business Flashcards

1
Q

transformation process and added value

A

the process of inputs into outputs

added value is the amount added on to inputs

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2
Q

key inputs for transformation process

A

land , labour , capital , enterprise

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3
Q

transformation process chain

A

raw material -> manufactoring -> distribrution -> retailer -> consumer

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4
Q

industry sectors

A

raw material = primary sector - extract or develops natural resources such as timber

manufacturing = secondary sector - using primary sector materials to build

distribution and retailer = tertiary - provide the services needed to meet the needs

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5
Q

breakeven output

A

fixed costs / profit per unit

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6
Q

the margin of safety

A

is the difference between the breakeven out put and the actual output

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7
Q

types of management styles

A

autocratic/authoritarian = makes decisions without consulting staff

paternalistic = gives attention to the needs of their workers

democratic = involves staff in decision making

laissez-faire = lets staff make their own decisions

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8
Q

the tannenbaum-schmidt continuum

A

tell, sell, consult, joins

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9
Q

stakeholder mapping

A

x-axis = stakeholder interest monitor , keep informed y axis = stakeholder power keep satisified

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10
Q

qualitive data

A

research into the attitudes and opinions of consumers that influence their purchasing behaviour

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11
Q

quantitive data

A

the collection of information on consumers views

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12
Q

stratified sampling

A

dividing a population into smaller sub sections

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13
Q

quota sampling

A

deliberately chosen from sub sections

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14
Q

confidence level

A

an indication of how accurate the research findings are e.g 80%=80%confidence that the results are accurate

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15
Q

confidence interval

A

the possible range of outcomes for a given confidence

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16
Q

elasticity

A

measure of the responsiveness of demand to a change in variable

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17
Q

PED

A

measure of how responsive demand is to a change in price
elastic = infinty <— -1
inelastic = -1<–0

18
Q

inferior good

A

is a product that has a low perceived value

19
Q

YED

A

below -1 = elastic
between -1 and +1= inelastic
above 1 =elastic

20
Q

type of product
YED

A

below 0 = inferior goods
between 0 and 1 = normal goods
above 1 = luxury goods

21
Q

mass marketing ( two ways )

A

1 generic product for the whole market
or
1 product adapted to each segment

22
Q

market mapping

A

identify the position of a product using any two features e.g price and quality

market mapping enables a business to see where competition is most concentrated

23
Q

boston matrix

A

allows businesses to plot their products on a grid or matrix according to each products market share and market growth

24
Q

the matrix has four categories

A

dogs - low market share and growth
question marks / problem child = low market share and high market growth
stars - high market share high market growth
cash cows = high market share low growth

25
matrix suggests four strategies
question marks = monitor this product to see if it has potential to become a star . stars = invest in this product has potential for further growth dogs = remove this product from market cash cows = maintain this profitable products market share
26
price skimming penetration
high initial price low initial price
27
dynamic pricing
price changes quickly in response to the ability to supply or to changing levels of demand
28
loss leader
selling a product at a unprofitable price to encourage customers to buy additional products
29
psychological pricing
using mind games e.g 1.99 instead of 2
30
distributions channels
direct = producer to consumer traditional = producer ->wholesaler->retailer->consumer modern = producer -> retailer-> consumer
31
digital marketing
search engine optimisation social media marketing pay per click email marketing influencer marketing
32
operational objectives
1. ethical and environmental considerations 2. speed of response and flexibility 3. reduced unit costs 4. added value 5. quality targets
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capacity
the maximum output achievable using current resources
34
capacity utilisation
the proportion of maximum capacity that is currently being used = actual output / max output x 100
35
economies of scale
1. bulk buying - buying in bulk for cheaper cost per unit 2. technical - capital machinery 3. specialisation - splitting workforce into specialised teams 4. marketing - spreading marketing costs over a large output 5. managerial - employing specialists to supervise
36
underutilisation
when capacity utilisation is low
37
overutilisation
operating above full capacity
38
lean production
practices thar reduce waste . JIT
39
time based management
approach that recognises the importance of time and seeks to reduce the level of wasted time
40
cell production
team working where production processes are split into cells or teams
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