all units Flashcards
sampling methods
random sampling
stratified random sampling
quota sampling
confidence levels and intervals
confidence levels - how accurate research finding are
confidence intervals - possible range of outcomes for a given confidence
PED
elastic = less than -1 if price increases demand decreases
inelastic = between -1 and 0 price is proportionate to demand
IED
less and -1 = elastic
between -1 and 1 inelastic
above 1 elastic
below 0 = inferior
between 0 and 1 normal goods
above 1 luxury
marketing mix
price place product promotion physical environment process people
price methods
dynamic pricing = flexible pricing based on market
skimming = setting price high
penetration = setting price low
cost plus
pestle analysis
political = trade , tax , political issues changes in leadership
economic = inflation , interest rates , unemployment levels
social = lifestyle trends , age , consumer behaviour
technological = developments in technology
Legal = consumer law health and safety policies
environmental = climate change
competition
operational objectives
objectives businesses set in order to produce most efficiently
operations targets
reduced unit costs
ethical / envirionmental considerations
quality targets
added value
capacity utilisation
measures the extent of which capacity is used
actual output / max output x 100
economies of scale
bulk buying
technical - invest in new technologies
specialisation of work force splitting task into separate tasks
marketing - spread advertising and marketing over a large output
managerial - employ specialists to supervise
lean production
practices that reduce waste (JIT)
other forms of production
just in case
time based management
cell production
kaizen
inventory control diagram
lead time - time it takes from order to arrival
re-order level level of inventory which triggers a re order
buffer level - minimum level of stock in case of emergency
profit
Gross profit = revenue - VC
operating profit = gross - FC
profit for the year = operating - other costs + tax
a variance
difference between budgeted figure and actual figure
favourable variance = when actual is better than budgeted
adverse = not better
break even output
where revenue = costs
fixed costs / price - VC
contribrution per output
price - VC
sources of finance
retained profit
debt factoring
trade credit
crowdfunding
sale of assess
venture capital
overdraft
bank loan
share issue
hard and soft HR
hard - treats employees as a resource
soft - treats employees as most valuable resource
labour productivity
output / number of employees
labour cost per unit
labour costs / output
employee costs as percentage of turnover
employee costs / sales turnover x 100
labour turnover
staff leaving / number of staff x 100
organisational structures
Functional - organisations divided into departments
product based - divided into product it produces
regional - divided based on geographic regions
matrix - organisations is both functional and product based
delegation
passing authority to subordinate
decision making
centralised - decisions made between upper employees
decentralised - all employees
theories of motivation
Taylor- money is the only motivator
Maslow - hierarchy of needs
Herzberg - hygienic and other factors
