mistake cards Flashcards
What type of source of finance is debt factoring?
Short-term
What is penetration pricing?
Penetration pricing is a pricing strategy where the price of a product is initially set low to rapidly reach a wide fraction of the market and initiate word of mouth.
When does strategic drift occur?
When a business maitains a strategy that is no longer suited to current circumstances
study network diagrams
What is dynamic pricing?
The practice of varying the price for a product or service to reflect changing market conditions, in particular the charging of a higher price at a time of greater demand.
What is payback in regards to an invetsment
The TIME it takes for the investment to cover itself
An employee resists change because it will not help her personally. The business
overcomes her resistance by offering her a role in managing the change. This is an
example of using:
Manipulation to overcome self-interest
What is NOT INCLUDED in assetts or liabilities from a basic balance sheet?
Sales revenue, Costs of Sales, profit
What is an emergent strategy?
A strategy that changes and adjusts to market conditions as they occur
What is contingency planning?
The aim of contingency planning is to minimise the impact of a significant foreseeable event and to plan for how the business will resume normal operations after the event.
What is the process for contingency planning?
Identifying what and how things can and might go wrong
Understanding the potential effects if things go wrong
Devising plans to cope with the threats
Putting in place strategies to deal with the risks before they happen
What is strategic planning?
Long term planning, affects whole business, refers to how a business well achieve its cooporate objectives that have been derived from the mission statement
How do you calculate the float time?
LFT - Duration - EST
What is contribution per unit?
selling price per unit - variable costs per unit
What is TQM?
Total quality management:
Creating an enviroment which enocurages employees to monitor and improve quality of goods produced in order to better meet customer demand
What are the different types of market segmentation?
gender
age
location
income
What is the STP process?
Marketing process; Segmentation, Targeting, Positioning
1) Market segmentation
2) Targeting Strategy; Mass, niche or concentrated
3) Market positioning; how to compete in target market, positioning map
4) Competition Strategies; I.E differentiation, low cost etc…
What are the 3 types of consumer goods?
Convenience good, shopping good and speciality good
What is the capital structure of a business?
Equity + liabilities
The finance provided to it to operate long term
What is the difference between loans and venture capital?
Venture capital is invested as share capital in return for an equity stake in the business.
A return is usually generated when the venture capitalist ‘exits’ and sells their shares.
Whats the difference between venture capitalists and business angels?
Business angels are wealthy individuals that provide funding to a business in return for equity. The main difference is the amount tends to be smaller, between 10k and 250k, as venture capital firms usually do not want to lend this small amount and banks require assurance to back the loan.
What is it called when mulitple business angels invest together?
A syndicate
What are the different types of ‘labour shedding’?
Offereing early retirement, retraining, redeployment, volunatry redundancy and layoffs.
What are works councils
It’s a type of employee involvement or participation system that is designed to give employees a voice in decision-making and to improve communication and cooperation between management and employees.
What is benchmarking?
Understanding the position and performance of a business in relation to best practices. Business can then implement strategies to close performance gap.
How do you calculate added value?
sales revenue - cost of sales
How do you calculate contribution per unit?
Selling price of unit - variable costs per unit
(think contribution to fixed costs)
What are mutuals, charities and social enterprises?
All types of non-profits
Mutual = doesnt have shareholders or owners, exist only to serve ‘members’ I.E nationwide building society
Social enterprise = Businesses with social objectives whose surpluses are reinvested toward that purpose. Not all profit has to be reinvested, can keep some, but aim to serve society
Charities = Business that ensure any proceeds made from activities are spent in accoradnce with sated aims of charity
