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Business UNIT 3 revision > Unit 3.2 revision > Flashcards

Unit 3.2 revision Flashcards

1
Q

What is the design mix?

A

The range of variables which contribute to a successfully design mix ; their function, cost and apperance

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2
Q

What are the three variables of the design mix?

A

Function
Cost
Apperance

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3
Q

What is meant by function in the design mix?

A

The way in which the product performs

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4
Q

What is meant by Cost in the design mix?

A

Can it be produced at a low cost to be competitive

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5
Q

What is meant by Appearance in the design mix?

A

How appealing is it

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6
Q

What is the meaning of Research and Development?

A

The scientific research and technological development of a new product or service.

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7
Q

At what stage of the product life cycle does Research and development take place?

A

Introduction (the first stage of the product life cycle)

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8
Q

Define the word stock?

A

Materials that a business holds (Some could be materials waiting to be used in the production process and some could be finished stock waiting to be delivered to customers.

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9
Q

What are the 3 types of Stock?

A

Raw materials
Work in progress
Finished goods

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10
Q

What are raw materials?

A

These are stocks the business has purchased from suppliers that make up the production process of a product.

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11
Q

What are Work in progress goods?

A

These are part complete products currently in the production process.

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12
Q

What are finished goods?

A

Completed goods that are made to the right standard that are kept within the firm.

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13
Q

What is Maximum stock level?

A

The highest amount of stock to be kept by a business.

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14
Q

What is the Re-order level?

A

The amount of stock held by a business at which an order for new stock is placed with suppliers.

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15
Q

What is Buffer stock or Re-order level?

A

The lowest amount of stock to be kept by a business

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16
Q

What is Lead time?

A

Time between an order being placed and the good being received.

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17
Q

What is Just In Time stock control?

A

A stock management system where stock are only delivered when they are needed by a production system, and so no stock are kept by a business

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18
Q

What is Just in Case stock control?

A

A stock management where the business ensures they always have a certain amount of stock ‘ just in case’ to deal with changes in demand.

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19
Q

What are 4 Advantages of Just In Time stock control?

A

Less likely of stock perishing, becoming out of date
Better quality
Reduces cost
Capital is saved

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20
Q

What are 4 Disadvantages of Just In Time stock control?

A

Cannot react to sudden changes in demand for the product
Customers are unsatisfied
Suppliers might not come in time
May lose out on bulk buying discounts.

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21
Q

What are 4 advantages of Just In Case stock control?

A

Good customer satisfaction
Can react to sudden changes in demand
No delivery issues
Reduce pressure on cash flow

22
Q

What are 4 disadvantages of Just In Case stock control?

A

Stock holding is expensive
Risk of outdated products
Damage reputation
Charge lower prices (loss leader)

23
Q

What is Quality?

A

Achieving a minimum standard for a product or service which meets the meets customer needs

24
Q

What are two ways of achieving good quality?

A

Quality control and Quality Assurance

25
Q

What is Quality control?

A

It involves an individual team or department who are responsible for checking the quality of goods and services once they have been made.

26
Q

What is Quality Assurance?

A

Involves all members of the workforce checking on the quality of the product or service at every stage of the production process.

27
Q

What are the 2 main differences between quality control and quality assurance?

A

QC involves a individual team or department whereas QA involves all members of the workforce

QC approach is Reactive and QA is Proactive

28
Q

What is an advantage of QC?

A

Produces more and less time consuming

29
Q

What is a disadvantage of QC?

A

More chance of defects not being changes

30
Q

What is an advantage of QA?

A

Reduces the risk of faulty products

31
Q

What is a disadvantage of QA?

A

It is costly and produce less

32
Q

5 benefits of Good quality?

A 
Allows businesses to charge premium prices
Builds a strong brand image
Meets customer needs
Differentiate product
Makes demand price insensitive
33
Q

What is Productivity?

A

Assess how efficient a business is by how much each worker produces over a period of time.

34
Q

What is the formula for calculating Productivity?

A

Total output/ Number of workers

35
Q

What is meant by Unit costs?

A

Money spent (Expenditure) producing one unit of a good or a service.

36
Q

Give 3 ways businesses can increase Productitvity

A

Train employees better
Invest in better equipment
Train employees better

37
Q

Give 4 ways businesses can Reduce costs?

A

Cheaper suppliers
Using a JIT stock control
Relocation
Cutting overhead costs

38
Q

Name 3 benefits of improved quality

A

Lower unit costs
Allows a lower price to be charged
Increase profit

39
Q

What is Customer service?

A

The experience you get when using products or services made by a business.

40
Q

What 3 methods can be used to ensure that a business meets the needs of customers?

A

Surveys
Questionnaires
Internet sites

41
Q

Name 4 business benefits for having good customer service.

A

Repeat purchases
Positive cash flow
Create brand reputation
More effective workforce – satisfied customers help create a positive working environment

42
Q

Name 4 business drawbacks for having poor customer service.

A

Fall in sales and profits
In ability to charge premium prices
Poor customer satisfaction
Poor brand image

43
Q

What does an increase of productivity lead to?

A

Lower costs— Lower prices—Attract more customers— Increase sales and profits.

44
Q

What does competitiveness mean?

A

Competitiveness is where a firm has some kind of advantage over a rival firm, such as higher productivity, that will allow it to gain customers from rivals.

45
Q

Why do consumer protection laws exist?

A

1) To have a satisfied consumer
2) Good publicity is followed
3) Improved relationships with stakeholders.
4) Meeting consumer protection laws can improve a business’s image.

46
Q

Fair trading regulations exist for what?

A

To protect consumers from exploitation(being treated unfairly)

47
Q

Consumers have basic legal rights and can complain/ sue if a product is what

A

1) Gives misleading description
2) Is of an unsatisfactory quality level
3) Is not fit for its intended purpose

48
Q

What is the Sale & supply goods act of 1994?

A

This act says that all products have to be of a satisfactory quality meaning the the product has to:

1) be Safe
2) Last for a reasonable amount of time
3) be fit for intended purpose
4) have nothing with them (unless the detect was noted at the time of sale.

49
Q

What is the Trade description Act 1968-1972?

A

This act is to do with how the business deal with and sell to customers Business must not:

1) Give false or misleading information about products for example, who made the product
2) Market fake designer goods as the genuine product
3) Advertisement labels must be truthful.
4) Act aggressively (force the sale)

50
Q

What are 2 drawbacks of Consumer protection laws to a business?

A

1) Businesses have to comply with laws by changing their products and practices and this can be costly.
2) Bad publicity if not followed

51
Q

What are 2 benefits of Consumer protection laws to a business?

A

1) Meeting consumer protection laws can improve a business’s image.
2) A business that follows the law is less likely to receive fines or be sued by customers.

52
Q

Identify 3 disadvantage to a business of the government introducing new consumer protection legislation

A

1) Inability to charge to differentiate a product and gain a competitive advantage
2) Poor customer satisfaction
3) Fall in sales and profits. Sales changing to rival products

Business UNIT 3 revision (7 decks)

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