Year 12 Business Studies Content Flashcards
What is operations?
The business processes through which inputs such as raw materials and labour are transformed into outputs.
What is cost leadership and how can it be achieved?
Involves aiming to be the most price competitive in a market while remaining profitable. Achieving it requires businesses to produce their products cheaply.
What is good/service differentiation and how can it be achieved?
Means distinguishing products from their competitors. It can be achieved through better quality, faster delivery, custom-designed products, etc.
What is the primary industry?
The primary industry extracts or harvests raw materials and natural resources.
What is the secondary industry?
The secondary industry uses raw materials, equipment and labour to manufacture finished goods.
What is the tertiary industry?
The tertiary industry includes businesses whose prime function is to provide a service.
What is the quaternary industry?
The quaternary industry is a sub-classification of the tertiary industry and consists of businesses that deal with knowledge-oriented activities. Examples include teaching and scientific research and development.
What is the quinary industry?
The quinary industry is a sub-classification of the tertiary industry and consists of businesses dealing with intellectual activities relating to the highest level of economic and social decision making. It also refers to domestic activities.
What is interdependence in terms of business functions?
Interdependence refers to the mutual dependence that the key business functions have on one another.
How are operations and marketing interdependent?
Operations and marketing are interdependent since marketing promotes and sets a price for the products that operations produce.
How are operations and finance interdependent?
Operations and finance are interdependent since all operations activities rely on funds and certain activities can help raise finances.
How are operations and human resources interdependent?
Operations and human resources are interdependent since human labour is an input for operations and decisions made by operations determine the number of staff needed as well as the skills required from them.
What is globalisation?
Globalisation refers to the removal of barriers to trade between nations. It has meant businesses can locate closer to their source of raw materials and where labour is less expensive thus helping the operations section of a business save money and time.
What is technology as a resource and what is automation?
Technology is the equipment and knowledge that are available to help a business perform certain functions or make products. It can allow for the development of new production methods which help businesses perform functions more quickly and for a lower cost. Automation is the application of technologies to produce products with minimal human intervention.
What is quality expectations?
Quality expectations are the customer set standards for the condition of a product. Quality can be considered to be how well designed and how functional goods are and the degree of competence with which services are organised and delivered. It usually refers to a products durability, reliability and fitness for purpose. People have an inherent belief in what quality standards should be for a certain product and determine their level of tolerance for deviations from this expected quality.
What is cost-based competition and how can businesses be cost competitive?
Cost-based competition involves a business aiming to have similar costs to their competitors so that they can compete by offering similar prices for similar products. To reduce the price of their products while still remaining profitable, businesses must reduce the cost of producing their products. This can be achieved by, for example, updating technology, sourcing cheaper inputs or employing casual employees.
What are government policies?
Government policies are rules or principles that hopefully guide better decisions and enhance the community or country. They encourage businesses to be more innovative, competitive and compliant in their operations. Government policies aren’t laws but they can become laws. Government policies can relate to health, environment, foreign trade, etc.
What are legal regulations?
Legal regulations refer to the system of rules which regulate the actions of members of a community or country and that are enforceable by the imposition of penalties. They aim to ensure public safety and fair business conduct. Failing to comply with legal regulations can result in financial consequences as well as negative media attention that can damage the businesses reputation.
What is environmental responsibility?
Environmental responsibility means that business operations should be shaped around practices that consume resources today without compromising access to those resources for future generations. This includes preventing resource depletion and reducing pollution. Society will have a positive attitude towards environmentally friendly businesses.
What is corporate social responsibility?
Corporate social responsibility (CSR) refers to open and accountable business actions that are based on respect for people, the community and the broader environment. It involves businesses doing more than just complying with laws and regulations.
