Types of leadership

Autocratic

• Leader makes decisions without reference to anyone else.
• High degree of dependency on the leader
• Can create de-lixiviation and alienation of staff.
• May be valuable in some types of business where decisions need to be made quickly and decisively or where working with large amount of unskilled workers

Democratic

• Encourages decision making from different perspectives.
• Consultative- process of consultation before decisions are made.
• Persuasive- leader takes decision and seeks to persuade others that decision correct.
• Help motivation and involvement of staff
• Workers feel ownership of the firm and the ideas
• Improves the sharing of ideas/ experiences within bisuness
• Delay decision making

Laissez-faire

• 'Let it be'  - leadership responsibilities are shared by all
• Can be very useful in business where creative ideas are needed
• Can be highly motivational as people have control over their working life
• Can make co-ordination and decision making time consuming and lacking overall direction
• Relies on good team work and interpersonal relations

Paternalistic

• Leader acts as 'father figure'
• support staff

How do Sales and Markets differ?

Sales
Volume, anticipating demand of products sold, prediction of sales, value of products.

Marketing
4p's- Product, Price, Place, Promotional Strategies, final implications of marketing,

In what different cicumstances will business have differenet objectives>

• Start up
• When initial targets been achieved
• New market
• To change locationsd
• Depending on profit
• Potential growth/ possible expansion.
• Mergers- 2 companies join e.g T-mobile and Orange
• Takeover- Leading company takes over another company e.g Morrisons took over Savers.
• When market in growth/ decline
• Attempt to gain more market share- increase sales
• Diversification

Why do businesses set objectives?

• Continued success
• Customers see achievment
• Always updates/ adapted 
• Monitored and measurable
• Owner/ Chief Executive Owner takes interest
• Suppliers + Share holders need to be aware of these objectives

MOTIVATES EMPLOYEES, STABILITY, PROGRESS, SUCESS

Long-term objective

Length- More than Year

Example- Expand market share

Aim to grow in long-term could invest in training staff, build up their brands, expand into new market, put money into developing new product so these activities prove effective in long run but in short term profits may fall.


ALL OBJECTIVES HAVE TO BE MONITORED

Short-term objective

Length-Month to Year

Examples-maximise profit

For firm to maimise it rewards it could stop repairs of building/ facility, stop research in new products, stop training people, end most advertising. So as short term profits raise means in long run firm in weaker position.


ALL OBJECTIVES HAVE TO BE MONITORED

How do firms determine what their aims should be?

By owners/ managers.
Owners aims- Their aims could be influenced by what managers think is realistic given existing state of firm/ market conditions.
e.g, desire for business to grow, desire to establish the firm as leading provider of particular type of product/ service, to keep business within family.

AIMS CAN CHANGE OVER TIME.
due to e.g change in trends, seasons, recession- to survive, prosperous period- increase share of market, due to personal experience.

Setting up a business.

When a business sets up it will devise a mission statement, this will set out what they want to achieve. (aim)

Ansoff's Matrix. ( 4 types of marketing stratergies )

Market Penetration-
What is it?-Firm tries to gain more of its existing market. May do it by cutting price/ Launch new advert campaign.
Why is it important?- Encourages sales, expand business, make more well known, more income, increase market share

Market Development-
What is it?-Firm sells existing product in new market. Could be new segment/ geographically.
Why is it important?- Expand business growth, make more well known, more customers, new market.

New Product Development-
What is it?-To develop new products to sell to existing customers. Can be modification of existing product/ completely new one.
Why is it important?- Expand business growth, more products to expand.  


Diversification-
What is it?- When firm offers new product in new market. Doesn't mean the product/ market doesn't exist before just firm hasn't been involved in that area, aka no experience
Why is it important?-Expand business growth, new product so new market however risky, big expansion.

 BUSINESSES WILL USE THESE STRATEGIES AT DIFFERENT TIMES. EACH WILL BE USED AT ONE POINT.

Marketing Tactics

The strategy is implemented  through the use of marketing tactics - include decisions that need to be made to ensure strategy is successful.

Marketing Stratergies

This is a plan detailing how marketing objective will be fulfilled.

• Influenced by opportunities available in market
• Influenced by competitors
• Will be different depending on type of business + industry it works in.

SMART TARGETS

Specific
Measurable
Achievable
Realistic
Timed

Effective Objective

More specific, normally uses SMART targets.
e.g make £5000 profit in next 6 months

Objective

General statement of purpose/ aims.
e.g to make a profit