ACCA BT cheat sheet

Organisation structure types: functional (grouped by specialism), divisional (by product, customer or geography), matrix (dual reporting) and network/outsourced structures.

Span of control is the number of direct subordinates per manager; a narrow span produces a tall hierarchy with close supervision, a wide span a flat hierarchy.

Chain of command is the line of authority from top to bottom; unity of command means each employee reports to one manager only.

Delegation transfers authority, not accountability; the delegator remains accountable for the task.

Centralisation concentrates decision-making at senior levels and favours consistency; decentralisation pushes decisions closer to operations and favours responsiveness.

Corporate governance is the system by which organisations are directed and controlled; it addresses separation of ownership and control and the agency problem.

Non-executive directors provide independent challenge, scrutinise executive performance and sit on audit and remuneration committees.

Mendelow's power-interest matrix: low power/low interest = minimal effort; high power/low interest = keep satisfied; low power/high interest = keep informed; high power/high interest = key players.

Fayol's management functions: planning, organising, commanding, coordinating and controlling; Mintzberg's roles: interpersonal, informational and decisional.

PESTEL scans political, economic, social, technological, environmental and legal influences on an organisation.

Porter's five forces: rivalry among existing firms, threat of new entrants, threat of substitutes, bargaining power of buyers and bargaining power of suppliers.

Porter's value chain separates primary activities (inbound logistics, operations, outbound logistics, marketing and sales, service) from support activities (procurement, technology development, HRM, firm infrastructure).

SWOT: strengths and weaknesses are internal; opportunities and threats are external.

Product life cycle stages are introduction, growth, maturity and decline; sales growth, competition and cash flow differ by stage.

Price elasticity of demand = % change in quantity demanded / % change in price; |PED| > 1 elastic, < 1 inelastic, = 1 unitary.

Inflation raises input costs and selling prices; interest rates affect borrowing and investment; exchange rates affect import costs and export competitiveness.

Ansoff matrix: market penetration (existing products/markets), product development (new product/existing market), market development (existing product/new market), diversification (new product/new market).

Stakeholders include shareholders seeking returns, employees seeking pay and security, customers seeking value, suppliers seeking prompt payment, and government seeking compliance and tax.

Marketing mix: 4Ps product, price, place, promotion; extended 7Ps add people, process and physical evidence for services.

Financial accounting reports historical results to external users under standards and law; management accounting reports to internal managers for planning and control.

HRM covers recruitment and selection, induction, training, appraisal, reward, discipline and redundancy.

Data types: quantitative is numerical; qualitative is non-numerical; primary is collected first-hand; secondary is already available.

Good information is accurate, complete, timely, relevant, understandable and cost-effective.

Information system hierarchy: TPS processes routine transactions; MIS summarises for management reporting; DSS supports semi-structured decisions; EIS supports senior executives.

Cloud computing offers scalable pay-per-use services over the internet; risks include data security, privacy, availability and vendor lock-in.

Big data characteristics: volume, velocity, variety and veracity; analytics needs data governance and suitable skills.

Budgeting compares actual results with budget to calculate variances; an adverse variance reduces profit and a favourable variance increases profit relative to budget.

Leadership influences and motivates towards vision and change; management plans, organises and controls resources for current objectives.

Trait theory assumes leaders share innate characteristics; behavioural theory focuses on what leaders do; contingency theory says effective style depends on the situation.

Blake and Mouton's grid plots concern for people against concern for production; team management scores high on both.

Tannenbaum-Schmidt continuum ranges from boss-centred telling to subordinate-centred joint decision-making.

Hersey-Blanchard situational leadership: telling, selling, participating and delegating, matched to follower readiness based on ability and willingness.

Transformational leaders inspire through vision, intellectual stimulation and individual consideration; transactional leaders use rewards and sanctions.

Maslow: physiological, safety, social, esteem and self-actualisation needs; lower needs generally must be met before higher needs motivate.

Herzberg: hygiene factors such as pay, conditions and policy prevent dissatisfaction; motivators such as achievement, recognition and responsibility create satisfaction.

Tuckman: forming, storming, norming, performing and adjourning; Belbin team roles include coordinator, shaper, plant, monitor evaluator, implementer, team worker, resource investigator, completer finisher and specialist.