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Old Decks > as_business_u2_20230227145412 > Flashcards

as_business_u2_20230227145412 Flashcards

1
Q

Divorce of ownership and control

A

Owners and those who control the firm (managers) are different groups with different objectives. The owners will wish to pursue a profit maximising objective; managers will more maybe have their own agenda.

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2
Q

Incorporated

A

Private/Public limited companies - Legally declaring the business as a separate entity to the owners. Owners have limited liability.

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3
Q

Limited Liability

A

Investors financial commitment is limited to the total amount invested into the business.

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4
Q

Unlimited Liability

A

A business where owners share joint and responsibilities for the entire amount of debt and other liabilities amassed by the business.

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5
Q

Nationalised Industry

A

Nationally owned for its importance. Royal mail used to be.

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6
Q

Not for Profit

A

A business with motives other than profit. Social benefit to society or support a cause.

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7
Q

Partnership

A

Two or more people join to form a business which is unincorporated. Partners have unlimited liability.

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8
Q

Public Corporation

A

An organisation to perform a governmental function , like a hospital.

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9
Q

Shareholders

A

Investors who are part owners of a business, liability limted to the amount invested.

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10
Q

Sole Traders

A

An individual who runs/owns their own business. Unincorporated.

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11
Q

Monopoly

A

When 25% or more of the market is owned by one company.

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12
Q

Loan

A

Medium to long term, usually from banks. Repayable with interest.

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13
Q

Secured Loan / Moragage

A

Collateral / specific property asset. Debt less risky for lender.

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14
Q

Personal Sources

A

Own money acquired by savings, inheritance, selling a business or family member loans.

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15
Q

Hire Purchase

A

Acquiring non property assets without need for initial cash, just payments.

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16
Q

Business Angel

A

Formal investments between 10,000 and 600,000. In early start-up usually by wealthy businessmen and entrepreneurs.

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17
Q

Share Capital

A

Value of the sum invested into the company by shareholders. Cannot get money back by firm, managers can rely on these funds. Referred as Permanent Capital

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18
Q

Trade Credit

A

Obtaining credit for the purchase of an asset. Deposit and instalments of equal amounts over time. Doesn’t require collateral.

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19
Q

Collateral

A

Something pledged as security for repayment of a loan, to be forfeited in the event of a default.

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20
Q

Debtor

A

A person, country, or organization that owes money.

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21
Q

Debt Factoring

A

Buying debts at a discount. A factor collects a company’s debts when due, and pays the creditor in advance part of the sum to be collected, thus “buying” the debt.

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22
Q

Venture Capitalist

A

Specialist finance providers that invest in small/risky ventures in return for business ownership/profits.

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23
Q

Government Funding

A

Activities in the national/public interest, may create jobs in developing areas.

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24
Q

Retained Profit

A

Money taken after, trading costs, overheads, taxation and dividends deduced from sales revenue. Long term and relatively cheap.

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25
Q

Leasing

A

Simplest form of external financing, through a cheap and flexible source. Business obtains goods/services from another business.

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26
Q

Sale of Assets

A

Established business with assets sells, but has the use of the cash. Good business sense to dispose of redundant assets.

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27
Q

Sale and Leaseback

A

Involves the sale by the business of an asset to a financial company which then makes the asset available to the business on a lease basis. Releases capital, without the loss of the use of the asset.

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28
Q

Overdraft

A

Flexible source of unsecured finance, repayable on demand. Interest is payed only on the negative balance outstanding each day. Cheap.

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29
Q

Squeezing Working Capital

A

Reducing stocks, chasing up debtors more quickly/delaying payment to creditors cash can be generated from a firms working capital. Internal Source of Income. Track down debtors to pay up.

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30
Q

Property

A

Secured loan/ Mortgage

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31
Q

Dilute Control

A

Sell shares

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32
Q

Need equipment (Hi-tech)

A

Leasing/hire purchase

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33
Q

Firms Objectives

A

Survival/expansion - Rapid expansion requires a lot of debt. Survival strategies are financed with savings or retained profits, slower and less risky.

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34
Q

Purpose of Finance

A

Medium term loan, better for machines, overdraft use to finance short-term working capital but not for purchasing assets.

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35
Q

Cost

A

Better to use internal, cheap, than external. Internal, cheap and flexible. Trade credit is cheap short term external, prompt payments earn discounts. Hire purchase expensive. Cost is the interest, rate of interest affected by economic climate.

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36
Q

Control

A

Owner not wanting to dilute their control, debt may be the best option; restrictive conditions in loan conditions, may cause loss of control.

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37
Q

Collateral (Security)

A

If no assets available against a loan, may opt for more expensive finance, which doesn’t offer security e.g hire purchase.

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38
Q

Time Period

A

Choose source of finance relevant to time. Sale of shares for long term - purchase new building ; trade credit/debt factoring for short term.

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39
Q

Availability and Reliable

A

Some forms take a longer time to complete e.g mortgage whereas leasing is short and simple.

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40
Q

Flexibility

A

How easy to change terms e.g repayment period.

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41
Q

Revenue Expenditure

A

Payment for goods that will be used i.e wages, raw materials, fuel. Shown in profit/loss. Financed over short term sources.

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42
Q

Capital Expenditure

A

Goods/services that can be used over and over again. I.E vehicles, equipment and new factory. Firm balance sheet. Medium/long term payments.

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43
Q

Risk

A

Risky ventures harder to raise loan finance (credit crunch). Lenders cautious, want to be repaid. Gearing ratio, High gearing (high debt proportion to equity). High risk to lenders, choose equity not loan.

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44
Q

Equity

A

Value of shares issued by company

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45
Q

Fixed costs

A

Costs that do not change with output, for example rent, utilities, tax, phone, loan repayments.

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46
Q

Variable costs

A

Costs that change directly from output, for example stocl, delivery costs

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47
Q

Profit

A

Profit = total revenue - total costs

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48
Q

Profit Centre

A

Part of a business to which costs and revenue can be allocated to.

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49
Q

Cost Centre

A

Sections of a business that are distinct from others and which costs can be attributed to.

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50
Q

Adverse Variance

A

The difference between the budgeted and the actual figure which has a negative impact on profit.

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51
Q

Favourable Variance

A

The difference between the budget and the actual figure which has a positive impact on profit.

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52
Q

Budget

A

Financial targets for the future covering revenue and expenditure over a period of time.

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53
Q

Inventory

A

The stock of goods held for re-sale. The current assets of a business.

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54
Q

Limiting factor

A

A constraint upon a businesses budget. Determining which budget is drawn up first.

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55
Q

Over-trading

A

The rapid growth which places a significant burden on a firms ability to to meet its debts.

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56
Q

Sensitivity Analysis

A

Technique used to reduce the uncertainty in decision making, adjusting and assessing the impact of the change on break-even output.

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57
Q

Variable Costs

A

These costs change as a result of changes in output only, e.g raw materials.

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58
Q

Zero-Budgeting

A

Where budgets are set at 0 and managers have to fully justify their spending levels.

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59
Q

Profit Maximisation

A

Where the target is to receive the most amount of profit .

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60
Q

Survival

A

May be a target for the first few years of a business, especially if there is a crisis in the development stages.

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61
Q

Sales Growth

A

Where owners believe that sheer quantity of sales is the best chance for survival.

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62
Q

Social objectives

A

For a social enterprise it may be to correct one os societies problems, although may affect break-even or the finances.

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63
Q

Why set objectives

A

DirectionTarget to derive plans fromInform leaders/investors about the aimsGuideline to assess the achievements of the business

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64
Q

SMART

A 
Specific MeasurableAgreedRealisticTime specific
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65
Q

Risks

A 
Lack of business and management skillsLack of knowledge of legal requirementsCompetitionIncreased taxes or interest ratesChanges in tastesTechnology
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66
Q

Business failure

A 
Insufficient Capital (money)Poor management skillsPoor locationLack of planningOver-expansionExternal factors
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67
Q

Marketing

A

The management process of identifying, anticipating and fulfilling customer needs profitably.

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68
Q

Niche Marketing

A

Targeting the needs of a small group of people with specialised needs

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69
Q

Mass Marketing

A

Targeting the needs of a very large group of potential customers, essentially aiming at the population as a whole.

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70
Q

Customer

A

Organisations/individuals who purchase goods/services.

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71
Q

Business to Business Marketing

A

Serving the needs of business customers

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72
Q

Business to Consumer Marketing

A

Creating and delivering products that meet the needs of consumers.

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73
Q

Product Orientated

A

An approach to marketing where businesses concentrate on the product then how to market it.

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74
Q

Market Orientated

A

An approach to marketing where businesses base products solely on the researched needs.

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75
Q

Work Force Efficiency Measures

A

Methods an organisation uses to assess the performance of the workforce.

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76
Q

4 types of Workforce Efficiency

A

Labour TurnoverLabour ProductivityAbsenteeismWastage rates

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77
Q

Unit Cost

A

The average cost of producing one unitTotal cost —————–Total quantity

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78
Q

Training

A

The process of equipping employees with the skills required to carry out the job.

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79
Q

Span of Control

A

The number of subordinates a line manager is directly responsible for.

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80
Q

Selection

A

Actions taken by a firm to identify the best candidates from a range of candidates.

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81
Q

Recruitment

A

Steps taken by a company to identify a vacancy and attract suitable candidates.

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82
Q

Person Specification

A

A document in which the essential and desirable qualities, skills and experience of the candidate is stated.

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83
Q

Off-the-job Training

A

Any form of education to improve productivity away from the place of work.

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84
Q

Matrix Structure

A

A form of organisation where staff are organised into teams that include all necessary specialists.

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85
Q

Labour Productivity

A

Output per worker, per period of time.Output——————–Number of employees

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86
Q

Labour Turnover

A

The rate of change in a firms workforceNumber of employees leaving——————————————–Average number of employees

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87
Q

Job Description

A

A document which states title, duties and responsibilities.

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88
Q

Induction Training

A

Training which takes place at the start of the term of employment.

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89
Q

Hierarchy

A

The structure of the workforce which shows who is accountable to whom.

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90
Q

Assessment Centre

A

A selection method that involves assessing candidates performance through activities, exercises and meetings.

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91
Q

Absenteeism

A

The number of staff who were not at work for a proportion of the total number of staff.Number of days taken off—————————————Total days working

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92
Q

Hierarchy Advantages

A
  • Clear line of authority- Management free to concentrate on strategy- Quicker response due to smaller chain of command
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93
Q

Hierarchy Disadvantages

A
  • Training Costs- Poor Decision made by inexperienced managers- Slow communication- Long chain of command
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94
Q

Matrix structure Advantages

A
  • Encourages team work| - Communication very fast
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95
Q

Matrix structure Disadvantages

A
  • No defined line of authority| - No defined chain of command
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96
Q

Break-even output

A

The level of output at which the company is making no profit or loss; where total revenue = total costs

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97
Q

Business Angel

A

An affluent individual who is willing to invest in the business for a high return.

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98
Q

Capital expenditure

A

The spending on fixed/non-current assets, property equipment ect.

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99
Q

Cash flow forecast

A

The process of estimating the size and timing of cash inflows and outflows within a business

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100
Q

Contribution

A

The amount that each unit contributes towards covering fixed costs. Selling price - variable costs

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101
Q

Cost centre

A

Sectors of the business of which costs can be attributed to

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102
Q

Creditors

A

Suppliers who the business has brought goods from and whom the business has yet to pay.

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103
Q

Debt factoring

A

The sale of a businesses invoices to a third party. Business is charged for processing the invoices and the business selling the invoices receives 80-90% of the invoice value.

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104
Q

Debtors

A

Customers of which have brought money on credit and are yet to pay.

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105
Q

Direct Costs

A

Any cost which can be directly attributed to a cost centre or production of any good/service of a particular good e.g raw materials.

106
Q

Dividends

A

A percentage of the profits of a business which is paid to shareholders as a reward for their investment

107
Q

Fixed costs

A

Costs which do not change in proportion to output in the short term.

108
Q

Indirect costs

A

A cost not directly attributed to a cost centre or production line e.g administration.

109
Q

Interest

A

The cost of borrowing funds and the return to savers

110
Q

Limited Company

A

A form of ownership in which the owners have limited liability

111
Q

Limited liability

A

An investors financial commitment is limited to the total amount invested int he business

112
Q

Liquidity

A

The ability of a firm to meet its short term liabilities. Measured by comparing current assets with current liabilities.

113
Q

Liabilities

A

A company’s legal debts/obligations that arise during the course of business operations. Liabilities are settled over time through the transfer of economic benefits including money, goods or services.

114
Q

Margin of safety

A

The difference between actual output and breakeven output.

115
Q

Opportunity cost

A

The value of the next bets alternative forgone when a decision is made.

116
Q

Overtrading

A

The rapid growth of a business which places a significant burden on a firm to meet its debts

117
Q

Profit centre

A

The part of a business of which costs and revenue can be allocated.

118
Q

Sole trader

A

An individual who runs their own business.

119
Q

Sensitivity analysis

A

The technique which is used to try and reduce the uncertainty in decision making.

120
Q

Variable costs

A

These costs change as a result in the changes in output e.g raw materials.

121
Q

Revenue

A

Selling Price x Quantity

122
Q

Profit

A

Revenue - Costs

123
Q

Contribution

A

Selling Price - Variable Costs

124
Q

Break Even Output

A

Fixed Costs ÷ Contribution

125
Q

Margin of Safety

A

Current Output - Breakeven Output

126
Q

Gross Profit

A

Revenue - Variable Costs

127
Q

Net Profit

A

Revenue - (Fixed Costs + Variable Costs)

128
Q

Net Profit Margin

A

Net Profit ÷ Revenue x 100

129
Q

Return on Capital Employed

A

Net Profit ÷ Capital Employed

130
Q

Loan Capital (Overdraft)

A

Where a business can withdraw out more money than what is in their account to an agreed limit.

131
Q

Loan Capital (Bank Loan)

A

A sum of money lent for a fixed period of time.

132
Q

Share Capital

A

Where one asks for an investor into the business for a share of the business.

133
Q

Venture Capitalist

A

Professional investor in return for shares of the business.

134
Q

Total Profit

A

Total Contribution - Fixed costs

135
Q

Absenteeism

A

The number of staff who were not at work as a proportion of the total number of staff in a given period. N.O of days off divided by total days worked.

136
Q

Assessment centre

A

A selection method that involves assessing the candidates performance throughout a series of activities, exercises, meetings over a period of time

137
Q

Capacity utilisation

A

The actual level of output as a percentage of total output. Actual level divided by potential level times 100

138
Q

Communication Flows

A

How communication flows within an organisation

139
Q

Cost reduction

A

The range of methods that firms use to reduce the costs and therefore improve profits.

140
Q

Delegation

A

The passing of authority down the hierarchy

141
Q

Empowerment

A

Giving employees greater control over their working lives. by giving them the power to determine what they do, how they do it.

142
Q

External recruitment

A

Candidates for recruitment outside the organisation

143
Q

Financial methods of recruitment

A

A method of which has monetary value used to reward the workforce.

144
Q

Gross profit margin

A

A measure of profitability which relates revenue minus the cost of goods sold to sale revenue.

145
Q

Hierarchy

A

The structure of the workforce which shows who is accountable for whom.

146
Q

Improving Cashflow

A

Speeding up/increasing the volume of cash inflows or slowing down the amount of cash outflows.

147
Q

Improving Profit

A

Actions taken to increase the difference between total costs and total revenue.

148
Q

Maslow’s Hierarchy of Needs

A

Physiological, Security, Love/belonging, Self esteem, self actualisation.

149
Q

Motivation

A

The forces acting on (extrinsic) or within (intrinsic) an individual to cause them to behave in a particular way.

150
Q

Operating profit margin

A

A measure of flexibility which relates revenue minus costs of goods sold and expenses to sales revenue. Operating profit divided by net sales.

151
Q

Operations management

A

The function which tries to ensure that the rights goods/services are being produced at the right time to the right standard of quality.

152
Q

Profit budget

A

The target amount of surplus to be achieved in a given time.

153
Q

Rationalisation

A

Actions taken to cut costs by reducing the scale of the organisation, reducing capacity.

154
Q

ROCE

A

Profitability ration which measure profit in relation to the capital invested in a firm. Operating profit divided by Capital employed.

155
Q

Capital employed

A

Total assets - current liabilities.

156
Q

Span of control

A

The number of subordinates a line manager is directly responsible for.

157
Q

Taylors Scientific Management

A

A motivation theory which states that tasks should be studied scientifically in order to find the most efficient way of completing them. Standardised and all employees should be trained.

158
Q

Variance Analysis

A

The process of calculating and analysing any differences between actual and budgeted figures.

159
Q

Absenteeism

A

The umber of staff who were not at work as a proportion of the total number of staff in a given period.

160
Q

Adverse Variance

A

The difference between budgeted and actual of which has a negative impact on profit.

161
Q

Assessment Centre

A

A selection method that involves assessing candidates performance throughout a series of activities, exercises and meetings over a period of time.

162
Q

Budgets

A

A target amount of money set by a business in a specific time period.

163
Q

Capacity Utilisation

A

The actual output as a percentage of potential output.

164
Q

Communication Flows

A

How communication occurs within an organisation.

165
Q

Customer Service

A

The meeting of customers expectations before, during and after sales.

166
Q

Delegation

A

The passing of authority down the hierarchy.

167
Q

Empowerment

A

Giving employees greater control over their working lives, by determining how, what, when they complete a task

168
Q

Expenditure Budget

A

A target amount of money a business is permitted to spend within a time period.

169
Q

External Recruitment

A

Candidates for a position are identified outside the place ofwork

170
Q

Gross Profit Margin

A

A measure of profitability which relates revenue minus the cost of goods sold.

171
Q

Income Budget

A

A target amount of money to be received from sales.

172
Q

Induction Training

A

Training that takes place at the start of the term of employment, with the aim to help staff settle in.

173
Q

Job Description

A

A document which sets out title, main duties and responsibilities.

174
Q

Job Enlargement

A

The process of increasing the number of tasks and responsibilities an employee has.

175
Q

Job Enrichment

A

An increase in the level of responsibility that an employee has in order to increase motivation.

176
Q

Labour Productivity

A

Output per worker per period of time.

177
Q

Labour Turnover

A

The rate of change in a firms workforce.

178
Q

Levels of Hierarchy

A

The numbers of layers of employees in an organisation.

179
Q

Maslows HON

A

All humans have the same needs of which need to be met in order to move onto a new important need. Basic, safety, social needs, self esteem (recognition/promotion) , self actualisation (responsibility).

180
Q

Matrix Structure

A

A form of organisation in which the staff are organised into teams that include all necessary specialists.

181
Q

Mayo’s

A

A theory of which believes that all workers are a member of a group, therefore HUMAN RELATIONS - positive attention, involve in decision making.

182
Q

Motivation

A

Forces acting on (extrinsic) or within (intrinsic) an individual to cause them to behave in a particular way.

183
Q

Net Profit Margin

A

A measure of profitability of which relates net profit to sales revenue.

184
Q

Off the job Training

A

Any form of education to improve productivity which takes place away from work.

185
Q

Operational Targets

A

Predetermined targets which relates to a number of efficiency measures e.g unit costs, quality, capacity utilisation.

186
Q

Operations Management

A

Tries to ensure that the right goods/services are produced at the right time at the right cost at the right quality.

187
Q

Person Specification

A

A document in which the essential and desirable qualities, skills and experience of the candidates are detailed.

188
Q

Profitability

A

Measures the efficiency with which a business generates profit from revenue or long term invested funds.

189
Q

Quality

A

The ability of a product to meet consumer expectation.

190
Q

Quality Assurance

A

The checking of a product or service at each stage of its production as opposed to quality control.

191
Q

Quality Control

A

The checking of a good/service at the final stage of its production, as opposed to quality control.

192
Q

Recruitment

A

Steps taken by a company to identify a vacany and attract suitable candidates.

193
Q

ROCE

A

Profitability ration which measures profit in relation to capital invested in a firm.

194
Q

Selection

A

Actions taken by afirm to identify the best candidate from a range of candidates,

195
Q

Span of Control

A

The number of subordinates a line manager is directly responsible for.

196
Q

Taylors Scientific

A

Theory which states that the workers are motivated by money, therefore piece work and splitting up the production line into smaller individual tasks increases piece work chance.

197
Q

Total Quality Control

A

A philosophy which places consideration of quality at the heart of every decision.

198
Q

Training

A

The process of equipping employees with the correct skills required to carry out a task.

199
Q

Unit Cost

A

The average cost of producing one unit.

200
Q

Variance Analysis

A

The process of calculating and analysing any difference between actual and predicted budgets.

201
Q

Workforce Efficiency Measures

A

Methods a workforce uses to assess the performance of the workforce.

202
Q

Marketing

A

The process of identifying, anticipating and fulfilling customer needs profitably.

203
Q

Niche Market

A

A small group of customers with specialised needs

204
Q

Mass market

A

Targeting the needs of a very large potential customers essentially aiming at the whole population.

205
Q

Customer

A

Organisations or individuals who purchase goods/services.

206
Q

Business to Business

A

Creating and delivering products that meet the needs of final individual customers.

207
Q

Product Orientated

A

An approach to marketing where businesses focus on the product and then decide how to market them.

208
Q

Market Orientated

A

An approach to marketing where businesses focus on the most appropriate marketing opportunities that fit their existing strengths.

209
Q

Marketing Mix

A

The combination go product, price, promotion and place, designed to achieve the marketing obectives of a business.

210
Q

Product

A

A good/service offered to customers by a business.

211
Q

Unique Selling Point

A

A feature or function of a product that makes it different from any other on the market.

212
Q

Boston Matrix

A

A model used to analyse a firms product portfolio by considering market share in relation to market growth.

213
Q

Cash Cow

A

High market share, low market growth.

214
Q

Rising Star

A

High market share, high market growth.

215
Q

Problem Child

A

Low market share, high market growth.

216
Q

Dog

A

Low market share, low market growth.

217
Q

Product Life Cycle

A

Shows the stages that a product will go through and how sales levels might vary in its lifetime.

218
Q

Research and Development

A

The initial stage of the product life cycle in creating and innovating new ideas

219
Q

Product Launch

A

The stage in the product life cycle when the product is introduced to the customers.

220
Q

Growth

A

The stage in the product life cycle when sales are growing.

221
Q

Maturity

A

The stage of the product life cycle when the product is established and sales level off.

222
Q

Decline

A

The stage of the product life cycle when sales are falling.

223
Q

Extension Strategy

A

A plan to modify some or all of the 4 p’s in order to prolong the maturity stage of the product life cycle.

224
Q

Price

A

The component of the marketing mix that determines the amount of money that os paidfor a good/service.

225
Q

Price Leader

A

A business that has the power to influence market price for a product due to significant market share or inelastic demand.

226
Q

Price Taker

A

A business which sets its price at the market price due to low market share or elastic demand.

227
Q

Pricing Strategies

A

Long term pricing plans to achieve business objectives.

228
Q

Price Discrimination

A

Charging different groups of customers different prices.

229
Q

Price Skimming

A

Charging high prices in order to recoup the cost of R&D.

230
Q

Penetration Pricing

A

Low prices in order to gain market share.

231
Q

Destroyer Pricing

A

Illegal, however this aims to put others out of business, so there is less competition.

232
Q

Loss Leaders

A

Selling the product below the price in order to attract customers to the shop.

233
Q

Psychological Pricing

A

A tactic designed to entice customers to buy products by making them think they are cheaper than it actually is.

234
Q

Promotion

A

Bringing a product to the attention to existing/potential customers.

235
Q

Advertising

A

A promotional campaign that involves the use of media to communicate with potential/existing customers.

236
Q

Branding

A

The creation of an identity for a business and or individual products in order to differentiate from rivals.

237
Q

Place

A

The component of marketing mix which defines both physical and where a product is available.

238
Q

Monopoly

A

Where one business dominates the market share in the market.

239
Q

Oligopoly

A

Where a few businesses dominate the market, each with a high market share.

240
Q

Competitive Advantage

A

A feature of a business that allows it to perform successfully than others in the market.

241
Q

Competitiveness

A

The degree of which a business is successful in selling its products compared to a rival.

242
Q

Market Conditions

A

The characteristics of a market in which a firm operates, such as competition, needs of customers, market growth.

243
Q

Market Concentration

A

The proportion of total market sales accounted by a particular number of firms.

244
Q

Capacity Utilisation

A

Current output as a percentage of potential output.

245
Q

100% Capacity

A
  • Cannot take on new orders.- Quality may decrease.- Delays if machinery breaks, due to it being constantly on.
246
Q

Increase Capacity

A
  • Staff hours/motivation/training.| - Increase Capital Goods.
247
Q

Under Utilisation

A

May increase costs, fixed costs spread over less output increasing unit costs.Higher capacity creates economies of scale decreasing variable costs.

248
Q

Quality

A

This is when the good/service meet customer expectations.

249
Q

TQM

A

This is when the idea of quality is instilled throughout the business, where quality is checked after each stage.

250
Q

Quality Assurance

A

Each Stage

251
Q

Quality Control

A

Final Stage

252
Q

Benefits of Quality

A
  • Less wastage rate.| - Motivation increase productivity Recognition.
253
Q

Suppliers

A

Those that offer goods/services of which match or exceed the needs of the business.

254
Q

Factors Affecting Suppliers

A

Price, Payment Terms, Quality, Capacity, Reliability, Flexibility

255
Q

Technology

A

Goods of which make the firm more cost effective and efficient, requiring updating and maintenance.

256
Q

Pros/Cons of Tech

A

Staff costs fall, more accurate/reliable| Staff lose jobs, high initial and maintenance costs.

257
Q

Improve Cashflow

A

Short term/long term finance i.e factoring, loans, sale and leaseback.Lengthen the credit time to pay back suppliers.

258
Q

Improve Profits

A

Raise the price of the good/service.| Reduce the cost of production of the good/service.

259
Q

Pros/Cons - Internal/External Recruitment

A

Internal - Know them, Shorter/less expensive.Another vacancy to be filled, cause resentment.External - New ideas, experience organisat, pool choose.Don’t know candidate, long and expensive, induction req.

260
Q

Pros/Cons of Off/On Training

A

Off - Specialists, intensive, new theories/equip.Expensive, may not access tools at work, not productive.On - Easy to organise, costs lower, job specific.Not productive, bad practices passed on, bad coms.

261
Q

Determinants/Improving Competitiveness

A

Price (reduce costs, staff tend to be the biggest), Quality, Type of Market.Customer Service (increases customer loyalty, increased by setting higher standards of training and recruitment).

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