LO2 Flashcards
What are the 9 key indicators of business success?
- Profitability
- Share price
- Customer satisfaction
- Company growth
- Reputation
- Repeat business
- Legacy
- Trophies/competitions
- Recognisable brand
Business example of profitability
2022 Adidas = $11+ billion
Business example of share price
2007 Lululemon was $18
2022 Lululemon is $414
Business example of customer satisfaction
Adidas 2019-2020
satisfaction decreased by 6%
Business example of company growth
Gymshark increased credibility, opened a shop in london and has a networth of $1.5 billion
Business example of reputation
Nike’s reputation was damaged with athletes doping and sweatshop allegations
Business example of repeat business
Amazon has loyal customers with memberships and Prime
Business example of legacy
Puma - no major scandels in 70 years
Business example of wins trophies/competitions
Manchester City won the champions league, premier league and FA cup
Business example of recognisable brand
Adidas with the 3 stripes
What are the 4 things outlined in a contract and what are they known as?
- Employment conditions
- Rights
- Responsibilities
- Duties
Terms of contract
What are the 8 types of contracts?
- Part time
- Full time
- Permanent
- Temporary
- Contracted
- Seasonal
- Outsourcing
- Voluntary
Part time (description, who would use it, advantages, disadvantages)
- Part time hours
- Retail with students
- Gain experience, cheaper
- Inflexible with other commitments, will have other pursuits
Full time (description, who would use it, advantages, disadvantages)
- Full time hours
- Manager of retail
- Settled, job security, regular hours
- Difficult to get out of
Permanent (description, who would use it, advantages, disadvantages)
- No end date (pull or full time)
- Manager, PE teacher
- Job security, trusted
- Difficult to get out of
Temporary (description, who would use it, advantages, disadvantages)
- Only for a certain time period
- Maternity (barton sports department)
- Good work experience
- Minimal job security
Contracted (description, who would use it, advantages, disadvantages)
- Isn’t permanently on site but called when needed
- Cricket coach, personal trainer
- Doesn’t have to be on site 24/7, flexible
- Only paid for hours you do
Seasonal (description, who would use it, advantages, disadvantages)
- Only holiday periods/certain times of year
- Sports camps in summer holidays
- Small amount of time, good for extra money/experience
- Temporary
Outsourcing (description, who would use it, advantages, disadvantages)
- Company will use other company
- Nike will outsource a calling company to reach customers
- More time to focus on business
- Cost
Voluntary (description, who would use it, advantages, disadvantages)
- Unpaid
- Charities (sports aid)
- Don’t have to pay them
- Hard to find staff
Why is it important to recruit the right staff?
- Expensive so don’t want to do it regularly
- Staff become more knowledgable over time (customer satsfaction increases)
- Investment in the person is well rewarded
How can business attract applications from the right people?
- Advertise well
What information should an advertisement include?
- Sector
- Roles and recruitment
- Available budgets
- Reputation of business
How can a business keep staff in the business?
- Bonus schemes
- Progression in the company
- Working hours/conditions
- Success of organisation
- Positive work environment
- Self-development
Benefits of staff retention to the business
- Save money on recruitment and training processes
- Skilled workforce
- Staff know customers better
- Promoting from within
Benefits of staff retention to the customers
- Familiar/skilled workforce
- More likely to be knowlegeable and help them
- Have good customer relationships
Benefits of staff retention to the employees
- Promotion opportunities
- Professional development
- Job security and satisfaction
What different ways do businesses use to attract customers?
- Advertising
- Offers/freebies
- Sponsorships
- Loyalty schemes
- Social media links
- Traditional marketing (posters, newspapers, TV)
Relationship marketing
- Focus on customer retention
- Emphasis on customer service and commitment
- Focus on product benefit
- Chase cricket
Transactional marketing
- Focused on single sale
- Little emphasis on customer service and commitment
- Orientation on product features
- Peloton
What are the 9 benefits of keeping loyal customers to the business?
- Cheaper
- Spend more per transaction
- More word of mouth
- Engaged customers provide more feedback
- Customers will explore your brand
- More forgiving
- Wiggle room to try new things
- Employee health
How have Gymshark used their promotional methods effectively?
- Sponsor social media influencers
- Sales
- Adverts on social media
- Word of mouth
Are Gymshark successful in their advertising campaigns?
Yes
- £1.4 billion networth
- Attract new customers
What strategies to Gymshark use to retain their customers?
- Deals/sales
- Promotional campaigns
- Good quality clothes for reasonable price
