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Mind Map by jakeyboihc, updated more than 1 year ago
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Created by jakeyboihc
over 9 years ago
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Business Studies (BUSS2)
- USING BUDGETS
- BUDGET DEFINITION:
An agreed plan
establishing the
expected revenue
and expenditure of
an organisation.
- INCOME BUDGET:
Shows the
planned inflows
to the
organisation
over a period of
time.
- EXPENDITURE BUDGET:
Shows the planned
outflows of the
organisation over
period of time.
- PROFIT BUDGET:
Shows the
planned profit
of the
business over
a period of
time.
- INCOME BUDGET:
Shows the
planned inflows
to the
organisation
over a period of
time.
- GOOD BUDGETING
- Consistent with the
aims of the organisation
- Based on the opinions
of as many people as
possible.
- Challenging but realistic targets
- Consistent with the
aims of the organisation
- VARIANCE ANALYSIS:
This is the process
where the actual
figures are compared
to those that were
budgeted for.
- ADVERSE VARIANCE:
When a business has
done worse than
expected.
- Actual costs were
higher than budgeted
for
- Actual revenue
was lower than
budgeted for
- Actual costs were
higher than budgeted
for
- FAVOURABLE VARIANCE:
When a business has
done better than
expected.
- Actual costs were
lower than
budgeted for
- Actual revenue was
higher than
budgeted for
- Actual costs were
lower than
budgeted for
- ADVERSE VARIANCE:
When a business has
done worse than
expected.
- BUDGET DEFINITION:
An agreed plan
establishing the
expected revenue
and expenditure of
an organisation.
- IMPROVING CASH FLOW
- CASH FLOW DEFINITION:
The flow of money in and
out of a business.
- RECAP ON CASH FLOW:
Cash flow forecast is a
prediction. Cash flow
statement is the actual.
Used by managers, owners
& lenders.
- SOLUTIONS
- Increase sales revenue
- Reduce costs
- Increase sales revenue
- CAUSES OF CASH FLOW PROBLEMS
- Seasonality
- Poor financial planning
- Poor debtor management
- Poor creditor management
- Overheads unmanageable
- Seasonality
- CASH FLOW DEFINITION:
The flow of money in and
out of a business.
- MEASURING & INCREASING PROFIT
- RECAP:
- Profit = Revenue - Costs
- Gross Profit = Revenue - Cost of Sales
- Net Profit = Revenue - All Costs
- Profit = Revenue - Costs
- NET PROFIT MARGIN:
The amount of profit
that an organisation is
making expressed as a
%.
- CALCULATED:
Net Profit /
Turnover x100
- The greater the profit margin,
the better the organisation is
performing.
- Need to pick out from the income
statement the figures require to
conduct this.
- CALCULATED:
Net Profit /
Turnover x100
- GROSS PROFIT MARGIN:
The amount of profit an
organisation is making on
each item sold, expressed
as a %
- CALCULATED:
Gross Profit /
Turnover x 100
- The greater the gross profit
magin, the better the
orgainisation is performing
- This profit margin should
always be greater than the net
profit margin
- CALCULATED:
Gross Profit /
Turnover x 100
- RETURN ON CAPITAL: This is the % return on
capital invested. Typically this could be used
to measure the return your getting from your
investment in the business.
- CALCULATED:
Net Profit /
Capital Invested
x 100
- CALCULATED:
Net Profit /
Capital Invested
x 100
- IMPROVING PROFITABILITY
- iNCREASE SELLING PRICE
- Reduce demand
- Depends on price elasticity
- Reduce demand
- REDUCE COSTS
- Reduce quality
- Damage reputation
- Reduce added value
- Reduce quality
- iNCREASE SELLING PRICE
- RECAP:
- OPERATIONAL TARGETS:
QUALITY
- QUALITY DEFINITION:
A quality product is one
that meets the
customers expectations
and would be fit for
purpose.
- QUALITY CONTROL (QC):
This is the process of
inspecting the product at
the end of the production
process. Typically
completed using a
sample of products.
- QUALITY ASSURANCE (QA):
This is the system that ensures
that quality standards are
being met throughout the
production process. Typically
completed using a sample of
products.
- QC OR QA?
- Quality control tends to
be cheaper in the short
term, due to reduced
training requirements &
reduced employee
responsibility.
- Quality control can
lead to more
wastage.
- Quality assurance can
increase motivation.
- Quality assurance can
actually identify specific
problems in the production
process.
- Quality control tends to
be cheaper in the short
term, due to reduced
training requirements &
reduced employee
responsibility.
- QC OR QA?
- QUALITY CONTROL (QC):
This is the process of
inspecting the product at
the end of the production
process. Typically
completed using a
sample of products.
- QUALITY DEFINITION:
A quality product is one
that meets the
customers expectations
and would be fit for
purpose.
- EFFECTIVE OPERATIONS:
CUSTOMER SERVICE
- CUSTOMER SERVICE DEFINITION:
This is the service given to
customers before, during and
after purchase to a standard that
meets the customers
expectations.
- EXAMPLES OF CUSTOMER SERVICE
- Offering advice pre sales
- Ensuring the item about
to be purchased meets
the customer needs
- Help lines to answer
questions after
purchase
- Dealing with customer
issues fairly and
successfully
- Offering advice pre sales
- HOW DO BUSINESSES GO ABOUT
MEETING CUSTOMER
EXPECTATIONS?
- MARKET RESEARCH:
Surveys, questionnaires
focus groups.
- TRAINING:
Staff know
what makes
good
customer
service
- QUALITY, ASSURANCE & CONTROL:
Ensuring staff get it right the first
time.
- MARKET RESEARCH:
Surveys, questionnaires
focus groups.
- MONITORING CUSTOMER SERVICE:
It's important for an organisation to
monitor its levels of customer
service.
- Typically they will use:
- Satisfaction surveys
- Focus groups
- Tracking surveys
- Online/mobile surveys
- Satisfaction surveys
- Typically they will use:
- IMPROVING CUSTOMER SERVICE
- Improve quality of products/service
- Value customers
- Speed of service
- Friendliness of service
- Efficient dealing with complaints
- Staff trained and competent
- Improve quality of products/service
- CUSTOMER SERVICE DEFINITION:
This is the service given to
customers before, during and
after purchase to a standard that
meets the customers
expectations.
- WORKING WITH SUPPLIERS
- SUPPLIERS
- These are organisations
who provide your
business with a product or
service.
- Typically you want to establish a
good relationship with your
suppliers.
- Suppliers can be critical to
the overall success of your
organisation.
- These are organisations
who provide your
business with a product or
service.
- FACTORS TO CONSIDER
WHEN CHOOSING A
SUPPLIER
- Quality of materials/service supplied
- Flexibility
- Reliability
- Value for money
- Technological investment
- Payment terms
- Quality of materials/service supplied
- GOOD SUPPLIERS:
The benefits of a
good supplier
should be
- IMPROVED CUSTOMER SERVICE:
Delivery on time, good quality of
product/service
- LOWER COSTS:
Good discounts
from economies
of scale
- FLEXIBLE:
Able to deal
with changes
in demand
- IMPROVED CUSTOMER SERVICE:
Delivery on time, good quality of
product/service
- SUPPLIERS
- TECHNOLOGY IN OPERATIONS
- ROBOTICS
- PRODUCTION OF PRODUCTS (CAM)
- ADVANTAGES:
Increased production
speed, Improved
quality, Don't get
bored, Don't take
breaks
- DISADVANTAGES:
Expensive to purchase,
Not flexible, Could
demotivate existing
employees
- ADVANTAGES:
Increased production
speed, Improved
quality, Don't get
bored, Don't take
breaks
- PRODUCTION OF PRODUCTS (CAM)
- AUTOMATION STOCK CONTROL
- JUST IN TIME (JIT)
- ADVANTAGES:
Reduced wastage,
Reduced storage
space, Improved cash
flow, More accurate
forecasting
- DISADVANTAGES:
Expensive to setup,
Dependant on good
supplier relationship,
Doesn't take into account
external factors
- ADVANTAGES:
Reduced wastage,
Reduced storage
space, Improved cash
flow, More accurate
forecasting
- JUST IN TIME (JIT)
- COMMUNICATION TECHNOLOGY
- INTERNET/EMAIL
- ADVANTAGES:
Reduced wastage,
Increased efficiency,
Improved
communication
channels, Increased
opportunities for
outsourcing
- DISADVANTAGES:
Training required for
employees, Cost of
investing in equipment,
Increased considerations
in the management of its
use
- ADVANTAGES:
Reduced wastage,
Increased efficiency,
Improved
communication
channels, Increased
opportunities for
outsourcing
- INTERNET/EMAIL
- COMPUTER AIDED DESIGN (CAD)
- DISADVANTAGES:
Training required for
employees, Cost of
investing in software,
Software could be used by
rivals
- ADVANTAGES:
More efficient,
Enables
competitive
advantage,
Reduces lead time
between design
and production,
Reduced need for
physical
prototypes
- DISADVANTAGES:
Training required for
employees, Cost of
investing in software,
Software could be used by
rivals
- BENEFITS OF TECHNOLOGY
- Reduced unit costs
- Improved communication
- Quicker operations processes
- Improved quality
- Reduced wastage
- Reduced unit costs
- ROBOTICS
- ORGANISATIONAL STRUCTURE:
- DEFINITION:
The ways jobs,
responsibilities
and power is
organised
within a
business
- LAYERS OF HIERARCHY:
Levels of management
- CHAIN OF COMMAND:
Lines of authority in the
organisation
- SPAN OF CONTROL:
Number of subordinates
who a manager directly
controls
- LAYERS OF HIERARCHY:
Levels of management
- HIERARCHAL:
Tall & flat,
Traditional
methods, provide
promotion
opportunites
- MATRIX:
Based around
projects,
People from
each
functional
area working
as a team
- ENTREPRENEURIAL:
Central control from
owner, Quick decisions
with small team around
them
- WORKFORCE ROLES
- SUPERVISORS:
Employees with control
for one or more
subordinate
- TEAM LEADERS:
Employees responsible
for leading a team of
employees
- MANAGERS:
Employees who are
responsible for the
operation of a specific
area of the business
- DIRECTORS:
Appointed persons
by the share-holders
to run the
organisations
- SUPERVISORS:
Employees with control
for one or more
subordinate
- DEFINITION:
The ways jobs,
responsibilities
and power is
organised
within a
business
- EFFECTIVENESS OF WORKFORCE
- LABOUR TURNOVER:
Number of leavers per year
/ Average of number of
employees for year x 100
- LABOUR PRODUCTIVITY:
Total value of output /
Total number of
employees
- LABOUR TURNOVER:
Number of leavers per year
/ Average of number of
employees for year x 100
- RECRUITMENT, TRAINING & SELECTION
- RECRUITMENT PROCESS
- Identify the vacancy
- Write a job description /
personal specification
- Advertise position
- Receive and process applications
- Identify the vacancy
- TYPES OF RECRUITMENT
- INTERNAL (notice board, promotion)
- EXTERNAL (job adverts, agencies)
- INTERNAL (notice board, promotion)
- SELECTION PROCESS
- Interview
- Presentations
- Assessment centres
- Psychometric tests
- Interview
- TRAINING
- On the job
- Off the job
- Induction
- On the job
- RECRUITMENT PROCESS
- MOTIVATION
- WHAT MOTIVATES
EMPLOYEES IN A
WORKPLACE?
- Pay
- Responsibility
- Praise
- Empowerment
- Rewards
- Pay
- FREDRIK TAYLOR
- Workers enjoy work but
go to work to earn money
- Theory based
all around
payment
- Believes that money
does motivate and
piecework is an
effective method to use
- Workers trained to do
one job well
- Workers enjoy work but
go to work to earn money
- ELTON MAYO
- Believed workers are
motivated by having special
needs met
- Conducted a study known as
the ''hawthorne effect''
- CONCLUSIONS:
Managers &
Employees
communicating
motivates, Managers
taking an interest
motivates, Working in
teams motivates
- CONCLUSIONS:
Managers &
Employees
communicating
motivates, Managers
taking an interest
motivates, Working in
teams motivates
- Believed workers are
motivated by having special
needs met
- ABRAHAM MASLOW
- Devised a hierarchy of needs
- Each level has to
be fulfilled before
the next
motivates
- Physiological needs
(food, water, shelter)
- Safety needs
(security,
protection)
- Social needs
(Sense of
belonging)
- Self esteem
(praise,
recognition)
- Self actualisation (achieve dreams)
- Physiological needs
(food, water, shelter)
- Devised a hierarchy of needs
- FREDERICK HERZBERG
- Believes some factors motivate,
some demotivate.
- Motivators:
Job
enlargement,
Job
enrichment,
Empowerment
- Demotivators:
Anything else
- Motivators:
Job
enlargement,
Job
enrichment,
Empowerment
- Believes some factors motivate,
some demotivate.
- WHAT MOTIVATES
EMPLOYEES IN A
WORKPLACE?
- EFFECTIVE MARKETING
- The purpose of marketing is to meet the
customers needs & wants
- NICHE MARKET:
Small specialised
market
- MASS MARKET:
Larger more general
market
- NICHE MARKET:
Small specialised
market
- The purpose of marketing is to meet the
customers needs & wants
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