Unit 3
Chapter 8 ā Management Activities
Tap any keyword to reveal its definition
š Planning
Planning
The setting down of specific goals and objectives and the putting in place of strategies that allow you to achieve the stated goals and objectives of the business.
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Mission Statement
Visionary statement containing the business’ values and overall purpose. All other plans are built from it.
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Strategic Planning
Made by senior management. Long-term goals (5ā10 years) flowing from the Mission Statement.
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Tactical Planning
Made by middle management. Short-term goals (1ā2 years) flowing from the Strategic Plan.
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Operational Planning
Day-to-day planning: staff rosters, daily/weekly/monthly tasks. Keeps the business running smoothly.
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Contingency Planning
Back-up plan for an unexpected emergency or unforeseen event to avoid disruptions to the business.
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Benefits of Planning
Future Focus (be proactive); Reduces Uncertainty; Attract Investors (show expected profits); Assess Performance (compare objectives to actual results).
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SWOT Analysis
Strengths and Weaknesses are internal. Opportunities and Threats are external. Used as a planning tool to assess the business before setting objectives.
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š Organising
Organising
Arranging the resources of a business into an organised structure in order to achieve the business’ objectives.
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Span of Control
The number of subordinates that report to one manager/superior. Can be wide or narrow depending on skill of workers, nature of work and commitment of staff.
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Chain of Command
The hierarchy in a business from top management down to employees. Sets out the lines of communication from top to bottom (between layers).
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Functional Structure
Business divided into clear departments (e.g. Finance, Marketing, HR). Benefits: specialisation, clear hierarchy, promotional path. Challenges: isolation, coordination issues, communication problems.
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Matrix Structure
Project/team-based structure crossing departments. Benefits: coordination, improved decisions, social (Maslow). Challenges: slower decisions, unclear chain of command, conflict.
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Product Structure
Business split by product lines. Benefits: competition between divisions, focussed resources, flexibility. Challenges: duplication, lack of cohesion, cannibalism.
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Geographical Structure
Business split by location/region. Benefits: flexible to local trends, better logistics, local competition. Challenges: duplication, conflict, lack of cohesion.
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šÆ Controlling
Controlling
Measuring any deviations away from a business’ plans and taking action to correct them.
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Financial Control
Ensure profitability and liquidity. Use cash flow forecasts, reduce costs (cheaper suppliers), have cash available to pay short-term debts.
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Stock Control
Achieve optimal stock levels. Overstocking: stock loses value, higher storage costs. Understocking: miss out on sales, lose consumer loyalty. Use regular stock takes and JIT management.
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Quality Control
Physical inspections (sampling); Quality Circles (staff teams); Quality Marks (ISO, Q Mark, Bord Bia). Benefit: improves consumer satisfaction and loyalty.
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Credit Control
Minimise bad debts. Incentivise cash payments. Check creditworthiness of customers. Set credit limits. Good admin: organise invoices and follow up calls.
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Based on past paper analysis, these are the most likely exam topics for Chapter 8: Management Activities in the 2026 LC Business exam.
ABQ: Types of Planning ā Know all five types (Mission Statement, Strategic, Tactical, Operational, Contingency). In the ABQ the text gives you clues: a “5-year plan” links to Strategic; “day-to-day” links to Operational. Write the stage name, explain it, then quote directly from the text.
ABQ: Matrix v Functional Structure ā Know the benefits and challenges of both. The ABQ often describes how a business organises staff into teams (Matrix) or clear departments (Functional). Be ready to evaluate which structure suits the business in the text.
ABQ: Evaluate Management Activities ā Planning, Organising and Controlling can be asked together as one evaluation question (30 marks). Know what each activity involves, link to the ABQ text, and give a judgement ā especially for Controlling where more marks are available for evaluation.
Stock, Quality and Credit Control ā These areas of Controlling appear regularly in both ABQ and long questions. Know the difference between overstocking and understocking, how quality circles work, and what credit control involves.
SQ: Chain of Command and Span of Control ā Short definition questions on these two appear regularly. Know the definitions and the factors that affect span of control: skill of manager/workers, nature of work, commitment of staff.