Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business Studies > Business Theme 3 > Flashcards

Business Theme 3 Flashcards

1
Q

mission statement

A

-gives an overriding/reason for existence
-make a commitment to customers/promise

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

critical appraisal of corporate aims/mission statements

A

-mission statements have to be constantly reassessed to ensure they have continued relevance to the business
-purpose
-audience
-realistic/achievable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Ansoff’s Matrix

A

1.)Market penetration -existing product in existing market
2.)Product development-existing market with new product
3.)Market development - new market for existing product
4.) diversification - new both

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Porter’s strategic matrix

A

1.)Cost-leadership - striving to be the lowest cost provider
- doesn’t need to offer lower prices = Profit margins
2.)Differentiation - mass market with USP
3.)Focus - niche market -target customers
-cost or differentiation focus

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

aim of portfolio analysis (Boston matrix)

A

a method of categorising all of the products and services of a firm to decide where each fits within strategic plans - all products evaluated according to their competitive position and potential growth

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Distinctive capabilities

A
  • form of competitive adv that is difficult for competitors to understand.
    -importance = cannot be easily reproduced, can be a source of sustainable competitive advantage
    1.) Innovation
    2.) Reputation
    3.) Architecture
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Strategies vs Tactics

A

strategies - longterm direction to achieve objectives
tactics - short-term responses to everyday changes in the market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Internal vs External audit

A

internal -analysis of the business itself + how it operates - strengths and weakness
external - analysis of the environment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

SWOT analysis

A

1.) STRENGTHS
2.) WEAKNESSES - poorly motivated workforce, obsolete product
3.) OPPORTUNITIES - political change, fall in exchange market
4.)THREATS - new entrants into the market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

PESTLE

A

1.) POLITICAL -leaving/joining EU (uncertainty)
2.) ECONOMIC - employment, prices, inflation
3.) SOCIAL - education(skills), migration
4.) TECHNOLOGICAL - capital
5.) LEGAL - taxes, legislation
6.) ENVIROMENT -renewable sources

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Porter’s 5 forces

A

1.) bargaining power of suppliers
2.) bargaining power of buyers
3.) threat of new entrants
4.) substitutes
5.) rivalry among firms

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

External economies of scale

A

-Labour - training
-co-operation - concentrated in the same market
-disintergration - production broken up - more specialised

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Internal economies of scale

A

-Purchasing
-Technical
-Specialisation
-Finance
-Risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Increased market power

A
  • customers - able to charge high prices
    -suppliers - higher bargaining power
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Diseconomies of scale

A

-communication becomes tougher - too many departments
-motivation might suffer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Reasons for mergers/takeovers

A
  • Entry into new markets
  • Exploit synergies - E.O.S
  • Quick way to expand
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Horizontal integration

A

-two firms of the same stage of production join together
-less likely to fail - more skills
-less disruption

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Vertical integration

A

-firms at different stages join together
- forward = next stage of the production
- backwards = previous stage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

financial risks of a M/T

A

-regulatory intervention (CMA)
-resistance from employees
-integration cost
-bidding wars

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

financial rewards of a M/T

A

-speedy growth
-higher remuneration for senior staff
-rewards to previous owner
-increased profitability

21
Q

Problems of rapid growth

A
  • drain on resources
    -coping with change
  • the alienation of customers
    -loss of control
    shortages of resources
22
Q

organic growth

A

growing naturally internally by increasing output

23
Q

Methods of growing organically

A

1.) new customers
2.) new products
3.) new markets
4.) new business model
5.) franchising

24
Q

ADVS of organic growth

A
  • less risky - achieved by extension strategies
  • relatively cheaper - financed from RP
  • remain in control
    -less likely to encounter diseconomies of scale
25
Q

DISADVS of organic growth

A
  • pace may be too slow
  • missed opportunities - of learning and using new resources from other businesses
    -might not be able to exploit e.o.s
26
Q

Reasons for staying small

A

-personal service
-owner’s preference
-flexibility + efficiency
-lower costs
-monopolists in niche markets

27
Q

Limitations of quantitive sales forecasting

A
  • forecasts tend to be for a short period of time rather than long
    -market is slow changing
    -market research data is available
  • how to use and produce data
28
Q

ADVS of decision trees

A
  • can show possible courses of action not previously considered
  • take account of risks involved
  • separates important tasks from unimportant ones
29
Q

DISADVS of decision trees

A
  • not all decisions can be quantitive - opinions etc
  • there are time lags involved in decision making
    -not able to take into account the dynamic nature of the business
30
Q

ADVS of investment appraisals

A

-simple/easy to calc
-focusses on cashflow
-emphasises speed of return

31
Q

DISADVS of investment appraisals

A

-ignores cashflow after payback has been reached
-takes no account of the ‘time value of money’
- ignores qualitative aspects of a decision

32
Q

corporate timescales

A

short-termism - maximise profits, invest less money into r+d, invest less in training, more money to share holders
long-termism - longterm profits

33
Q

evidence based decision making

A

-identifying objectives
-collecting info and ideas
-analysing info and ideas
-communication
-evaluate results

34
Q

Strong corporate culture

A

one that is deeply embedded into the way a business does things
-provides a sense of identity for employees

35
Q

power culture

A

where there is a central source of power responsible for decision making

36
Q

role culture

A

decisions are made through well established rules and procedures

37
Q

task culture

A

power is given to those who can accomplish tasks

38
Q

person culture

A

where there are a number of individuals in the business who have expertise, but don’t necessarily work together

39
Q

Internal stakeholders

A

-business owners
-employees
-managers and directors

40
Q

external stakeholders

A

-shareholders
-customers
-creditors
-suppliers
-local community
-govt
-enviroment

41
Q

stakeholder vs shareholder

A

stakeholder - business considers all of its stakeholders - wants best for the firm = to prosper
shareholder - business should focus on shareholder returns - profit based conflict

42
Q

Corporate Social Responsibility

A

1.) employment indicators
2.) human rights indicators
3.) the communities in which the business operates
4.) business integrity and ethics
5.) product responsibility
6.) the environment

43
Q

Strategies to improve retention and productivity

A

1.) financial rewards - (Taylor) - rate per piece, bonus schemes, profit related
2.) employee share ownership
3.) consultation strategies
-pseudo(management takes dec then informs)
-classical(involving employees, through representatives)
-integration(democratic way)

44
Q

Empowerment strategies

A

-training
-provide necessary resources
-hand over authority
-inspire conf
-provide feedback

45
Q

Effects of changes in organisation size

A

-competitiveness
-productivity
-financial performance
-stakeholders

46
Q

Scenario planning

A

-its a disciplined approach to dealing with events that could occur in the future - clarify uncertainties, identify risks + opportunities = teach managers

47
Q

possible scenarios

A

1.) natural disasters
2.) loss of key staff
3.) IT system failure

48
Q

risk mitigation

A

identify, assess and prioritise risks, and plan responses to deal with the impact of these risks on the operation of the business

Business Studies (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions