2nd test Blackwell Gibbins Flashcards

Question

high inflation can reduce multinational investment why

Answer 1

multinationals look to produce in a the cheapest possible location they choose a country with the lowest rates of inflation not where price of labour and raw materials is rising sharply - this would make their products un-competitive

Answer 2

managers dislike uncertainty about the return on their investments if you invest 500,000 in a country with high inflation in 2-3 years how much is this really worth, low inflation allows manager & businesses to estimate their investments with some degree of accuracy

Answer 3

the value of one currency in terms of another

Answer 4

If the pound increases in value it is strengthening £ 1.00 = $ 1.50 if the pound decreases in value it is weakening £ 1.00 = $ 1.10

Answer 5

sale leads to money going OUT of the UK

Answer 6

sale leads to money going IN TO the UK

Answer 7

``` Strong Pound Imports Cheap Exports Dear - (expensive) ``` ``` Weak Pound Imports Dear - (expensive) Exports Cheap ```

Answer 8

No. Supply and demand does

Answer 9

An interest rate is the reward for saving and the cost of borrowing expressed as a percentage of the money saved or borrowed

Answer 10

Bank of England set base interest rate or |--> Monetary Policy Committee (MPC) Changed in 1997 from government

Answer 11

management which designes and controlls the process of productions

Answer 12

the difference between the price of finished product/service and the cost of the inputs involved in making it

Answer 13

function / cost / aesthetic

Answer 14

charge higher price creating a point of differnec form the competition protecting from competitors trying to steal customers by charging lower price focusing a business more closely on its target market segment

Answer 15

not guaranteed that the cost of adding value can be recouped the increase in price may restrict sales amount of completion may restrict price so cost are larger to recoup the elasticity of product may involve price increase within the market difficult to accept

Answer 16

selling price - cost of inputs

Answer 17

overall goal of the business

Answer 18

steps towards aim

Answer 19

long term plan

Answer 20

strategic is long term, tactical is short term

Answer 21

market orientated is market wants and needs for product/services, product orientated is concentrated on product improvements

Answer 22

quality assurance - checking the product during differnet stages of production and quality control - checking the product at the end using a sample

Answer 23

= total output / no. employees

Answer 24

size and legal status of business state of economy competition government legislation

Answer 25

``` political economic social technology ethical legal environmental STEEPLE ```

Answer 26

Job Batch Flow Cell

Answer 27

Productions of items that meet specific requirements of the customer, one off Wedding cakes, wedding dresses

Answer 28

``` + charge higher price meets customer needs quality motivational for employees flexible added value ``` ``` - no economies of scale higher costs skilled labour costing difficult ```

Answer 29

Production of many similar items that are produced together Jumpers, bread

Answer 30

+ making in batches reduces unit cost can still address specific customer needs faster than gob some EOS some flexibility use of specialist making can increase output and production ``` - time lost switiching between batch need to be reset/downtime need to keep stocks of rawmaterials potentiallly demotivation for staff many tide up in storage ```

Answer 31

involves a continues movement of items turn in the production process of high volume

Answer 32

``` + Flow production is continues Large EOS standardise products increased productivity ``` ``` - inflexible demotivating for employees high set up cost break down stock holding supply lead time ```

Answer 33

workers are organised into multi skilled teams, each team is responsible for a particular part of the production process including quality control health and safety

Answer 34

``` + Closeness of cell members should improve communication avoiding confusion arising from misunderstood or non-received messages quality improvements workers are multi skilled can lead to efficiency greater worker motivation, variety ``` -cell the company has to encourage burs and participation or workers feel they are needed more from the company have to invest in new raw materials cell production may not allow a firm to use its machinery as intensivley as traditional flow allocation of work to cells has to be efficent employees and recruitment have to support

Answer 35

Unique Selling Point

Answer 36

``` nature cost of technology and machinery workforce finance customers competition stakeholder/objective ```

Answer 37

Research and development - the process that enables the creation of new and improved products to meet the needs of the customer

Answer 38

a graphical representation of the order and duration of tasks within a project

Answer 39

+ easy to monitor see what is happening shows time and resource allocation - does not show critical activities can't see est and lft cant calculate free and total float

Answer 40

optimistic time + 4 x Likely time + pessimistic time -------------------------------------------------------------------------- 6

Answer 41

the allocation of labour into specific tasks inserted to increase productivity

Answer 42

where workers perform specific tasks

Answer 43

+ task should be able to be preformed qicker, increasing productivity output will increase whilst lowering unit costs consequently increasing profit margin - task become repetitive lowering moral and creating more errors and faults

Answer 44

``` ↓Aims ↓Mission ↓corporate objectives ↓functional objectives ↓business unit/individual targets ```

Answer 45

overall target and are boarder than objectives

Answer 46

simple statement starting the companies goals

Answer 47

objectives that tend to focus on the desired performance and results of the business

Answer 48

relate to specific functions of a business such as marketing, operation, human resources and finace

Answer 49

similar to functional but are more focused of individuals

Answer 50

+ control - full control of the business Profit retention- keep all profits private data - information about sole traders are private, not all documents are public on companies house - Unlimited liability - sole traders are unicorporated, they aren't a seperate legal identity, personal possesions can be taken to pay debts Capital - hard to raise capital diseconomies of scale - have to charge higher prices to cover costs decision making - they are the only voice in the decision making process

Answer 51

+ capital - both partners funds for capital flexibility - easy to start up and run, less strictly regulated shared responsibility - allows partners to make the most of their abilities decicion making - more brains in the decicion maiking process - disagreements - differnt opinios of how the business is run between partners Unlimited liability - partnerships are unincorporated, they aren't a separate legal identity, personal possessions can be taken to pay debts profit sharing - partners have to split profits according to their terms (sighed in deed of partnership)

Answer 52

+ Shares - only sell shares to friends and family, no chance of hostile takeover privacy - not all documents have to be posted on companys house Limited Liability - LTD's are incorpirated meaning that the owners are a seperate legal identity, debts are paid with the business investment - complicated to set up - first you need shares worth £50,000 and then you have to set up on companies house complex accounts - hard to track all accounts that the business produces so a accountant is usually heird to not waste time not fully private - This will mean that you provide information on company accounts, company records, company directors and company shareholders.

Answer 53

+ capital - easier to rase from share's and investors. Shares can be bought easily on the stock exchange prestigious profile - the company looks more proffesional as a plc Limited Liability - LTD's are incorpirated meaning that the owners are a seperate legal identity, debts are paid with the business investment - not private - all accounts have to be posted on companies house take over - as shares are sold on the stock exchange the ability of a hostile takeover is present

Answer 54

private sector public third

Answer 55

primary secondary tertiary

Answer 56

non-profit organisations like charities