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Higher Business > May 6th test > Flashcards

May 6th test Flashcards

1
Q

What are four activities of the marketing area

A

Finding out what the customer wants by conducting market research

communicating with operations to make sure products are designed and produced to meet customer requirements

Ensuring the customer continues to be satisfied with the product after it has been purchased (after sales service)

Devising ways to extend the product life cycle of products that have been on the market for a long time

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2
Q

What four things does looking at the bigger picture involve

A

Potential for increased market share The product portfolio and stages of the product life cycle Staff skills and levels of motivation Future product developments

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3
Q

what are the 6 stages of the product life cycle

A

Research and development Launch/introduction Growth Maturity Saturation Decline

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4
Q

What are four factors impacting price

A

Competitors prices The position of the product in the product life cycle The cost

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5
Q

The product life cycle chart

A
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6
Q

What are three features of the development stage

A

High R&D costs

No income from product

Finance comes from “cash cows”

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7
Q

What are two features of the launch/introduction stage

A

Sales begin to rise as consumer awareness increases

Heavily supported by advertising (informative and persuasive) and promotions

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8
Q

What are two features of the growths stage

A

Sales and profits rising

Supported by promotions

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9
Q

What are three features of the maturity stage

A

Sales peak is reached

R&D costs paid off

Profits help support development of new production

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10
Q

What are two features of the saturation stage

A

Heavy competition

Falling sales

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11
Q

What are three features of the decline stage

A

Sales fall rapidly

Prices at lowest

Some competitors drop out of market

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12
Q

What are four extension strategies

A

Improving the product - new improved versions

Find new uses for the product - for example firelighters now used for barbecues rather than lighting gas heating

Altering the packaging - to appeal to new consumers, developing styling changes - slightly different produce eg colour size

Changing the channel of distribution - for example introducing selling on the internet.

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13
Q

What is market skimming

A

A high price is charged for the product for a limited period with the aim of making as much profit as possible while the product remains unique to the market.

As competition in the market increases, the price will fall to be in line with competitors.

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14
Q

What are four examples of market skimming

A

Video games and consoles

home entertainment

electrical products

Touch screen TV’s

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15
Q

What are the 2 types of market research

A

Field research Desk research

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16
Q

What are four purposes of market research

A

To identify consumer demand by:

finding out how they view existing products

finding out what their wants are for future products

finding out who their customers will be

identifying new markets

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17
Q

What are four benefits of market research

A

Informed marketing decisions

Risks can be reduced

future trends can be identified

size of market can be identified

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18
Q

Four ways in which market research aids decisions making

A

It can help to indicate size of market avaliable

It can help to forecast future market growth

it can help to provide information to provide the best marketing mix (4Ps)

It can help to keep ahead of competition

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19
Q

What is field research

A

This involves gathering primary data which is information collected first hand for a specific purpose by the business

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20
Q

What is desk research

A

This involves the use of secondary data which is information which already exists, having been researched by someone else and then used by the business for its own purpose

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21
Q

What is questionnaire/survey

A

These are completed by people included in the sample

Information gained could be what they own, what they plan to buy, values/attitudes, beliefs and some personal information

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22
Q

What is four criteria for an effective questionnaire/survey

A
  • Questions must be easy to understand and varied to keep the respondent’s interest
  • First questions should be easy so that the respondent does not give up. More complicated questions will come later
  • The final questions will be “filter” questions, eg on age, income level, etc, which will help with market segmentation
  • Questions should follow a logical order and should be

grouped by topic

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23
Q

How can surveys be done

A

They can be sent by post, email, available on a website, or completed with an interviewer face-to-face or over the telephone.

There are advantages and disadvantages to each way of carrying out a survey.

24
Q

What is a hall test

A

A large number of consumers are asked to give their views eg most major films are first shown to a test audience who will give their opinions.

Changes will be made in light of the information gathered. There is a danger, however, that respondents may not give honest responses since they have tried the product for free.

25
Q

What are focus groups

A

A selected number of people have a discussion about a new product or service with a researcher from the business. The researcher will ask their views on certain aspects of the product/service and generate a discussion in the group.

Although this allows the business to gain an understanding of people’s feelings, the information gathered may be difficult to analyse.

26
Q

What is observation

A

This involves watching consumers’ behaviour without them being aware that this is being done, eg counting the number of times a consumer does something or behaves in a certain way. This generates numerical information which is easy to analyse. However, no questions can be asked to find out why consumers behaved in the way that they did.

27
Q

what are four external methods of desk research

A
  • internet websites eg of competitors
  • newspaper and magazine articles
  • government reports and statistics eg Census
  • information gathered by Market Research businesses
28
Q

what are three internal methods of desk research

A
  • Sales figures
  • Customer databases
  • Previous market research already done
29
Q

What is the problem with desk research

A

Although desk research is quicker to collect and therefore less expensive, it has to be remembered that it was collected for another purpose and so may contain bias or may be out-of-date.

30
Q

What are three legislative responsibilities of management

A

•Keep up-to-date with new legislation and changes to existing legislation either from UK or the EU

•

•Make sure that company policies and procedures are in line with current legislation

•

•Make sure that the correct policy or procedure is followed when dealing with employees in the workplace.

31
Q

What are the three main areas covered by HRM legislation?

A
  • Discrimination
  • Employee Protection
  • Health and Safety
32
Q

What is the main discrimination legislation act

A

THE EQUALITY ACT 2010

33
Q

What are protected characteristics

A

•The Equality Act 2010 provides a list of 9 protected characteristics in order to prevent employees with these characteristics from being discriminated against, either directly or indirectly, bullied or harassed in the workplace. The Act also offers protection from being victimised if a complaint is raised under the Act.

34
Q

What are the nine protected characteristics

A

•AGE, DISABILITY, GENDER, GENDER REASSIGNMENT, PREGNANCY OR MATERNITY, RACE, RELIGION OR BELIEF AND SEXUAL ORIENTATION, MARRIAGE OR CIVIL PARTNERSHIP.

35
Q

What are four discrimination area danger areas

A
  • In Job Descriptions
  • In job adverts
  • In the selection process
  • In availability of training
36
Q

What are four impacts of the eqaulity act

A
  • Be very careful when creating documents and adverts for job vacancies because they cannot include words or statements which could be discriminatory eg ‘we are looking for a young person’ would be classed as age discrimination.
  • Have procedures in place for investigating if an employee or a customer feels they have been discriminated against under one of the protected characteristics or staff who feel they have been harassed or bullied in the workplace.
  • Train all staff to make sure they are aware of their responsibilities under the Act and in order to prevent complaints regarding discrimination under the protected characteristics.
  • Adapt the business premises to make them accessible for both staff and customers eg by installing ramps, widening access doors and installing lifts for wheelchair users.
37
Q

What are four examples of employment protection

A
  • Employment Rights Act 1996
  • National Minimum Wage Act 1998 (up to age 25)
  • National Living Wage Regulations (over age 25)
  • Working Time Regulations 1998
38
Q

What are four benefits to employees from employment protection legislation?

A
  • receive a Contract of Employment
  • receive a minimum period of notice of redundancy and to receive redundancy pay
  • not be unfairly dismissed and to challenge unfair dismissal in an Employment Tribunal
  • paid maternity leave and re-instatement afterwards
39
Q

What is an employment tribunal

A

Employees have the right to take their employer to

an Employment Tribunal if they are in dispute with

them and cannot settle the matter. A Tribunal is

less formal than a court of law.

The Tribunal can award damages to the employee

if the employer is found to have unfairly treated

them in any way. It may also re-instate employees

who have been unfairly dismissed.

40
Q

What are four impacts of employment leglislation on management?

A
  • Issue every member of staff with a Contract of Employment detailing their rights in the workplace.
  • Give each member of staff an itemised payslip showing how their pay has been calculated.
  • Have a Grievance Procedure which must be followed if a member of staff complains about mistreatment in the workplace.
  • Have a Disciplinary Procedure which must be followed when a member of staff is accused of misconduct in the workplace.
41
Q

What is the main health and safety legislation

A

Health and safety at work act 1974

42
Q

What are duties of the employer under health and safety legislation

A
  • Machinery should be regularly maintained
  • Protective clothing should be provided
  • Jobs should be risk assessed
  • Employees should be properly trained in safe working practices
43
Q

What are four duties of the employees under health and safety legislation

A
  • To conduct themselves in an appropriate manner whilst doing their jobs
  • To co-operate with their employer by using the safety and protective equipment provided
  • To attend safety training when it is provided
  • To report any potential dangers they may see in the workplace
44
Q

What are four cash-flow problems

A
  1. Stock is not being sold quickly enough
  2. Too much has been spent on Non-Current Assets (Capital Expenditure) and insufficient funds are left with which to pay day-to-day bills (Revenue expenditure)
  3. Customers (Debtors) are taking too long to pay
  4. Some customers don’t pay at all (Bad Debts)
45
Q

What are four ways to solve cash flow problems

A
  • Offer discounts and promotions to encourage customers to buy more and pay more promptly
  • Arrange better credit terms with suppliers
  • Find cheaper suppliers for purchases of supplies and overheads
  • Sell unnecessary Non-Current Assets
46
Q

What is the statement of financial position

A

This account shows the value of the business at a particular date.

It is a record of Assets (what the business owns) and Liabilities (what the business owes).

A Statement of Financial Position is in 2 parts which should be equal ie balance.

47
Q

What three things does a statement of financial of position include

A
  • NON-CURRENT ASSETS – items the business owns and will keep for longer than one year eg premises, motor vehicles, fixtures and fittings
  • Current Assets – items that a business owns that they will keep for less than one year eg stock, cash at bank, cash in hand, debtors (Trade Receivables - customers who owe us money)
  • Current Liabilities – items that a business owes and will pay back in the short term eg creditors (Trade Payables - suppliers we owe money to), bank overdraft

THE CURRENT LIABILITIES ARE DEDUCTED FROM THE CURRENT ASSETS AND ADDED TO THE NON-CURRENT ASSETS. THIS REPRESENTS THE FIRST TOTAL CALCULATED IN THE STATEMENT.

48
Q

How should the financed by section work?

A

This first total should equal the Financed By section which shows hw the business is financed – for example oby selling shares (only in a plc), partners capital contributions (only in a Partnership), debentures (only a plc) or a bank loan (any private sector business).

49
Q

What is the layout of a statement of financial position

A
50
Q

What is gross profit

A

GROSS PROFIT is the difference between Selling price and Cost price.

Trading Profit is another way of expressing Gross Profit as Trading involves buying and selling.

“Profit” can be expressed in different ways:

For a manufacturing business

GROSS PROFIT = SELLING PRICE - COSTS OF PRODUCTION

For a retail business

GROSS PROFIT = SELLING PRICE – COSTS OF BUYING AND STORING FINISHED GOODS

The calculation of GROSS PROFIT is done in the TRADING ACCOUNT

51
Q

What does a basic trading account look like?

A
52
Q

What does a more advanced trading account look like

A
53
Q

What are quality standards

A

A standard is a published document that contains a technical specification or other precise criteria designed to be used consistently as a rule, guideline, or definition. All standards take the form of either specifications, methods, vocabularies, codes of practice or guides.

Standards are designed for voluntary use and do not impose any regulations.

Examples are - British Standard Institute (BSI) or ISO (International equivalent).

However, laws and regulations may refer to certain standards and make compliance with them compulsory. For example, the physical characteristics and format of credit cards is set out in standard number BS EN ISO/IEC 7810:1996. Adhering to this standard means that the cards can be used worldwide.

54
Q

What are four benefits of quality standards for a business

A
  • the Government may award contracts only to an organisation holding approved quality standards eg BS EN ISO 9001
  • fewer returns/customer complaints
  • increased sales as customers know that goods are of a certain quality
  • higher price may be charged for higher quality products
55
Q

What is a cost of quality standards for a business?

A

the upkeep of the standard is an on-going process which means that the business must be fully committed to maintaining the standard or they may lose it and have to remove the symbol from marketing materials.

56
Q

What are four benefits of quality standards for the consumer

A
  • they will know they are paying for a certain quality of product/genuine products – there will be a certain expectation of what they will receive
  • confidence will come with knowing that if quality is not reached then goods are returnable so therefore consumers will not be so hesitant in ordering goods – increased sales
  • consumer is more assured of the safety of the product
  • a trade mark is recognisable and makes the purchasing decision easier based on knowledge of other products with the same trade mark

Higher Business (8 decks)

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