All Topics lad Flashcards
What is market capitalisation
the value of a company(plc) that is traded on the stock exchange
Formula for market cap
number of ordinary shares issued X price of 1 share (current market price) = Market Cap
what is ordinary share capital and what is its formula?
Ordinary share capital is a share in a public limited company entitling its holder to dividends.
Formula: number of shares x price of 1 initial share (when it was first listed on the stock exchange) = Ordinary Share cap
What is outsourcing
when a company hires another company to do some service or task
Benefits of Outsourcing
-Access to specialist suppliers with greater capabilities and higher quality (Specialisation)
-Reduced costs, if outsourcing supplier can provide at lower cost (economies of scale)
-Allows the business to focus on its core activities
-Makes operations more flexible e.g. easier to change capacity when needed
Drawbacks of Outsourcing
-No Guarantee costs will be lower (as outsource suppliers want to make a profit)
-Risk that outsourcer will fail to meet quality standards or not deliver on time
-Potential loss of expertise from the business (as staff may leave)
-Outsourcer only wants to make a profit and does not actually care about your customers so this may cause reduction in quality and also if your outsourcer receive a better payed offer, they will abandon your business and this will leave you without production so you will have to spend resources and time finding another outsourcer or creating your own production service
-Leads to reliance on a external business
-Loss of control over that process
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examples of outsourcing
-Delivery, packaging and logistics
-Call Centres
-Computer systems
Name the Blake Mouton management styles with a some detail
-Team leader (high concern for task and people)
-Country Club (low concern for task and high concern for people)
-Task Management A.K.A Produce or perish (high concern for task and low concern for people)
-Impoverished Management (low concern for task and people)
-Middle of the road management (mid concern for task and people)
Features of Blake Mouton management styles
-Team Leader (Democratic as staff are involved and feel wanted, also there is high levels of productivity and in theory it is the best management style)
-Country Club (focus on creating a safe comfortable relaxed work environment with minimal conflict and positive relationships, however tasks may not get done. Virgin is an example of a country club company)
-Task Management A.K.A Produce or perish (Autocratic. Driven by targets and getting tasks done. Cares little for well-being of employees which could demotivate them which could make them leave or be unproductive)
-Impoverished Management (the “manager” may be focused on self or other external things rather than leading the business. Ineffective laissez-faire manager. Likely to be a unprofitable business)
-Middle of the Road Management (average)
Name the features of the Boston Matrix
-Star (high market growth rate and relative market share)
-Question Mark (high market growth rate and low relative market share)
-Cash Cow (low market growth rate and high relative market share)
-Dog (low market growth rate and relative market share)
explain Boston matrix in terms of Apple products
Iphone = Star
Apple Watch = Question Mark
Apple Music = Cash Cow
Ipod = Dog
explain the features of a Star (Boston Matrix)
-High share of a rapidly growing market (ideally market leadership)
-Product is strong and market is growing
-Requires high marketing spending
-Cash flow positive
explain the features of Question Mark (Boston Matrix)
-Low share of a fast growing market
-Cash flow usually negative
-Products have potential but the future is uncertain
-Could become either a Star or a Dog
explain the features of Cash Cow (Boston Matrix)
-Large positive cash flow
-Likely in mature stage in the product life cycle
-Little potential for growth
-High share of a low growth market
explain the features of Dog (Boston Matrix)
-Usually products that have failed or in the decline stage of the product life cycle
-Low share of a low growth market
-Not going anywhere and no real potential
