Swiss tele-system is successful company manufacturing webcams and accessories .Since last two months the profits of the company are declining. The production department blames marketing department for not meeting revenue target .The marketing department blames production department for not manufacturing quality products. The finance department blames both production and marketing department for declining profitability of the company. On the basis of given information about Swiss tele system, answer the following question:
a) Identify and explain the aspect of management which is lacking in above situation.
b) Explain three features of aspect of management identified in question (a).
Answers
Answer:
1 ▶ Why do you think Tharanga opened a second-hand
bicycle shop?
Tharanga had always wanted to run a business because
he wanted to be his own boss. He also had a passion for
bicycles and spent a lot of his spare time restoring old
bicycles and selling them on to local people as a hobby.
He probably felt he could make a living by exploiting this
hobby. He may also have been motivated by the prospect
of making some money.
2 ▶ What are three resources used by Tharanga when
setting up his business?
Tharanga when setting up his business used a range
of resources. For example, he needed premises, tools
and equipment, such as spanners, pliers, screwdrivers
and wrenches, spare bicycle parts, lubricants, business
stationery, electricity and a mobile telephone. He also
employed his younger brother as a shop assistant.
3 ▶ Why do you think businesses exist?
Businesses exist to provide goods or services. In this
example, Tharanga sold second-hand bicycles and carried
out a repair and maintenance service for bicycle owners. In
the private sector these goods and services are sold in the
hope that a profit is made for the business owners.
ACTIVITY 1
CASE STUDY: GULF CONFECTIONERY AND BISCUIT CO.
1 ▶ Does the Gulf Confectionery and Biscuit Co. supply
products that satisfy needs or wants?
The Gulf Confectionery and Biscuit Co. manufactures
high-quality toffees, sweets and lollies. These products
are designed to meet consumers’ wants, not their needs.
They are non-essential products. They are not required for
human survival. People can live without toffees, sweets and
lollies, so they are not designed to meet their needs.
2 ▶ The Gulf Confectionery and Biscuit Co. is a private
enterprise. What does this mean?
Individuals or groups of individuals own most businesses
privately. They are private sector businesses. The Gulf
Confectionery and Biscuit Co. is a private enterprise that
makes toffees, sweets and lollies. The owners hope that the
business is successful and is able to make a profit.
ACTIVITY 2
CASE STUDY: STAKEHOLDERS
1 ▶ What is meant by the term business stakeholder?
A stakeholder is an individual or a group that has an interest
in the operation of a business. Some stakeholders, such as
owners, have a financial interest in the business.