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A level edexcel Business 2024 > PAPER 3 > Flashcards

PAPER 3 Flashcards

1
Q

How to segment a market

A

Age
Gender
Location
Income
Interests
Religion

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2
Q

What is market segmentation

A

how a business splits up its target market

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3
Q

+ and - of market segmentation

A

+ identify niches
+ change marketing mix
- cannot target mass market
- missing out on segments

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4
Q

Factors influencing demand

A

Seasonality
Trends
Substitutes
Income
Quality

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5
Q

Cultural differences

A

poly
geo
ethno

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6
Q

Global ethics

A

Conflict of profit v ethics
sustainability of materials
Child and slave labour
fast fashion and overconsumption

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7
Q

Sustainable clothing become more popular

A

Focus on environmentally sustainable
For example, nike synthetic leather

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8
Q

Sole trader

A

Unincorporated
Unlimited liability
One person

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9
Q

Partnership

A

Unincorporated
Unlimited liability
2 -21 people

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10
Q

Private LTD CO (LTD)

A

Incorporated
Limited liability
Privately sell shares

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11
Q

Public LTD CO (PLC)

A

Incorporated
Limited liability
publicly sell shares

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12
Q

Independant

A

PORTERS - Focus on differentiation

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13
Q

Multinationals

A

Range from low cost mass market to highly differentiated

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14
Q

Production location factors

A

Cost of production
Access / cost of raw materials
Access / cost to labour
Infrastructure
Location
Trade bloc

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15
Q

India

A

H&M
Nike
M&S
Tommy Hilfiger
Largest cotton producer
45 million employed in cloth jobs

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16
Q

Spain

A

ZARA
Higher labour costs, production seed responsive
change inv 12 times a year in comparison to average 3-4 in asian production

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17
Q

China

A

Infrastructure in manufacturing
Strong business ecosystems
Large pool of workers
Labour costs rising

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18
Q

Italy

A

Quality, craftsmanship
Innovative
Brands
Fashion hubs like Milan
Adds value
Location , trade

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19
Q

Impact MNCs have on local economy

A

Create jobs, impact wages, working conditions and local community

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20
Q

Impact MNCs have on national economy

A

FDI flows, tech and skills transfer, culture, tax revenue

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21
Q

Controlling MNCs

A

Political influence
Legal control
Pressure groups
Social media

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22
Q

Gross profit margin

A

(Gross profit / revenue ) * 100

23
Q

Operating profit margin

A

(Operating profit / revenue ) * 100

24
Q

Net profit margin

A

(net profit profit / revenue ) * 100

25
Q

Return on capital employed

A

(Operating profit / capital employed ) * 100

26
Q

Capital employed

A

Non-current liabilities + total equity

27
Q

Current ratio

A

Current assets / current liabilities

28
Q

Acid test ratio

A

( ( CURRENT ASSETSS - INVENTORIES ) / Current liabilities )

29
Q

Gearing ratio

A

(Non-current liabilities / capital employed ) * 100

30
Q

Payback period

A

(Amount needed to payback / cashflow in following year ) * 12

31
Q

Average Rate of Return

A

( (Net return / no of years of project) / initial investment cost) * 100

32
Q

Net present value

A

Multiple by discount and add together

33
Q

What does organic growth look like

A

Opening new branches
Launching new product lines
Expanding online

34
Q

What does inorganic growth look like

A

Mergers, vertical integration, takeovers

35
Q

Entrepreneurial motives

A

Profit maximisation
Profit satisfying
Independence

36
Q

Entrepreneurial characteristics

A

Risk taking
Inititat ive
Leadership
Creativity

37
Q

Direct distribition

A

Direct to the consumer

38
Q

indirect distribution

A

Through a third party retailer to consumer

39
Q

Online retailer pros

A

Easy / convenience
Order from anywhere anytime
Bigger variety of options
Less pressure to purchase

40
Q

Online retailer cons

A

Needs suitable tech
Take longer
Shipping issues
No way to try before buying

41
Q

% change

A

new-old/old x 100

42
Q

Gross Profit

A

Sales revenue – cost of sales

43
Q

Operating profit

A

Gross profit- overheads

44
Q

Net Profit

A

Operating profit +/- finance costs

45
Q

Total variable cost

A

number of units sold x variable cost per unit

46
Q

Contribution per unit

A

selling price per unit – variable cost per unit

47
Q

Total contribution

A

contribution per unit x number of units sold

48
Q

Margin of safety

A

Actual output - breakeven output

48
Q

Break-even

A

fixed costs/ Contribution per unit

49
Q

Variance

A

Actual – Budget

50
Q

Job production

A

when individual products are made one at a time to meet specific customer preferences

51
Q

Batch production

A

Identical or similar items are produced together in groups (batches), each item passing through the production process at the same time

52
Q

Cell production

A

form of flow production whereby the production line is split into a series of self contained cells which teams in these cells work together to create one unit of output.

53
Q

Flow production

A

continuous movement of items through the production process

A level edexcel Business 2024 (10 decks)

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