Unit 3: business operations + 2.6 and 4.1 Flashcards
1
Q
define market
A
where there are buyers and sellers
2
Q
define competition
A
when more than one business is attempting to attract the same customers
3
Q
define monopoly
A
when a business does not face any competition in a particular market
4
Q
define market share
A
the percentage of sales in a particular market recorded by a business
5
Q
define uncertainty
A
where there is a lack of information about a situation. This means the outcome or consequences are very difficult to predict
6
Q
define risk
A
the possibility of something going wrong
7
Q
what are the consequences of a risk going wrong
A
-lower sales
-reduced profit
8
Q
what are the 4 internal risks of a business
A
-employees refuse to work
-fire or theft
-bad publicity
-loss of ‘best’ employees
9
Q
what are the 3 external risks of a business
A
-new competitors
-natural disasters
-laws
10
Q
define business plan
A
a document setting out what a business does and what it hopes to achieve in the future
11
Q
define direct competition
A
businesses that sell the same type of product or service
12
Q
define indirect competition
A
businesses that do not sell the same type of product or service but are still in competition with each other
13
Q
what are the 5 competitive factors
A
-price
-quality
-location
-product range
-customer service
14
Q
define diversification
A
when a business starts selling new products in new markets
15
Q
define recession
A
when the value of an economy’s output of goods and services falls for 6 months or longer
16
Q
define operations
A
the function that organises, produces and delivers the goods of a business
17
Q
define economies of scale
A
refers to lower production costs as a business increases the amount it produces and sells
18
Q
what are the 3 main production methods
A
-job production
-batch production
-flow production
19
Q
what does the type of production depend on
A
the type of product being produces and how much of it is needed
20
Q
define production management
A
refers to all the activities in managing the transformation process.
21
Q
define production
A
the process of changing inputs such as labour services into goods and services that can be sold
22
Q
define job production
A
Product is supplied to meet the exact requirements of a customer
23
Q
define flow production
A
When an item moves continuously from one stage of the process to another.
24
Q
define lean production
A
an approach to production that aims to minimise waste
25
what are the advantages of job production
-Huge profit margins
-specialists
-focus on customers requirements -unique bespoke products
26
What are the disadvantages of job production
-long process to produce
27
what are the advantages of batch production
-ability to produce more than job
-some automation
-different flavours for batches
28
What are the disadvantages of batch production
-decreased productivity when switching batch.
29
what are the advantages of flow production
-high productivity
-standard production on all products
30
What are the disadvantages of flow production
-low margins
-low skilled or automated workers
-expensive start up
31
define TQM
Total quality management. An approach to quality which everyone is focused on preventing errors occurring and ensuing quality at each stage of the production process.
32
define Just in time production
when they hold as little stock as possible. Items are ordered just in time to be used
33
define kaizen
means 'continuous improvement'. it is an approach to production that aims to achieve change from a series of small steps
34
define specialisation
when individuals focus on a limited number of tasks
35
what are the two approaches to managing stock
-Just in time
-Just in case
36
What are the 3 factors affecting the choice of suppliers.
-price
-quality
-reliability
37
define procurement
The whole process of dealing with suppliers. This involves selecting suppliers, establishing the terms of payment and negotiating the contract.
38
what are the types stock a business may hold?
-day-to-day supplies (paper, pens)
-raw materials (fabric for t-shirts)
-semi-finished products and or finished products
39
define opportunity costs
the sacrifice we make when we chose to do anything
40
define Just in case
holds stocks just in case there is a delay from suppliers or a sudden unexpected increase in demand - this stock is called buffer stock
41
what are the advantages of just in time
-low stockholding costs
-does not need as much space to store stock
42
what are the disadvantages of just in time
-buy small quantities so less likely to get bulk discount more transport costs for more frequent deliveries
-at rick if there are difficulties with suppliers
43
what are the advantages of just in case
-can meet sudden increases in demand as has spare stock
-lower risk if there are problems with suppliers
-buy bigger quantities and may get price reduction, less transport costs as less frequent deliveries
44
what are the disadvantages of just in case
-holds stock that might go out of date or need to have price reduced to sell
-higher stockholding costs
45
define supply chain
all the businesses, people and activities that take part in the production processes from the start until it gets to the customer
46
define logistics
The movement of goods, services, information or money throughout the production process. It involves managing and ensuring everything is in the right place when it should be
47
what things will businesses buy from suppliers
-general necessities used to keep the business going (electricity)
-materials used in the production process
-major purchases used to create goods in the production process (equipment / machinery)
48
what factors do businesses consider when choosing suppliers?
-costs
-Quality
-speed of delivery
-range of products they offer
-reliability
-flexibility
-reputation
-payment terms
-contract terms
49
what trade offs exist in the supply chain?
-deciding which supplier to use will have trade offs
-higher quality means higher cost, or it may cost more to get suppliers quicker
50
why are suppliers so important
it helps the business meet quality targets such as delivering on time, standard of product. If the supplier doesn't do their part, then this impacts negatively on the business
51
define customer service
the part of the business's activities that is concerned with meeting customers' needs as fully as possible
52
what are the types of man-made quality issues
-rushing work/taking shortcuts
-lack of motivation
-shortage of people
-lack of training/skills
-unqualified personnel
53
what are the quality issues with technology.
-outdated
-lack of maintenance
-lack of capability
-non-availability of spares
-wear and tear
-improper set up
54
what are the management issues
-poor planning
-lack of procedures
-procedures not followed
-procedures not communicated
-lack of supervision
-conflicting requirements
-too rigid or too relaxed requirements
55
what are the consequences of quality problems
-results in poor productivity
-affects cost
-affects customer satisfaction
56
define positive customer engagement
when customers have a good experience from their contract within the business
57
define post-sales services
the meeting of customers' needs after they have purchased a product
58
define premises
the buildings used by businesses-these may include offices, shops and factories
59
define customer loyalty
a business's customers make repeat purchases because they prefer the business's products to those of its rivals
60
what are the 5 steps of the sales process
-customer interest
-speed of service
-customer engagement
-post-sales service
-customer loyalty
61
how can customer interest be gained
-a strong brand
-advertising
-promotions/offers
-hard approach
-soft approach
62
what is a hard approach
where the business approaches the customer
63
what is a soft approach
the business lets the customer know they are there if needed
64
define ICT
-Information and communications technology
-the computing and communications systems that a business might use to help to exchange information with stakeholders
65
define e-commerce
the act of buying or selling a product using an electronic system such as the internet
66
define m-commerce
the buying or selling of products through wireless handheld devices such as smartphones
67
define global markets
they are made up of customers from across the world
68
define social media
methods of online communication such as websites and applications, they share information and help to develop social and professional contracts
69
define data analysis
involves gathering and examining data to provide useful information that can be used for decision-making
70
how might ICT help to give good customer service?
-social media interaction
-online chats in websites
-online feedback and questionnaires
-rating systems
-FAQ page (frequently asked questions)
71
What ways can businesses offer good customer service?
-reliability
-pre-sales service
-service at time of purchase
-flexibility
-after-sales service
72
What are the benefits of maintaining a high quality standard?
-More customer recommendation
-Saves money
-Charge more for a good quality product.
-Improve brand representation
73
what are the drawbacks of maintaining a high quality standard?
-Costs of training staff
-Selecting better suppliers
-Cost of inspection
-Overall very expensive!!
74
what are the consequences of low quality products?
-results in poor productivity
-Affects costs
-Affects customer satisfaction
75
what are the drawbacks to good customer service?
It can be very costly and time consuming
76
what are the benefits of an effective supply chain
-Lower costs
-Improved customer satisfaction
-Competitive advantage
-higher profits
-risk reduction
77
What are the benefits of good customer service
-Increased customer loyalty
-Positive reputation
-Higher sales and profits
-Competitive advantage
-Reduced complaints
-Motivated employees
78
what is the function of human resourses
they are responsible for recruiting, interviewing and hiring workers. They may also handle employee relations, payroll, benefits and training
79
define an organisational structure
the way a business arranges itself to carry out its activities
80
why are organisational structures important
that everyone knows:
-what their duties are
-the person/people they have to report to
-the employees for whom they are responsible for
81
define organisational chart
a plan showing the roles of, and relationships between, all the employees in a business
82
define line manager
an employee's immediate superior or boss who is responsible for overseeing the work of others further down the hierarchy
83
define authority
the power to control others and to make decisions
84
define span of control
the number of employees managed directly by another employee
85
define levels of hierarchy
the layers of authority within a business
86
define chain of command
the line of authority within a business along which communication passes
87
define delayering
the removal of one or more levels of hierarchy from a business's organisational structure
88
define delegation
the passing down of authority to more junior employees
89
define subordinate
Workers in the hierarchy who work under the control of a more senior worker
90
define empowerment
Giving more responsibility to workers further down the chain of command in a hierarchy
91
define downsizing
When a business employs fewer workers to produce the same amount through increases in productivity
92
define horizontal communication
Communication between workers at the same level within the organisation
93
define vertical communication
Communication between workers at different levels within the organisation (top down or bottom up)
94
what are the characteristics of a flat organisational structure
wide span of control and a few levels of hierarchy
95
what are the characteristics of a tall organisational structure
narrow spans of control and a larger number of levels of hierarchy
96
define communication
the exchange of information between two or more people
97
define centralised
organisations where important decisions are taken at the centre and then passed out to the various departments/locations
98
when does centralisation occur
when a small number of senior managers in a business take all the important decisions
99
define decentralised
organisations where important decisions are delegated to managers in other departments/locations
100
what are the advantages of centralised
-tight control of decisions
-decisions made by senior management
-helps decisions to be consistent across the business
-avoids repetition of functions
101
what are the disadvantages of centralised
-lack of motivation for managers
-central management maybe 'out of touch'
-may be slow to make decisions that need to be taken quickly
102
what are the advantages of decentralised
-increased motivation for managers
-encourages local initiatives
-decisions based on more up-to-date information
-decisions made quicker
103
what are the disadvantages of decentralised
-managers may lack experience
-local decisions may be inconsistent with the overall business aims and objectives
-duplication of functions and costs.
