BS3/4 Flashcards
Examples of a stakeholder
Suppliers, consumers, local community, workers, managers, banks, accountants, share holders, creditor, pressure groups and CEO’s
What is porters 5 factors
Power of customers, power of suppliers, threat of market entry, threat from substitute, intensity of rivalry.
Porters 5 factors is the framework for what?
It is a framework for analysing the nature of competition within an industry
Competitive advantage
Something which makes them stand out over rivals
Corporate culture
Is a set of beliefs/attitudes held within an organisation that affects how it gets things done or behaves
What are the 4 types of culture?
Power, task, role & person
What is a stakeholder
A person that has an interest within the business
What is the process of the business cycle
Boom, recession, slump, recovery
What are the 2 types of risk
Quantifiable risk & unquantifiable risk
Quantifiable risk
Measurable and expected
Unquantifiable risk?
Unexpected &/or difficult to measure
What is a contingency planning?
Is the planning a business does for unexpected events that provide a severe threat of the success of current plans and can in serious cases threat the survival of the business
The three areas for preparing for crisis
Risk management
Contingency planning
Crisis management
Advantages of using moving averages
- Simple method to forecast, quick and cheap
- Smoothes out seasoned variations
- indication of possible sales
- plan how much to produce
- Quantitative methods of forecasting
- Motivates managers to reach targets
- Potential investors may be interested
Disadvantages of moving averages?
- Inaccurate data, assuming past trends will continue
- Does not take into account account external factors
• state of the economy - recession etc
• supplies - disruption to deliveries etc
• actions of competitor - new products/ advertisement
• Qualitative issues not taken into account - Changes to taste/fashion
