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FLP Operational - E1 > Finance Business Partnering > Flashcards

Finance Business Partnering Flashcards

1
Q

Functional Structure in a business:

A

= traditional

CEO at the top

Underneath on equal level:
- Product development
- Sales and Marketing
- Supply Chain Management
- Finance
- Human Resources

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2
Q

Divisional Structure:

A

More typical in large organisations, operating in multiple regions around the world.

  • CEO

Follows by Division A, B and C

Each division has its own:
- Product dev
- sales and marketing
- supply chain mgt
- finance
- HR

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3
Q

Matrix organisations:

A

This is a combination of a functional and a divisional structure:

Each product business area, covers several divisions with their own HR, sales, Pros dev etc

This structure you only see in the largest corporations.

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4
Q

The KPIs help dept to achieve the CSFs: 5

A
  • Customer quality ratings
  • number of returns
  • number of customer complaints about waiting times for delivery
  • number of complaints about the quality of a product.
  • ## expenditure on customer service training.
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5
Q

What are CSFs:

A

Critical Success Factors

They are the high level, strategic goals of the company:

  • how the brand is perceived
  • the quality of the product
  • level of customer service
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6
Q

Good KPIs need to be SMART

A

Specific
Measurable
Achievable
Relevant
Time-bound

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7
Q

What is the Core Product:

A
  • it’s not the tangible product itself, but the benefit that you are buying or the need that is being fulfilled.
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8
Q

The Actual Product:

A
  • the tangible product or a service that meets a customers need
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9
Q

Augmented product =

A

The added value. This is a very important element to customers.

For example the warranty and service package includes, when you buy a car.

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10
Q

Star v cash cow v dog v question marks

A
  • star = require high investment now in excess of the cash it generates. Promising future.
  • cash cow = market leader. These products provide the cash for Stars and Question Marks
  • Dogs = these products use up company cash and drain the resources. It’s better for the company to discontinue the product or to find a niche market

Question marks: high rate of market growth, but not yet a large market share. A Problem Child

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11
Q

Examples of product management KPIs:

A
  • sales by product over time
  • profit by product over time
  • market share
  • market growth rate
  • customer retention
  • number of new products launched and time between launches
  • product satisfaction ratings
  • returns by product
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12
Q

How to bring a product to market - marketing and sales process:

A

1) Understand the market
2) Segment the market; indenting targets
3) Price the product
4) Promote the products
5) Sell the product
6) support and provide service to three customer

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13
Q

Penetration Pricing =

A

Price a new product low, to gain market share quickly.

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14
Q

Price skimming:

A

Price a new product high, to skim off the early adopters, before dropping the price to a lower level.

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15
Q

Premium pricing:

A

Setting a relatively high price to reassure customers that the product is quality.

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16
Q

B2G =

A

Business to Government

17
Q

6 features of People Management:

A
  • Attract
  • Educate
  • train
    -Motivate
  • Empower
  • Reward
18
Q

What is forecasting used for in sales and marketing:

A

To predict future demand and sales figures, using past data, using information we know about the future.

19
Q

What influences forecasts:

A
  • Long-term trends (improvements in technology)
  • Seasonal variations
  • Cyclical variations (similar to seasonal, but longer than a year.)
  • Random variations (impossible to forecast)
20
Q

Methods of forecasting:

A
  • Statistical forecasting:
  • Regression analysis
  • Time-series analysis
  • econometrics

Intuitive forecasting:
- Think-tank (problem with this is group think)
- Delphi technique (consult several experts, who don’t meet. The person who gathers the info from the different experts may add some of their own bias.

21
Q

What are KPIs used for:

A

To check if objectives have been achieved.

They measure elements which are vital to achieve business success (CSF).

Finance and the other dept can work together to see where improvements can be made.

22
Q

Examples of KPIs for Sales and Marketing dept relating to website and online sales:

A
  • Cost per customer acquisition.
  • website traffic to website lead ratio
  • social media reach / engagement
  • mobile traffic
  • sales per visit
  • sales response time
  • quoted-to-closed ratio
  • Organic traffic
  • Percentage emails opened by recipient
  • form abandonment rate
23
Q

Characteristics of an effective KPI:

A
  • Should be set at strategic level & should flow to management and operational levels.
    To achieve goal congruence.
  • Should be challenging, yet achievable.
    • So employees will be motivated
    • Not too easy, otherwise employees won’t try to perform over that level.
  • Should be under control of employees.
    • It’s demotivating if performance evaluation is based on uncontrollable elements.
  • Employees must understand KPIs
  • KPIs should be SMART
  • Should be linked to rewards
    • Employees must see value in achieving KPIs
    • Non-performance should trigger training.
24
Q

CNC =

A

Computer Numerical Control
- it’s when a machine is being managed by a computer.
- robotic manufacturing
- machine then being able to work through the night.

25
Q

TQM:

A

Total Quality Management =
When the quality gets checked at every stage of a manufacturing process.

26
Q

Kaizen (Japanese) =

A

The process of a continuous series of small improvements.
It aims to improve quality all the time.

27
Q

Six Sigma (quality control system devised by Motorola):

A

D define
M measure
A analyse
I improve
C control

28
Q

4 Types of marketing:

A
  • Transactional marketing
  • Relationship marketing
  • experiential marketing
  • Brands
29
Q

Lifecycle of a product

A

1 Product development/ Launch - not profit making yet.
2. Growth
3. Maturity - at this stage competition is increasing. Because the market is not growing, so you’ll need to take market share from a competitor in order to grow. The main way to achieve that is lower your prices.
4. Decline
5. Senility - when the product is loss-making - close down or get out of the market.

30
Q

What is Relative market share:

A
  • Your share over the highest market share. If you have the biggest market share this number is 1.
31
Q

What is Relative market share:

A
  • Your share over the highest market share. If you have the biggest market share this number is 1.
32
Q

Boston Consulting Group Matrix:

A

Relative Market Share
Low. /. High

     Question Mark
     Or Problem Child.         Star Market Growth Rate

Low

Question Mark = not much competition. Others will watch and see what you’re going to make of it. They consume cash.

Star = cash neutral

Cash cow = where you cash in

Dog = old product, disinvest, abandon

Ideally you have a cash cow to fund the problem children (question marks). You need a mix of products that provide together balanced sales, income and costs.

FLP Operational - E1 (3 decks)

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