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Production, Finance and External Business Environment Flashcards

1
Q

what are the benefits of technology?

A
  • quicker
  • faster
  • cheaper
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2
Q

what are the disadvantages of technology?

A
  • expensive
  • can go wrong
  • not always reliable
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3
Q

what is job production?

A

making a unique and specific product to the customers order

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4
Q

what is batch production?

A

making a specific quantity of one product then a specific quantity of another. all happening on the same machine

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5
Q

what is mass/flow production

A

making very large amounts of the same product on the same machine

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6
Q

what are the advantages of job production?

A
  • satisfying to customers needs
  • high quality
  • sell fora high price
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7
Q

what are the disadvantages of job production?

A
  • labour intensive
  • expensive in terms of labour
  • take a long time
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8
Q

what are the advantages of batch production?

A

suit specific orders

-quick

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9
Q

what are the disadvantages of batch production?

A
  • down time

- issue with machinery

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10
Q

what are the advantages of flow production?

A

continuous process

-large quantises

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11
Q

what are the disadvantages of flow production?

A
  • not flexible
  • boring
  • issue with machinery
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12
Q

what are the 6 ways a product could have value added to it?

A
  • quality
  • design
  • convenience
  • speed
  • branding
  • unique selling point
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13
Q

what is total Quilty management?

A

where every stage is checked

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14
Q

what is just in time?

A

only buy in stock for today production

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15
Q

what are the benefits of just in time?

A
  • dont have to pay storage costs

- less stock to be broken

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16
Q

what are the benefits of having total quality management?

A
  • wont loose money on poor products

- less waste

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17
Q

what are the problems of having total quality management?

A
  • time consuming
  • have to train staff
  • slows down production
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18
Q

what is quality control?

A

checking the product at the end

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19
Q

what is quality assurance?

A

checking the product as you go along

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20
Q

what is revenue?

A

money coming into the business

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21
Q

what are costs?

A

money spent in order to run the business

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22
Q

what is the equation for total revenue?

A

price X quantity

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23
Q

what is the equation for total costs?

A

total revenue - total costs

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24
Q

how can a business bring more revenue in?

A
  • higher prices
  • new products
  • advertise more
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25
what are fixed costs?
costs that never change no matter how many products you make i.e. rent
26
what are variable costs?
costs that change depending on how many you make i.e. electricity
27
what is the definition of break even?
how many products you must sell to cover all costs
28
why do you need to low your break even point?
- set targets - helps monitor success - tells you if you are wasting time
29
what is margin of safety?
how many products you are above the break even point
30
what is the equation for break even?
fixed costs / (selling price - variable costs)
31
what are the problems with break even?
- fixed costs often change - only a prediction - assumes printing never changes - assumes everything you make you will sell
32
what is specialised staff (devision of labour)?
when every member of staff does one specific job
33
what are the benefits of having specialised staff?
- high quality - people stay - speed
34
what are the problems with having specialised staff?
- boredom - bad if someones absent - limited
35
what is elastic demand?
when customers are very price sensitive i.e. on foods
36
what is inelastic demand?
prices change, little different in sales i.e. clothes
37
what is the definition of economies of scale?
the more you make the less each one is
38
what is purchasing economies of scale?
discount for buying in bulk
39
what is production EOS?
spreading the costs of production over more output
40
what is marketing EOS?
promoting the brand name
41
what is managerial EOS?
employing best specialist managers
42
what is financial EOS?
borrowing at cheaper rates of interest
43
what is risk bearing EOS?
spreading the risk over a range of products
44
what are diseconomies of scale?
when becoming a very large business eventually means your average costs go up
45
what is inward investment?
involves an external entity investing in the local economy i.e. IKEA going to Evesham
46
how do the government help with inward investment?
- grants - planning permission - investing in schools
47
what criticism is given on regeneration program?
- council tax increased to fund grants - money spent on something else - business rates go up
48
when does the pound loose value?
- when people wont buy our goods and services | - when foreign investors worry they wont get much interest if they save money in UK banks
49
what is competitiveness?
the ability to be better then other countries - price - quality - skill - British brand name
50
what is business ethics?
doing what is morally right
51
what are chinas business ethics like?
- poor working conditions - low wages - autocratic leader - behaviour of supervisors is harsh and slave like
52
how do companies benefit from being ethical?
- motivate staff - staff stay in jobs - good reputation
53
what is sustainability?
meeting the needs of today without taking resources away form the future (renewable resources)
54
what are the benefits of having a sustainable policy?
- motivates staff - justify high prices - attracts middle income customers
55
what are the problems of having a sustainable policy?
- more expensive - increases costs and reduces prices - overrates as many customers don't care
56
what happens during the goos times?
- luxury spending - easier to sell - new businesses - low unemployment
57
what is sales revenue?
amount you bring in from selling your products
58
what is costs of sales?
cost of your stock in which you sell to customers
59
what is gross profit?
profit a company makes after taking away the costs
60
what is the equation for gross profit?
gross profit/ sales X 100
61
what net profit?
money left after costs but before tax
62
what is the equation for net profit?
net profit/ sales X 100
63
what effects the amount of profit a business makes?
- demand for product - size of market - price people are willing to pay
64
what is the money flowing into a business?
- existing cash | - sales revenue
65
what is the money flowing out of a business?
- business costs | - business expenses
66
what are the benefits of cash flow forecasting?
- helps to see problems before they happen - set targets - judges managers success
67
what are the problems with cash flow forecasting?
- only a prediction - assumes people will pay on time - fails to predict expenses
68
what are the 8 external sources of finance?
- overdraft - trade credit - leasing - hire purchasing - bak loan - grant - share issue - mortgage
69
what is an over draft?
withdrawing more than whats in your bank account
70
what is trade credit?
asking you suppliers to wait for payment
71
what is leasing?
paying for the right to use something
72
what is hire purchasing?
owing something once the final instalment is payed
73
what is a grant?
money form the government for a specific purpose
74
what is share issue?
selling shares
75
what is a mortgage?
loan based usually on property
76
what are the advantages of an over draft?
- good for cash flow | - quick to set up
77
what are the disadvantages of an over draft?
- interest everyday | - bank my cut it
78
what are the advantages of a grant?
- dont have to pay it back | - good for publicity
79
what are the disadvantages of a grant?
- long time to get one | - only use it for what the government say you can
80
what are the advantages of share issue?
- raise large amounts of money | - good for publicity
81
what are the disadvantages of share issue?
- you can loose control | - expensive to release shares
82
what are the advantages of leasing?
- cheaper than buying out right | - always get brand new version
83
what are the disadvantages of leasing?
- never own it | - pay for any damages
84
what are the advantages of a loan (mortgage)?
- eventually own item | - at the moment low interest rates
85
what are the disadvantages of a loan (mortgage)?
- take a long time to pay off - could loose house if not paid - a lot of interest payed
86
what are the advantages of trade credit?
-good for cash flow
87
what are the disadvantages of trade credit?
- loose your supplier | - limited time to pay it back

Business (3 decks)

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