UNIT 1

1. The functions of management.

 Planning:
 Set objectives
 Develop strategies, plans and tactics  achieve the objectives
 Allocating resources of people and money
 Organizing
 Analyse and classify the activities of organization and their relations
 Divide work  manageable activities  individual tasks
 Select people to perform these tasks
 Intergrating: Practice social skills  motivation & communication
 Communicate the objectives to people who responsible for those objectives
 Make these people form team
 Make decisions  pay and promotion
 Supervising subordinates’ work
 Work with people in other areas/functions
 Measuring performance
 Check if the objectives or targets are being achieved
 Developing people: Both their subordinates and themselves
 UNIT 2
Theory X Theory Y
Type of Factory workers Skilled professionals
people
Worker’s People who are lazy and will avoid People have a psychological need to
characteris work and responsibility if they can work, creative, ambitious, self-
tic motivated
Motivators Lower order needs: job security, Higher order needs: esteem
monetary incentives like pay ( achievement, status & responsibility)
rise/bonuses and self actualization (personal
growth, fulfilment) under right
conditions
Mananging Closely supervise and control Self-direction & self-control

1. According to theory X, why do employees have to be closely controlled?

 Because they’re lazy and try to avoid work and responsibility
2. According to theory Y, why should employers give their workers
responsibilities?
 Because a responsible job is necessary to people’s psychological well-being
3. Why did Maslow criticize theory Y?
 Because there are people who are unable to take on responsibility and be self-
disciplined
 UNIT 3
Chain of command Functional structure Matrix management
(line structure)
Definiti One person or a group Organize a company into People report to more than
on of people at the top different departments one leaders
and an increasing based on areas of
number of people expertise…
below them at
successive level
Pros • Role of each • Employees have a high • Good communication 
individual  clear and level of departmental members of the team.
well-defined. loyalty and pride • Cut across traditional
• Motivates • Encourages employees boundaries between
employees clear  specialists departments in a hierarchy.
career paths, chances  increase efficiency • Less chance of people
for promotion and productivity. focusing on just what is good
• Gives employee  • Departments  led by for their department as the
specialty managers who are aim is
• Creates camaraderie specialists in the to focus on the project and the
 employees at same business as a whole.
functional area.
department • Crossover of ideas  people
> specialist knowledge in
different areas
 more successful and
innovative solutions.
Cons • Slow down • Vertical structure • Less direct control from
innovation/important  Coordination between senior managers
changes  increased departments  difficult • Passing down of authority to
bureaucracy • Employees  feel more junior employees 
• Make lower-level remote from senior difficult for senior managers to
employees feel like management  accept.
they have less Communication flows • Team members may have
ownership through the department two managers to report to.
 can’t express their heads to the top  conflict of interests.
ideas management
• Competition between
departments  not
benefit the whole
organisation.
 UNIT 4
1. Richard Lewis model of types of culture
Linear-active Multi-active Reactive
[Link] and rational, [Link], emotions, intuition, 1. Listen to and establish
try to act logically than relationships and connections other’s position, then
emotionally  imp react to it
[Link] in advance [Link], good at changing 2. Rarely interrupt
[Link] to do one thing at a plans and improvise speakers
time [Link] to do many thing at the 3. Avoid eyecontact
[Link] in respecting same time 4. Formulate approaches
rules, regulations and [Link] in social or company which suits both parties
contracts hierarchy, respect status
Universalists - Individualists Collectivists - Particularists
Not afraid of confrontation Personal relationships and Avoid confrontation, don’t
Compromise to achieve a friendship > rules and want to lose face or cause
deal regulations sb else
Britain, the USA, Germany… Southern Europe, Latin America, Asia
Africa…

2. The conflict between globalization and localization

Refers to the conflict between the forces of global integration and local autonomy.
 Globalization:
 increasing interconnectedness and interdependence among countries,
economies, and cultures.
  involves the flow of goods, services, capital, information, and ideas across
national borders.
 Localization:
 emphasizes the preservation of local customs, traditions, languages, and
identities.
1. What are the advantages and disadvantages of a multinational company
adapting its management methods to the local culture in each country in
which it operates?
 The advantage of adapting is that the company can learn a lot from different
cultures about how they manage people, how they operate, how they live their
lives, etc. These factors alone can greatly influence the company. The downside of
this is that they might get too attached to these cultures and might have
conflict using the adopted cultures from other companies in other places for
they might see it as inappropriate or ineffective
 UNIT 5

1. Why is it normal in some countries not to include photos or personal details

on a CV/resume?
  Employers might be instantly prejudiced against the way applicants look. This
could be because they do not match the employer’s stereotype of a competent
person, or because of prejudices against ethnic or relegious groups, candidates of a
certain age. (In some countries, employers want to know personal details – age,
marital status, whether the candidate has children, in other countries it is not
normal to offer this information).
2. Why might an employer want to know about candidate’s hobbies and
interests?
 Because hobbies and interests can reveal candidates’ skills and motivations
 UNIT 8
1. What do production and quality managers do?
Production managers: coordinate all people + equipment in manufacturing process  try
to ensure production runs smoothly
Quality managers: ensure the quality of products/services  try to improve it
2. What are the objectives of a production department? 7: C – Q – O – W – T –
ROA- Ch
- Produce products at minimized cost WROAT CHOCQ
- Concentrate on quality and product liabilties
- Producing the maximum volume of output
- Ultilizing the plant/workforce
- Reducing lead time
- Maximize return on assets
- Ensure flexibilities for changes
3. The process of industrial production
Preservation & collection  Data analysis  Processing  Hosting & archiving 
Review  Production
 Advantages Disadvantages
Capacit Insufficient  Long lead time  allow competitors
y capacity to enter the market
 Lead time increase  customers may
go to other supplies
Excess  Under ultilizing workforce
capacity  May be forced to produce additional,
less profitable products
 Have to reduce prices to stimulate
demand

Large facilities Production volume  Finding enough workers &

increase  Get coordinating material flows  difficult
economies of scale (the  Working environment  get worse &
average fixed cost per industrial relations could deteriorate
unit decrease)
Large Inventory  More flexible in  Costs of storage, handling,
product scheduling, insurance, depreciation, cost of
have longer lead time capital
and lower cost  Risk of obsolesence, theft,
operation through breakage…
larger production runs  Have to reduce prices to stimulate
with fewer set-ups demand
 Meet variation in
product demand
 UNIT 9
1. Different strategies for stock control and manufacturing (Pull and Push strategies)
Pull strategy: based on current demand, both production and suppliers are constantly
reacting to the actual conssumption of components, rather than planning ahead.
Push strategy: based on estimates of future demand and begins according to the
planned production lead time
Advantage & disadvantage: Satisfy current demand while holding the minimum of
inventory is financially efficient, but does not allow organizations to meet an
unexpected increase in demand. Holding a large inventory in case of increased demand
allows a business to satisfy all potential customers, but comes at a cost – cash tied
up in unsold goods.
Advantage:
 Production runs are short  manufacturers can quickly move from one product to
another
 Reduce costs by minimizing warehouse needs.
 Spend less money on raw materials (buy just enough resources to make the ordered
products and no more).
Disadvantage: Potential disruptions in the supply chain.
 If a raw-materials supplier has a breakdown  cannot deliver the goods promptly
stall the entire production line.
 A sudden unexpected order for goods  delay the delivery of finished products to end
clients.
1. Explain the balance or trade-off between customers’ needs and having local
stock or inventories?
 It is easier to satisfy customers’ needs and deliver products quickly if you have
inventory stored near the customers, but the convenience of this must be balanced
against the cost.

UNIT 12
2. Role of marketing: has to be all-pervasive
 Intergrate the costumers into the design of the product
Four main roles:
- Identifying consumer needs.
- Satisfying customer needs.
- Maintaining customer loyalty.
- Building customer relationships.
3. Pricing and distribution strategies
Market A small company that concentrates on one or more particular niches or small
nicher market segment
Market The collection, analysis and reporting of data relevant to a specific marketing
research situation
Market A part of market, a group of customers with specific needs, defined in terms
segment of geography, age, income, sex,..
Market The process of dividing a market into distinct group of buyers who have
segmentati different requirements or buying habits
on
Market Setting a high price for a new product, to make maximum revenue before
skimming competing products appear on the market

Under what circumstances would manufacturers either set prices that try to
maximize profits, or deliberately charge a low price?
 Companies with a new high-tech or high-quality product
 price-skimming strategy to make maximum revenue before competing products
appear on the market.
 Any company with anything approaching a monolopy  charge high prices
 Companies with new products  charge a low price (a market penetration strategy) 
get a large market share before competitors appear on the market
 1. Give examples of products for which demand is elastic, and which you would
only buy if the price went down?
 Luxury goods are often considered examples of elastic demand because they are not
essential items people need to survive. Examples of luxury goods include high-end
clothing, jewellery, and designer handbags
 Gasoline: When the price of gasoline increases, people may choose to carpool or take
public transit instead
2. Which products are for you not price sensitive, so that you would buy them
even if the price increased significantly Food – water – housing
Food of some kind is usually necessary, whatever its price. There are also high-quality
goods for which producers can charge very high prices, as there are a sufficient number of
consumers who think possessing the product gives them high status. This is called
premium pricing or prestige pricing
3. What kind of companies win price wars?
It's usually established market leaders with large amounts of cash that win price wars
and competitors with smaller market shares that lose them.
 UNIT 13
1. Different kinds of sales promotions
- Free samples
- Price reductions
- Competitions
1. What are the two functions of advertising?
 To inform (consumers about products and services), and to persuade (them to buy
them)
2. What three different methods of determining advertising spending are
mentioned
 Spending a fixed percentage of current sales revenue, spending as much as
competitors, and increasing current spending in order to increase sales
3. What ways of using the Internet to advertise are mentioned?
 Blogs, online forums, commenting on blogs and social networking sites, podcasts, viral
videos
4. The disadvantages of traditional advertising and the advantages of viral
marketing?
Traditional advertsing is expensive and doesn’t always reach the target audience. If it
doesreach the intended customers, it might be interrupting them while they’re trying to
do something else  annoy them
Viral marketing allows companies to inform and persuade consumers, quickly and at very
little cost. If people share videos,.. with their friends, the customers reaches lots of
potential consumers at no extra cost, like with word-of-mouth advertising
2. Conditions to make a successful advertising campaign
Specific
Measurable
Attainable
Relevant
Time-bound
 UNIT 23
- The level of consumption: the decisions of millions of people whether to spend their
money and borrow more, when the economic outlook is good, or spend less and save more,
when the economic outlook is bad or when interest rate increase
 Internal causes:
- Changes in demand
- Fluctuations in investments
- Macroeconomic policies
- Supply of money
 External causes:
- Wars
- Technological shocks
- Natural factors (floods, droughts…)
- Population expansion
1. Why does unemployment rise during the recession phase of the business
cycle?
Unemployment rises during the recession phase of the business cycle because the
aggregate supply is typically more than the aggregate demand so there is less of a need
for employees, and fewer goods and services are being produced. Cyclical unemployment
increases because businesses began laying off workers in the need to save money because
of low demand for their products
2. What is the difference between a recession and a depression?
A recession is when an ecoomy is on a more gradual decline while depression is when an
economy is on a steep downturn, more than a recession
 3. If a country is producing beyond its production possibilities curve, what
phase of the business cycle is it most likely experiencing?
It is likely experiencing an expansion, where unemployment is significantly decreasing and
inflation is increasing. This is typically an unsustainable period that leads the peak where
the economy starts slowly receding
4. During a downturn, to what extent should the government intervenes in the
economy by creating demand or jobs? How could it do these things?
The keynesian argument  governments can increase demand and employment by way of
fiscal or monetary policy, either by public works (building roads, schools,…) or by
decreasing taxes, lowering interest rates or increasing the money supply, so that
consumers have more money to spend
 Makes more sense to pay people to create something than to pay them
unemployment benefits to do nothing
Although governments can still make tax and spending decisions, in many countries they
no longer have control over interest rate decisions as the central bank is independent from
the government. Similarly, decisions about money supply are often made by central bank
rather than the government. The most common way of changing the money supply is by
selling short-term bonds, called treasury bills, to commercial banks, or buying them back
 UNIT 24
1. Responsibilities of businesses
- Avoid pollution
- Conform to rules
- Eliminate discrimination
- Increase profits
- Provide employment
2. Illegal acts (non-ethics business practices)
- Bribing corrupt foreign officials to win foreign orders
- Industrial espionage: spying on compertitors’ research and development
departments with hidden camera, mircrophone or bribing their employees
- Sell durable goods with built-in- obsolesence
- Try to persuade politicians to pass law favorable to a particular industry
- Telling only half the truth in advertisments
- Whistle blowing: revealing confidential information that a company is breaching
1. In what negative way do “socially responsible” actions affect stockholders,
customers and employees?
The cost of socially responsible actions has to be paid in the form of lower dividends, higher
prices, lower wages
2. According to Friedman, in what way are socially responsible actions by
businesses “undermocratic”?
Because they involve doing things that should be done by government and if a government
is not doing these things it is because the electors chose a government that did not say it
was going to do them
 3. Why is it not sufficient for a company to do things for the community?
Because if their employees, suppliers’ employees are badly treated, the company will not
get the goodwill of its own employees
 UNIT 27
1. Theory of free trade
Free trade is the unrestricted importing and exporting of goods and services between
countries.
- Comparative advantage
2. Advantages and disadvantages of free trade.
5 Advantages of Free Trade
- It stimulates economic growth
- It helps consumers: When trade restrictions are removed, consumers tend to see
lower prices because more products imported from countries with lower labor costs
become available at the local level.
- It increases foreign investment
- It reduces government spending: Governments often subsidize local industries, like
agriculture, for their loss of income due to export quotas. Once the quotas are lifted,
the government’s tax revenues can be used for other purposes.
- It encourages technology transfer: businesses gain access to the latest technologies
developed by their multinational partners.
5 Disadvantages of Free Trade
It causes job loss through outsourcing
It encourages theft of intellectual property: Without the protection of patent laws,
companies often have their innovations and new technologies stolen, forcing them to
compete with lower-priced domestically-made fake products.
It allows for poor working conditions
It can harm the environment
It reduces revenues
1. Discuss whether imposing tariffs will benefit the domestic economy?
Imposing tariffs helps to raise tax revenues for the government. This will benefit the
economy as the money can be spent on healthcare and education… Also, tariffs raise the
price of imports and so may reduce the demand for imports. Tariffs can also be used to
protect infant industries, allowing them to grow and become internationally competitive.
However, tariffs might not be effective as they simply cause other countries to retaliate
and impose their own tariffs. Also, for a country like Singapore that relies on imports, tariffs
raise the costs of imported raw material and so can cause cost-push inflation in the
economy
2. Explain the difference between international trade and free trade
International trade refers to the exchange of goods and services beyond national borders.
It entails the sale of exports and imports. Free trade means that international trade can
take place without any forms of protection, barriers to international trade, such as
quantitive limits or taxes being imposed on exports
3. Identify three methods of trade protection that a country could use.
Tariffs, quotas, subsidies for domestic firms, administrative restrictions and boycotts
4. Explain benefits of free trade
- Allows a country to specialize in what it is best at producing
- No tariffs charged or quotas imposed on exports/imports  increase international
trade and cooperation
- Increased competition  force firms to reduce costs and increase their productivity
- Access to larger global markets enables forms to take advantage of economies of
scale
- Employment opportunities from higher export sales and from multinational companies
- Firms have access to more raw materials and capital goods, which improves their
operational effiency
- Consumers have greater access to better-quality goods and services  improve their
standard of living
5. Explain disadvantages of international trade
- Domestic firms can go out of business if products from foreign firms are more
competitively priced and better quality, which can lead to domestic unemployment
- International trade may allow the import of harmful products, which adversely affects
the economy and the well-being of a country’s people
- Economic dependence on other countries. Can put the country into a vulnerable
posistion if there is a political-economic conflict
6. Reasons why countries might decide to trade with each other
- The lack of scarce resources in the domestic country,.
- It is often cheaper to import products than to produce them domestically.
- International specialization and trade can benefit consumers as there is more
competition leading to more choices and improved quality of products
- Employment opportunities can also arise from international trade and greater volumes
of output
-
- Vd: Bangladesh does not have sufficient supplies of crude oil and natural gas, whereas
Brunei Darussalam does not have a arable land needed to grow rice and tropical fruits
so they need to trade with other countries
- Vd: Sweden could grow its pineapples and bananas but it would be more economical
to purchase these from overseas countries such as Thailand, the Phillipines and India.