Business A2 Flashcards
1
Q
what is marketing?
A
marketing takes into account the situation of the market
2
Q
why should a business set objectives?
benefits of setting objectives?
A
helps a business identify objectives and achieve them
a good way to motivate workers
3
Q
disadvantages of setting objectives?
A
must be clear otherwise is not useful
need to take into account external factors ie: economy etc
4
Q
how can a business assess success?
A
sales
market share
satisfaction surveys
5
Q
define market share?
A
percentage of total sales within the market that is controlled by a business
6
Q
what is globalistion?
A
the interconnection of the world through trade
7
Q
what are the types of marketing strategy’s?
A
competitive strategy
market leader
marker follower
differentiation
niche market
8
Q
what is market research?
A
gathering information about consumers
9
Q
what is the market research process?
A
qualitative research= based on opinions
quantitative research= involves numbers and sales
10
Q
what are ways of conducting research?
A
primary research= interviews questionaires and focus groups
secondary research= data which is already existed
11
Q
what are the types of sampling methods ?
A
simple random
systematic
stratified
quota = split into groups
convenience= who came into hand easily
12
Q
what are reasons for error during sampling?
A
non sampling method errors
sampling errors
13
Q
what are the market segmentation?
A
age
gender
income
social class
religion
residence
14
Q
explain what it is meant by marketing?
A
marketing refers to any structure that allows buyers and sellers to exchange goods
15
Q
what is product differentiation?
A
making a product more distictive
such as: logo and branding logo
16
Q
what is USP?
A
means unique selling point
this is where the business makes thei product stand out compared to their competition
17
Q
what are the stages of the prodcut life cycle?
A
stages contain:
introduction
growth
maturity
decline
18
Q
what are ways a business can can expand their sales and growth in the maturity and decline stage?
A
by chaning the product by adding new features to the product
or more advertising
19
Q
what is a niche market
A
targetting a clear segment market
20
Q
what is DAGMAR?
A
a way of promotion
define
advertise
goals
advertising
results
21
Q
what is the boston matrix and what is it for?
A
a tool for a business can use when deciding what products to produce
22
Q
what are the stages contained in boston matrix?
A
rising star problem child
cash cow dog
23
Q
what are the benfits of the bostons matrix?
A
easy to use
provides resourse allocation
long term strategic plan
awarness of competition
24
Q
disadvantages of boston matrix
A
over simplification looks at only two things
high market doesnt mean its profitable
25
what is place in marketing chapter?
this refers to the distribustion of the product
26
what are the channels of distribution?
wholesalers
consumers
retailer
agents
27
what is physical distribution?
this is transports on roads or transport
28
what is online distribution
contacting producers and deliveries
29
what are changes in distribution?
size of the market
costomers moving to online shopping
technology advertisments
increased competition
cost consideration
30
what is direct selling?
just suppliers sell straight to consumers
31
what are the pricing methods?
price skimming
competitive pricing
promotional picing
cost plus pricing
penetration
psycological
32
what are factors affecting price?
legislation
economy
demand
competition
climate/ weather conditions
33
what is promotion?
techniques to perswade potential customers
34
what are strategies of promotion?
newspapers
tv
social media
drip marketing
magazines
emails
viral marketing
sponserships
radio
cinema
posters
billboards
35
what is the purpose of social media?
increases sales
encourages brand loyalty
raises brand awarness
enhances reputation
36
what is operations managment?
means the area of business focused on overseeing and controlling production
37
what is added value?
the diffenence bwteen the actual price charged for a product
38
how can a business add vaue to a product or service?
better customer service
adding more/new features
make the product look more valuable
being a high quality company
39
what are the benefits and drawbacks of added value
beter brand image
enhances brand reputation
increases profits and revenue
customer rentention
DRAWBACKS:
not guarenteed to recoup by increasing price
competition makes it harder
elasticity makes it harder
40
what are the benefits of added value to stake holder?
customer may value the feature that are given
supliers will get more supply orders
higher divednets
recognition of the brand
41
what is innovation?
the introduction of a new idea or method of production process
42
what are the problems of innovation?
costs alot
very risky
danger of being copied
limited protection to ideas
unemployment by becoming automated
43
what is product orientation?
this is where the busines concentrates on improving quality or efficiency
44
what are factors affecting innovation?
R&D
the external enviroment
state of the economy
level of development
product may be sophisticated
45
what are the methods of production?
job cell production
batch lean production
flow
46
what is job production?
what are the benefts of it?
producing one item mthat is specific to the customer needs
ie: wedding dress, cake etc
benefits:
meets customer needs
easy to add value
little stock is piled up
easy to motivate employes/ job rotation
47
what are the drawbacks of job production?
requires skilled labour
labour costs
slow process takes time
high costs of production
48
what is batch production?
a set numbers of producers take pace in production process
49
what is the benefits and drawbacks of batch production?
BENEFITS:
able to produce large quantities
faster than job production
cab benefit from economy of scales as lots are produced
DRAWBACKS:
delay between batches means nothing is produced
no variation in batch
not motivating as its repetitive
50
what is flow production?
a continious automated process using a coveyer belt
51
what are the benefits and drawbacks of flow production?
BENEFITS:
gains beneits from producing high
reduce unit costs
consistant quality
DRAWBACKS:
lack of flexibilty
requires high maintanance
high start up costs
52
what is cell production?
production system that has employees working in teams
they are responsible for the production
53
what ae the benefits and drawbacks of cell production?
BENEFITS:
improved working conditions ; increased motivation as employees are responsble for their own work
job rotation
variation between products
DRAWBACKS:
costs to set up machinery
requires space
multiskilled workers required
high maintanance
difficulty in managing inventory
54
what is lean production?
to maximise quality and productivity while minimise watse
ie: subway
55
what are the benefits and negatives of using lean production?
BENEFITS:
reduced watse
improved quaity and efficiency
enhanced cusomer satisfaction
lower stock holding
NEGATIVES:
high initial costs
stress and pressure on emplpyees for high productivity
potential quaity issues
and problems in quality can damage brand imagine
56
what is JIC?
when a business orders more stock than it needs
57
what are the benefits and negatives of JIC?
BENEFITS:
meets customer damand
gains economy of scale
only good for business that isint impacted by trends
NEGATIVES:
high storage costs
cant aply for perishabe goods
stock isnt guarenteed to be bought so leaves excess stock
58
what is JIT?
when stock arrives exactly when its needed
59
what is the positives and negatives of JIT?
POSITIVES:
no waste
less storage cost
more efficent
NEGATIVES:
doesnt meet unexpected demand
any delay can cause problems like long waits
long waits can lead to bad brand image
60
what is project mangement?
process which involves planning and organisin activites
61
whats the importance of project managent?
helps time managment
allows resource allocation
project tracking
62
defiie critical paths?
allows the overall time of the project to be calculated
63
what the benefits and negatives of critical paths?
BENEFITS:
improved planning
enhanced efficiency
clear project timelne
a visual representation of the flo of the project
NEGATIVES:
focuses on the time over other factors
time consuming
any delays can ruin the whole project
64
what are the benefits and drawbacks of gantt chants
BENEFITS:
simple visual reprentation
easy to use and monitor
it shows both and resource allocation
NEGATIVE
cannot allow the user to see activites
calculationis not straightforward
65
formula for productivity
output / input
65
how can a business improve productivity
monotoring employess
setting realistic targets
job rotation
making work enjoyable
profit sharing inventives
training
suggestion box to encourage ideas
66
what can productivity lead to
allows business to pay of debt
allows business to measure performance
encourges higher investment
67
why do businesses grow
higher chances of survial
larger profit
increase market share
68
what are the types of growth
internal growth this is where business maximises profits by increasing production
external growth this is where growth is achieved by a takeover
69
define economies of scale
a ruduction in unit costs achived as the scale of production increases
70
how can internal economies of scale be achieved
PURCHASING : purchasing raw materials in large quantities
MANAGERIAL : employing sepcialised managers allows firms to operate effectivley
TECHNICAL: firm gets bigger so can buy more efective equiptment
FINANCIAL: laeger firms can negotiate prices
71
how can a business achieve external economies of scale
CONCENTRATION: firms benefiting for the growth size of a business
INFORMATION: firms can benefit as informtion services are set up to benefit them
72
define diseconmies of scale
an increase in unit costs as as a result of an increase scale of production
73
how can diseconomies of scale be achieved
communication problems as business size increases it becomes more difficult to communicate
reduction in morale, as abusiness grows workers tend to lose their sense of belonging
large production process, this can make it difficult to keep track of production and managing the storage costs
74
define what capacity utilisation is
usign the recources of the businss in a effective and efficient manner
75
how can a business reach full capacity
increased demand for the products produced
produce different additional products with the same resources
reducing the capacity
76
what are constraints on a business reaching full capacity
the level of competition
the stage of the product life cycle
if the product is seasonal
superior alternatives
77
costs of capacity utilisation
employees are put under pressure
high level mistakes when working at full capacity as process are hurried
any additional order may not be met
little opportunity for maintenance and any breakdowns can lead to down time
78
how to calculate capacity utilisation
curent production level x 100
max output
79
what is stock control
the quantity of stock held by a business
80
what are the benefits of holding stock
able to satisfy demand
able to cope with fluctuation in demand
buffer stock to meet late deliveries
costs of saving due to econmies of scale
81
what is lean production
a method of reducing waste and maximising quality
82
what are the costs of holding stock or inventory
storage costs increase
opportunity costs
stock can depreciation
security costs
insurance costs
administrative costs
83
what are the different types of lean production
jidoka being able to detect faults
TQM usage of all resources
kaizen: ongoing continous improvment
cell production working in own cells
erganomics relationship between
employee and eqiptment
JIT ordering stock just before its finished
time based competiton reduced time taken to produce product
quality cirlces employees meet in groups to talk about approach
84
what are benefits of JIT
reduced storage costs
less stock hold so no damage to stock
easy to control and keep track of
84
drawbacks of JIT
less stock being held so any delays can halt the production
cant meet unexpected demand
any disruption to production sysetem can effect level of production
85
the factors effecting location
competition
globalisation
type of business
type of market
cost of labour
infustructure
consumers
planning reglations
86
what is infustructure
the structures that support a society such as transport
87
what are the factors of logistics
transportation
warehousing
customer requirements
information systems
88
what is quality assurance
a quality check procedures throughout the process
89
what is quality control
quality procedure checks are at the end of the process
89
what are the costs of inspection
time taken to inspect
installing procedures to improve
training employees to specailise in quality
89
costs of poor quality products
waster materials
costs of repairing
damage to reputation of business
90
what are methods of improving quality
wastage rates
training
benchmarking
total quality management
kaizen
quality circles
zero defects
quality standards such are the kite symbols
91
what is benchmarking and they types of benchmarking
this is where a business compares themselves with competitors
internal benchmarking this is comparision between different departments
external benchmarking is a comparision between competitors
92
what are the drawbacks
limited access to sensitve material
difficult to find which business offers the best practise
difficult for a business to implement improvments
