AQA - A-Level Business Studies Theories
Business Theory - Tannenbaum Schmidt
1. Tells: Authoritarian management Style. Zero involvement in decision making. Divisive between management and workforce
2. Sells: the manager makes the decision but tries to present it to the workforce as having a sound rationale. Workforce ask questions-
do not influence decisions
3. Suggests: decision is outlined, allowed to discuss and ask questions. Helps them feel their opinions are considered
4. Consults: manager proposes a tentative decision and invites discussion. Decision open to being modified- recognises insight and value
of workforce participation
5. Joins: manager proposes a problem, workforce discuss. Manager makes the final decision
6. Delegates: the manager outlines the problem and sets the constraints. Team discusses solutions and makes the final decision;
manager is accountable for the outcome. Delegation of authority shows a high level of trust that the manager is placing on the team
7. Abdicates: team define and solve the problem. Ultimate level of freedom of the workforce. The team is trusted to use their expertise
to make decisions which should be highly motivating for the team. Manager is still accountable for the decision so must be sure the
team can handle the responsibility.
Business Theory - Blake Mouton
The Blake Mouton grid assesses managers based on how much they care about their employees and how much they care about production.
1. Impoverished style: Low concern for people and low concern for production. This is poor management of both human and
production resources. This results in low levels of motivation in the workforce and low levels of productivity or failing quality
2. Produce or Perish style: An authoritarian focus on the work with strict rules that leads to a neglect of workers’ needs and a
demotivated workforce. This may result in high levels of absenteeism and staff turnover
3. Country club style: An over-concern with worker welfare and harmony leads to a happy but not very productive workplace. This
leadership style doesn’t motivate the workers to increase their output
4. Middle of the road: Average concern for workers needs and average focus on production leads to mediocre results. Although
productive output is higher than the Impoverished or Country Club style, it could be better
5. Team style: This is seen as the ideal leadership style. High concern for people and production creates a happy, motivated and
productive workforce. It often uses non-financial methods of motivation
, Business Theory - Stakeholder Mapping (Mendelow's Grid)
Business Theory - Time scenes data + Extrapolation
Time series data looks at analysis over time
- Time series data is used to reveal underlying patterns by recording and plotting data over time.
- Trends are the long term movement of a variable.
- Seasonal fluctuations repeat on a regular basis - such as daily, quarterly or yearly
- Random fluctuations have no pattern to them.
- Time series analysis can be used to look for links between sales and marketing activity.
Extrapolation can be used to predict future sales
- Extrapolation forecasts future sales from the trends in data received in previous years. This allows managers to set sales targets and
sales performance can be measured against these.
- Extrapolation is mostly used in fairly stable environments when data is unlikely to change much.
- It relies on past trends remaining true. It may not always be accurate as the pace of change in the market can be very fast.
Business Theory - Boston Matrix
- The Boston Matrix compares market growth with market share.
- The Boston Matrix is a valuable way of showing where a business’s products
are positioned. A business’s marketing decisions will depend on the
products’ positions in the matrix. But the Boston Matrix cant predict exactly
what will happen to a product.
Cash Cows:
● High share of low growth market
● Likely to be mature stage in PLC
● Little potential for growth
● Large positive cash inflow, Brings in lots of money
Stars:
● High market growth and High market share
● Profitable growth phase and have most potential (future cash cows)
● But competition will take advantages of this growth market too
● Spend alot on promoting the products to keep High Market share
● Money to increase capacity to meet demand
Dogs:
● Low market share and low market growth
● No longer really making profit
● Not worth investing in
● Phase out or sell out
Business Theory - Tannenbaum Schmidt
1. Tells: Authoritarian management Style. Zero involvement in decision making. Divisive between management and workforce
2. Sells: the manager makes the decision but tries to present it to the workforce as having a sound rationale. Workforce ask questions-
do not influence decisions
3. Suggests: decision is outlined, allowed to discuss and ask questions. Helps them feel their opinions are considered
4. Consults: manager proposes a tentative decision and invites discussion. Decision open to being modified- recognises insight and value
of workforce participation
5. Joins: manager proposes a problem, workforce discuss. Manager makes the final decision
6. Delegates: the manager outlines the problem and sets the constraints. Team discusses solutions and makes the final decision;
manager is accountable for the outcome. Delegation of authority shows a high level of trust that the manager is placing on the team
7. Abdicates: team define and solve the problem. Ultimate level of freedom of the workforce. The team is trusted to use their expertise
to make decisions which should be highly motivating for the team. Manager is still accountable for the decision so must be sure the
team can handle the responsibility.
Business Theory - Blake Mouton
The Blake Mouton grid assesses managers based on how much they care about their employees and how much they care about production.
1. Impoverished style: Low concern for people and low concern for production. This is poor management of both human and
production resources. This results in low levels of motivation in the workforce and low levels of productivity or failing quality
2. Produce or Perish style: An authoritarian focus on the work with strict rules that leads to a neglect of workers’ needs and a
demotivated workforce. This may result in high levels of absenteeism and staff turnover
3. Country club style: An over-concern with worker welfare and harmony leads to a happy but not very productive workplace. This
leadership style doesn’t motivate the workers to increase their output
4. Middle of the road: Average concern for workers needs and average focus on production leads to mediocre results. Although
productive output is higher than the Impoverished or Country Club style, it could be better
5. Team style: This is seen as the ideal leadership style. High concern for people and production creates a happy, motivated and
productive workforce. It often uses non-financial methods of motivation
, Business Theory - Stakeholder Mapping (Mendelow's Grid)
Business Theory - Time scenes data + Extrapolation
Time series data looks at analysis over time
- Time series data is used to reveal underlying patterns by recording and plotting data over time.
- Trends are the long term movement of a variable.
- Seasonal fluctuations repeat on a regular basis - such as daily, quarterly or yearly
- Random fluctuations have no pattern to them.
- Time series analysis can be used to look for links between sales and marketing activity.
Extrapolation can be used to predict future sales
- Extrapolation forecasts future sales from the trends in data received in previous years. This allows managers to set sales targets and
sales performance can be measured against these.
- Extrapolation is mostly used in fairly stable environments when data is unlikely to change much.
- It relies on past trends remaining true. It may not always be accurate as the pace of change in the market can be very fast.
Business Theory - Boston Matrix
- The Boston Matrix compares market growth with market share.
- The Boston Matrix is a valuable way of showing where a business’s products
are positioned. A business’s marketing decisions will depend on the
products’ positions in the matrix. But the Boston Matrix cant predict exactly
what will happen to a product.
Cash Cows:
● High share of low growth market
● Likely to be mature stage in PLC
● Little potential for growth
● Large positive cash inflow, Brings in lots of money
Stars:
● High market growth and High market share
● Profitable growth phase and have most potential (future cash cows)
● But competition will take advantages of this growth market too
● Spend alot on promoting the products to keep High Market share
● Money to increase capacity to meet demand
Dogs:
● Low market share and low market growth
● No longer really making profit
● Not worth investing in
● Phase out or sell out
