T3ST Flashcards
Ads delayering
Improved communication
Empowers staff
Speeds up decision making
Delayering disads
Remaining staff have to take on extra work
Fewer promotion opportunities
Delayering causes redundancies
Role of a manager
Making sure plans are carried out
Check and evaluate staffs work
Giving tasks to staff and the responsibility of completing said task
Make sure resources are available
Bringing all staff and resources together at the right time
Profitability ratio
Gross Profit% = Gross profit/Sales revenue x 100
Profit for the year% = profit for the Year/Sales revenue x 100
Return on Equity Employed = profit for the year/opening Equity x 100
Liquidity ratios
Current Ratio = current Assets/current liabilities
Answer should be expressed as 2.45:1
Acid Test = Current assets - Closing inventory/ current liabilities
Answer should be expressed as 1.45:1
Efficiency ratio
Rate of inventory Turnover = costs of sales/ average inventory*
* average inventory = opening + closing inventory/2
Benefits of Lateral Integration
Reduced chance of failure
Spread the risk
The firm becomes larger and more secure.
Gain the assets of the firm
The ability to overcome seasonal fluctuations
Political Ad and disad
Ad
New/ changed health and safety regulations. This means they have a decrease in staff absence
Dis
New /change in health and safety regulations. This means the business will have an increase in costs as you will have to train staff
Economic ad and disad
Ad
There could be a high rate of unemployment in the uk. This means, larger choice for of people who apply therefore you can employ the very best staff
Disad
Increase in interest rates. This means more expensive to borrow money so your business cannot afford to expand
Social ad and disad
Ad
Change in trends or fashions. This means, produce products which are high in demand which increases profit levels.
Disad
Change in the demographic of an area/ country. This means businesses will have to open branches in new area which is highly expensive
Technology ad and dis
Ad
New technology becomes available. This means, production levels may increase
Dis
Growth of s-commerce. This means, an external dept has to be created so you will have an increase in costs due to newly hired staff
Environmental ad and dis
Ad
Increase in pressure to become more environmentally friendly. This means, socially responsible image which will increase your amount of customers
Dis
Natural disaster may occur. This means, your business will have to close down for a period of time.
Competition ads and dis
Ad
Competitor introducing a new product. This means, your business has an idea for a new product
Dis
Competitors reducing prices. This means, your business may also have to decrease their prices so you will have a decrease in income.
HRM ICT
Create a job description/ personal specification/ applications using word
Email contract of employment or changes in legislation
Website - so employee can download their
application form
Database - store employees records
Maslow
Physiological
Basic needs which are for example, food and shelter.
Can be satisfied through basic pay
Maslow
Safety and security needs
Job security and safe working environment
Can be satisfied through a permanent contract
Maslow
Social( love and belonging )
Needs where most people want to belong to a group.
Can be satisfied by working with colleagues who provide them with support/ team work/ communication
Maslow
Self esteem needs
Receiving recognition for a job well done
A promotion might achieves
Praise the employee
Maslow
Self actualisation
Self actualisation is when people realise their potential
May be measured by the extent of success and it challenge at work
Retailer (definition and ads)
Supermarket - traditionally sell food and drink
Ads
Retailers are often located closer to the customer
They often have an established customer base
E-tailer
Shopping online and having the product delivered
Ads
Convenience of buying products from the comfort of your own home 24/7
Inexpensive to set up a website
Convenience retailer
Small store that offer a limited amount of products
Retailers pay for the advertising
Products are displayed attractively by the retailer
Explain
R&D
When market research is conducted and prototypes are produced. Prototype is launched into a small area before going nationwide incase prototypes has problems. This means, the products has no sales, high costs and no profit.
Introduction explain
When a product is first launched into the market. The product is advertised heavily as this stage. This means there are low levels or profits/ no profits made
Growth explain
Once the product reaches the growth stage, sales rise rapidly. Customers are more aware of your product. This means profit levels rise
Maturity explain
Sales peak as the product is well known in the market. Extension strategies are often used. This means the highest profits are achieved
Saturation explain
Supply of the product over takes the demand. Customers who won’t the product have it. This means profits begin to fall
Decline explain
Sales fall as new/better versions are on the market. Customers tastes have changed and no longer want the product. This means profits and losses are made
Operational decisions
Short term decisions( day-to-day)
Decisions are made by staff/ supervisors of the dept
Low risk decisions.
Strategic decisons
These decisions are long term ones
These decisions are made by senior managers.
High risk decisons
Tactical decisons
Medium term decisions
Made by middle managers
Market skimming ads and dis
Ad
Gives the product an exclusive image
Dis
Can only be used as a short term pricing strategy
Development
Few or no competitors in the market
Premium pricing
When a business permanently sells its products at a high price
Gives the business a high quality image
Dis
Company misses out on a whole market segment
Price discrimination
When a business charges a high price when demand is high
Holiday companies tend to do this in the holidays of summer and Christmas
Customers demand is high so they will pay the inflated price
Competitive pricing
When a business charges the same price or lower than competitors
Increased sales/ market share
Disadvantage- small profit margins are made
Desk research and field distinguish
Field research is reliable as the source is known. However, desk research is not reliable as source is unknown
Field is relevant as it’s gathered for a specific purpose. However, desk might not be relevant as info can be out of date.
Desk is easier to obtain however, field is harder due to the time it takes to gather the info
Employment legislation
National minimum wage act 1998. Increase in costs as wages increase
Equality act 2010
People must be treated the same regardless of gender, race, religion, disability etc. This means the business has to install a lift for people in a wheel chair
Employment rights act 1996
Cannot be forced to work on a Sunday unless it is in your contract of unemployment. Businesses may have to close down therefore production levels decrease
Cash flow problems
Offer discounts and promotions to increase sales and reduce your stock levels
Reduce/ lower/ limit the credit you allow your customers
Reducing the operating cycle - time between buying raw materials and making sales - just in time
Arrange credit from suppliers.
Non current assets
Items that your business will own for more than one year
Working equity
Current assets minus current liabilities. Shows the ability for your business to pay off its debts with the assets you own
Non current liabilities
Debts that your business will take longer than a year to pay off. Eg mortgage
Reasons why gross profit is improving
Found a cheaper supplier. This means, a decrease in costs
A reduction in theft or wastage. This means, more products can be created, therefore increase sales
An increase in your selling price. This means, the businesses profit margins increase.
Benefits of ensuring quality
Proves the product has been met an agreed level of quality
Can be used as a marketing tool to gain a competitive advantage
Will give customers confidence when purchasing the product
Increase sales/ repeat sales
Higher prices can be charged
Ads of MNC
Can allow orgs to increase their profits/sales
An org may be given grants from gov’ts to locate in that country and the grants will not require to be paid back
Orgs can become larger which may result in them being safer from take overs
Avoidance of tarries/ quotas imposed by governments
Take advantage of economies of scale and reduce unit costs of products
Dis ads of MNC
Legislation may be different in the other countries which may require the organisation to alter its product/service
Legislation may exist on how a product/ service is marketed and may result in some marketing techniques having to be changed
Cultural difference will mean that organisations have to be sensitive to different cultures
Different languages will exist and this may mean that organisation have to employ specialist linguist to work with the organisation.
One to one
A regular review of an employees job performance by your line manager
This review takes place every year or 6 months( depends on businesses)
Peer to peer
When you’re appraised by another member of staff who works at the same level as you.
Managers are excluded from this type of appraisal
360 degree
A review of an employees job performance with feedback coming from your subordinates, peers, supervisors and the employees themselves
Allows for a variety of view points from colleagues
Ads VLE
Staff can access 24/7
Can be easily amended to add in new course material eg notes and tasks
Dis VLE
Relies heavily on learners accessing materials and completing tasks on time
IT issues can stop training from taking place
Labour intensive advantages
Employees can use their initiative
No initial capital outlay
Each product is unique
Labour intensive disadvantages
High wages for skilled staff
Training costs
Same product cannot be made every time
Increased error and wastage
Computerised inventory control
EPOS is used to control inventory electronically
Inventory is scanned out when received
Inventory is scanned when sold
Epos can re-order inventory automatically when the re-order level is reached by sending out an email
Goods can be ordered off the internet
Re order quantity
The amount ordered at re order level
This should arrive when the min level is reached
This amount will take your inventory levels back up to max level
