4.3 - Examine the impact of the private sector on procurement & supply chain activities Flashcards
Market share
The portion or percentage of a market owned or controlled by a supplier or product
Turnover
The income, or amount of money that comes in to a business aka revenue
Sales revenue
Amount of money generated through sales of goods or services
Cost of sales
Amount of money directly attributable to the production of goods or services that are sold
Expenses
Money spent by an individual in the course of their work, such as the cost of travel, accommodation or stationery
Name 4 objectives of the private sector
- Economic viability and making a profit
- Increasing market share
- Increasing shareholder value
- Ensuring actions are compliant, and socially and environmentally responsible (ESG)
Name 4 examples of income
- Sales of products
- Sales of services
- Government payments
- Interest received and investment income generated
Name 6 examples of expenditure
- Utility bills
- Salaries
- Rent
- Loan repayments
- Capital asset purchases
- Direct purchases
Whats the formula for net profit
Net profit = gross profit - expenses
Statement of comprehensive income
A financial statement of a business showing its gross and net profit. typically referred to as the income statement
Name 3 ways organisations can use their net profit
- Pay the net profit to the owners
- Invest the money into growing the business, such as buying new equipment or developing new concepts
- Take over other companies in order to increase market share and reduce competition
Market share
The percentage of a market that a particular company has in one industry, either through volume of sales or value of sales
Name 7 elements of good reputation
- Best price
- Good customer service
- Value for money
- Reliability
- Availability
- Strong ethics policy
- Sustainability
Name 5 rights shareholders have within the organisation in which they own shares
- A right to influence company decisions
- A right to buy more shares
- A right to a share of the company profits
- A right to vote in company decision making
- A right to take legal action against the organisation if it commits wrongful acts
Dividends
Sum of money payable to shareholders which is related to organisational profit
name 4 ways ethical and sustainable practises can be incorporated into ESG and CSR through objectives
- Using sustainable suppliers
- Using recycled packaging
- Donating a percentage of profits to a local charity
- Contributing towards a community project
Name 7 pieces of criteria of internal regulation
- CIPS Code of conduct
- Code of ethics
- Anti-bribery policy
- Sustainability policy
- Environmental awareness
- Transparency
- Accountability
Name 6 examples of generic regs and standards
- ILO
- ISO
- Bribery Act
- GDPR
- Health & safety regs
- Equality act 2010
Name 7 features of the public sector
- Less flexibility
- Contracts often pre-written or they can be bespoke
- Suppliers have to be managed according to processes
- Limited negotiation
- Details of proposed work have to be published to allow all interested suppliers to bid
- Information is shared openly
- relationships harder to manage because of restrictions in policies
Name 9 features of the private sector
- More flexibility
- Contracts can be bespoke
- Suppliers can be managed as required as long as anti-bribery, coercion, unethical conduct etc do not occur
- Freedom to negotiate
- All suppliers can be considered
- Buyers can invite who they would want to bid and disregard anyone they choose not to work with
- Confidentiality in spending patterns is easier to maintain
- Relationships often more personal and less regulated
- Easier to have dialogue with suppliers which may promote innovative solutions
Function of a brand
To reflect values in a positive way to engage consumers and entice them to buy a product or service
Name 8 elements of a brand
- Advertising
- Marketing
- Trust
- Identity
- Value
- Design
- Logo
- Strategy
Difference between branding and marketing
Marketing is telling consumers where they can access the brand. Branding is important because it adds an intangible value to a product
Name 7 areas branding can be applied to
- Goods
- Services
- Retail outlets
- People
- Destinations
- Companies
- Concepts
name 8 ways positive branding is created
- Convincing consumers that they need the product or service
- Displaying a strong image
- Having values consumers can relate to
- Empathy with consumer needs
- being future orientated
- Offering sustainable solutions
- Creating environmental change
- demonstrating value for money
Name 3 benefits of effective branding
- Increased awareness
- Increased profitability
- Increased loyalty
