Business studies

Product Lifecycle
1. Maturity
  1. Sales reach highest ppoint
  2. Profit starts to fall as competition increases
2. Growth
  1. Sales increase rapidly
  2. profit reachest highest point at the end of this stage
3. Introduction
  1. Sales are low
  2. Profit is minimal or negative
4. Decline
  1. Sales and profits fall
  2. Profits may become negative
5. Product Extension
  1. Product development
  2. Market development
  3. Widening the product range
  4. Extra advertising
  5. Special promotions
    1. Half price
    2. Buy one get one free
  6. Adding additional value
Boston Matrix
1. Cash cows
  1. High market share
  2. High market growth
2. Rising stars
  1. High market share
  2. High market growth
3. Problem children
  1. Low market share
  2. High market growth
4. Dogs
  1. Low market share
  2. Low market growth
Market research
1. Primary research
  1. Advantages
    1. Specific to needs of the business
    2. Less expensive
    3. Up to date with current fashion
  2. Disadvantages
    1. Time consuming
    2. Limited results
    3. May have a lack of expertise
2. Secondary research
  1. Advantages
    1. Has been carried out already
    2. Easy to access
    3. Can be received by experts
  2. Disadvantages
    1. Often expensive
    2. Easy to access
    3. Can be received by experts
Improving Profit
1. Lease instead of buy
2. Buy less stock
3. Use cheaper suppliers
4. Lowering wages
Breaking even
1. Abbreviations
  1. FC: Fixed Costs
  2. VC: Variable Costs
  3. TC: Total Costs
  4. TR: Total Revenue
  5. SP: Selling Price
2. Contribution
  1. Selling price - variable costs
3. Breaking even is where a firm's total revenue is the same as its total costs. At the break even point a firm is making neither a profit or a loss
Motivation
1. Financial Methods
  1. Piece rate
  2. Commission
  3. Bonuses
  4. Profit-sharing
  5. Share-ownership
2. Non-financial methods
  1. Fringe benefits
    1. Company Car
    2. Cheap Travel
    3. Holidays
    4. Vouchers
  2. Good conditions of work
  3. Bonuses
    1. Flexible performance
    2. Related payments
Customer Service
1. Meeting the needs of the customers
2. Quality
3. On time service
4. Innovation
5. Collaboration
6. Spotting Problems
7. Listening to customers
8. Dealing with complaints
9. Staff Training
10. Go beyond what is expected
11. Disadvantages of poor customer service
  1. Sales go down
  2. Go to substitute competition products / services
  3. Lower profits
  4. Lower repeat purchases
  5. Survival may depend on customer service
Productivity
1. The output of a worker over a period of time
2. Cost effective - producing the most economical outcome for consumers
3. High productivity
  1. Average cost of each unit
  2. Prices could be lowered
  3. Profits may be higher

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	Created by Jack Beal about 9 years ago