Business planning and functional strategies Flashcards
What is the purpose of a business plan?
To provide potential investors with sufficient details about business and future strategies
What are the key functions of a business?
Finance
Marketing
Information technology
HRM
R&D
Operations
Procurement
What is the role of Human Resource Management?
Recruitment
Training
Appraisals
Rewards
What aspects generate and maintain a creative environment?
Leadership
Culture
People - team-based approach
Structure
Communication - greater openness
What are the 4 Vs involved in operations?
Volume -
Variety - greater variety reduces ability to standardise process
Variation in demand
Visibility - employees show good interpersonal skills
What are the 4 Vs involved in operations?
Volume -
Variety - greater variety reduces ability to standardise process
Variation in demand
Visibility - employees show good interpersonal skills
What are three general approaches to capacity planning?
Made to stock - constant level of activity
Made to order - made as customers require them (Just in time)
Manipulate demand - customers encouraged to switch to off-peak periods
What are the two key aspects of quality management?
Prevention (quality assurance) and detection (quality control)
What are the four components of the purchasing mix?
Quantity - sufficient to meet needs
Quality - to avoid delays and reputation damage
Price - negotiated to maximise profit
Delivery - Reliable and timely
What is supply chain management?
Management of all supply activities from the suppliers to the business
What key factors should be consider for supply chain management?
Responsiveness - is the supplier flexible enough
Reliability - can they meet the needs
Relationships - long term strengthens trust
Advantages of a single supplier
Strong relationship with supplier
Better commitment from supplier
Economies of scale
Better communication
Confidentiality
Advantages of multiple suppliers
Reduced supplier power - competition may drive down prices
Less spread of dependency if problems occur
Access to wider range of knowledge and expertise
What can a finance business partner help with?
Provide data and information
Enable business to understand performance
Help with business plans
Help prepare budgets
Help design information systems
