y motivates by offering promotions and praise.

In my opinion it is important to use a combination of financial and non financial rewards to get the most from staff

5. Describe how McGregors theory is used by managers. 10 marks 4 minutes

Motivation : managers ensuring employees and providing them with appealing incentives.

Mc Gregor: says there are 2 types of managers, Theory x manager and theory y manger.

 

·         Managers beliefs

A theory x manager believes that his employees don’t like to work at all. 

 

Theory y manager believes that his employees enjoy working

·         Managers make presumptions about workers

Theory x managers presume workers are lazy, with no ambition and that they prefer to be told what to do.

 

Theory y managers presume staff have ambition and want to get on in the business.  They enjoy responsibility

·         Types of motivation managers use

Theory x motivates with money.  He promises them more money to work harder.

 

Theory y motivates by offering promotions and praise.

6. Analyse the implications for a business of a manager adopting a theory x approach to managing. 20 marks 8 minutes
Motivation : managers ensuring employees and providing them with appealing incentives.
Mc Gregor: says there are 2 types of managers, Theory x manager and theory y manger.
 

Implications of Theory x

·         Low morale

Staff will feel worthless as he manager believes that his employees don’t like to work at all. 

 

·         Lack of interest

Workers are regarded as lazy, with no ambition and that they prefer to be told what to do.  As a result they will lose interest in the job

 

·         High absenteeism

When a manager has little regarded for employees abilities, employees will not want to go to work and will take more time off, resulting in very high absenteeism

 

·         High wage demands

Theory x motivates with money.  He promises them more money to work harder.  As result their demands for higher wages and bonuses will be continuous

7. Evaluate the motivational theory of Maslow. 20 marks 8 minutes

• Arranged needs into a hierarchy

Maslow stated that everyone starts at the bottom of the hierarchy with physiolgical need. That need is most important to a person until it is satisfied
In my opinion this provides a good insight into what drives and influences workers

• People are motived to achieve their needs

Once a need is satisfied, it no longer motivates a person.  Satisfying the next need up is what motivates them.
In my opinion we are always motivated to move up to the next level in life and work.

• People are at different stages in the hierarchy

It is important to know which need is dominating a person.  People are motivate to work harder if that need can be satisfied.
In my opinion it is very important to know how to satisfy each need.  For example social need can be satisfied with social clubs / outings

• People satisfy one need at a time

Maslow belied that we start at the bottom of the hierarchy and move up each need one at atime
In my opinion in real life we don't just satisfy one need at a time


8. Describe how Maslow's theory is used by managers. 10 marks 4 minutes

• Physiological - Provide a job with basic pay
• Safety - permanent job and a contract of employment
• Social - Organise staff outings or social evenings
• Esteem - Give staff praise and pay rise
• Self Actualisation - Empower and promote staff

9. i. Explain Maslows Theory of Motivation

Maslow stated that everyone starts at the bottom of the hierarchy with physiolgical need. That need is most important to a person until it is satisfied

ii. Illustrate how a manager could motivate workers by applying Maslows theory in the workplace. 20 marks 8 minutes

A manager can motivate staff by satisfying each need in the following ways:

 

• Physiological - Provide a job with basic pay
• Safety - permanent job and a contract of employment
• Social - Organise staff outings or social evenings
• Esteem - Give staff praise and pay rise

• Self Actualisation - Empower and promote staff

10. 'Organising is the most important management activity' Do you agree with this statement. Support your answer with examples. 20 marks 8 minutes

11. Define organising. Illustrate the importance of organising for the success of a business. 20 marks 8 minutes

Organising - Arranging all the resources of the business into the most into a suitable form to achieve the objectives.  Organising requires structure.

Yes I agree with this statement because:

 

• Allows for specialisation

o   This is when each department concentrates on the same job and therefore becomes expert at it.

The finance department work with accounts that is their day to day activity and they are experts in this

·         Accountability is shown through a chain of command

o   The director of each department is responsible for everything that goes on in it.  The staff report to the director with issues, this is the chain of command

The shareholders are at the top of the chain of command.  The CEO has the command over Directors, the directors have command over staff.

·         There is clarity for everyone involved in the business

o   Everyone knows who reports to whom and who is responsible for what jobs.  Each person in authority is clear on their span of control illustrated in the structure

The CEO has a narrow span of control with 4 directors under (they have huge responsibility and work load), the production director has a wide span of control with 12 workers (easy repetitive work).  This is clear for staff and directors to see who is in authority and who to report to .

·         Increases motivation

o   Employees will be motivated if the business organises project teams.  Employees chosen to join the project team feel special.  It satisfies their esteem needs and motivates them to work harder in the business

See extra note with diagram given in class

 

 

12. Discuss the benefits of a functional organisational structure in a business. Refer to chain of command and span of control in your answer. 20 marks 8 minutes
Organising - Arranging all the resources of the business into the most into a suitable form to achieve the objectives. Organising requires structure.

•  Allows for specialisation

o This is when each department concentrates on the same job and therefore becomes expert at it.

The finance department work with accounts that is their day to day activity and they are experts in this

· Accountability is shown through a chain of command

o The director of each department is responsible for everything that goes on in it. The staff report to the director with issues, this is the chain of command

The shareholders are at the top of the chain of command. The CEO has the command over Directors, the directors have command over staff.

 

· There is clarity for everyone involved in the business

o Everyone knows who reports to whom and who is responsible for what jobs. Each person in authority is clear on their span of control illustrated in the structure

The CEO has a narrow span of control with 4 directors under (they have huge responsibility and work load), the production director has a wide span of control with 12 workers (easy repetitive work). This is clear for staff and directors to see who is in authority and who to report to .

· Increases motivation

o Employees will be motivated if the business organises project teams. Employees chosen to join the project team feel special. It satisfies their esteem needs and motivates them to work harder in the business
See extra note with diagram given in class



13. Draft a report to the Managing Director of Limited Company to outline the barriers to effective communication and offer recommendations to overcome the barriers. 20 marks 8 minutes

 

Summary Report

Title : The barriers to effective communication

 

Prepared by: MsSmyth, Communication Consultant

 

Prepared for: Managing Director of Tell ltd

 

Terms of reference: to prepare a report on the barriers to effective communication

 

Aims: to outline the the barriers to effective communication

 

Body of report:

Main barriers include:

Language	Inappropriate language or jargon will always lead to misunderstanding
Noise	If there is a lot of background noise then the message may not be heard or misunderstood
Authority	Too many people in authority or no clear structure may cause problems with communication.  Receiver may be given different instructions from different senders and not know whose instructions to follow
Information overload	The receiver may give too much information at any one time
Lack of planning	The message will be confusing, ambiguous, unstructured and contain mistakes.  The sender will also suffer from lack of confidence

 

Conclusions:

The main barriers to effective communication are:

Language

Noise

Authority

Information overload

Lack of planning

 

Recommendations:

Language	The language must suit the audience
Noise	Convey message in a quite location
Authority	Have a clear structure of authority
Information overload	Limit information given
Lack of planning	Have message well thought out.

 

Signed: MsSmyth

Communication Consultant

14. i. Explain the term delegation.

·         Giving employees jobs

The employer must pick competent, trustworthy and responsible employees who can do the job

ii. Describe the benefits of delegation for a manager. 20 marks 8 minutes

·         Empowers employees

The employer gives the employees authority and responsibility to carry out work.  This will make the employee feel trusted and motivated

·         Avoids overwork of one person

Although ultimate responsibility will lie with the manager sharing the work load will allow the manager focus on other areas of business

• Work can be done faster

By sharing tasks a project can be complete in a much quicker time frames

15. Write a letter to the Managing Director of a company explaing the benefits of ICT to business 20 marks 8 minutes

Communications Consultant Ltd

 

Main St

Raheny

Dublin 5

28/01/2014

Managing Director

Tell Ltd

South Strand

Skerries

Co Dublin

Re: the benefits of ICT to business

Dear Mr Smyth,

I am Joan Burke of Communications Consultant Ltd.  I am writing to you to outline the benefits of ICT to business.
 

Fast

Using technology offers fast methods of communication
E-mail can be anywhere in the world in seconds
Low cost

Using technology to communicate messages will reduce a business costs

Video conference allows business to engage in face to face communication without the cost of travelling

Market Research

Business need to carry out desk research in carrying out market research.

WWW – World Wide Web allows business to research competitors, statistics etc

Efficiency

A business can gain a competitive advantage by having the most up to date technology

EDI – Electronic Data Interchange allows business control stock in a very quick and efficient manner.

I hope this information helps.  Should you have any further questions do not hesitate in contacting me.

Yours Sincereley
Joan Burke

Joan Burke

Communication Consultant

16. Draft a typical agenda for, and the minutes of, the AGM of a limited company. 25 marks 12 minutes

Notice for AGM Name of Company: Tell Ltd Date: 3/02/2014 Time: 19.00 Venue: Tell Ltd, Main Street, Raheny, Dublin 5 Agenda ·     Minutes from last meeting and matters arising    ·     Chairpersons report    ·     Auditors report  ·     Dividend declared    ·      Election of new director    ·      AOB –Any Other Business Signed____________       Mary Smyth       Secretary Minutes for AGM Name of Company: Tell Ltd Date: 3/2/2014 Time started: 19.05 Venue:Tell Ltd, Main Street, Raheny, Dublin 5 No. Of people attending: All board members, 12 shareholders Minutes · Minutes from last meeting were read and accepted and there were no matters arising · Chairpersons report included that the business is doing very well.  Profits are high and he congratulated all for their hard work.  He gave a copy of the expansion plan to be implemented over the coming months  · Auditors report included a copy of he final accounts.  He put particular emphasis on the high net profit. · Dividend declared at 25%  ·  Mr Tom Keogh stepped down from the board and was replaced by Ms Joan Hughes (elected by Fergal Whyte and seconded by George Dunne)  ·   There was No Other Business and the meeting ended at 21.15 Signed____________ Mary Smyth Secretary

 

17. Asume you are the secretary of a local youth club. Draft the notice and agenda to be posted to all members of the youth club notifying them of the AGM. 10 marks 4 minutes

Notice for AGM

Name of Club: Raheny Youth Club

Date: 3/02/2014

Time: 19.00

Venue: Youth Club, Main Street, Raheny, Dublin 5

Agenda

· Minutes from last meeting and matters arising

· Club Chairpersons report

· Club treasurer's report

· Club Subscriptions 

· Election of new board member 

· AOB –Any Other Business

Signed____________

Mary Smyth

Secretary

18. On average managers spend 75% of their time communicating. Explain the factors that ensure managers communicate effectivley. Use examples. 25 marks 12 minutes.
Communication - transferring information from one person to another.  This can be verbal, visual or written

Use appropriate Language	Inappropriate language or jargon will always lead to misunderstanding
Limit Noise levels	If there is a lot of background noise then the message may not be heard or misunderstood
Have clear Authority	Too many people in authority or no clear structure may cause problems with communication. Receiver may be given different instructions from different senders and not know whose instructions to follow
Do not have Information overload	The receiver may give too much information at any one time
Always plan ahead	The message will be confusing, ambiguous, unstructured and contain mistakes. The sender will also suffer from lack of confidence

 

19. Discuss the importance of good communications between the levels in a business organisation 20 marks 8 minutes

Communication - transferring information from one person to another. This can be verbal, visual or written

• Improves morale

By using upward communications in business (giving staff a say) will help staff feel part of the decision making process.  This will motivate them as they are involved in decisions.

• Effective decisions

When managers listen to each other and communicate with all managers from every department (horrizontal communication) then better decisions can be made for the good of all.

• Improves Industrial relations

When the board of management make decisons to make changes, it is very umportant they use clear downward communication (to staff) from an early stage.

• Gain feedback

A business organisation that encourages upward communication from staff will gain feedback from those working directly with the customer.

20. Illustrate the factors that a business needs to consider when communicating with its various stakeholders. 20 marks 8 minutes

Communication - transferring information from one person to another. This can be verbal, visual or written
 

• Confidentiality/Safety

The medium chosen must be appropriate to the message been given. If the message is sensitive

for the stakeholder , then a meeting would be more appropriate than a letter or an e-mail.

Terminating the employment contract of an employee should be done face to face
 

• Cost

The expense of the communication process is a very important factor. A CEO communicating

with his managers worldwide may choose to hold a virtual meeting to cut down on travel and
subsistence costs.

Managers in a global business (Facebook) could use video conferrence to hold monthly meetings

•  Urgency/Speed/Destination

If a crucial piece of information has to be communicated instantly then a phonecall, a text or e-mail may be appropriate

To arrange a change in delivery times because they are needed sooner from a supplier would require a phone call rather than a written order

• Keep Record

Some information in business needs to be recorded by law. In these cases written communication is required.

Communication with the revenue commissioners may require regulare correspondence and written records and in thiscase business letters and e-mail can provide formal evidence of the feedback process,eliminating misunderstandings.
21. Distinguish between the duties of a chair person and a secretary in organising and running an AGM 20 marks 8 minutes

AGM - Annual General Meeting
Chairperson

• Organising the meeting

Must make sure the quorum (minimum number necessary for the meeting ) are in attendance for the meeting to go ahead

• Running the meeting

Maintains standing order while they get all the agenda complete in the time available.  They call for votes on motions and use their casting votes in the event of ties.  Close the meeting when agenda is complete

Secretary

• Organising the meeting

They organisethe venue, facilities and equipment needed.  They send out the notice and agenda to all in plenty of time. 

• Running the meeting

Record the minutes of the meeting, this involves a summarised written record of exactly what was said and decisions made.  Detail any relevant correspondance received to those attending the meeting and deal with any corespondance arising from the meeting.  Assist the chairperson if they are having difficulties.

22. Discuss 3 styles of leadership 30 marks 12 minutes
Leaders : A good manager should be able to use all 3 types of leadership depending on the situation

Autocratic	Democratic	Laissez Faire
·         Manager makes all the decisions This type of leader gives orders and expects them to be obey without question.  The manager uses their position of authority to get employees to do what he wants.  This may be appropriate in situations when tasks need to be accomplished quickly and efficiently.	·         Manager involves employee in decisions Manager invites staff to discuss issues and takes their opinion into consideration.  The manager gets staff to go along with them by using reasoning and explaining issues.  This can result in decision making taking a long time.	·         Manager does not interfere Manager gives employees a task to do within a certain time frame and leaves it up to the employee as to how they will work to achieve that goal.  This would not work in all situations as some employees may find tasks difficult without guidance.
·         Manager often uses fear and threats Manager implements the feeling of, ‘if you don’t do as I say I will sack you’.  This can create a resentful workforce.  Workers may be unlikely to use their initiative for fear of the manager.	·         Manager uses co-operation with employees This management style results in a better employee / employer relationship.  Employees like being involved and like being listened to.  They are more likely to show intrapreneurship.	·         Manager uses co-operation with employees The manager trusts the employee and this style allows employees to work independently.  It allows employees to be creative and innovative.
Example: Army Sergeant	Example : Google	Example : Doctors

23. Outline 2 styles of leadership and illustrate how each of these styles may be appropriate in different business situations 20 marks 8 minutes
Leaders : A good manager should be able to use all 3 types of leadership depending on the situation

Autocratic	Laissez Faire
·         Manager makes all the decisions This type of leader gives orders and expects them to be obey without question.  The manager uses their position of authority to get employees to do what he wants.	·         Manager does not interfere Manager gives employees a task to do within a certain time frame and leaves it up to the employee as to how they will work to achieve that goal.  This would not work in all situations as some employees may find tasks difficult without guidance.
·         Manager often uses fear and threats Manager implements the feeling of, ‘if you don’t do as I say I will sack you’.  This can create a resentful workforce.  Workers may be unlikely to use their initiative for fear of the manager.	·         Manager uses co-operation with employees The manager trusts the employee and this style allows employees to work independently.  It allows employees to be creative and innovative.
Example: This may be appropriate in situations when tasks need to be accomplished quickly and efficiently.	Example : This may be appropriate in situations where staff are highly skilled in a particular area

24. Illustrate the importance of management skills in any one of the following areas:
Home
Local Community
Government Department
Business Start Up
20 marks 8 minutes

Management skills: leading, motivating, communicating

Business Start Up

Leading

·         Styles

A good leader can use all 3 styles of leadership; Autocratic, Democratic and Laissez Faire, depending o the situation.

In a Business Start Up the manager may need to be autocratic to start the business off and get staff focused.  The could then adopt a more democratic approach as time goes on.  Employees will not tolerate autocratic style long term.

·         Tasks

An important leadership task is delegation.  This involves a manager picking pick competent, trustworthy and responsible employees who can do tasks.

In a Business Start Up the manager will need to access employees skills and abilities before delegating tasks to them.

Motivation

·         Rewards

Staff are motivated by rewards.  A manager must identify the financial and non-financial rewards they can use to motivate their staff.

In a Business Start Up the manager might use high pay to attract employees to the business and use praise to motivate staff to stay loyal and work hard.

Communication

·         Types of communication

The 3 types of communication commonly used in business are, verbal, written and visual.  A good manager must use these efficiently with all stakeholders.

In a Business Start Up the manager could hold regular meetings with staff, they could use daily memos to remind staff of asks and visual graphs to show staff the business progress.  They would also need to communicate with suppliers, investors etc use appropriate types of communication

·         Factors to consider when communicating

A manager must consider factors such as language, time, noise, subject content when communicating in business

In a Business Start Up the manager must realise he could use industry jargon when speaking with staff but customers may not understand this.  He would also need to think of issues such as time when deciding on agendas for meetings

25. Evaluate how 2 different types of planning contribute to the success of a business or a community enterprise. Use examples in your answer. 20 marks 8 minutes

Planning – A predetermined course of action

Manpower planning – planning staff needs

·         Identify recruitment or redundancy requirements in a business

A business can identify if it has too few workers and recruit more or if it is over staffed and begin the process of redundancy (must use fair selection).

In my opinion this is important because if there are too few staff productivity will suffer and if they are overstaff it will impact on the wags expenses.

·         Identify training needs

By speaking to staff and managers a business can identify where staff need further training and plan for this.

In my opinion planning for training requirements will make sure staff have the most up to date skills

Cash Flow planning – planning receipts and payments

·         Identify when there is a surplus

This is when a business has more coming in than going out.  Main source of receipts for a business is Sales.

In my opinion it is important to plan and identify this surplus in advance so they can plan how to invest this money and earn a return

·         Identify when there is a deficit in the business

This is when a business has more going out than coming in

In my opinion it is important to plan for this so a business can organise an overdraft facility to help cover the deficit

26. i. What is meant by SWOT analysis

·         A planning tool

Used to help business identify:

Current internal strengths

Current internal weaknesses

Future external opportunities

Future external threats

ii. Conduct a SWOT analysis on a business of your choice under each heading. Include 2 points under each heading. 20 marks 8 minutes

Sweet and Dandy Raheny
Strengths ·         Friendly staff ·         Centre of the village	Weakness ·         Limit car park space on main road ·         Expensive pricing
Opportunities ·         Expand and open more shops ·         Introduce a loyalty card system	Threats ·         A second sweet shop opening in Raheny ·         Government increase the rate of VAT making sweets more expensive

27. Planning is the most important management activity.  Do you agree with this statement.  20 marks 8 minutes
Planning - a predetermined course of action.

·         Streamline Operations

Planning is important to set the Business working together to achieve common goals and objectives.  With a good plan everyone will be clear on the task to be achieved.
A strategic long term plan involves all aspects of the Business.  A strategic plan for expansion will involve all departments internal to the business and external factors; this plan will give all stakeholders focus and streamline the expansion process

·         To gain financial assistance.

In applying for an EU / Government grant, a bank loan or private investment a Business must provide a Business plan to prove they are focused and have researched all necessary areas.  Financial institute will also want evidence that they will get a return on their investment.

In applying for a bank loan the bank will want the business to provide a detailed Cash Flow Forecast of predicted receipts and payments for the months ahead.

·         Encourages staff to accept change

A good clear plan will help employees accept change.  Business should include staff in this planning process.  If staff is involved they will have a clearer understanding of the plan and will be more willing to accept it.

In preparing an operational plan, for example an Anti-Bullying policy, Business should get staff input and involvement. Staff will be clear on the importance of the policy and will be more willing to implement the policy.

·         Failing to plan is planning to fail.

A Business plan gives a business clear aims and objectives.  It can highlight present internal Strengths and Weakness and external future threats and opportunities.

A SWOT analysis is a planning tool.  A SWOT will for example help a Business identify weakness (giving too much credit) and turn them into strengths (offer credit but being paid back on time and avoiding bad debts).  It will help Business identify opportunities (expansion) that can be planned for and availed of.  Identify threats (competition) to plan for and prepare for.

·         Achieve goals

Plan can help a business achieve short term specific goals.  It will give relevant stakeholders a guide on schedules of time and required actions.
A short term tactical plan could be prepared in order to achieve a certain monthly profit figure.  This could be a plan to increase adverting thus increase sales and profits.

28. Read the following information and answer the question which follows:
EducaPrint Ltd is a business publishing schoolbooks in Ireland. John O'Leary, the production Manager, suggested introducing some of its traditional print books in eBook format. He wanted to tap into the improvements in broadband speed and the major developments in mobile devices. The ebooks were launched onto the market in 2013 to great success. EducaPrint Ltd operated a matrix organisation structure for the development of the eBook products.
Discuss the importance of the management activity 'planning' for EducaPrint 20 marks 8 minutes
Planning - a predetermined course of action.

· Streamline Operations

Planning is important to set the Business working together to achieve common goals and objectives. With a good plan everyone will be clear on the task to be achieved.
A strategic long term plan involves all aspects of the Business. A strategic plan for further development of the eBooks will involve all departments internal to EducaPrint Ltd  and external factors; this plan will give all stakeholders focus and streamline the expansion process

· To gain financial assistance.

In applying for an EU / Government grant, a bank loan or private investment a Business must provide a Business plan to prove they are focused and have researched all necessary areas. Financial institute will also want evidence that they will get a return on their investment.

In applying for a bank loan the bank will want EducaPrint Ltd  to provide a detailed Cash Flow Forecast of predicted receipts and payments for the months ahead.

· Encourages staff to accept change

A good clear plan will help employees accept change. Business should include staff in this planning process. If staff is involved they will have a clearer understanding of the plan and will be more willing to accept it.

In preparing an operational plan, for example the Matrix Structure implementation, EducaPrint Ltd  should get staff input and involvement. Staff will be clear on the importance of the policy and will be more willing to implement the policy.

· Failing to plan is planning to fail.

A Business plan gives a business clear aims and objectives. It can highlight present internal Strengths and Weakness and external future threats and opportunities.

A SWOT analysis is a planning tool. A SWOT will for example help EducaPrint Ltd  identify weakness (giving too much credit) and turn them into strengths (offer credit but being paid back on time and avoiding bad debts). It will help EducaPrint Ltd  identify opportunities (expansion) that can be planned for and availed of. Identify threats (competition) to plan for and prepare for.

· Achieve goals

Plan can help a business achieve short term specific goals. It will give relevant stakeholders a guide on schedules of time and required actions.
A short term tactical plan could be prepared in order to achieve a certain monthly profit figure for EducaPrint Ltd . This could be a plan to increase adverting thus increase sales and profits.29. Outline the benefitts and challenges for EducaPrint of a matrix organisation structure for the development of the eBook products. 20 marks 8 minutes
Matrix Structure - an organisation structure that involves teamwork
Benefits

• Allows for specialisation

Creating a team allows staff work in areas they are most skilled in.  They can focus on their area of expertise and the team will benefit from this

In creating eBooks the marketing department can focus on the promotion of the book

• Improves staff morale

Staff will be motivated to work for the benefits of the team.  They will encourage and assist each othe during he project.

The various departments in EducaPrint Ltd will work together and help each other.  Staff will work to the best of their ability not to let others down
Challenges

• One department may try to dominate

In teamwork staff can become cotrolling and take over a task.  This leads to work overload on individuals

In EducaPrint Ltd John OLeary would need to be willing to delegate to other staff.  This will avoid him getting overworked / stressed

• May cause conflict

Competitive relationships arise in business when 2 parties do not get along.  Teamwork opens up communication and can result in disagreements.

EducaPrint Ltd should have regular meetings with staff / teams to avoid this

30. Outline under the Data Protection Act 1988:
i. The rights of the data subject 20 marks 8 minutes
Book p119
ii. The obligations of the data controller 20 marks 8 minutes
Book p119
iii. The functions of the Data Protection Commissioner 20 marks 8 minutes
Book p120
31. Contrast the role of manager and an entrepreneur 20 marks 8 minutes

• Role

Entrepreneur : come up with an innovative idea
Manager: run the business day to day

• Aims

Entrepreneur: Aims to start a commercial business and make a profit
Manager: Aims to plan, contro and organise the business

• Financial gain

Entrepreneur: Business profits
Manager: Paid a wages for work

• Skills

Entrepreneur: Risk taker, creative, time management, decision making
Manager: leading, motivating and communication