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business > Unit 3.2 Meeting Customer Needs > Flashcards

Unit 3.2 Meeting Customer Needs Flashcards

1
Q

Benefits of stock control

A

Don’t over stock so less wastage
Don’t under stock
Easier to manage
Good products = good reputation

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2
Q

Consequences of stock

A 
May lose sales if not modern 
Wastage 
Health and safety issues
Vermin
Over or under ordering
Expensive
Disorganised
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3
Q

What is the FIFO principle

A

Stocking things with shorter shelf life in front of longer

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4
Q

What are the two stock control methods

A

Just in case (JIC) ordering a little extra

Just in time (JIT) ordering just before they run out

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5
Q

What is one way a firm can analyse its stock situation

A

Stock control charts

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6
Q

What are the parts of a stock control chart

A

Maximum stock level (most stock a firm is willing to buy)
Re-order level (stock level s new order is sent to suppliers)
Minimum stock or buffer (minimum amount)
Re-order quantity (number of items ordered)
Lead time (time it takes for order to come in)

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7
Q

What do stock control charts look like

A

. |
\ |
Time period ->
Stock levels ^

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8
Q

How to work out the reorder quantity

A

Max stock - min stock

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9
Q

How to find the lead time

A

Point between reorder point and delivery date

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10
Q

Advantages of JIT

A

Stock rotation and wastage is less of an issue good for food industry and technology
Storage space can be used for something else

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11
Q

Disadvantages of JIT

A

Any problems with suppliers effect the reputation of firm

More orders may be placed so costs may rise

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12
Q

Why is it important that a business identifies customer needs

A

So they can change and develop their products so they aren’t creating products no one would buy

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13
Q

Why is it important for businesses to anticipate customer needs

A

Business can stay competitive in market and develop things before others

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14
Q

Why is it important for businesses to meet customer needs

A

So customers continue to return and stay loyal

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15
Q

What is a first mover advantage

A

Advantage you gain from being first in a market so when competitors join you already have a market share

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16
Q

Why three things do stock refer to

A
  1. Raw materials ( go into production process)
  2. Work in progress (products semi finished by producer)
  3. Finished goods (products completed to right standard ready to be delivered)
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17
Q

What does offering great service help a business do

A 
Increase and keep market share
Improve sales revenue and profits
Attract and retain customers
Gain customer satisfaction and loyalty
Spread information to customers
Gain information from customers
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18
Q

What is quality

A

A product or service which meets the needs and expectations of customers and which achieve a desired minimum standard

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19
Q

What do customers need and expect in a product

A
  • performance (fit for purchase)
  • appearance
  • availability and delivery
  • reliability/ durable
  • price/ value for money
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20
Q

How does a product meet quality test and what does it become if it doesn’t

A

Meets needs and expectations of customers and if not it is substandard

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21
Q

What are the benefits of quality

A 
Gives competitiveness advantage
Repeat purchase
Build consumer confidence in brand
Reduces costs incurred in solving past sale problems
Helps improve efficiency
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22
Q

What is quality control

A

The process of inspecting products to ensure that they meet the required quality standard

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23
Q

Drawbacks of quality control

A

Rejected products are expensive for s firm as its the full cost of manufacturing but can’t be sold
Need more man power/ operations to maintain quality control and adds more time to initial process
Done at end so nothing can be done

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24
Q

What is quality assurance

A

The process that ensures production quality meets the requirements of customers. It is built in at the design stage and at every other stage of the manufacturing process.

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25
Q

What two things do a business need at least one of so it means firms set out clear procedures for all business processes

A

bs5750 (BS is British standard institute)

1509000 (150 is world wide)

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26
Q

What is total quality management

A

An approach aiming to develop quality through the firm. Consists of quality chains in which each person or team treats the receiver of their work as if they were an external customer. Also about getting things right first try so there is zero defects.
Product
Person ——> other person who checks it (if not good redo it)

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27
Q

What is benchmarking

A

Approach to improvement based of the best practices in the industry or in a similar industry allowing a business to identity where it falls short of current best within competitors and determine what action is needed to match or exceed them.

Who is best > research into them > analyse > adapt your business

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28
Q

What is a quality circle

A

Regular short meetings set up to help improve production issues. 2-3 members which are assigned issues close to their jobs so they can identify problems and discover long term solutions.

Person, person, person all from different parts of the business

29
Q

What is the design mix

A

The range of variables that contribute to successful design

30
Q

What are the variables in the design mix

A

Function. Cost. Appearance.

31
Q

What is function in the design mix

A

How the product works. Is it effective? Sturdy? Easy to use,?

32
Q

What is cost in the design mix

A

Cheaper the cost to design and product the better

If the business has low production costs compared to their competitors they will have a competitive advantages

33
Q

What is appearance in the design mix

A

Someone is more likely to buy a product if they like the look

34
Q

How does using scientific research help businesses

A

It can help devise more economical, effective ways of doing things and R&D can help make prototypes

35
Q

What is research and development (R&D)

A

Continuous innovation

36
Q

What are three different ways of carrying out research in R&D

A

Market research - finding out what customers want
Employee ideas - what alliteration so do the workers think could be made
Scientific research - what is machinery capable of doing

37
Q

What are two ways of doing development in R&D

A

Making in bulk - is it possible, will it keep costs to a min

Test markets - what do customers think of new products, will they buy?

38
Q

What does a business need to be to be competitive

A

Effective

39
Q

What is productive efficiency

A

Lowest cost per unit at which production can take place

40
Q

Why is productive efficiency important

A

More efficient = lower cost goods than competitors
May generate more profit
Investing in assets is expensive so business needs to maximise the return it makes on the assets (maximise what the asset can do)

41
Q

What are three ways of measuring efficiency

A

Productivity
Unit costs
Non-productive (“idle”) resources

42
Q

How does productivity help measure efficiency

A

Measures the relationship between inputs into the production process and the resultant outputs

43
Q

How does unit costs help measure efficiency

A

Divide total costs by the number of units produced. A falling ratio would indicate efficiency improving

44
Q

How does non productive resources help measure efficiency

A

Are employees left with nothing to do? What resources are used? Are machines used to full capacity? Machines only used part time?
Too many idle resources are a sign of inefficiency in production

45
Q

What are three ways of calculating productivity

A

Output per worker of hour of labour
Output per hour/day/week
Output per machine

46
Q

How would you work out products per hour for each person

A

Completed products divided by hours worked

47
Q

What is automated production

A

Production and procedure processes that are performed by machines.
Reduces human intervention.

48
Q

What ways are there to improve productivity

A

Training - workers will know how to make products so less made wrong
Improved motivation - want to work harder and create more
More and better equipment - less safety risks and faster
Better quality raw materials - treated carefully and less waste
Improved organisation of production e.g less wastage - less waste, less wasted money and time

49
Q

What are the problems of training, motivation, improved equipment, better quality materials, improved orange ideation of production

A 
Expensive
Not last for very long
Expensive go buy and waste of money from old equipment 
Expensive
May move things around and take up time
50
Q

Why do fair trading regulations exist

A

To protect consumers from exploitation so

51
Q

When can consumers complain

A

If a product is given a misleading description, unsatisfactory quality or not fit for its intended purpose

52
Q

What is the sales and supply of goods act 1994

A

All goods sold have to be of satisfactory quality meaning they have to be safe, last for a reasonable amount of time, be fit for purpose and have nothing wrong with them

53
Q

What is the trade description act 1968 & 1972

A

Businesses can give false or misleading information about the products e.g can’t market fake designer goods as the genuine product. Labels must be truthful.

54
Q

What can consumer protection regulation add to business costs

A

Cost of damaged reputation and image with customer

Cost of employing specialists to deal with the laws and their consequences so they can avoid breaking the law

Cost of changing business practices e.g retraining sales staff or redesigning labels because they can’t be incorrect and need to be able to deal with customers

55
Q

Why is meeting customer needs so important

A

Customers will buy a product if it meets their needs so getting the product right is essential for the business

56
Q

What are some key characteristics looked for in a bus service

A 
Reliability
Friendliness 
Clean
Comfort
Accessibility
Convenience of stops
Information
Price
57
Q

Why is quality of a product essential

A

It is meeting a standard that satisfies customer needs

58
Q

Why is on time service essential

A

Offering a product that gets to the customers when they want will encourage repeat purchase but sometimes e.g traffic congestion for a bus service the customer service is out of their control

59
Q

Why is innovation essential

A

Businesses must innovate to stay ahead of the competition

60
Q

Why is collaboration essential

A

Businesses operate in a competitive environment but sometimes they can collab with other firms or with government agencies or pressure groups to improve what is being offered

61
Q

Why is spotting problems essential

A

Successful businesses are ones which can identify problems as they arise and respond to them and those working with customers are often better placed to understand the problems and solutions

62
Q

Why is listening to customers essential

A

Any business that wants to provide products customers want must listen to them so if they want to expand customer base they must listen to potential customers who aren’t using the product yet

63
Q

Why is dealing with complaints essential

A

It is important for repeat purchases, if a customer has a complaint and doesn’t feel like it’s been dealt with they may not buy again even if they are wrong. So good customer service should find solutions to problem that satisfy customers and are affordable to business.

64
Q

Why is staff training essential

A

Only properly trained staff can deliver a quality product so training is essential for every aspect of the business.

65
Q

Why is going beyond what is expected essential

A

Some businesses acquire a reputation for excellence in customer service this can be a major selling point for businesses and can encourage repeat purchase

66
Q

Why is customer service so important

A 
Part of the package the customers buys
Provides a way to differentiate product
Helps keep customers and win new ones
Makes customer feel valued
Important source of customer feedback
Helps attract and retain good employees
67
Q

What are satisfied customers more likely to

A 
Buy again
Recommend the business
Respond to promotional campaign
Forgive occasional problems with quality
Stay loyal to the brand
68
Q

What is the circle of events that occur before of good customer seri e

A

Good customer service –> satisfied customer –> customer loyalty –> repeat business –> good customer service (etc,etc)

69
Q

Why is competition for good customer service increasing

A

e-commerce and email marketing means businesses can reach customers 24/7

Improved technology allows products to meet individual customer needs more closely

Customers are getting more confident in complaining and expect a good service

business (6 decks)

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