BLOCK 4 Flashcards
What is the private sector?
The private sector is the part of the economy which is both run for private profit and is not controlled by the government.
What is the public sector?
The public sector deals with either the production, delivery and allocation of goods and services by the government, whether national, regional or local.
What are co-operatives?
Co-operatives are owned by their staff, who are ‘members’ of the firm
Profits and losses are shared amongst the members
What is a non-profit organisation?
A Non – Profit Organisation (NPO) does not distribute its surplus funds to owners or shareholders but instead uses them to help pursue its goals.
Charities
Receive donations from groups or government
Doesn’t aim to generate profits
Business can belong to two sectors what are they?
Industrial Sector (e.g., a car manufacturer) or the Service Sector (e.g., a law firm, bank etc.).
What are the three business sizes
Businesses are classified as small(<=10m),
medium(<=50m) or large enterprises,
What is SME?
The term SME refers to both Small and
Medium Enterprises.
What is the supply chain?
A set of *organisations, people, technology, activities,
information, resources* involved in moving a product/service from supplier to customer.
Benefits of supply chain management?
Businesses focus on what they do.
Outsourcing to other businesses that can perform other activities better or at a lower cost.
Satisfying customer demand.
Inventory visibility.
Speed.
What is the supply chain management
Management, Coordination, Integration of all activities within and across businesses
What do supply chain management systems manage?
all activities from supplier and customer sides:
Customer requirement processing
Purchase order processing
Inventory management
Goods receipt and Warehouse management
Supplier Management/Sourcing
What is information system outsourcing?
When information systems services are outsourced to other organisations even from abroad or offsourcing.
Examples: cloud computing, databases,
business analytics.
Outsourcing raises a series of legal, ethical
and financial issues.
What is the value chain model?
Identifies the activities that a business must carry out in order to function effectively.
These activities
add value to the final product
give an advantage over competitors, if carried out at lower cost or are used to create a better product.
What are the primary activities in a value chain model?
Primary Activities: concerned with the direct generation of the organisation’s output to its customer.
operations:
Intbound logistics:
outbound logistics:
marketing and sales:
service:
What are the support activities in a value chain model?
Support Activities: contribute to the operation of primary activities.
organisational infrastructure
human resource management
technology (Research & Development)
procurement
Characteristics of ERP systems?
A MASSIVE integrated system with applications for
each business function.
A common database, that supports all applications.
A consistent look and feel throughout each module.
What is SWOT analysis?
SWOT analysis to review and understand a project,
investment or business decision in terms of:
Strengths
Weaknesses
Opportunities
Threats
What are Porters 5 forces?
(1) the bargaining power of suppliers,
(2) the bargaining power of customers
(3) substitute products,
(4) new entrants
(5) competitive rivalry.
What is PEST analysis?
Analysis tools focusing on environmental factors outside industry and their importance now and in the future.
Politics/Law
Economics
Society/Culture
Technology
What is PEST analysis?
Analysis tools focusing on environmental factors outside the industry and their importance now and in the future.
Politics/Law
Economics
Society/Culture
Technology
Advantages of ERP systems?
One common platform, instead of many applications
that cannot communicate and interface with one
another
Improves information flow between different departments and functions
One vendor to deal with (SAP, Microsoft, Oracle, Sage)
Reduced maintenance costs
Disadvantages of ERP systems?
Customisation of the ERP software is limited
Business changes to fit the ERP system
Expensive
Complete reliance on the Vendor
Extensive training required! Costs!
What is an EDI?
Electronic Data Interchange(EDI)
Electronic(computer to computer) exchange of business transactions
Why do organisations need a business strategy?
Different departments working towards a common objective.
Major resource allocation decisions:
How is a business strategy led?
Business strategy: led by the needs of the
business.
