business key info Flashcards
what is integration?
when 2 or more businesses join together.§
what is franchise?
the sale of rights to use/sell a product by a franchisor to a franchisee.
what is a franchisee?
An individual or Business that buys rights to trade under a particular business name.
what is a franchisor?
A business or individual. who sells the rights to another business to operate a franchise
2 advantages of a franchisee opening as a part of a franchise?
Given support by the franchisor
lESS INVESTMENT RECQUIRED IN THE START UP STAGE
What is outsourcing?
Getting another business or organisation to provide the service for you. e.g. walkers getting mccoys to make their crisps.
what is purchasing economies of scale?
when big businesses negotiate discounts for bulk buying.
what is technical economies of scale?
where businesses can afford to invest in expensive and specialist high quality machinery.
How is unit cost calculated?
Total cost divided by output
what are 2 benefits of drawing a business plan?
Provides a logical structure to thinking about the business
Can be used to measure actual performance.
What are the 5 parts of a business plan?
The idea
Aims and Objectives
Target market
Financial forecasts
The marketing mix
Define efficiency-
Efficiency is how well a business uses its resources to produce products.e.g. Maximising outputs whilst minimising inputs
Define job production-
A type of production where the product is produced to meet specific customer requirements
Define flow production
A method of production where identical, standardised items are produced on an assembly line
Define average unit cost
The cost of producing one product or unit
Define lean production
Where businesses aim to make production more efficient. it aims to reduce waste
Define just in case production
Where there are extra stocks at every stage of production
Define just in time production
A form of lean production, inputs arrive and outputs are produced just when they are needed
Define kaizen
Constant small improvements to its business process
Define procurement
The process of finding and buying the supplies a business needs so it can produce or sell final goods and services to customers
What is logistics?
A process which plans the distribution of goods and services from when they are received to when they’re delivered
Define quality
A product is of good quality if it meets the needs and expectations of the customer
What is quality assurance
A system of agreeing and meeting quality standards at every stage of production in an organisation
2 ways quality can be judged
Durability
Consistency
Value for money
What is customer service
Methods used by the business to look after its current and future customers
Define interest rate
The rate charged for borrowing money over a period of time, or a reward for saving money
