Key Functions, Monitoring/Evaluating, Finance

Question 1

What is Operations

Answer 1

• Production of goods/service

Question 2

What is Marketing

Answer 2

• Identifying customers’ needs
• Determining the appropriate target market for business

Question 3

What is Finance

Answer 3

• Financial planning
• Record keeping
• Cash flow and profitability management

Question 4

What is HR (Human Resources)

Answer 4

• Recruiting
• Training
• Development of employees

Question 5

What are the 4 Key Functions in business management

Answer 5

• Operations
• Marketing
• Finance
• HR (Human resources)

Question 6

What are the 4 P’s

Answer 6

• Price
• Product
• Place (location)
• Promotion

Used to develop marking strategy to aim target market.

Question 7

What is Market Segmentation

Answer 7

Total market divided intro groups of people who share more than 1 interests
Eg. Segment 1 focuses on ‘Food’
Segment 2 focuses on ‘Clothes’
Segment 3 focuses on ‘Utilities’

Question 8

Segment Dimensions: Geographic

Answer 8

Where people live
Eg:
- Rural
- Urban
- Climate
- Population size

Question 8

Segment Dimensions: Demographic

Answer 8

People’s characteristics
Eg:
- Age
- Gender
- Family size

Question 9

3 Components of a ‘Product’

Answer 9

• Actual product
  
  • size
  • Shape
  • Colour
  • Design
  • Taste/ingredients
• Branding: Name that differentiates product from other competitors
• Packaging
  
  • Protect product
  • Distinguish product by aesthetics

Question 9

Segment Dimensions: Psychological/Lifestyle

Answer 9

Individual interests
Eg:
- Motives
- Hobbies
- Opinions
- Socioeconomic groups

Question 10

3 Types of intensity a business can decide between (Place Distribution)

Answer 10

• Intensive Distribution: Local retail outlets
  Eg. Corner shops, supermarkets, vending machines
• Selective distribution: Moderate retail outlets
  Eg. Electrical appliances homewares
• Exclusive distribution: Retail outlet for products in large geographical areas
  Eg. Gucci, Nike

Question 10

Promotion Strategies

Answer 10

• Advertisements: newspaper and magazines, celebrity endorsement, billboards, social media
• Inform: public encouragement
• Online reminders of product

Question 11

Core Functions of Operations

Answer 11

• Input: Raw resource/material to make product
• Transformation: Process of making product
• Output: Final product - sell to customers

Question 12

Monitoring

Answer 12

Process of measuring actual performance against planned performance

2 Steps:
- Establish forecast performance standards
- Compare actual performance with forecast performance

Question 13

Evaluate

Answer 13

Process if assessing if the business achieved goals or not

3 Areas that need monitor + evaluating:
- Sales
- Budget
- Profit

Question 13

Modifying

Answer 13

Process of changing existing plans (use updated information to create future plans)

Corrective actions may involve:
- Cost of production (raw materials to outputs)
- Materials
- Products
- Management practices
- Delivery of products
- Human resource management

Question 14

10 Reasons why business fail

Answer 14

1. Lack of management
2. Lack of experiences
3. Poor financial control
4. Weak marketing efforts
5. Failure in strategic plan
6. Uncontrolled growth
7. Poor location
8. Improper inventory control
9. Incorrect pricing
10. Inability to make entrepreneurial transition

Question 15

Trend Analysis

Answer 15

Procedure that looks at changes over time

It attempts to:
- Establish pattern that can be used to forecast future sales, revenue, costs and profits
- Determine how each trend will affect the business
- Determine how one trend relates to each other