UNIT 1.

MANAGEMENT
Management: The process used to accomplish organizational goals through planning,
organizing, leading, and controlling people and other organizational resources.
Manager: An individual who is in charge of a certain group off tasks, or a certain area or
department of a business.
Chief Executive Officer: The most senior manager responsible for the overall performance and
success of a company.
Planning: A management function that includes anticipating trends and determining the best
strategies and tactics to achieve organizational goals and objectives.
Organizing: A management function that includes designing the structure of the organization
and creating conditions and systems in which everyone and everything work together to achieve
the organization’s goals and objectives.
Leading: Creating a vision for the organization and guiding, training, coaching, and motivating
others to work effectively to achieve the organization’s goals and objectives.
Controlling: A management function that involves establishing clear standards to determine
whether or not an organization is progressing toward its goals and objectives, rewarding people
for doing a good job, and taking corrective action if they are not.
What is management?
What are the main functions of management?
Differentiate a leader and a manager.

Leader Manager
Do not hold a management position Have formal title and carry out 4 functions
Have followers Have subordinates
Have ability to motivate, inspire follwership Have authority and power to hire, promote,
discipline and fire employees
Look at big picture Look at details, organisational objectives

What makes a good leader/manager?

Management and effective manager

 UNIT 2. WORK MOTIVATION
Motivation: factors that influence the behavior of workers towards achieving business goals.
Motivation can be increased by:
a. monetary rewards
b. non-monetary rewards
c. introducing ways to give job satisfaction.
Job satisfaction: The enjoyment a worker gets from feeling that they have done a good job.
There are three ways to motivate workers to be more committed to their job and work more
effectively:
Job rotation (swapping workers round and only doing a specific task for a limited time
before swapping round again).
Job enlargement (extra tasks are added to the job to make it more interesting)
Job enrichment (adding tasks that require more skill and/or responsibility)
Theory X: The average person does not like work. Workers must be constantly supervised so
they will work. Motivation is from external factors, e.g. pay schemes where the workers are
paid more for increased output.
Theory Y: The average person is motivated by internal factors. To motivate workers, you need
to find ways to help workers take an interest in their work, e.g. give rewards, incentives.
Maslow's hierarchy of needs: A theory of motivation which states that five categories of
human needs dictate an individual's behavior. Those needs are physiological needs, safety
needs, love and belonging needs, esteem needs, and self-actualization needs.
What is motivation at work?
What is job satisfaction?
What is Theory X/Theory Y?
What are implications of Theory X/Theory Y?
What are the limitations of Theory X/Theory Y?

What is Maslow's hierarchy of needs?

What are implications of Maslow's hierarchy of needs?
What are limitations of Maslow's approach?

What is Herzberg two-factor theory?

What are implications of Herzberg two-factor theory?

Motivation at work and implications for managers

 UNIT 4. MANAGING ACROSS CULTURE
Glocalization is a combination of the words "globalization" and "localization." The term is used
to describe a product or service that is developed and distributed globally but is also adjusted
to accommodate the user or consumer in a local market.
Culture is defined as the complex system of values, traits, morals, and customs shared by a
society.
Context refers to the stimuli, environment, or ambience surrounding an event.
The Lewis Model was developed by linguist and leading cross-cultural specialist Richard D.
Lewis. The model divides humans into 3 clear categories, based not on nationality or religion
but on BEHAVIOUR, namely, Linear-active, Multi-active and Reactive.
High-context culture is a culture by which the rules of communication are primarily and
dominantly transmitted through the use of contextual elements. These include specific forms
of body language, the social or familial status of an individual, and the tone of voice employed
during speech. High-context cultures usually do not have rules that are explicitly written or
stated.
Low-context culture refers to a culture whereby most communications take place through
verbal language and rules are directly written out or stated for all to view.
Power distance is the distribution of power among individuals within a culture and how well
unequal levels of power are accepted by those with less power.
What is culture in international business?
Why is culture influential in international business?
What are the major cultural factors that affect international business?

What is managing across cultures?

What are benefits of managing across cultures?

3 main dimensions of Hofstede’s model: power distance, Individualism versus collectivism,

uncertainty avoidance
What is Lewis model?

Differentiate high context and low context cultures.

Managing across cultures.

Cultural factors and implications for businesses

Impacts of culture on doing business globally.

 UNIT 6. CLASSIFICATION OF BUSINESSES
The primary sector of industry extracts and uses the natural resources of Earth to produce raw
materials used by other businesses.
The secondary sector of industry manufactures goods using the raw materials provided by the
primary sector.
The tertiary sector of industry provides services to consumers and the other sectors of industry.
A mixed economy has both a private sector and a public (state) sector.
Public sector: the sector of the economy in which organisations are owned and controlled by the
state (government)
Private sector: The sector of the economy in which organisations are owned and controlled by
individuals.
Privatisation: The sale of state-owned assets such as public corporations to the private sector.
Sole trader: a business owned and operated by one person.
Limited liability: the liability of shareholders in a company is limited to only the amount they
invested.
Unlimited liability: the owners of a business can be held responsible for the debts of the
business they own. Their liability is not limited to the investment they made in the business.
Partnership: a form of business in which two or more people agree to jointly own a business.
Shareholders: the owners of a limited company. They buy shares which represent part-
ownership of the company.
Private limited companies: businesses owned by shareholders, but they cannot sell shares to the
public.
Public limited companies: businesses owned by shareholders, but they can sell shares to the
public and their shares are tradeable on the Stock Exchange.
What are economic sectors? Briefly define each sector in the business sectors.
Types of business organisation; advantages and disadvantages of each type.
 UNIT 7. PRODUCTION
Production: the process of converting inputs such as land, labour and capital into saleable
goods, for example shoes and cell phones.
Inventories: the stock of raw materials, work-in-progress and finished goods held by a business.
Lean production: the production of goods and services with the minimum waste of resources.
Job production: the production of items one at a time.
Batch production: the production of goods in batches. Each batch passes through one stage of
production before moving onto the next stage.
Flow production: the production of very large quantities of identical goods using a
continuously moving process.
Just-in-time (JIT) is a production method that involves reducing or virtually eliminating the
need to hold inventories of raw materials or unsold inventories of the finished product.
Describe job/ batch/ flow production. Advantages and disadvantages of
each type.
What is lean production? Just-in-time?
 UNIT 10 – MARKETING
• market: the set of all actual and potential buyers of a good or service; the place where
people buy and sell; the people who trade in a particular good; to make goods available
to buyers and to encourage them to buy them
• market leader: the company with the largest market share
• market nicher: a small company that concentrates on one or more particular niches or
small market segments
• market research (GB) or marketing research (US): the collection, analysis and
reporting of data relevant to a specific marketing situation (e.g. a proposed new
product)
• market segment: part of a market; a group of customers with specific needs, defined
in terms of geography, age, sex, income, occupation, life-style, etc.
• market segmentation: the act of dividing a market into distinct groups of buyers who
have different requirements or buying habits
• market share: the sales of a company (or brand or product) expressed as a percentage
of total sales in marketing - the process of identifying and satisfying consumers' needs
and desires
• marketing channel: the set of intermediaries a company uses to get its goods to their
end users
• marketing mix: the set of all the various elements in a marketing programme, and the
way a company integrates them
• marketing strategy: a plan or principle designed to achieve marketing objectives
• product life cycle: the standard pattern of sales of a product over the period that it is
marketed

What is marketing?
What is market segment? market segmentation?
Advantages and disadvantages of market segmentation.
What is marketing mix?

What is product life cycle? Briefly describe each stage in the PLC.
What is penetration pricing/ market skimming? Briefly describe market leader/market follower/

Impacts of marketing
 UNIT 11. ADVERTISING
• Advertorial: A paid-for advertisement which includes editorial content; normally identified in
a print magazine with the word "Advertisement" printed as a head across the top of the page to
distinguish it from genuine (in theory unbiased) editorial content
• Advertising agency: The organization that takes care of advertising for clients.
• Advertising campaign: A time-limited set of ads - campaigns may run across different media,
and for one month or ten years, but can be categorized together as they are the execution of a
central idea
• Demographics: Describing an audience by age, gender, ethnicity, or location – i.e the facts
about them
• Focus Groups: Small, select groups representing a target audience who are paid to answer
questions at the behest of a market research organization
• Product Placement: The practice of paying for a branded product to be used by a character in
a movie – e.g James Bond driving a BMW Z3
• Product Positioning: Establishing the market niche of a product - which may not be as the
brand leader - and advertising to the appropriate segment of the audience
• USP: Unique Selling Proposition/Point - a highlighted benefit of a product which makes it
stand out from all rival brands.
What is advertising?

What are the primary purposes of advertising?

What are the advantages and disadvantages of advertising?

Advantages and disadvantages of advertising

 UNIT 12. BANKING
• deposit - to place money in a bank; or money placed in a bank
• liquidity - available cash, and how easily other assets can be turned into cash
• collateral- anything that acts as a security or guarantee for a loan
• A mortgage - a type of loan used to purchase or maintain a home, land, or other types of real
estate. The borrower agrees to pay the lender over time, typically in a series of regular payments
that are divided into principal and interest. The property then serves as collateral to secure the
loan.
• Overdraft- Something that occurs when you make a purchase with your debit card or write a
check for an amount that exceeds your checking account’s available balance. Many bank
accounts offer overdraft protection to help avoid overdraft fees. Some banks don’t charge
overdraft fees at all.
• A current account - an account at a bank against which checks can be drawn by the account
depositor; a checking account.
• A savings account - a deposit account that generally earns higher interest than an interest-
bearing checking account. Savings accounts limit the number of certain types of transfers or
withdrawals you can make from the account each monthly statement cycle.
• A deposit account - a bank account maintained by a financial institution in which a customer
can deposit and withdraw money.
• Solvency- When banks have enough money to cover potential losses. Banks are expected to
maintain a sufficient level of capital to remain solvent and avoid failure. The FDIC and other
federal regulators work with banks to maintain standards for solvency.
• Maturity date: This is the date of expiration for the contractual obligation of a financial
instrument. For example, certificates of deposit have a maturity date that depends on the length
of the CD term. When the CD matures, you have the option to withdraw the money. Some banks
and credit unions also allow you to roll it into a new CD or enable the CD to renew
automatically.

What is the main business of a traditional bank?

Why ís a bank a financial intermediary?

What are main functions of a bank?

What is retail of personal banking?

What are commercial banks/ investment banks? What is the main difference between a
commercial bank and investment bank?
UNIT 13. ACCOUNTING AND FINANCIAL STATEMENTS
• Cost accounting - calculating all the expenses involved in producing something, including
materials, labour, and all other expenses
• Tax accounting - calculating how much an individual or a company will have to pay to the
local and national governments (and trying to reduce this to a minimum)
• Auditing - inspecting and reporting on accounts and financial records
• Accounting - preparing financial statements showing income and expenditure, assets and
liabilities
• Managerial or management accounting - providing information that will allow a business to
make decisions, plan future operations and develop business strategies
• “creative accounting” - using all available accounting procedures and tricks to disguise the
true financial position of a company
• Bookkeeping - writing down the details of transactions (debits and credits)
• Cash flow statement - a statement giving details of money coming into and leaving the
business, divided into day-to-day operations, investing and financing
• Income statement (or Statement of income, Profit and loss statement, or Profit
and loss account) - a statement showing the difference between the revenues and expenses of a
period
• Balance sheet (or Statement of financial position) - a statement showing the value of a
business's assets, its liabilities, and its capital or shareholders' equity (money the business has
that belongs to its owners)
Differentiate gross profit and operating profit.

Differentiate COGS and operating expenses.

Differentiate accrued expense and prepaid expense

UNIT 14. THE BUSINESS CYCLE

• Business cycle model: a model showing the increases and decreases in a nation’s real GDP
over time; this model typically demonstrates an increase in real GDP over the long run,
combined with short-run fluctuations in output.
• Expansion: the phase of the business cycle during which output is increasing
• Recession: the phase of the business cycle during which output is falling
• Depression: a deep and prolonged recession
• Peak: the turning point in the business cycle between an expansion and a contraction; during a
peak in the business cycle, output has stopped increasing and begins to decrease.
• Trough: the turning point in the business cycle between a recession and an expansion; during a
trough in the business cycle, output that had been falling during the recession stage of the
business cycle bottoms out and begins to increase again.
• Recovery: when GDP begins to increase following a contraction and a trough in the business
cycle; an economy is considered in recovery until real GDP returns to its long-run potential level.
• Potential output: the level of output an economy can achieve when it is producing at full
employment; when an economy is producing at its potential output, it experiences only its natural
rate of unemployment, no more and no less.
• Growth trend: the straight line in the business cycle model, which is usually upward-sloping
and shows the long-run pattern of change in real GDP over time
• Positive output gap: the difference between actual output and potential output when an
economy is producing more than full employment output; when there is a positive output gap,
the rate of unemployment is less than the natural rate of unemployment and an economy is
operating outside of its PPC (The production possibilities curve).
• Negative output gap: the difference between actual output and potential output
when an economy is producing less than full employment output; when there is a
negative output gap, the rate of unemployment is greater than the natural rate of
unemployment and an economy is operating inside its PPC.
What is a business cycle?

Briefly describe each phase in the business cycle.

If an economy is growing over time, why do economists worry about business cycles?
Economists worry about business cycles despite overall economic growth because cycles
introduce short-term volatility, affecting employment, income inequality, asset prices, and
confidence. Government policies and global interconnectedness further complicate responses,
emphasizing the importance of understanding and managing these fluctuations for long-term
economic well-being.
What is output potential/negative output/positive output?
Why does unemployment rise during the recession phase of the business cycle?
Unemployment rises during a recession because reduced consumer spending and business
contractions lead to job cuts. Declining investments, financial strain, credit constraints, supply
chain disruptions, government austerity, and the cyclical nature of some industries further
contribute to increased unemployment during economic downturns.
What is the difference between a recession and a depression?
A recession is a significant decline in economic activity that lasts for a relatively short period,
typically a few months to a couple of years. In contrast, a depression is a more severe and
prolonged economic downturn characterized by a prolonged period of economic contraction,
high unemployment, and a substantial decline in industrial production. Depressions are rare and
more extreme than recessions in terms of their duration and impact.
During a downturn, to what extent should the government intervene in the economy, by creating
demand or jobs? How could it do these things?
During a downturn, the government can intervene to stimulate demand and create jobs through
measures such as increased government spending, tax cuts, interest rate reductions, direct job
creation programs, support for small businesses, unemployment benefits, and incentives for
research and development. The extent of intervention depends on the severity of the downturn
and the specific economic context. Finding the right balance is crucial, considering potential
trade-offs and unintended consequences.

If an economy is growing over time, why do economists worry about business cycles?

Why does unemployment rise during the recession phase of the business cycle?

During a downturn, to what extent should the government intervene in the economy, by creating
demand or jobs? How could it do these things?

UNIT 15. CORPORATE SOCIAL RESPONSIBILITY

• Ethical standard: a rule for moral behaviour in a particular area
• Ethical behaviour: doing things that are morally right
• Ethical lapse: temporary failure to act in the correct way
• Ethical dilemma: a choice between two actions that might both be morally wrong
• Ethical stance: a stated opinion about the right thing to do in a particular situation
• Ethical issue: an area where moral behaviour is important
• Business Ethics: Standards of business behaviour that promote human welfare and “the good.”
• Corporate Social Responsibility (CSR): A company’s commitment to improving or
enhancing community well-being through discretionary contributions of corporate resources.
There are five dimensions of CSR: Environment, Social, Economic, Stakeholder, and
Volunteerism.

What is business ethics?

What is CSR? What are main dimenstions of CSR?

Impacts of Corporate Social Responsibility on Businesses

 UNIT 17. INTERNATIONAL TRADE
• International trade: Purchase, sale, or exchange of goods and services across national borders.
• Free trade: a trade policy that does not restrict imports or exports. It can also be understood as
the free market idea applied to international trade.
• Protectionism: the economic policy of restraining trade between nations, through methods
such as tariffs on imported goods, restrictive quotas, and a variety of other restrictive government
regulations designed to discourage imports, and prevent foreign take-over of local markets and
companies.
• Trade barriers: Government laws, regulations, policies or practices that either protect
domestic products from foreign competition or artificially stimulate exports of particular
domestic products.
• Tariff: A duty (or tax) levied upon goods transported from one Customs area to another, for
either protective or revenue purposes. Tariffs raise the prices of imported goods, thus making
them generally less competitive within the market of the importing country, unless that country
does not produce the items so tariffed.
• Quota: Restriction on the amount (measured in units or weight) of a good that can enter or
leave a country during a certain period of time.
• Absolute advantage: Ability of a nation to produce a good more efficiently than any other
nation.
• Comparative advantage: Inability of a nation to produce a good more efficiently than other
nations, but an ability to produce that good more efficiently than it does any other good.
• An infant industry: a new industry, which in its early stages experiences relative difficulty or
is absolutely incapable of competing with established competitors abroad.
• A strategic industry: an industry which is essential for the promotion or stabilization of the
growth of the locality in which that industry is situated.

What is trade?

What is international trade?

Advantages and disadvantages of international trade?
What is protectionism? Key element of protectionism.

Impacts of international trade on economy (essay)

Impacts of protectionism (essay)