Paper 3 Flashcards
have prices for new cars incraesed/ decreased since 2004
increased by 2% each year
why have prices for new cars ^
-costs ^
-supply, labour costs
-USP
when did sales for cars peak and when and why did they drop
peak - 2016 - 3 mill
dropped 2017-2020 -> brexit, exchange rates
dropped 2020 - 2022 -> covid
most popular car colour?
grey
but rarer colours ^ -> links to design mix, aetshetics are taken into consideration majorly when buying car
why have electric cars grown
prompt of environmental concern (PESTLE analysis - environmental pressures -> ^ CO2, ff
-transport accounts for 23% global emissions
-2030 - ban on new petrol, diesel cars
-> ^ demand for EVs
what factors impact whether ppl buy evs
cost -> expensive up front, cheaper in long run
ethically minded -> more likely to buy
income -> ^ in income -> ^ demand
infrastructure -> charging point avaliability
what do critics argue about evs
production of evs & batteries create ^ emissions than making petrol car
porters 5 forces
-rivarly among existing competitors
-threat of new entrants
-threat of subsititutes
-buyer bargaining power
-supplier bargaining power
Describe: rivarly among existing competitors
in porters 5 forces
^ in last 40 years
-> market has become ^ globalised
-> ease of travel, comms -> ^ foreign cars to europe -> lower costs abroad -> ^ competition for domestic businesses
Describe: threat of new entrants
in porters 5 forces
-expensive to start up in car market
-> ^ capital investment req for production, distribution
-> quality, reliability -> hard to establish
but
-existing tech companies = big threat - e.g. google, apple -> self-driving cars
Describe: threat of subsititutes
in porters 5 forces
-public transport = cheaper
-esp as car costs ^
Describe: buyer bargaining power
in porters 5 forces
buyers have ^ power due to wide range of choice
(dealerships)
-can shop around, say they found cheaper deals to decrease price
Describe: supplier bargaining power
in porters 5 forces
manufacturers rely heavily on suppliers for parts
-lack of supply for parts ^
-^ sales quantities
-uniqueness of suppliers product
= ^ supply power
what barriers of entry could be used to make it harder for entrants to the car market
-patents
-strong brand identities
-customer loyalty
explain the market & competitive envrionment in terms of car manufacturers
-large MNCs
-they benefit from economies of scale
-many mncs own several brands (e.g. bmw own bmw, mini, rolls royce)
explain the market competitive envrionment in terms of car dealers
-often franchises
-theres an importance of customer loyalty, repeat customers
what is a franchise
license to use another businesses name & business model in return for payment
what is a franchisee
entrepeneur/ company that buys license to use another business’s name
what is a franchisor
business that sells the right to use its name, logo
benefits of franchise
-advice & training on all busines functions
-guaranteed local monopoly
-access to tried & tested formula for business success
negatives of franchise
decisions dictated by franchisor
initial expensive cost
explain the market & competitive envrionment in terms of car servicing
-independently owned usually
-small businesses
-local competition
-strong relationship with customers
why is objective monitoring of employee performance important
as staff costs are large proportion of business costs
Name 3 elements of hr management
-designing the job -> need to be well designed -> ensure job is motivating & enjoyable -> ^ productivity -> decreased labour turnover
-designing, implementing rewards system - staff being content, motivated e.g. comission, bonuses, salary
-developing communication systems that work - channels, media, meetings -> prevents mistakes
name 2 corporate objectives & how they link with HR
-growth -> so HR must recruit right number of ppl, with right skills
cost reduction -> redundancy, combining jobs -> decreased costs
labour turnover formula
no. of staff leaving in a year
/ av. no of staff during year
x100
name 4 human resource strategies to ^ employee performance
-financial rewards (^ pay rates, bonueses, comission, performance related pay) p> Herzberg, Taylor
-> ^ commitment -> ^ output
but
-> herzberg said -> money to motivate only creates temporary ^ in performance
-offering employees shares in the company -> aligns goals of business with staff -> staff work harder -> if busines is ^ successful -> them getting ^ money
-but works better with smaller businesses where workers have more of an impact
-consultation -> gathering employees views ->^ motivation -> workers feel ^ valued -> ^ engagement, performance
-empowerment -> delegating responsibility -> maslow, herzberg -> ^ motivation -> ^ performance
but
-workers must be well skilled/ trained
How are resources managed in the car industry & what culture is usually reinforced
-stock control
-just-in-time -> no buffer stock, relies on freq small deliveries of stock -> elimates costs &
-> -waste minimisation -> less stock held, cash not tied up in stock
-lean production -> range of techniques designed to decrease waste
What are issues with JIT
-suppliers must be willing to deliver freq
-deliveries must be reliable
Explain toyotas production system
based on decreasing waste, ^ efficency
-jidoka -> when problem occurs production stops immediately, issue is fixed -> avoids defects being sold & prevents waste
-jit
explain the most common production used in car manufacturing
-cell production -> organising workers into small groups, produce range of diff products quickly
+allows diff ideas -> improvements -> promotes kaizen
+worker specialisation
-labour intensive production -> ^ costs
explain quality management in terms of the car industry
-quality control -> checking quality at end of production
-quality assurance -> checking quality throughout production
-TQM -> improving quality is embedded into culture
-kazien -> continous improvement attitude
e.g. toyota
where are staff mostly required in the car industry
-dealerships -> sales depend on good cust service, customer loyalty, retention, post-sales service
-> most agents encourage sales
-servicing -> good customer service, quality production
-> usually independent, small businesses so depend on positive relationships between staff & cust
manufacturing -> mostly capital intensive
what motivators are used in the car industry
financial -> comission (dealerships), perfromance-related pay (servicing)
non financial -> job enrichment, job rotation, empowerment
what leadership could be used in the car industry
autocratic -> leader in charge, makes all decisions (most common)
democratic - leader makes decisions but consults staff (servicing)
paternalism - decisions made with employee benefits
laissez faire - more hands off, leave staff to do what they want (dealerships)
name the problems with business expansion
-over-estimating demand
-not recruiting enough/ right people
what is intrapeneurship
encouragement of entrpeneurial behaviour within larger business
name 5 characteristics that make a successful entrepeneur
-cope with risk
-resilience
-passion
-determination
-understand market
name 4 common business objectives
-profit maximisation
-market share
-customer satisfaction
-cost efficiency
