Business Studies Trial Paper Flashcards
What are the roles of operations management?
strategic role of operations management – cost leadership, good/service differentiation
goods and/or services in different industries
interdependence with other key business functions
What are the influences of operations?
globalisation, technology, quality expectations, cost-based competition, government policies, legal regulation, environmental sustainability
corporate social responsibility
– the difference between legal compliance and ethical responsibility
– environmental sustainability and social responsibility
What are the operations processes?
inputs
– transformed resources (materials, information, customers)
– transforming resources (human resources, facilities)
transformation processes
– the influence of volume, variety, variation in demand and visibility (customer contact)
– sequencing and scheduling – Gantt charts, critical path analysis
– technology, task design and process layout
– monitoring, control and improvement
outputs
– customer service
– warranties
What are the operations strategies?
performance objectives – quality, speed, dependability, flexibility, customisation, cost
new product or service design and development
supply chain management – logistics, e-commerce, global sourcing
outsourcing – advantages and disadvantages
technology – leading edge, established
inventory management – advantages and disadvantages of holding stock, LIFO (last-in-first-out), FIFO (first-in-first-out), JIT (just-in-time)
quality management
– control
– assurance
– improvement
overcoming resistance to change – financial costs, purchasing new equipment, redundancy payments, retraining, reorganising plant layout, inertia
global factors – global sourcing, economies of scale, scanning and learning, research and development
What are the roles of marketing management?
strategic role of marketing goods and services
interdependence with other key business functions
production, selling, marketing approaches
types of markets – resource, industrial, intermediate, consumer, mass, niche
What are the influences of marketing?
factors influencing customer choice – psychological, sociocultural, economic, government
consumer laws
– deceptive and misleading advertising
– price discrimination
– implied conditions
– warranties
ethical – truth, accuracy and good taste in advertising, products that may damage health, engaging in fair competition, sugging
What are the marketing processes?
situational analysis – SWOT, product life cycle
market research
establishing market objectives
identifying target markets
developing marketing strategies
implementation, monitoring and controlling – developing a financial forecast; comparing actual and planned results, revising the marketing strategy
What are the marketing strategies?
market segmentation, product/service differentiation and positioning
products – goods and/or services
– branding
– packaging
price including pricing methods – cost, market, competition-based
– pricing strategies – skimming, penetration, loss leaders, price points
– price and quality interaction
promotion
– elements of the promotion mix – advertising, personal selling and relationship marketing, sales promotions, publicity and public relations
– the communication process – opinion leaders, word of mouth
place/distribution
– distribution channels
– channel choice – intensive, selective, exclusive
– physical distribution issues – transport, warehousing, inventory
people, processes and physical evidence
e-marketing
global marketing
– global branding
– standardisation
– customisation
– global pricing
– competitive positioning
What are the roles of finance management?
strategic role of financial management
objectives of financial management
– profitability, growth, efficiency, liquidity, solvency
– short-term and long-term
interdependence with other key business functions
What are the influences of finance?
internal sources of finance – retained profits
external sources of finance
– debt – short-term borrowing (overdraft, commercial bills, factoring), long-term
borrowing (mortgage, debentures, unsecured notes, leasing)
– equity – ordinary shares (new issues, rights issues, placements, share purchase plans),
private equity
financial institutions – banks, investment banks, finance companies, superannuation funds, life insurance companies, unit trusts and the Australian Securities Exchange
influence of government – Australian Securities and Investments Commission, company taxation
global market influences – economic outlook, availability of funds, interest rates
What are the finance processes?
planning and implementing – financial needs, budgets, record systems, financial risks,
financial controls
– debt and equity financing – advantages and disadvantages of each
– matching the terms and source of finance to business purpose
monitoring and controlling – cash flow statement, income statement, balance sheet
financial ratios
– liquidity – current ratio (current assets ÷ current liabilities)
– gearing – debt to equity ratio (total liabilities ÷ total equity)
– profitability – gross profit ratio (gross profit ÷ sales); net profit ratio
(net profit ÷ sales); return on equity ratio (net profit ÷ total equity)
– efficiency – expense ratio (total expenses ÷ sales), accounts receivable turnover ratio
(sales ÷ accounts receivable)
– comparative ratio analysis – over different time periods, against standards, with
similar businesses
limitations of financial reports – normalised earnings, capitalising expenses, valuing
assets, timing issues, debt repayments, notes to the financial statements
ethical issues related to financial reports
What are the finance strategies?
cash flow management
– cash flow statements
– distribution of payments, discounts for early payment, factoring
working capital management
– control of current assets – cash, receivables, inventories
– control of current liabilities – payables, loans, overdrafts
– strategies – leasing, sale and lease back
profitability management
– cost controls – fixed and variable, cost centres, expense minimisation
– revenue controls – marketing objectives
global financial management
– exchange rates
– interest rates
– methods of international payment – payment in advance, letter of credit, clean
payment, bill of exchange
– hedging
– derivatives
What are the roles of human resources management?
strategic role of human resources
interdependence with other key business functions
outsourcing
– human resource functions
– using contractors – domestic, global
What are the influences of human resources?
stakeholders – employers, employees, employer associations, unions, government
organisations, society
legal – the current legal framework
– the employment contract – common law (rights and obligations of employers
and employees), minimum employment standards, minimum wage rates, awards,
enterprise agreements, other employment contracts
– work health and safety and workers compensation
– antidiscrimination and equal employment opportunity
economic
technological
social – changing work patterns, living standards
ethics and corporate social responsibility
What are the marketing Woolworths notes?
• WOW uses marketing approach through their everyday rewards card which allow customers to receive personalised emails to notify them of specials based on their previous purchases.
• WOW operates primarily in intermediate market. Sells goods of other businesses that they think will please customers. They are also in the consumer market through their bakery items, niche market through their macro organic products and the mass market since basically everyone buys groceries.
• WOW positions fresh produce at entry of stores to give perception of stores products being fresh and healthy. Metro have “food for now” at front to give perception of convenience.
• Growing Chinese population in Sydney’s Northern suburbs WOW stocks 30 types of soy sauce in Macquarie Ryde store.
• WOW are required to adhere to government regulations regarding country-of-origin labels.
• March 2018, ACCC commenced legal action in Federal court alleging the environmental representation WOW made about its “W Select eco” picnic products were false, misleading or deceptive. Alleged that WOW represented to consumers that the products would biodegrade and compost within a reasonable period of time but failed to substantiate these claims. Case was later deemed not misleading and dismissed.
• WOW has some price variation in pricing between different states and territories due to transportation costs. WOW has online only specials, charges delivery fee for grocery delivery.
• It is implied that WOW provides products of acceptable quality-no faults, safe, looks acceptable and works as expected.
• All products from WOW and Metro excluding gift cards are covered by the WOW Supermarkets Returns Policy.
• WOW introduced new phantom brands which are supermarket-owned brands with no reference to the supermarket. These brands attract shoppers seeking value while eliminating the perception of low quality surrounding such products.
• WOW sell large range of confectionary that may contribute to obesity and health issues but offer confectionary free checkouts and free fruit for kids in all stores. 18 million fruit donated.
• 2020-ACCC raised concerns over WOW plans to acquire 65% of PFD Food services for $550 million. PFD are wholesalers and distribute food products to restaurants, hotels, etc. The ACCC were worried that the acquisition would further increase WOW’s bargaining power over suppliers as well as reduce choice for consumers and suppliers. It was later concluded that WOW and PFD did not compete significantly.
• WOW uses their rewards cards to collect marketing information from their customers such as rate of purchase, types of products bought and time of purchase. They use this information to better plan promotion and pricing. It is thus sugging since customers may be unaware that WOW is using information from their cards to give more tailored marketing.
• Strength: has approx. 12.5 million everyday rewards customers. Weakness: still resolving staff underpayment issue from 2019. Opportunities: WooliesX’s digital and media business reported a 25.8% increase in average weekly traffic to WOW websites. Threats: WOW H2 sales were impacted by cycling COVID in final four months of the year.
• November 2016 “Woolworths Bunch” introduced: customer information/feedback food community. Bunch customers are invited to try food for free and share their thoughts on it.
• In December 2021, Victorians were expected to buy the most mince pies. This became their target market for the product for the time.
• WOW continuously monitor customer satisfaction through surveys, call centres and online channels.
• WOW segments its market by attempting to identify what each state and territory will buy in the lead-up to Christmas.
• WOW differentiates itself from ALDI and IGA through their larger range of products.
• WOW’s slogan ‘the fresh food people’ aims to position the business in the minds of customers as one that brings Australians outstanding fresh food and value and that emphasises quality and freshness and positions Woolworths as contemporary and unique.
• WOW uses a stylised ‘W’ in their branding for almost all of their marketing material.
• WOW have taken steps to reduce the amount of plastic used in packaging.
• WOW used market pricing when their average pricing dropped by 1.2% due to the impact of COVID on buying patterns.
• WOW began radio advertising in 1937 by sponsoring a popular evening programme
• WOW uses a primarily selective channel choice.
• WOW supermarkets stock approx. 20,000 items.
• WOW employs people to work in a range of roles such as cash register operators, delivery drivers and administration workers.
• WOW stores are self-serve.
• WOW leave positive physical evidence through flowers at the front of their stores.
• WOW uses targeted YouTube campaigns to reach customers.
• WOW and Countdown are in ways similar and different. They have different names, they have the same odd bunch range.
What are the operations Woolworths notes?
• WOW aims to increase customer food spending by lowering their prices.
• WOW’s main method of differentiating themselves form competitors is by focusing on the freshness of their produce.
• WooliesX manages all digital aspects of WOW business.
• WOW slogan “fresh food people” is used to demonstrate their commitment to high quality produce.
• WOW and its main rival Coles both announced price reductions on about 200 of their products in 2021.
• WOW is influenced by a range of government policies and legal regulations such as Australian and New Zealand food standards.
• In 2021 the Fair Work Ombudsman took WOW to court for major underpayments to staff
• WOW began installing defibrillators in their stores.
• WOW have set themselves a goal to power themselves with 100% renewable energy by 2025.
• The WOW group board is gender balanced with 50% women.
• WOW centres their operations around their customers and their team.
• WOW has just over 1000 supermarkets and Metro stores.
• Most WOW stores are scheduled to be open seven days a week from 7 to 10 to cater for shopping patterns.
• WOW stores are set up to enable customers to walk in and around the store and pay before exiting.
• WOW uses VOC( voice of customer), VOT(team) AND VOS(supplier) to measure overall satisfaction and performance.
• All WOW products are covered by warranty with the exception of gift cards.
• WOW has scan and go stores across the country where customers can scan the barcode of items they wish to purchase and pay using the Woolworths app without having to queue at a checkout.
• WOW have adapted to customer feedback providing better bag packaging, more half sized trolleys, e.t.c.
• Woolworths follow latest food trends to finds ways to make their products healthier and tastier.
• There was an increase in online shopping between 2020 and 2021 due to Covid
• WOW customers value local sourcing and so WOW sources almost 100% of its produce from Australia.
• WOW outsources much of their trolley collection and cleaning.
• WOW uses JIT inventory management which caused problems during COVID pantry loading
• WOW will make many redundant jobs through their movement to automating their distribution centres.
• WOW announced it would be retraining their staff to prepare them for the automation of the retail landscape.
What are the finance Woolworths notes?
• In 2021, Metro food stores sales declined by 4.9% causing a drop in retained profits.
• WOW uses debt financing through long term lease arrangements with shopping centre owners.
• Permanent full-time and part-time employees are eligible to purchase share purchase plans.
• WOW underpaid staff for a period of time and were forced to pay back the amount.
• WOW uses hedges to minimise interest rate fluctuation risks.
• WOW has substantial financial needs due to the high number of stores throughout the country as well as the large number of employees who help manage all of these stores.
• WOW consistently use previous budgets to plan future budgets.
• WOW uses record systems to compile information for their annual reports which are shared with shareholders and the general public.
• WOW considers the accurate and timely payments to staff and suppliers to be important to their businesses growth and operations.
• WOW chairman and CEO sign the director’s declaration in their annual reports to acknowledge that the company will be able to meet its financial obligations and liabilities.
• WOW includes a cash flow statement in their annual report each year
• WOW reported reduced payables in FY21 due to decreased volume replenishments of COVID contingency stock compared to the prior year.
• WOW entered a 10 year sale and lease back arrangement for four properties they previously owned.
• WOW’s biggest expenses include asset refurbishment, inventory, tax expenses, e.t.c.
What are the human resource Woolworths notes?
• WOW focuses on caring for their team members as they believe that they are key to their success.
• WOW outsources its delivery now service to companies such as Uber.
• WOW employs approximately 115000 team members in stores, offices, e.t.c.
• Some WOW workers are represented by the Australian Worker’s Union.
• Most WOW staff are paid under enterprise agreements.
• WOW aims to achieve “Destination ZERO” which means zero harm will come to staff, customers or the businesses environment. It involves striving to prevent injury and illness and ensuring services or tasks are conducted safely.
• WOW has anti discrimination and equal emplyment opportunity (EEO) policies and they are communicated to all employees and covered in their code of conduct of which they are required to sign.
• WOW announced plans for a 40 doller pay increase in line with the FWC decision to lift the country’s national wage by 5.2%
• WOW has allocated $50 million over three years to give a large number of employees technology oriented skills.
• WOW have embraced flexible working which accelerated during COVID-19
• WOW has a webiste called WOW carrers focused on publishing details on available positions.
• WOW employees have a dedicated wellbeing platform called ‘I am here’ through which they can seek private social and financial support. It is an employee benefit that builds positive corporate culture.
• WOW aim to encourage their team memebers to think and behave like owners.
• “Welcome to Woolworths” is an e-learning induction module that must be completyed by all new emplyees.
• Generally local workers are employed in both Australia and New Zealand stores.
• WOW workplace disputes are first discussed at the workplace level.
• The WOW group board consists of 9 members, 5 women and 4 men which meets their objectove for gender balance.
• Covid-19 brought increased absenteeism to WOW with NSW being the most affected state.
What are warranties?
A voluntary promise offered by the person or business who sold the product or service to you.
What is logistics?
The process of planning and executing efficient transportation and storage of goods from the point of origin to the consumer.
What is ecommerce?
The buying and selling of products over the internet.
What is scanning and learning?
learning best practice from internal and external sources. Continuously scan the global business environment to learn best practice from around the world. This can allow for continuous improvement.
What is the resource market?
production and sales of raw materials
What is the industrial market?
businesses that purchase or sell products for use in other products or daily operations.
What is the intermediate market?
organisations or people that buy finished products and sell them for profit. E.g. retailers
What is the consumer market?
Consumer market: where businesses sell products directly to customers. Can be divided into mass and niche markets.
What is the mass market?
products are aimed at all customers regardless of age, gender, location. E.g. water/electricity.
What is the niche market?
narrowly selected target market. Consumer usually has very specific needs. E.g. rare or expensive items.
What is marketing?
System of activities that plan, price, promote and distribute products to customers.
What is the strategic role of marketing?
Its role is to develop goods that satisfy customer needs and thus build loyal customer base, increase brand visibility, and differentiate products from its competitors.
What is the CCA?
The “Competition and Consumer Act 2010” (CCA) protects customers from practices such as misleading advertising or misrepresentation of product contents. It also regulates trade practices that restrict competition. E.g. price fixing.
What are price points?
Setting different prices for similar products that are differentiated by feature.
What is global pricing?
has to do with the price differences or consistencies for a product sold globally.
What is the strategic role of financial management?
to ensure a business continues to operate, grow and achieve its goals.
What is efficiency?
refers to achieving maximum output with minimum input.
What is liquidity?
refers to how quickly assets can be converted to cash and therefore determines a businesses ability to pay off short term loans.
What is solvency?
refers to the ability of a business to meet long term obligations.
What is retained profit?
an internal source of finance and is the money earned by a business that does not go to the owner or shareholders.
