general knowledge Flashcards
job production
- business produces products that meet specific requirements of customer
advantages of job production
- higher price can be charged
- products are likely to be high quality
- variety of work will ensure moral
disadvantage of job production
-expensive to produce as each product is different
- employees need to be skilled and may require training
flow production
large number of identical products in a continuous production line. e.g tv
flow production advantages
- large volume made
-employees can specialise easily - large quantities reduce cost per unit
disadvantages of flow production
- high initial costs of machinery to maintain business
- lack of flexibility
- demotivated employee
- increased risks
batch production
similar times being produced together.
produced in batches/ groups
advantages of batch production
-cost saving by buying in bulk
-still gives customer choice
-products can be worked on by specialist staff at each stage
disadvantages of batch production
- takes time to switch production of one batch to another
-requires business to maintain higher stocks of raw materials
-repetiveness can demotivate
e commerce
buying and selling of products and services online
face to face selling
when the buyer and seller meet in person
face to face sales advantages
- allows customer to gain deeper knowledge of product
- allows seller to provide a better explanation to the buyer
face to face selling disadvantages
- may not be convenient for customers
-if customer bargains for better deal profits may be reduced - retailer costs are high if expensive dhops are needed
telesales
selling on the phone
advantages of tele sales
- customers gain deeper understanding
- may cost less than selling from a shop
disadvantages of tele sales
- costs involved such as buying warehouse to store goods, transport
- seller can’t always answer the phone , bad reputation
consumer law def
protects customer from being exploited by business
key points it consumer rights act legislation
goods must be as described
appropriate quality
standard if safety e.g cars
30 days to reject the item you’ve bought and get a refund
consumer rights act on purchase of goods
must match description
fit for purpose
satisfactory quality
factors effecting business location
-costs
-proximity to the market
-proximity to labour
-proximity to materials
-government
logistics
management of transportation and storage of goods
procurement
management of purchasing within a business
suppliers
businesses who supply goods/ services to the business
process (role) of procurement
1.identify goodd and services to buy
2. choose suppliers( quality, cost)
3. ordering goods and services (amount)
4. receiving deliveries from suppliers
what info is in the finance department
profit
loss
break even
ARR
why is finance important for a business
- start up costs
- expansion costs
- ewipment costs ( depreciation)
- day to day expenses
what is the finance function
will consider financial decisions such as market research and see if it can be funded
internal finance
within the business
owners capital
retained profit
sale of assets
external finance
-overdraft
-trade credit (business buys goods and use them straight away and pay back later) usually interest free but good relationship w supplier neede)
-bank loan
- crowd funding
interdependent nature of business
link between areas of the business that are considered when business people make decisions, risk and reward and use of financial info to aid decision making
