Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business Year 13 > Theme 3 > Flashcards

Theme 3 Flashcards

1
Q

what is a objective

A

statement of specific outcomes that the business wants acheive

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

the hierarchy of business objectives

A

mission
corporate/strategic
functional
team
indvidual

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Purpose of corporate objectives :

A

provide strategic focus
measure performanceof the firm as a whole
informed decision making
set th scene for more detailed functional objectives

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

the mission statement is :

A

the over riding purpose of the business
the reason for its existence
a strategic porspective
supports the stated vision for the future

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

SMART objectives

A

specific
measureable
acheivable
relevant
time bound

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what is ansoffs matrix :

A

a markting planning model that helps a business determine its product and market strategy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

what is a market

A

the group of people to whom you are selling your product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

what is the boston matrix

A

business model which helps business analyse thier product portfolio

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

intrest rate :

A

the cost of borrowing, the reward for saving

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what are external influences :

A

factors outside the business over which they have no control to which they have to react

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what is vertical intergration

A

when a business takes over with another business at a different stage of the production process of the same good

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what is a stratergy

A

this is the long term plan on how you are going to acheive your aims and objectives

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

core capabilities

A

the things a business does best

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

oppourtunity

A

something that can help the ompany meet it’s business objectives

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

barriers to entry

A

intial outlay may be too high
legal barriers
economies of scales
control of a supply of raw materials

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

objectives of growth

A

to acheive economies of scale
increased market power over customers and suppliers
increased market share and brand recognition
increased profitabilty

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

what is economies of scale

A

when unit costs fall as outputs increase

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

cost per unit

A

total costs / number of units produced

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

oppourtunity costs

A

forgone costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

contribution

A

selling price - veriable costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

what is a takeover

A

involves one business acquiring control of another business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

what is a hostile takeover bid

A

when a business buys out shares from shareholders

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

possible reasons for takeover

A

increase market share
access eos
acquire intangable assets
acquire new skills
secure better distribution
spread risk by diversifying

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

drawbacks of a takeover

A

high costs
upset customers and suppliers
resistnace from employees
incompatibilty of management styles
high failure rate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

what is a merger

A

a combination of two previously seperate brands which is achieved by forming a completly nre firm into which the two original businesses are intergrated

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

why do forecast sales

A

a vital planning activity
the sales forecast forms the basis for most other common parts of a busisness

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

advantages of using extropolation

A

a simple method of forecasting
not much data required
quick and cheap

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

disadvantages of using extropolation

A

unreliable if there are significant fluctuations in historical data
Assumes that past trends will continue into the further unlikely in many competitive markets
ignores qualitative factors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

what is correlation

A

looks at the stregnth of a relationship between two variables

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

investment appraisal

A

the process of analysing wether investments projects are worth wile

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

what is worthwile

A

will it hep the business to acheive it’s objectives

32
Q

three main methods of investment appraisal

A

payback period
avrage rate of return
discounted cash flow

33
Q

payback period

A

the time it takes for a project to repay it’s intial investment

34
Q

average rate of return

A

looks at the total accouting return for a project to see if it means the target return

35
Q

discounted cash flow

A

net present value calculates the monetary now of the profits future cash flow

36
Q

benefits of using payback period

A

simple and easy to calculate
focuses on cash flow
emphasises speed of return
straight forward to compare competing projects

37
Q

drawbacks of using payback period

A

ignores cash flow after payback has been reached
takes no account of the time value of money
may encourage short term thinking
ignores qualitative aspects of a decision
does not actually create a decision for investment

38
Q

what is the ARR (Average Rate of return)

A

the annual percentage return on an investment project based on average returns earned by the project

39
Q

benefits of ARR

A

simple to understand and easy to calculate
focuses on the overall profitablilty of an investment project
uses all the returns generated by a project

40
Q

drawbacks of ARR

A

ignores the timing of retruns
focuses on profits rather than cashlow
does not adjust for the time value of money

41
Q

what is discounting

A

the method used to reduce the future value of cash flows to reflect the risk that they may not happen

42
Q

how to calculate ARR

A
  1. calculate the average annual profit from the investment project
  2. divide the average annual profit by initial outlay
  3. compare with the target percentage return
43
Q

how to calculate payback

A

identify net cash flow for each period
keep a running total of the cash flow

44
Q

what are the results of each method of investment appraisal

A

payback = time day years
ARR = % retrun
discounted cash flow = monetary value ( £ )

45
Q

what is a decision tree

A

a mathematical model used to help managers make decisions. Uses estimates and porbabilities to calculate likely outcome. helps deciede wether the net gain from a decision is worthwile

46
Q

profitability

A

the rate of profit per product

47
Q

net gain

A

when the money generated from the porject is greater than the money spent on the project

48
Q

expected value

A

the financial value of an outcome calculated by multiplying the estimated financial effect by it’s probability

49
Q

advantages of decision trees

A

choicesare set out in a logical way
potential option choices are considered at the same time
use of probabilities enables the risk of the options to be considered
likely costs are considered aswell as potential beenfits, measured financially

50
Q

disadvantages of decision trees

A

probabilities are just estimates
use qualitative data only
assigenments of porbabilities and expected values prone to bias
decision making technique doesn’t necesarily reduce the amount of risk

51
Q

Critical Path Analysis

A

and planning method that allows a project to be completed in the shortest amount of time

52
Q

information needed for CPA

A

a list of all activites required to complete the project
the duration each that each activity will take to complete
the dependecies between the activities

53
Q

what is critical path analysis

A

the sequence of project activities whcih add up to the longest overall duration the crytcial path determines the shortest time possible to complete the project

54
Q

CPA calculates …

A

the longest path of planned activities of the end of the project
the earliest start time (est)
latest finish time(lst)
crytical path
total float

55
Q

why is the crytical path so important

A

any delay of an activity on the critical path directly impacts the planned project completion date

56
Q

calculating ests

A

the first node will always have an est of zero
ests are calculated from left to right
add the duration of an activity to the est of a previous node
if more than one activity leads to a node the highest figure becomes the new est

57
Q

calculating lfts

A

give the last node of the project an lft = to the est
work backwards from right to left
subtract the duration of the activity from the lft

58
Q

what is the total float

A

the durattion an activity can be extended or postponed so that so that the project still finishes within the minimum time

59
Q

oginisational culture =

A

the set if shared beliefs and actions that afe built into the way that people in an orginisation behacve

60
Q

factors influencing culture of an orginisation

A

influence of the founder
size and satge of the business
leadership/management style
market indsutries
working enviroment
external enviroments
attitude of orginisation and risk taking

61
Q

why change culture

A

improve business performance
respond to significant change

62
Q

features of a strong culture

A

source of competitive advantage
clear set of values , missions and goals
performance orientated
encourages suitable risk taking and innovation
strong internal communication
engaged employees
not easily copied

63
Q

what are ethics

A

moral guide lines which govern acceptable behaviour

64
Q

common areas where ethics are tested

A

advertising
personal seling
suppliers
pay and rewards
contracts
pricing

65
Q

benefits of ethics

A

higher revenues = demand for positive consumer support
improved brand and business awareness and recognition
better employee motivation and recruitment
new sources of finance

66
Q

possible drawbacks of ethics

A

higher costs
higher overheads
a danger of building up flase expectations

67
Q

different approaches to business ethics

A

the amoral business
the legalistic business
the responsive business
the ethical business

68
Q

amoral business

A

seeks to win at all costs and anything is accpetable

69
Q

legalistic business

A

will obey the law but no more than that

70
Q

resposive business

A

accepts that being ethical can pay off

71
Q

ethical busniess

A

ethical practice is at the core of the business

72
Q

income statement

A

this measures the business performance iver a given period of time usually one year

73
Q

balance sheet

A

a snapsheet of the business assets and it’s liabilities on a particular day

74
Q

cash flow statements

A

show how the business has generated and disposed of cash and liquid funds during a specific period

75
Q

liabilities

A

an outside claim on the business assets

76
Q

current assets

A

can change in value durimg this amount financial period

Business Year 13 (6 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions