Business Management

Mrs. Shaw's work
1. Business Cycle
  1. A business sells goods/a service for money
  2. Uses the money to pay others
  3. Other spend money on the business
  4. Businesses have more money to spend on goods
2. Factors of Production
  1. Capital
    1. Anything man-made including machinery and money
  2. Enterprise
    1. Ideas, risk-taking, decision making etc
  3. Labour
    1. Human workers who are paid wages
  4. Land
    1. Resources from the land that are part of raw materials
3. Added Value
  1. Farmer harvests some wheat
    1. A baker buys the grain and makes bread
      1. Baker then sells the grain to the consumer for a higher price so that he gains a profit
Types of business
1. Sole Traders
  1. A Sole Trader is run by one person
  2. It is usually a small business
  3. It has unlimited liability
2. Partnerships
  1. A Partnership is run by 2-20 people
  2. It has unlimited liability
  3. It is usually a small company
3. Limited Companies
  1. Public Limited
4. Public Funded organistaions
  1. These are usually funded by the Government
  2. They are run by multiple people
5. Charities
  1. Run by multiple people
  2. Employees are not payed
Product Portfolio
1. I.e. when a business has a number of products on the market
2. This is when brand loyalty has been gained
3. When a product has been released, the busines may use that logo for their next product, e.g., coca-cola > diet coke
Product Line Extension
1. This happens when a product has reached saturation or decline
  1. The product is then introduced to do somthing new or have a new label etc
Product Endorsement
1. This is when a celebrity is used to advertise the product
Research
1. Desk
  1. Desk research is finding information on what product/service consumers want through second hand information
    1. For example, newspapers, the internet, the radio, etc
2. Field
  1. Field research is finding information on what product/serviceconsumers want through first hand information
    1. For example, surveys, intervies, focus groups, etc.
Branding and Own Label Branding
1. Branding
  1. High cost advertising
  2. Manufacturer and Retailer are different companies
  3. More attractive packaging
  4. Advantages
    1. Brand Loyalty
    2. Higher price means more money earned per product sold
2. Own Label Branding
  1. Low cost advertising
  2. Manufacturer and Retailer are the same company
  3. Less attractive packaging
  4. Advantages
    1. Loyal customers may also be loyal to brand
    2. Lower price = more customers
3. Expensive
4. Cheap
Production
1. Job
  1. Job production is when a product is produced using labour (and sometimes minor machinery) usually made by hand
2. Batch
  1. Batch production is when a product is produced by an equal split of machinery and labour
3. Flow
  1. Flow production is when a product is produced using machinery (and sometimes minor labour) 24/7
Intensive production
1. Capital
  1. Advantages
    1. Can work 24/7
    2. Can do things a person can't
  2. Disadvantegs
    1. Initial cost high
    2. IT expert required
2. Labour
  1. Advantages
    1. Can do things Machinery can't
  2. Disadvantages
    1. Has to be paid with a wage/salary
    2. Staff Moral
Keeping excess stock
1. The cost for storge space
2. No space for new stock

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	Created by Lewis White over 11 years ago