business

Question 1

transformation process and added value

Answer 1

the process of inputs into outputs

added value is the amount added on to inputs

Question 2

key inputs for transformation process

Answer 2

land , labour , capital , enterprise

Question 3

transformation process chain

Answer 3

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

Question 4

industry sectors

Answer 4

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

Question 5

breakeven output

Answer 5

fixed costs / profit per unit

Question 6

the margin of safety

Answer 6

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

Question 7

types of management styles

Answer 7

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

Question 8

the tannenbaum-schmidt continuum

Answer 8

tell, sell, consult, joins

Question 9

stakeholder mapping

Answer 9

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

Question 10

qualitive data

Answer 10

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

Question 11

quantitive data

Answer 11

the collection of information on consumers views

Question 12

stratified sampling

Answer 12

dividing a population into smaller sub sections

Question 13

quota sampling

Answer 13

deliberately chosen from sub sections

Question 14

confidence level

Answer 14

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

Question 15

confidence interval

Answer 15

the possible range of outcomes for a given confidence

Question 16

elasticity

Answer 16

measure of the responsiveness of demand to a change in variable

Question 17

PED

Answer 17

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

Question 18

inferior good

Answer 18

is a product that has a low perceived value

Question 19

YED

Answer 19

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

Question 20

type of product
YED

Answer 20

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

Question 21

mass marketing ( two ways )

Answer 21

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

Question 22

market mapping

Answer 22

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

Question 23

boston matrix

Answer 23

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

Question 24

the matrix has four categories

Answer 24

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

Question 25

matrix suggests four strategies

Answer 25

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

Question 26

price skimming
penetration

Answer 26

high initial price
low initial price

Question 27

dynamic pricing

Answer 27

price changes quickly in response to the ability to supply or to changing levels of demand

Question 28

loss leader

Answer 28

selling a product at a unprofitable price to encourage customers to buy additional products

Question 29

psychological pricing

Answer 29

using mind games e.g 1.99 instead of 2

Question 30

distributions channels

Answer 30

direct = producer to consumer
traditional = producer ->wholesaler->retailer->consumer
modern = producer -> retailer-> consumer

Question 31

digital marketing

Answer 31

search engine optimisation
social media marketing
pay per click
email marketing
influencer marketing

Question 32

operational objectives

Answer 32

1. ethical and environmental considerations
2. speed of response and flexibility
3. reduced unit costs
4. added value
5. quality targets

Question 33

capacity

Answer 33

the maximum output achievable using current resources

Question 34

capacity utilisation

Answer 34

the proportion of maximum capacity that is currently being used = actual output / max output x 100

Question 35

economies of scale

Answer 35

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

Question 36

underutilisation

Answer 36

when capacity utilisation is low

Question 37

overutilisation

Answer 37

operating above full capacity

Question 38

lean production

Answer 38

practices thar reduce waste . JIT

Question 39

time based management

Answer 39

approach that recognises the importance of time and seeks to reduce the level of wasted time

Question 40

cell production

Answer 40

team working where production processes are split into cells or teams