9.2 BUSINESS MANAGEMENT - Management process Flashcards
Management process definition
Key functions of the business enable the business to function efficiently and effectively if managed correct
- Human resources
- Marketing
- Finance
- Operations
Coordinating key business functions and resources
- Management is responsible for smooth operation.
- Coordination of any process needs planning
- Management from different levels have responsibilities directed from upper management.
- Coordination involved making sure everything runs smoothly.
Operations
- Producing goods and services through activities.
- Transformation process of inputs to have finished outcome.
- Product is the available to consumers for immediate use
Operations - goods and services
• Producing goods:
- Inputs combined by physical transformed.
- less labour intense for manufacturing productions
- technology helps with less manufacturing.
• Produces services:
- Requires greater people skills (HR)
- Training and development
- Services trends to be labour intensive
- Technology is significant for larger workforce to manage outputs of services (e.g. recording insurance details, airline, bookings)
Operations - production process
INPUTS:
- Raw materials -> finished product
TRANSFORMING PRODUCTS:
- Process of production; conversion of raw materials into outputs.
OUTPUTS:
- final finished product sold to the customers.
- At each stage of production, there is an increase in value as it passes through the process in order to achieve a sufficient profit
Operations - Quality management
Strategy which a business used to make sure that its products meet customer expectations
3 quality approaches are;
QUALITY CONTROL:
involves the use of INSPECTIONS at various points in the production process
QUALITY ASSURANCE:
involves the use of SYSTEM so that a business set and achieves certain standards usually set up by the industry or international body
TOTAL QUALITY MANAGEMENT:
Ongoing business-wide commitment to excellence and quality that is applied to every aspect of the businesses operations
Marketing
Total system of interacting activities designed to plan, price, promote and distribute products to present and potential customers; provides main link between business and the consumer.
Marketing: Identification of the target market
Target market
A small group of customers with similar characteristics who presently, or who may in the future, purchase the product.
Marketing: Identification of the target market
Niche
A narrowly selected target market segment (micro market); attracted to a specific product
Marketing: Identification of the target market
Market segmentation
Enables the business to identify this particular group and ensures that it does not waste its resources by marketing to the mass market.
Divided into various groups:
- Demographics
- Geographic
- Lifestyle
- Behavioural
Marketing: Identification of the target market
Different marketing (GEO, DEMO, PSYCHO)
Often larger businesses target different segments.
Focuses on the following targets:
GEOGRAPHIC:
- geographic status effect what people want, quality of product and price they are prepared to pay for it, depending where they live.
DEMOGRAPHICS:
- Those things concerned with features of the population, such as age, gender, income, jobs and education levels
PSYCHOGRAPHICS:
- Refer to such things as personality, lifestyle and social class.
Marketing mix definition
Refers to the combination of the four elements of marketing (THE 4 P’s) that make up the marketing strategy;
- Product
- Price
- Promotion
- Place
Marketing mix: Product
Products refers to all the benefits a good or service offers to a customer
PRODUCT PACKAGING:
Involves development of a container and the graphic design for a product; well-designed packaging will give a positive impression of the product and encourage first-time customers to purchase.
PRODUCT BRANDING: Important part of product development is brand and associated brand logo; these combined are a powerful marketing tool
POSITIONING:How does your product differentiate from the competitors product in the market
