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as levels > business paper 1 > Flashcards

business paper 1 Flashcards

1
Q

what are the limitations of market research

A

it is often biased

a small sample limits the reliability of the research

causality is hard to identify

collecting it is very time consuming

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2
Q

what are the uses of market research

A

cash flow forecasting

budgeting

sales forecasting

workforce forecast

developing campaigns and adverts

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3
Q

how to get a competitve advantage

A

innovation

architechture

repuation

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4
Q

ways to add value

A

packagings

customisation

better designs/features

branding

good customer service

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5
Q

factors affecting supply

A

external shocks (plague or war)

changes in the costs of production

indirect taxes

introduction of new tech making production more efficient

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6
Q

factors affecting demand

A

price of substitute products

advertising and branding

price of complimentry products

population/demographics

fashion tastes

external shocks

seasonality

changes in customer incomes

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7
Q

income elasticity of demand formula

A

percentage change in quantity demanded

over

percentage change in incomes

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8
Q

what are the factors affecting ped

A

addiction
number of substitutes
effort/ cost of switching
% of income spent on the product
percieved value of the brand

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9
Q

whats the difference between normal goods and inferior goods?

A

Normal goods: an increase in income leads to an increase in the quantity demanded. this is positive income elasticity of demand

Inferior goods: an increase in incomes leads to a decrease increase in quantity demanded e.g store brand food this is negative income elasticity of demand

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10
Q

hat are the benefits of adapting designs to changes in social trends?

A
  1. reducing waste helps businesses cut costs
  2. reflecting social trends through product design means they are more likely to sell large quantities
  3. social trends can be used as a usp to differentiate products
  4. adapting means that businesses are more likely to be seen as socially responsible inviting new customers
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11
Q

what are some ways to build a brand?

A

exploiting a usp
advertising
sponsorship
social media

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12
Q

explain 3 pricing strategies

A

dynamic pricing - proce can fluctuate with the level of demand

penetration pricing - applied to a new product attempting to enter the market, initial price is lower in order to penetrate the market may increase overtime

price skimming - the initial price is high and is then lowered over time, suitable when anticipation for a new product is high

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13
Q

benefits of online distribution

A

customers have lower prices as the businesses have lower costs.

businesses can take sales and customers can shop 24/7

customers can see reviews and make an informed choice, limits returns

lower start up costs make it easier for small businesses to launch

dont have to meet the costs of operating retail stores

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14
Q

what are the 5 stages of a product life cycle

A

introduction - heavy promotion low prices

growth - price may increase with popularity

maturity - focus on retention instead of new cutomers and promotion as people are aware of the product

saturation - the market is full
all potential customers have the product

decline - further price cuts to maintain demand

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15
Q

advantages and disadvantages of flexible working

A

easier to manage staffing costs

business can respond to short term changes in demand

specialist jobs can be done by experts who dont have to be permanently employed

employees may not feel committed to the company without a permanent contract

communication can be a problem

outsourced work may be of a lower quality

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16
Q

what are the three types of employee representation

A

trade unions - organisations established to protect and improve the conditions of workers

work councils - a forum within the business where managers and workers meet to discuss issues

employee committees - informal groups set up by workers that focus on specific issues in the workforce.

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17
Q

what are the benfits of external recruitment

A

may attract a wider number of applicants

helps increase capacity within the business

brings in new skills and ideas

17
Q

what are the benfits of internal recruitment

A

cheaper than external recruitment

managers know their employees so theres less risk

may require less training

promotion opportunities are good for staff motivation

18
Q

benefits of a centralised business structure

A

works well where standardisation is required

appropriate where managers have the knowledge and workers are low skilled

suitable in times of crisis

effective in cost minimisation

19
Q

benefits of a decentralised business structure

A

effective where local teams are best placed to make decisions to meet customer needs

appropriate where business is spread over a wide geographical area and local needs are important

effective at reduing workload of denior managers and promoting autonomy

allows for flexible working

20
Q

benefits and drawbacks of tall organisational structures

A

managers have tighter controls

clear promotional route

communication may be poor because of long chain of command

slow to make decisions because of long command chain

tight controls may be demotivating

expensive because lots of managers

20
Q

what are the benefits and drawbacks of flat structures

A

communication is good

decisions are made quickly

workers are more motivated

managers may lose conrol of workforce

can be cheaper because fewer managers

21
Q

briefly explain taylors theory of motivation

A

this is based on work study and improving productivity and efficiency

people are motivated purely by money

employees should be assigned to complete one task with clear instructions

they are given elementary training

22
Q

briefly explain mayos theory of motivation

A

Based on the fact that employees have social needs that must be fulfilled through their work

any job design should ensure human interaction and be designed to the benefit of the workers not of the business

workers are not simply motivated by money

23
Q

briefly explain maslow’s heirarchy of needs

A

this focuses on the psychological aspect of motivation and that it comes from within and its the role of the manager to unlock this

people are driven to achieve personal needs

basic needs - psychological and security

needs within a social environment - self actualisation, self esteem, love and belonging

24
Q

name 4 financial methods of motivation?

A

commission

piecework

performance related pay

profit sharing / bonus schemes

25
Q

name 4 non financial methods of motivation

A

delegation, consultation and empowerment - autonomy

team working

flexibly working

hob rotation / enrichment /enlargement

26
Q

briefly explain herzberg’s theory of motivation

A

hygiene factors like poor pay,work conditions and a lack of job security and promotions. when these factors are taken care of job dissatisfaction will decrease but it will not increase satisfaction

27
Q

briefly explain the 4 types of leadership styles

A

autocratic (authoritarian) - one individual has full control of the group and expects obedience from subordinates

democratic - encourages each team member to participate in decision making through sharing their opinions

laissez - faire - the leaders are hands off and allow their team members the autonomy to make their own decisions

paternalistic - dominant authority figure who treats employees as if they are part of a large family

28
Q

what are the skills of an entrepreneur

A

organisation

financial management

managing and communicating with people

negotiating deals

29
Q

what are the pros and cons of private limited companies

A

pros:
limited liability
corporation tax is lower than income tax
easier to raise capital through friends and family

cons:
harder to set up than a sole trader or partnership
accounts published and publicly available
cant raise larger amounts through selling publicly

30
Q

what are the pros and cons of public limited companies

A

pros:
can raise huge finance through stock market flotation and issuing shares
easierto gain economies of scale through the size

cons:
accounts openly available to the public
greater external pressure through the media and pressure groups

31
Q

factors of production

A

land
labour
capital
enterprise

32
Q

approaches to flexible working

A

outsourcing - getting other specialists to complete a particular task

multi skilling - employees carry out multiple roles

flexible hours and remote working

part time and temporary

33
Q

how to design a product to meet social trends

A

products sourced ethically

products designed to be recycled

products designed for reuse

products designed for waste minimisation

34
Q

What are the 4 elements of the marketing mix

A

product
place
price
promotion

35
Q

explain the boston matrix

A

star tr - leading brand in the market distribution must be available to ensure product availability

? tl - fast growing but not fully established. lots of investment to ensure success and lots of competition from rivals

cow br - successful product in a mature market. they generate high revenue that can be invested into other areas. little promotion is required

dog bl - requires investment to revitalise or we discontinue the product

36
Q

trade union negotiation

A

when an employer formally agrees to conduct negotiation on pay and working conditions with a trade union instead of with each worker

37
Q

work councils

A

a forum within the business where workers and managers meet to discuss issues like pay conditions and training

38
Q

collective bargaining

A

process of negotiating terms of employment between an employer and a group of worker who are usually represented by a trade union official

39
Q

employee committees

A

a group of employees meet to focus on specific issues

as levels (12 decks)

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