PPQ Flashcards
(PERFECT ANSWERS TO EACH QUESTION)
Justify santanders Uk PLCS decision to offer a portfolio of different banking products(3marks)
One advantage of santander having a diversified portfolio is reduced risk of product failure,
Another advantage of Santander UK having a diversified portfolio is customer loyalty,i
Another advantage of Santander UK having a diversified portfolio is attracting various new customers by santander being in different markets it means that more customers will buy the product meaning santander will have more customers buying their product and as a result have more sales
Describe the benefits to Santander UK may use to gather feedback from its customers so it can improve its services
(3marks)
santander may use telephone surveys
santander may use social media to gather feedback from cu
santander may use postal surveys
Explain the impact of the Equality Act 2010 on an organisation
-staff training may be required on discrimination prevention, this means an organisation will have to spend money and resources training staff
-another impact of the equality act is wage policies may need to be revised in order to make sure everyone is equal, this means that an organisation may have higher costs
-act isn’t followed massive fines and prosecution this means that an organisation
-having to install ramps for disability increasing costs
-increased reputation
Describe the possible methods of growth for a PLC
(5marks)
-internal growth
-Horizontal integration
-Forward vertical integration
-backwards vertical integration
-conglomerate integration
Describe the way in which technology can be used in the operation department (2marks)
databases store information on inventry,this can be used in the operation department to keep up with levels of stock and to make it easier to search for queries
the internet can be used in the operation department in order to find out different suppliers and compare prices to potentially find the cheapest
discuss the advantages and disadvantages of using internal requirement(5marks)
-One advantage of internal recruitment is that the vaccancy can be filled quicker
-Another advantage of internal recruitment is that it can motivate employees,
-cheaper as theres no advertising costs
disadvantage
-One disadvantage of internal recruitment is that it draws from a small pool of people
-One disadvantage of internal recruitment is that it employees may get jealous of each other,causing resentment
Compare functional grouping with customer grouping 4marks)
-Functional caters WHOLEorganisation whereas customer grouping on each CUSTOMERS individual needs
-Functional grouping is CHEAPER than customer grouping as there is less DUPLICATION
-Functional grouping organises staff based on SIMILIAR SKILLS AND KNOWLEDGE wehreas customer grouping staff are grouped based on a TYPE OF CUSTOMER
-Customer grouping is easier to compare PERFORMANCES BETWEEN GROUPS whereas functional grouping shows result for the full organisation
Discuss the use of a just-in-time (JIT) system for inventory management.
(5marks)
-One advantage of just in time management is lower storage costs since finance isnt tied up in inventory
-Another advantage of just in time management is reduced chances of theft.As inventory is only ordered when needed and is easily monitored
-less waste as stock is deliveered thats required
one disadvantage of just in time management system is if delays happen.If delays happen due to external factors there will be delays and production will completely halt
-Another disadvantage of just in time management system is losing out on ecnomies of scale(price per unit)
-increased delivery costs
Describe the benefits of growth on an organisation (4marks)
-Economies of scale.means lower price per unit costs of production
-lower price can be charged means increased sales and profit, as theres more stock produced
-larger influence over the market
-
)Describe 3 financial ratios(3marks)
gross profit percentage ratio,this calculates the gross profit through the buying and selling of goods before all other expenses
gross profit/sales revenue x 100
percentage works out the amount of profit made once all expenses are deducted
often calculated by profit for the year/sales revenue x 100
return on equity employed, this calculates how much money investors will get back after a period of time
often calculated by (PROFIT FOR THE YEAR/OPENING EQUITY) x 100
Describe the methods of appraisal an organisation could use.
5marks
One to one appraisals
-A regular review of an employee’s job performance which is documented and evaluated
-targets may be set for the future
360 degree
-Allows for a variety of viewpoints from colleagues
-a review of an employee’s job performance, with feedback
coming from subordinates, peers, supervisors and the employee
themselves
peer-to-peer
-could be bias
-Managers are excluded from this type of appraisal
Explain the PURPOSEof preparing a cash budget(3marks)
it shows business where they’re will have a surplus of cash, this means as a result the business can plan ahead on future purchases
business will have a deficit of cash, which will allow them to adjust spends or, arrange a cash injection to avoid the deficit
allows the business to make decisions
Describe the features of an effective inventory management system. (4marks)
-max stock level,to minimise inventory costs
-minimum stock levels,if below shortages in stock will happen
-re-order quantity,organisation automatically rer-order
Discuss sources of finance available to a large organisation(5marks)
-bank loan,allows for high amounts of money however interest rates are high
-Bank overdraft,withdraw more money however only small amounts
-mortgages,allows for money to be borrowed to pay for property,can be repossed if instalments arent paid
Role of ACAS and trade unions
-The role of ACAS is to be a arbitrator making decisions based on evidence by employees and employers
-The role of Trade unions is to represent a group of employees and provide legal advice
Describe the purpose of preparing a Statement of Financial Position.
(4marks)
-compare with previous years
-calculate the profit/loss made for the year
-legal reason
-compare with competitors
