Other

Question 1

Value added - what is it?

- how do you calculate?

Answer 1

Difference between purchase cost or external goods and the selling price of the company’s product.

Value added=sales value-cost of purchased materials

Question 2

Advantages of benchmarking

Answer 2

Gives realistic target for results that we should be able to achieve (another business is doing it)
We can learn lessons from other businesses that can help improve our own performance
It encourages a more externally-facing culture in the business

Question 3

Disadvantages of benchmarking

Answer 3

It can be hard to get the data (others unlikely to want to help)
It can be time consuming to undertake

Question 4

What is benchmarking?

Answer 4

Using other organisations or even industry as a whole to compare results.

Question 5

What are the 4 stages of product life cycle?

Answer 5

Introduction stage
Growth stage
Maturity stage
Decline stage