Introduction to business Flashcards
What are the factors of production?
Land - for factory
Labour - workers
Capital - machines
Entrepreneurship - someone to bring it together
What are the main business functions?
Production
HR
Marketing
Finance
Adding value is …
a transformation process when value is added to inputs to create outputs
How can you add value?
Build a brand Delivering excellent service Product features/benefits Offering convenience Reduce cost
What is the difference between an international and multinational business?
An international business has operations in one country but imports and exports abroad and a multinational business has operations in multiple countries
How can the effectiveness of objectives be measured?
By using SMART Specific Measurable Achievable Realistic Time period
What are the businesses main aims?
Remember PIGSS Profit Increase market share Growth Survival Social
What is the difference between an aim and an objective?
An aim is long-term and an objective is short-term
What is a memorandum of association?
One of the two documents required to set up an incorporated business and is a legal statement signed by all initial shareholders to form the company
What are the articles of association?
Written rules about running the company agreed by the shareholders and directors
What is the mission statement of a company?
The companies overriding goal
Which stakeholder usually leads compromise?
The one with the least power or authority
What is the difference between strategic and tactical objectives?
Strategic is more long-term plans to achieve its aims and tactical is the day-to-day
Factors which influence objectives?
Finance - can they afford it
Communication- people might not understand the goal
Conflicts - already said one thing and would contradict
Industrial dispute - strikes and legal action
Legislation - laws
Economy- exchange rates
Competition - might affect price/volume
Other stakeholders - might want other things
Corporate objectives - conflicts
What are ways a business can grow?
Organically - increase sales
Merger - join with another
Aquisition - buy another
Joint venture - agree to work with another
Strategic alliance - often between 1st and 3rd world companies
