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higher buisness > BUISNESS > Flashcards

BUISNESS Flashcards

1
Q

4 sectors of industry

A

primary - businesses that are involved in extracting or exploiting natural resources

secondary - businesses that are involved in manufacturing and construction

tertiary - businesses and organisations that are involved in providing services rather than goods

quaternary - businesses involved in providing information and knowledge based services

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2
Q 
objectives 
for private(public limited company) and public sector
A

managerial objectives
this happens with managers in larger companies pursue their own objectives which will bring them more status

corporate social responsibility (CSR)
when organisations interact in an ethical way or any way that benefits either society or the environment

satisficing
this happens when the business makes enough sales to keep shareholders happy, rather than putting their effort into maximising profit

maximising growth
where business becomes larger with more branches meaning it can help businesses achieve economies of sale

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3
Q

public limited company in terms of ownership finance and control

A

ownership - owned by shareholders who by one or more shares in the business and as such own part of the business

control - controlled by a board of directors are managed by a managing director

sources of finance - issuing shares, government grants, bank loans, retained profit from previous years

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4
Q

public sector in terms of ownership control and finance

A

ownership - public sector organisations are owned by the government and the taxpaying public

control - public sector organisations are controlled overall by the central or local government and run by elected officials

sources of finance – public sector organisations are funded by government from taxes and national insurance

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5
Q

horizontal and lateral integration disadvantages

method of growth

A
  • The takeover may breach EU competition rules so may not be allowed to go ahead
  • as there will be less competition quality may suffer
  • due to the lack of competition customers may have to pay higher prices for the same goods
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6
Q

forward and backwards vertical integration disadvantages

method of growth

A

-The business may not be capable of managing these new activities efficiently which could lead to higher costs
-focusing too much on new activities can negatively affect the core activities of the business
-monopolising markets may lead to legal action by the competition

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7
Q

conglomerate integration disadvantages

method of growth

A
  • The business may take on a business in another market that they know nothing about and this may cause the new business to fail
  • having too many products across different markets may cause the business to lose focus on its core activities
  • The business could become too large and inefficient to manage this is called diseconomies of sale
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8
Q

impact of positive employee relation

A
  • employees will feel they have the chance to discuss changes meaning they will feel happier and more secure in the work place
  • the organisation will gain a good image for treating its employees well meaning high quality staff will be attracted to work for them
  • workers will be committed meaning they will help to ensure the business meets its objectives
  • staff will feel they have been consulted meaning they will understand changes more meaning problems are less likley to arise
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9
Q

impact of negative employee relation

A
  • due to low morale employee performance and productivity will decrease
  • as employees will be stressed and demotivated staff absenteeism will arise
  • employees will leave for a better work environment leading to high staff turnover and increase recruitment and training costs
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10
Q

employee participation

A

employees need to feel as if they have a say in the organisation and use worker directors, works consils and quality circles to give employees a voice

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11
Q

advantages of CAD

A

-accuracy of the drawing is increased with no human error
-Ideas can be saved modified printed and can show visual 3D concept
-no hardcopies needed which saves on storage


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12
Q

disadvantage of CAD

A
  • The initial expense of equipment and software as expensive

- staff need to be trained how to use CAD

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13
Q

advantages of outsourcing

A
  • The outsourced business will have greater expertise and specialist equipment this means that the quality will be higher
  • outsourcing allows the business to focus on its core activities meaning it’s more likely to meet its objectives
  • The business is able to use the outsourced service only when needed meaning costs are saved
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14
Q

disadvantages of outsourcing

A

-The business has less control over outsourced work this means that quality may fail
-Communication between businesses may not be clear meaning it may result in complaints
-outsourced business may cost more than in-house staff meaning that costs will increase

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15
Q

external factors
PESTEC
environmental

A

poor weather,
— long spells of bad weather such as snow can affect deliveries to customers, customers may end up having to buy products from competitors resulting in a loss of market share

increase in recycling,
— organisations that adopt and publicise their recycling efforts will gain a better reputation than their competitors and attract customers with an interest in the environment

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16
Q

how to check desions have been effective

A
  • issue questionnaires to customers to evaluate their response
  • check to see if profits have increased
  • check to see if staff absenteeism has reduced
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17
Q

external factors

political

A
  • changes in legislation if the government increases the minimum wage the organisation will have a higher wage costs meaning lower profits
  • economic policy if the government increases the base rate then interest rates set by banks on loans will increase which will reduce spending on luxury items
  • competition policy businesses cannot collide with other organisations to fix prices
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18
Q

external factors

econmic

A
  • stage of the economic cycle if the countries in the boom stage this means that the business may be able to increase prices without losing business to competition
  • Exchange rates in value of the pound is low compared to foreign currencies UK exporters will be able to sell more goods overseas and will be less expensive for customers outside the uk
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19
Q

external factors

social

A
  • U.K.’s aging population of businesses adapt their products To older customers this means that in your market segment open up increasing profits
  • changing in fashion trends some products have very short shelf life meaning there needs to be constant high research and development costs
  • evolving worklife balance as people have more leisure time they tend to eat out which means that businesses in these sectors have the opportunity to maximise growth
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20
Q

external factors

technological

A
  • social media having a strong social media presence means the organisation can keep in touch with customers worldwide
  • 4G if an organisation operates in a 4G area its employees will be able to communicate quickly improving efficiency
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21
Q

external factor

competitve

A
  • competition lowers prices this will force the business to lower their own prices which will reduce profits
  • e-commerce if a competition start selling online they will increase their market share in brand awareness which could lead to reduction in sales
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22
Q

pricing stratigies

advantages market skimming

A
  • sufficient hype and a new product enables the higher prices to be charged which can increase profits
  •  Lack of competition also allows maximum prices to be charged
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23
Q

pricing stratigies

market skimming disadvantage

A

-high initial price can put some customers off buying the product

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24
Q

pricing stratigies

penitration pricing advantages

A
  • encourages customers to try a new product due to the lower price
  • The business hopes to gain repeat custom once the price rises
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25
Q

pricing stratigies

penitration pricing disadvantage

A

-very little profit can be generated during the initial low price period

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26
Q

tall structure

A

a tall structure occurs when there are many levels of management and decisions are passed down from senior staff through each level to employees at the bottom of the pyramid

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27
Q

tall structure advantages

A
  • many levels come with many promotion opportunities this means that staff will be more motivated and less likely to leave for another job
  • managers can provide more support to help subordinates as they will have less staff to manage
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28
Q

tall structure disadvantages

A
  • Communication takes time as it has to flow down through levels which means that decision making could be slower
  • managers have fewer staff this means that there may not be enough staff to delegate tasks to
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29
Q

flat structure

A

A flat structure occurs when there are few levels of management and a shorter chain of staff

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30
Q

flat structure advantages

A
  • information can be communicated quickly between levels this means that decision-making will be faster
  • managers have to delegate tasks to staff which means that staff morale is raised as staff will feel trusted
31
Q

flat structure disadvantages

A

-fewer levels means fewer promotions this means that staff may leave to gain promotion in larger organisations

32
Q

Purpose of an income statement

A

-calculates the profit made from buying and selling

– comparison can be made about an organisations profit or loss over a period of time

– it can be used to calculate ratios which can then be used to inform decision-making

33
Q

role of a manager

A

pOCc-DM

PLAN

ORGINAISE-management must set tasks for other employees that need to be carried out to achieve targets

COMMAND-managers must issue clear instructions to employees

CO-ORDINATE

CONTROL

DELEGATE-managers should give employees authority to carry out management tasks to help achieve tasks on time

MOTIVATE -managers must give their team a reason to enjoy their work

34
Q

2 types of market research

A

feild and desk

35
Q

desk research advantage

A
  • cost effective, desk research is readily available and quick to gather TMT responses to changes in the market are quick
36
Q

desk research disadvantages

A
  • not appropriate, the information is not fit for the exact purpose this means that information may have to be changed to fit the businesses needs
  • not objective, it is collected and presented by someone else meaning the information could be biased leading to unacrruate results
37
Q

feild research advantages

A
  • appropriate, the information is fit for the businesses needs meaning time isn’t waisted searching through un useful information
  • up to date, the information is gathered when needed TMT desioins based on the information will be more accurate
38
Q

feild research disadvantage

A

not cost effective - as it requires trained and paid interviewers or expensive research companies TMT costs will increase

39
Q

feild research methods

A

online survey

focus groups

40
Q

online survey advantages

A

one of the cheapest surveys saving money

customers can be surveyed over a wide geographical area

41
Q

online survey disadvantages

A
  • people may ignore emails etc and don’t do the survey meaning there will be a low Response rate
  • limits people who don’t have access to the internet
42
Q

focus groups advantages

A
  • more In depth feedback can be gatherd

- more people likely to show up as they’ve agreed to participate

43
Q

focus group disadvantages

A
  • customers may be intimidated to say how they really feel about the product
  • one loud voice may sway the whole group a specific way
44
Q

product portfolio advantages

A

star products allow a business to be Market leader in one area TMT the brand image will improve overall

customers are more likely to purchase from a business with an already large existing portfolio this means that they will have a competivte advantage

45
Q

product portfolio disadvantages

A

staff may require training on different products TMT time will be waisted

bad publicity of one product means the whole Portfolio could mean the whole portfolio could be tarnished

46
Q

social media in marketing

A

can be used to interact with customers and respond quickly

improves brand loyalty and brand names more recognisable

cost effective, advertising is usually free or cheaper on social media

wide geographical area means more people can be reached

47
Q

purpose of cash budgeting to aid desion making

A

mesures performance of deparments TMT desions can be made in investing or closing down a department

forecasts extra cash available TMT management can consider investing the money

highlights when a negative cash balance is expected TMT costs can be cut back before problems arise

48
Q

solution to cash flow problems

A

to much money tied up in inventory = use JIT

not enough sales revenue = change elements of marketing mix to encourage sales

49
Q

advantages of just in time inventory control (JIT)

A

no wearhouse required TMT costs can be reduced and money can be used more profitability else where

no money is tied up in inventory TMT cash flow can be improved

50
Q

disadvantages of just in time inventory control (JIT)

A

bulk buying discounts cannot be used TMT costs will be higher

late delvers cause a shortage of inventory TMT it could negatively effect their reputation

51
Q

advantages of capital intensive (automation)

A
  • robots don’t take breaks holidays or sick leave so can work 24/7
  • produce products the same way which improves consistently
52
Q

disadvantages of capital intensive (automation)

A
  • lack of creativity in products due to lack of human touch

- huge investment needed to automate a production line

53
Q

advantages of labor production

A
  • less expensive than capital intensive production

- humans can use initiative and creativity which is often lacking in automated systems

54
Q

disadvantages of labor intensive production

A
  • humans have to take breaks holidays ect which limits production time
  • training and wage costs need to be considered
55
Q

reasons for production choices

A

quality of goods required
skills of the work force
cost of labor
finance available

56
Q

importance of ensuring quality

A

poor quality can lead to returns = a loss in sales

good quality = good reputation

57
Q

quality control compared with quality assurance

A

quality control is a method of inspecting raw materials or finished goods WHEREAS quality assurance is a method of checking quality at many different stages of the process preventing errors

quality control creates a lot of waste as products are not checked until the end WHEREAS quality assurance less wastage which decreases costs

quality control products have to be reworked from scratch costing the business time WHEREAS quality assurance its easy to identify faults this means that the fault can be identified quicker and resolved

58
Q

advantages of quality standards and symbols

A

higher prices can be charged as the product is high quality increasing costs
customers are more likely to buy from a company with these standards

59
Q

disadvantages of quality standards and symbols

A

if it fails to meet standards their reputation may be damaged

annual checks are needed which can cost the business time

60
Q

benchmarking advantage

A

the product will be as good as the best on the market increasing market share

61
Q

benchmarking disadvantage

A

will only ever be just as good as the benchmark at the time meaning they will never be market leader

62
Q

advantages of fair-trade (ethical issue)

A

attracts customers if the business has the fair-trade mark

better relationship with suppliers improving efficiency

63
Q

disadvantages of fair-trade (ethical issue)

A

fair trade products are more expensive

limited choice of suppliers

64
Q

appraisals

A

one to one
360 degree
peer to peer

65
Q

advantages of one to one apraisls

A
  • postitve feedback will be given which motivates the employee to continue to work well
  • training needs can be identified = better quality of products
66
Q

disadvantages of one to one apriasils

A
  • negtative feedback could mean employees become demotivated
  • can become time consuming = time is waisted
67
Q

360 degree appraisal advantage

A

-increases communication between team members = better team work

68
Q

360 degree appraisal disadvantage

A

feedback could be bias as its done by peers

69
Q

Employee participation

A

Worker director
works councils
consultative committees

70
Q

worker director

A

where very low-level employees are given a seat on a board of directors but has no voting rights on the board

71
Q

works consuls

A

Groups which are equal part employees and managers which meets to discuss major suggestions for change in the organisation

72
Q

consultative committees

A

group made up equal parts employees and managers but also involve shareholders to discuss issues that effect the organisation

73
Q

Impact of the equality act

A
  • organisations will have to invest in better accessibility e.g. lifts ramps
  • organisation will need to pay both genders the same amount
74
Q

benefits of workforce planning

A
  • avoids overstaffing = unessesary costs

- relevant training can be given

higher buisness (1 decks)

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