96876
Descrição
FlashCards por tara.springate, atualizado more than 1 year ago
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Criado por tara.springate
mais de 11 anos atrás
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| Questão | Responda |
| Advantages of becoming a big business | - More resources - Holiday time - Economies of scale (buying, research and promotion) |
| Disadvantages of becoming a big business | -Slow to bring about change -Slow communication - Reduced motivation - Culture clashes |
| Merger | When two or more firms join together and create another joint business. |
| Takeover | When one firm gains control of another and buys it up |
| Advantages of selling franchises | - Brand awareness - Fast growth as franchisee finances it - Franchisees are motivated |
| Lean production | Aims to reduce the amount of waste in a business, to reduce costs. This includes just in time and kaizen production. |
| Disadvantages of selling franchises | - Quality problems and bad reputation spreads through whole business - Original entrepreneurs no longer own the business |
| Advantages of becoming a plc | - Advertise shares on stock market - More media coverage - More status (investors more willing to buy shares as they're sold on easily) |
| Disadvantages of becoming a plc | - More media coverage shows mistakes - Can't control who buys shares - More regulated than plc and expensive to start up and run |
| Just in time production | When a customer order is received, the business orders stock from the supplier and starts producing. |
| Advantages and disadvantages of just in time production | - The business holds little stock, so it is not damaged or stolen. - Less waste as there is little unwanted stock to be thrown away - Delays can be very expensive |
| What is divorce between ownership and control | Owners of company (shareholders) may not have the same aims and objectives as the people who control the company and make the decisions (managers). |
| Kaizen production | Everyday teams of employees think of new ways to improve the production process. By involving employees, they are more motivated and also the changes reflect their needs. |
| Advantages of expanding abroad | - More customers - Reduces risk (eggs/basket) - Government incentives abroad |
| Management styles - Authoritarian leadership | Senior managers take most important decisions - Piece rate pay system - Bonuses and other financial benefits |
| How does lean production affect employees? | - Staff must be motivated, as strikes can be damaging to JIT production - Kaizen requires staff to want to help - Staff must be trained to check quality at every stage and be willing to send back faulty products |
| Disadvantages of expanding overseas | - Employees may not want to move - Different rules - Different market (may need to alter products which may be expensive) |
| Advantages of flow production | - Cheap per unit - Allows for specialisation - Huge volumes - Easier quality control |
| Specialisation | The process is broken down, so individuals only focus on one part of production. Through repetition, staff become more efficient, but it may lead to boredom. |
| Disadvantages of flow production | - High initial costs (only use if high demand) - Specialisation leads to boredom - Lacks flexibility |
| Quality | The extent to which a consumer is satisfied with a product or service. |
| Cross subsidy | When a company produces a range of products then they can use revenue from their cash cows (high share/low growth market) to support the new product. They subsidise the extra money that needs to be spent. |
| Stages of Product life cycle | Development Introduction Growth Maturity Decline |
| Measuring quality | - Customer questionnaires - Mystery visitors - Staff checking own work |
| Extension strategies | - Redesign product - Advertise more -Cut prices -Find new customers - Deals (BOGOF) |
| Difference between current liabilities and long-term liabilities | Current liabilities (e.g. tax) are debts that have to be paid within a year Long-term liabilities are debts that will be paid back over many years |
| Price skimming | High price when product first enters market (High demand - e.g. iPhone) |
| Advantages and disadvantages of customer questionnaires | - Unbiased opinions of the people who matter most to the business - Customers may not have time - Take a long time to read and log |
| Penetration pricing | Low price when product is launched to try and get quick sales |
| Debtors | People that own you money (include these in current assets) |
| Competitive pricing | When firms try to match the prices of their competitors (Common in markets when a few big firms are competing (eg. supermarkets) |
| Advantages and disadvantages of mystery visitors | - Good outsider's view - Staff feel spied on - May not be indicative of every experience |
| Loss Leader | When a product is sold at a loss in the hope that customer will buy more of something else where firm will profit. (Printers are cheap, ink is not) |
| Creditors | People that you own money to (Include these in current liabilities) |
| Advantages and disadvantages of staff checking their own work | - Allows reflection - Staff feel like their thoughts matter - Need training to be effective - Staff may be biased |
| Quality assurance | The process of determining whether products meet customer expectations and making sure they do. |
| Advantages of intermediaries in the distribution channel | - A producer can access more customers by selling to wholesalers or retailers - By selling its products in other business' stores, customers can compare products |
| Total quality management | Involves all employees in the process of preventing mistakes in order to achieve zero defects. |
| How would a business maintain consistent quality? | - Ensure suppliers are reliable - Train staff - Invest in modern equipment - Inspect products |
| Disadvantages of intermediaries in the distribution channel | - More mark ups at each stage mean final price is far higher for customers - By selling the product onto someone else the producer loses control and may not like store layout etc. |
| Why is good quality important? | - Customers are more likely to return and recommend the business - Avoiding mistakes saves money - They can charge more for the products |
| Name the two profit margin equations Which is more useful and why? | Gross profit/net profit margin = (net/gross profit x 100) ÷ revenue Net profit is more useful as it includes overheads. |
| Sources of finance for a large business | - Retained profits - Selling assets - Bank loans - Mortgages - Selling shares |
| Current ratio | Compares the current assets the business has with the current liabilities. 2:1 is a good figure, and the business should be able to pay the debts on time. |
| Acid test ratio | Same as current ratio but doesn't include stock. A good figure is 1.1:1. This may be a better guide than the current ratio, as it may be hard for a business to sell its stock quickly enough to pay its debts. |
| Organisational chart | A plan showing the roles of and relationships between all employees in a business. |
| Line manager | An employee's immediate superior or boss |
| Retained profits advantages and disadvantages | - No interest payments - Quick to arrange - Only available to profitable firms - Shareholders may oppose decision |
| Span of control | Number of employees managed directly by a manager. |
| Advantages and Disadvantages of selling assets | - No interest payments - May keep assets (if leased back) - Many firms have no suitable assets - Leasing assets back means regular payments |
| Advantages and disadvantages of bank loans and mortgages | - Can be arranged quickly - Allows repayment over a long time - Interest must be paid - Bank may require asset as collateral |
| Advantages and disadvantages of selling shares | - No interest payments - Owners may lose control of the company - Only available to plcs |
| What is a profit and loss account? | A financial statement showing a business' revenues and costs over a period of time. |
| Flat organisational structure | (Few levels of hierachy, wide span of control) - Quicker communication - More responsibility given to junior managers -Workers need training to take responsibility (increases motivation) - Appropriate for senior managers who think that workers should take responsibility and make decisions. |
| Overheads | Fixed costs |
| Tall organisational structure | - Managers can easily control fewer staff - Senior managers have all responsibility (fewer risks) - Lower training costs as workers aren't trained for making decisions - Appropriate for managers who believe workers must be closely controlled. |
| Delegation | The passing down of authority onto more junior employees |
| Decentralisation | When employees working in branches, departments or factories across the business are given more authority to take decisions. |
| What factors would be taken into consideration when choosing a source of finance? | - Profitability of business (retained profits and bank loan) - Assets owned by business - Past history and future prospects (chance of getting a loan/paying it back) - Legal structure (selling shares) Amount of finance to be raised (may use more than one source - selling too many shares could cause lack of control) |
| Advantages of decentralisation | - Reduces pressure on senior managers - Employees are motivated - Local managers - better knowledge - Quicker decisions |
| Disadvantages of decentralisation | - Employees may take decisions to benefit their branch, not whole firm - Costly training - Hard for senior managers to send messages to all employees - Risky as inexperienced junior managers may make bad decisions |
| Person specification | - Education requirements - Special skills - Experience |
| Induction training | - Introduction to company and workplace - Basic rules |
| Advantages and disadvantages of 'On the Job' training | - Job specific - Cheap - Employee learns and works - Trainer is not as productive |
| Advantages and disadvantages of "Off the job" training | - Staff can get qualifications - Staff bring new ideas back - Expensive - Staff don't work while being trained |
| Financial methods of motivation | - Piece rate pay - Bonuses - Company car or health insurance |
| Gross profit | Revenue minus cost of sales (That figure's grossly miscalculated, you Forgot Fixed costs!) |
| Non-financial methods of motivation | - More demanding jobs / responsibility - Rota (saves boredom) - Teams (social and more authority) - Training |
| Net profit | Revenue - cost of sales and overheads (Just profit really...) |
| Management styles - Democratic leadership | Employees play a major role in decision making - Team work - Training - Varied and demanding tasks |
| Function of a balance sheet | Sets out the assets and liabilities that a business has on a particular day. |
| Difference between fixed and current assets | Fixed assets are kept for many years (e.g. buildings and machinery) Current assets are only kept for a short time (e.g. cash and stock) and are used by the business to settle debts. |
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