year 1 topics Flashcards
transfomation process
transfomation of inputs and outputs
added value
is amount added to value if inputs
key inputs needed by business :
land , labour , capital , enterprise
transfomation chain
raw materials –>manufacturing –>distribrution –>retailer –> consumer
primary sector
secondary sector
tertiary sector
raw materials
manufacturing
distribrution and retailer
mission statement
statement of business long term vision
profit satisfying
making enough to profit to keep owners comfortable
social
providing service to public
break even formula
fixed costs /(sp-vc)
market capitilisation
current share price x no. of shares
PESTLE+C
poltical, economic , social , technological , legal , environmental , competition
leaders
those who set direction and strategy for business
autocratic leadership
makes decisions without consulting staff
paternalistic leadership
gives attention to social needs and views of workers
democratic leadership
involves staff in decision making
laissez faire
lets staff make decisions
stakeholder mapping
mapping stakeholders in terms of level of power and interest
marketing objectives :
market share , sales growth , sales value , brand loyalty , sales volume , market size
qualitive
research into attitudes and opinions of customers
quantative
can be analysed statistically
random sampling
chosen at random
stratified sampling
seperated into subsegments then randomly chosen
quota
segmented into subsegments before a judgement is made
confidence interval
probability that research findings are correct
extrapolation
uses past data to extend an identified trend into future
price elasticity of demand
below -1 elastic
between -1 and 0 inelastic
market mapping
mapping products based on quality and price
income elasticty of demand
below -1 elastic
between -1 and 1 inelastic
above 1 elastic
below 0 = inferior good
between 0 and 1 = normal
above 1 = luxury
product development chain
idea -> prototype ->development ->modfication _>launch
boston matrix
mapping products based on market growth and market share
pricing strategies
dynamic
skimming
penetration
cost plus
flexible prices based on demand
initially high price then lowering it
initial low price
adding based on cost
distribrution channells
direct - producer - consumer
traditional - producer - wholesaler - retailer - consumer
modern - producer - retailer consumer
operations
production of good and services
operations management
reduced unit costs , quality targets , ethical objectives , added value , speed of response and flexibilty
labour productuvuty
total output / no. of employees
unit cost
total costs / total output
capacity utilisation
actual output/ max output x 100
econmies of scale
bulk buying to reduce unit cost
technical - investing in machinery
specialisation - splitting up production
marketing - spreading marketing budget over large output
lean production
reduces waste
time based management
recognises importance of time
cell production
processes are split into cells or teams
kaizen
concept of continous improvment to increase efficiency
gross profit
revenue - vc
operating profit
gross profit - mixed costs
profit for the year
operating profit - othercosts + tax
liquididty
a measure of how much cash a business has
ROI
profit made /costs of investment x 100
favourable variance
outcome is better than expected
adverse
outcome is worse than expected
debt factoring
when a business sells a unpaid invoice to a company
contribrution per unit
price - vc
hard hr
treats emloyees as asset or resource
soft hr
treats employees as valuable asset
employee costs as percentage of turnover
employee costs/ sales turnover x 100
redeployment
moving emplyees to different job
taylors motivation
money is the only true motivater
maslow
hierarchy of needs
herzberg
some elements are rwquired ( hygiene factors )
financial methods of motivation
bonus , wages , piece rate , commision , fringe beneit
non financial methods of motivation
delegation , praise , promotion , empowerment
