Brainscape's Knowledge GenomeTM

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


See full index

Business GCSE Edexcel > Unit 2 > Flashcards

Unit 2 Flashcards

You may prefer our related Brainscape-certified flashcards:
GCSE Geography - AQA flashcards GCSE Religious Studies - Edexcel Route B flashcards GCSE Religious Studies - Eduqas Route A flashcards GCSE Religious Studies - Edexcel Route A flashcards GCSE Religious Studies - Eduqas Route B flashcards
1
Q

Internal/organic growth

A

Growth within the business

Eg.opening more stores

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

External/inorganic growth

A

Growth from outside the business

Eg. Merging stores

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

Merging business

A

Businesses that merge together

+more customers
+more money
-disagreements

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

Takeover

A

A business buying another business

+access to different markets
+less competition
-costly
-negative publicity

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

Public limited company

A 
•form of business ownership
•limited liability 
•must be a minimum of 2 shareholders
•can sell shares on the stock exchange 
Meaning access to large capital
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Advantages and disadvantages of internal finance

A

+natural
+no interest

  • may not be a lot
  • can be slower
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Examples of internal finance

A
  • retained profit

- selling assets

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

Advantages and disadvantages to external finance

A

+money
+potentially skills from shareholders

  • potentially giving up a percentage of the business
  • potentially giving up control over the business
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Examples of external finance

A
  • loans

- shares

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

Retrenchment

A

A business downsizing the scale of its operation

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

Efficiency

A

The attempt to avoid wasting materials, energy, effort, money and time with the aim of reducing costs more effectively

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

Globalisation

A

When a business operates on an international scale and gain international influence of power

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

Examples of globalisation

A
  • have stores in different countries
  • deliver to more places
  • suppliers from other countries (sometimes cheaper)
  • workers moving all over the world for work
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Multinational company

A

A multinational company is a large company with facilities and markets all over world

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

Imports

A

The flow of goods and services into one country from another

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

Exports

A

The flow of goods and services out of one country to another

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

Business location

A

The area the business operates

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

International trade

A

Buying or selling of goods and services between countries

However there can be many barriers preventing countries from trading

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

Free trade

A

There are no barriers to international trade

ie trade between countries

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

Protectionism

A

When countries take action that restrict the flow of imports into their country

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

Types of tariffs

A

•tax charged on imports

•quotas
Provides a physical limit put on that import
Eg. 2000 bottles of whiskey

•non tariff barriers
Imposing difficult quality or safety standards on imported goods

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

Ethics

A

Moral guidelines which govern good behaviour

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

Advantages of acting ethically

A
  • competitive advantage
  • brand loyalty
  • avoids negative media
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Pressure group

A

A group of people who join together to try and influence government policy or business policy for a particular cause

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

Direct pressure groups

A

Directly impacting the business or service eg. Boycotting

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

Indirect pressure groups

A

Promotion of issues through education, debate and lobbying eg in schools and colleges

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

What are the 3 things in the design mix?

A
  • Function
  • cost
  • Aesthetics
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

What are the 4 stages of a Product life cycle?

A
  • introduction
  • growth
  • maturity
  • decline
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Product extension strategies

A
  • finding new users
  • finding new markets
  • targeting a specific market with promotion
  • changing the appearance
  • lowering prices
  • encouraging people to use the product more often
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Pricing strategies factors

A
  • the volume of the product
  • the profit margin
  • popularity
  • brand loyalty
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

High volume, low margin strategies

A
  • lower prices

* sell more

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

High margin, low volume strategies

A

•higher prices
•sells less
•adding value
Eg.Gucci

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Mass market

A
  • everyone
  • lots of competitors
  • lower prices
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Niche market

A
  • specific customers
  • less competition
  • higher prices
  • less customers
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Supply chain

A

The sequence of process involved in the production and distribution of a product/service

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

Producer to consumer

A
  • most direct route
  • products may be customised
  • prices may be lower (as there are less profit margins to be considered)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Producer to superstores to consumer

A

-most common route for food, clothes and most household items
-producers sell to superstores in bulk
-superstores store items in warehouses and distribute it to different stores
Eg. Morrison’s

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

Traditional method (producer to wholesaler to small business to consumer)

A
  • buy in bulk
  • sell in small quantities to village shops
  • the wholesaler carries out the important function of “breaking bulk”
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

Income statement

A

Shows the profit or loss that a business makes

A business makes an income statement annually

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

Gross profit

A

The profit the business makes on selling its product.

It takes into account all costs to make and supply the product but not the businesses expenses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

Expenses

A

Not direct link to cost of sales

Eg.advertising, utility bills, administration (usually fixed costs)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

Turnover

A

Revenue

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

Net profit

A

The amount of money left over when all expenses have been deducted from the gross profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

ARR (average rate of return)

A

ARR is used to compare different investment opportunities in order to identify which is the most profitable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

Business operations

A

Transforming resources into finished goods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

Benefits of technology

A
  • lower costs (bulk-buying)
  • faster (machinery)
  • higher quality (less mistakes)
  • flexible (can change the output)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

Disadvantages of technology

A
  • initial costs may be high
  • repair is expensive
  • staff need training
  • problems are harder to detect until it’s too late
  • a robot can’t react to unexpected changes
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

Job production

A

Making one product at a time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

Advantages of job production

A

+specific to the individual needs of customer

+high profit margin

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

Disadvantages of job production

A
  • expensive for customer
  • takes skilled workers
  • slower than other production techniques
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

Batch production

A

Relatively large production runs (in batches)

Eg. A bakery

52
Q

Advantages of batch production

A

+allows customers to be flexible (eg. Ingredients)

+reduced costs due to large scale production (bulk-buying)

53
Q

Disadvantages of bulk production

A
  • high wastage (eg.bakery)

- downtime between batches (where the rate of production falls)

54
Q

Flow production

A

Production on a mass scale, standardised products

Eg. Cars

55
Q

Advantages of flow production

A

+low cost of production
+can be done by low skilled workers
+mostly done by machinery

56
Q

Disadvantages of flow production

A
  • lower salaries
  • initial cost of machinery
  • not flexible
57
Q

Procurement

A

The process of obtaining the right supplies from the right supplier

58
Q

Factors entrepreneur needs to consider when picking a supplier

A
  • quality
  • delivery
  • availability
  • cost
  • trust
59
Q

Stock management

A

The task of ordering, storing, tracking and controlling a businesses stock

60
Q

Effect of ordering too much stock

A
  • waste
  • takes up space
  • obsolete products
  • profit decreases
61
Q

2 ways of managing stock

A
  1. Just in case (bar gate chart)

2. Just in time (JIT)

62
Q

Just in time (JIT)

A

Supplies are delivered when a business needs them

Eg. Some small businesses or bakery

63
Q

Pros and cons of just in time

A

+business holds no stock
+less waste
-relies on supplies arriving on time
-trustworthy suppliers

64
Q

Just in case

A

Where a business has stock and is automatically reordered when stock reaches a certain level
Eg. Supermarkets

65
Q

5 areas of promotional mix

A
  • special offers
  • public relations (eg. Sponsorships)
  • advertising
  • direct marketing
  • personal selling
66
Q

Pros and cons to just in case

A

+have a buffer stock
+doesn’t need too much trust in suppliers
-holding stock can be costly
-more wastage

67
Q

Buffer stock/ minimum level

A

Lowest amount of stock you want to keep

68
Q

Bar gate stock graph

A

The graph to show just in case stock control

Shows when supplies need to be ordered and how much stock a business has

69
Q

Quality

A

Being fit for the customers purpose

A good quality product should meet the customers requirements

70
Q

The 2 ways businesses can ensure quality

A
  1. Quality control

2. Quality assessment

71
Q

Quality control

A

Checking standard of products at the end of product process

72
Q

Quality assurance

A

Checks products at all stages of production

73
Q

Kite mark

A

Given to products where safety is an important aspect of quality

74
Q

CE mark

A

Products that comply with the essential requirements of European safety and environmental protection

75
Q

Investors in people

A

Awarded to organisations committed to training and developing their staff

76
Q

5 steps of the sales process

A
  1. Customer interest
  2. Speed and efficiency of service
  3. Customer engagement
  4. Post-sales service
  5. Customer loyalty
77
Q 
Customer interest
(Sales process)
A

To grab attention

  • branding
  • sponsorship
  • advertising
  • sales promotions
78
Q

Speed and efficiency of service

Sales process

A
  • not too long to purchase
  • customers may choose a business who are quick & convenient
  • e-tailing user friendly
  • retailing minimal queues
79
Q

Customer engagement

The sales process

A

Interaction between customer and business during the sales transaction

80
Q

Post sales service

Sales process

A

Support the business provides after sale

Eg. Surveys

81
Q

Customer loyalty

Sales process

A

Customers keep coming back due to the effective sales service

82
Q

Hierarchy

A

The management structute of a business

83
Q

Chain on command

A

Line on which orders and decisions are passed down

84
Q

Span of control

A

The number of employees that are managed by a manager.

If a person manages four their span of control is four

85
Q

Advantages of a hierarchical organisational structure

A

+more promotions

+less work for managers

86
Q

Disadvantages of a hierarchical organisational structure

A
  • not as easy to communicate

- more expensive (more managers)

87
Q

Advantages of a flat organisational structure

A

+easier communication

+cheaper (less managers)

88
Q

Disadvantages of a flat organisational structure

A
  • less promotions

- more work for managers

89
Q

Hierarchical organisational structure

A
  • many layers of management
  • narrow span of control
  • long chain of command
90
Q

Flat organisational structure

A
  • few layers of mangement
  • wide span of control
  • short chain of command
91
Q

Centralised structure

A

Decisions are made at the top of the company

92
Q

Decentralised structure

A

Decisions are made locally or at a lower level in the business

93
Q

Advantages of centralised structure

A

+consistency
+clear direction
+operations and decisions are closely controlled
+chain of command is clear

94
Q

Disadvantages of centralised structure

A
  • can demotivate employees
  • a standardised approach may not work in all business locations
  • may lower productivity
95
Q

Advantages of decentralised structure

A

+improved employee motivation
+allowing managers lower down the chain to make decisions which suit their local area
+more responsibility for employees

96
Q

Disadvantages of decentralised structure

A
  • not consistent over the business
  • managers can make ineffective decisions
  • may negatively impact on sales, reputation and overall business performance
97
Q

Problems when communicating:

A
  • communicates too much
  • communicates too little
  • bad technology
  • accents/languages
  • time differences
98
Q

Ways of working

A
  • hours worked
  • contracts used
  • technology used
99
Q

Flexible hours

A

Flexible hours, suits the employyee

100
Q

Zero hours contract

A

Casual contract, “on call” work

101
Q

Contract

A

Written agreement between two people or organisations

102
Q

3 examples of contracts

A
  • permanent
  • temporary
  • freelance
103
Q

Permanent contract

A

An employee will be employed by a business on an ongoing basis

104
Q

Pros and cons to a permanent contract

A

+employees feel secure
+less likely to leave the business

-most expensive contract

105
Q

Temporary contract

A

An employee will be employed for a fixed amount of time

Eg.maternity leave

106
Q

Pros and cons to temporary contract

A

+evaluate potential employees (could offer them a permanent contract)
+required for business operations

  • less job security
  • less employee loyalty
107
Q

Freelance contract

A

Self employed, paid by the business to do a specific job/project

108
Q

Pros and cons to freelance contracts

A

+fills business needs

  • may not be available
  • lack of trust
109
Q

Benefits of motivated staff

A

+productivity
+business reputation improves
+higher attendance
+employees want to contribute ideas

110
Q

Unmotivated staff are:

A
  • inefficient
  • make more mistakes
  • damage business reputation
111
Q

2 methods of motivation

A
  • Financial

* Non-Financial

112
Q

Remuneration

A

The money paid to an employee for working

-overtime pay for staff who work etra

113
Q

Advantages of remuneration

A

+staff want to work overtime

+more motivation

114
Q

Disadvantages of remuneration

A

-costs the business more

115
Q

Bonuses

A

An additional payment if they acheive a target or high level of performance

116
Q

Advantages of bonuses

A

+staff want to work harder

+more motivation

117
Q

Disadvantages of bonuses

A
  • costs the business

- staff make be pushy towards customers trying to sell things

118
Q

Comission

A

An extra amount of money paid to an employee, usaully if they can make a certain amount of sales

119
Q

Promotion

A

A promotion is when an employee is given a more senior role within the organisation usually with more responsibilities

120
Q

Fringe benefits

A

Benefits by the business that financially benefit employees

Eg. Gym membership, comapany car, free childcare etc

121
Q

Non financial methods of motivation

A
  • job rotation
  • job enrichment
  • autonomy
122
Q

Job rotation

A

When employees rotate between jobs. Taking on different tasks

123
Q

Pros and cons to Job rotation

A 
\+gain experience 
\+gives employees a better understanding of the business 
-time consuming
-possible lower standard of work
-teaching
124
Q

Job enrichment

A

Giving employees more responsibility

125
Q

Pros and cons to job enrichment

A

+ increased productivity
+ opportunities
-may be overwhelming
-pay hasn’t increased

126
Q

Autonomy

A

Employees are able to make more choices and have more freedom/independence

Eg. Team decisions or working your own hours

127
Q

Pros and cons to autonomy

A

+freedom
+staff feel in control
-wrong decisions
-employees make take advantage of freedom

Business GCSE Edexcel (2 decks)

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