1.1.1 The Market 🏪 Flashcards
(191 cards)
1
Q
What is the definition of a market ?
A
A place where buyers and sellers come together
2
Q
How does a business make money
A
Selling goods and services in the market
3
Q
What is marketing ?
A
A range of activities to help businesses sell products to the market
4
Q
What are the 2 divisions of the market?
A
Niche and mass
5
Q
What is the mass market?
A
Market aimed at the general population
6
Q
What is the niche market?
A
Subset of the main market that addresses a specialist need
7
Q
What does the mass market do with its products?
A
Product is sold to all customers in the same way
8
Q
What are the pros of a mass market?
A
Mass marketing is straightforward As everybody is equally targeted
Large volume of cells means higher Revenue
Revenue can be put into research and development
Large-scale production means economies of scale

9
Q
What are the cons of the mass-market?
A
There is a lot of competition
homogeneous products need to be differentiated through marketing which could be expensive
High-volume production means that your production is less flexible to demand changes
You’re going to have a low price due to competition
10
Q
What are the pros of the niche market?
A
You can charge a premium price
easier to target customers
Small production means you’re flexible and follow trends
less competitive
11
Q
What are the cons of a niche market
A
Risky as demand is not constant
limited market for products
the economies of scale 🚫
small range of products risky ventures price elastic
12
Q
Why is branding important?
A
It inlists loyalty to customers due to high amount of competition
13
Q
What is a dynamic market?
A
A market that is subjected to rapid or continuous change
14
Q
What is market growth?
A
Is it increase In demand for particular product or service over time
15
Q
What are the five external factors that may influence the market?
A
Economic growth
innovation
social changes
legislation
demographic changes
16
Q
What is economic growth and how can it affect the market?
A
Economic growth- growth of the economy
This way affect the market as if your company is growing this means that people have more more people have a job this will increase the amount of disposable income allowing consumers to spend in more luxury shops however this may cause mass markets to decline
17
Q
What is innovation how Can it influence the market?
A
Innovation is new ideas to product
this may influence the market by making products that meet customer needs and wants increasing the market sales
18
Q
What are social changes and how will that influence the market?
A
Changes in what consumers want this will determine to the business what it should make
19
Q
What is legislation and how will it affect the market?
A
Legislation are laws
Can influence on the type of products that you are selling
Or may be expensive leading to cheaper on materials affecting the products that you’re sell in your market- decrease

20
Q
What are demographic changes and how would this affect the market?
A
Demographic changes are changes in our population
for example distribution of age will affect with what is in demand
21
Q
What is E-tailing ?
A
Involves the transaction between customers and businesses being carried out online
22
Q
What are the pros of e- tailing
A
24/7
Global
Lower fixed costs
Flexible
Convenient for customers
23
Q
What are the cons of e - tailing ?
A
Customer cannot taste smell wear the product
Hard to gain trust without face to face contact
More choice for customers
Only as good as your delivery service
24
Q
How do you respond to change ?
A
Repackaged own brand products
Tesco value range looked cheap - redesigned to look more appealing
More uk based products
Offers in club cards
Launched a new supermarket
Reduced range of products in stores
Market research
Develop niche
25
What is a competitive market?
When multiple business provide the same products or services
26
How does a competitive market impact customers ?
Lower prices - need to compete
More choices - need to differentiate- add values
Improved customer service - competing in non price ways
27
What is risk 🙃? what is it influenced by?
Risk- is the possibility of a business having a lower profit than taking a profit
Influenced by- economic climate Cost of raw materials Competition
Lack of job security financial risk
28
Give three examples of marketing
Identifying needs that meet customer needs
understanding the threats from competitors
charging the right price
29
How is market size estimated
Through value - the total amount spent by customers by buying products
and volume - this is the physical quantity of products which Are produced and sold
30
Why may market share be important to know?
Helps us indicate who is the market leader
could influence other companies to follow the leader
may influence the strategies or objectives of the business
Help indicate whether there is success or failure
31
Why do businesses use brands? which market is this important in ?
I hope establish themselves and distinguish themselves from other products important in the mass market
32
What is a brand?
Well-known logo which is associated with the businesses performance or ability to satisfy customers
33
What may branding be used for?
Used to add value
and charge a premium price
develop an image
help product recognition
create customer loyalty
34
What is a type of dynamic market?
Online retailing
35
What are the positives and negatives of online retailing?
Online businesses can Use secound and first cookies to gather personal information and target the right products
Online retailing is convenient 24/7
can reach more customers all over the world good for globalisation and expanding target market
Less Fixed costs- not a physical premises
Flexible to Change stock
Negatives
customer cannot taste feel try product
hard to establish loyalty without any face-to-face contact
You’re only as good as your delivery service
36
What are the three ways markets change? (due to dynamic markets? )
Size and market - can remain quite stable for a period of time
nature of market- markets are in the state of flux meaning that the nature of the business is the subject to constant change due to dynamic consumer needs and wants
New markets- more competitive market 
37
How can a business adapt to change?
Flexibility-To be prepared so flexible production line flexible workers that are good in every skill
Market research- business has to keep in touch with developments in the market and current customer needs in order to know what to produce
Investment - has to have enough sources finance to develop new changes for research a new product designs
Continuous improvements in increasing competitive environment - business as to continually innovate their products in order to meet up with customer needs help improve efficiency costs customer is more likely to return
developing a niche- Will work if customers are
38
Happens to a business that does not adapt to change?
They are likely to lose market share
39
What is uncertainty? examples ?
when the business is unable to predict external shocks of future events
Uncertainty of exchange rate
of inflation
or the new competitors
technology
40
Can a business protect themselves from uncertainty?
If they take a long time mine fixed rate of interest
41
What are the 6 features of the global niche market?
Excellent customer service - Customers pay a large amount expect exceptional customer service
innovation - Product expected to be highly differentiated and have a USP - meets needs
prioritising profit over market share - lucrative
Expertise In product area - employees that are highly skilled - keeping up to date with the latest developments - helps to build value for the customers
understanding of customer needs - will only have a few customers - easy to be fully understood
Emphasis on quality - wealthier customers are targeted to pay higher value for products
42
What are the four limitations of market research? 
Biased
Small sample limits the reliability of the research
Casuality could be hard to identify
Collecting it is time-consuming 
43
What are the seven uses of market research?
Product development
budgeting
Product forecast 
sales forecast 
Workforces forecast
cash flow forecast 
Developing marketing activities 
44
What is sampling?
Involves selecting a representative group to target the population
45
What are the 2 positives of sampling ?
Quicker and easier to collect data from everyone
Bigger sample size more representative
46
What does correlation help with ?
How is this helpful?
Business to understand the relationship between two factors
If business understands key factors determining demand - can manipulate these to get higher sales
47
What are the two positives of sampling?
Quicker and easier that trying to collect research for everyone
The bigger the sample size the more representative it will be
48
ICT - how does it support market research ?
Collecting data 📊
Through websites, social media
analysing information 
49
Why is technology good for market research? 
We can collect information faster. Data can be processed more effectively
trends
patterns
correlations
Can be used to make business decisions e.g. loyalty cards. 💳
50
What is market segmentation? 
Potential customers are divided into different groups 
51
How to business use market segmentation 
they look at the segment - target 🎯 -
then position 
For the segment, we look whether it can increase the profit or growth
target you choose your segment and then position you apply the marking mix
52
Why is YED important?
If you could estimate your YED and it is it has a positive correlation and it’s luxury good
and you predict a recession if you flip the YED formula around you can see that the quantity demanded will be that much less so you can reduce your inventory reduce workforce
If your cash flow is so well get a source of finance
53
What is the analysis and evaluation of the marketing mix? 
Business would put equal weight on each P 
54
What should businesses do overtime in the marketing mix? 
Adapt marking mix overtime  - due to competition 
55
What are the negatives of the marketing mix? 
May not account for services - and the physical environment 
56
How may we enhance the four 4️⃣ P’s?
By adding three P’s -
people - people serve view level training level of expertise

physical environment - influence shopping decisions - how much you spend - how long you stay 
process - the ease of transaction digital/cashless economy
57
What is the impact of price limited or no competition?
Please permission 
Businesses have the ability to change it
You need to be more press competitive if there is a lot of competition then with promotion if there’s more awareness as needed for permission you need expensive advertising
but with increased competition we need to increase promotion so you look at your professional mix and social media just one step publications advertisements and sales permission would be really good for products or competition.
If revenue is little you may need incentive to invest in research and development or customer services with lots of increase competition.
You need a lot of research and development spending and more market orientated approach for place channels of distribution.
If it’s a lot of competition, you may need multi channels of distribution that the consumer that suit the consumer 
58
Why may small market still need to do market research like primary? 
Primary research - competitive edge
Is that sample size actually accurate? 
59
What are the five things that may affect your promotional mix? 
Finance available
rivals actions - whatever works for them works for you - aware of what rivals do 
target market
nature market
nature of product/service 
60
What is the pros of a producer and a consumer as a distribution channel?
Cut cost because there’s no wholesale retailer involved Lewis prices but increases the demand and sales
May have no reach, so you may have a lot of marketing costs 
61
How do we calculate variable cost per unit on cost plus pricing? 
Total cost /total unit * markup
62
How can we implement price penetration to maximise success? 
It’s all you’ve done effective marketing to pick the crack segment and you know your PED
63
What is adding value? 
The value of business creates through improving production distribution or through the marketing process
64
How can businesses value via production 
Improve quality design features or add USP 
65
How can you add value via distribution and marketing? 
66
What are the four parts of the promotional mix? 
PR
sales promo,
social media advertising
67
What is brand image? 
The impression that potential and existing customers have of the business 
68
What are the three positives of having a good brand image? Short-term versus long term?
Increased impression - short terms good for sales longtime repeat sales l
Brand loyalty- buy other products and portfolio 💼
barrier to arrivals - lower prices increase 📈 this is for current and potential rivals.
They may not bother entering if you have a good brand image -
69
What are the two 2️⃣ cons of brand image?
Cost - brand upkeep marketing customer service e-commerce
reputation built over years and can be lost in an instant - It’s hard to rebuild. 
70
What is the impact of brand image to your competitors?
if you have a good brand image it will be a barrier rivals - may cause current competitors to reduce prices and then they have a lower profit margins and it makes it harder for them to make revenue
or if they increase quality is gonna increase cost of production therefore may increase their price
71
Why is e-commerce important within brand image? 
Technological advancement is needed in today’s day and age to stay dynamic e or - need a website m Commerce - need apps?
72
What are the pros and cons of cost plus pricing? 
We calculate the price and then add it to the mark up cost 
73
What are the three cons of cost plus pricing?
It doesn’t take into account it’s the product is in demand exists
no account on rivals prices
encourages and insufficient operations department 
74
What the positives of cost plus
Helps ensure costs are covered guarantees a profit
simple method of deciding price
useful tactic to justify price to customers business 2 business
75
What are the two values of two points about cost plus pricing? 
Do not use it in a competitive environment
Rivals already undercut prices so that will decrease sales and market share 
Common in manufacturing sector

76
What is market penetration?
When you set an initial low price to help break into a market - then you gradually increase prices over time 
77
Who would actually use price penetration 
78
Why do we do price penetration? What focus does it have ?
Stimulates demand encourages customers to switch
it has a elastic PED focus away from rivals temporarily
79
What objectives does price penetration help with? 
objective is to grow market share/enter new market or support growth
80
What are the two ways we implement price penetration to maximise success? 
Market research to go customer demand - aggressive pricing will be very low could be a skill will we be able to do that?
Market segment appropriate type of promotion?
81
What are the four limitations of penetration pricing? 
Lower prices lower profit margins
whether these start to increase prices depend on product and demand
Brand image issues struggle to increase prices
Competitor may react and set low prices walk to the price war 
82
What is competitive pricing? Who does this
Setting prices in line with rivals - UK supermarkets and airline industries do this 
83
What does dynamic pricing depend on?
demand
supply
seasonality
stock level
days of the week
84
What are the four reasons why we do dynamic pricing? 
Maximise revenue
Distribute utilisation -gyms off/on peak encourage even use
Personalised process purchase histories/ preferences
Apply external factors into pricing decisions - supply issues you can increase the price 
85
What is the two things we can implement to maximise success? 
Technology to support
Monitor external factors, closely
86
What are the three limitations?
Customer frustration due to price discrimination negative brand perception
ethical consideration
Cost technology may be a bit much 
87
Who do wholesalers buy from? 
High volume from producers 
88
What wholesalers purchase?
economies of scale
89
You do wholesale the sell to ?
Retailers or e-tailers 
90
Who do retailers buy from? 
Smaller volume from whole salers or producers 
91
Who do retailers sell to? 
Consumers - off-line or online 
92
What do retailers specialising in? l
High reach
high foot fall
lots of stores 🏬
high e-traffic
well-known 
93
what are the three potential paths or channels of distribution? 
Producer to consumer
producer retailer to consumer
producer wholesaler retailer consumer 
94
What are the pros and cons of having produced to consumer as a title of distribution? 
No wholesale retail involved no costs
decrease in price - increase the demand and increase sales 
Decrease sales volume increase in distribution costs
decrease in reach increase the marketing costs 
95
What are the pros and cons of a producer retailer and consumer channel of distribution?
It’s a way to overcome market costs as retailers will have a high reach well known multiple locations 
You won’t receive full price consumer pays retailer margin
Retailers may increase in a location  distribution costs
96
What are the pros and cons of the distribution channel producer wholesale retail consumer?
Wholesale by in bulk increase sales
includes retailer decrease the marketing costs
wholesalers want margins expensive increase to customers decreases demand 
May not be able to provide effective customer service 
97
What are the two of my distribution channels? 
Producer to consumer e-commerce/M-commerce
Producer retailer, E-commerce m-commerce consumer 
98
What are the pros of online distribution channels? 
What access to the market produce overheads of its cost? Use on market contain tools cons websites cost of creation custom maintenance have to be skilled customer services harder to convince online and provide online. Can’t try this online and exchange rates. 
99
What is multi channel distribution? 
When a business has more than one channel of distribution online e-commerce catalogue or an off-line outlet like a shop 
100
What are 4 pros of multi channel distribution?
Open 24/7
many ways to purchase products
increase sales increases customer
satisfaction and convenience
different prices for different channel. It could be cheaper online vs stores to cover fit costs
increased by visibility difference segments
better customer feedback increase quality feedback effective change 
101
What are the three cons of multi channel distribution? 
More channels equals increasing costs to maintain stores risk.
If you have a poor website I’ll change your customer services will be equal risk
customers are very price sensitive will always go for a cheap option. 
102
What is an extension strategy? 
A method for business to increase sales when in a saturated market - ideally in maturity stage 
103
What are the pros and cons of extension strategies? 
Increases the sales and revenue of a product and hopefully profits cons increase cost of the extension strategy opportunity cost more cost with research and development 
104
What are the four types of extension strategies? 
Segment
target new position
price reduce price
advertising run a promotional campaign
market enter international market so you can read bad repackage or add a new feature 
105
Would you ever start to turn into?
A cash cow 🐄 
106
What means stars need to do in a high growth market?
Increase marketing or advertising to protect the USP or market share 
107
Why are stars expensive?
They may need to increase exposure to make out from new entrances 
108
What a star products trying do?
Make as much money as possible, but
there’s a risk of new entrances because you’re benefiting from the growth stage
you may become cash neutral as you have to pay research development costs 
109
What price was stars do? 
Price skimming 
110
What price was stars do? 
Price skimming 
111
What may star products hope ?
That’s the market has stopped growing
so that you can maintain your market share,
which is high because you have invested in advertising marketing 
112
What is the impact of being a cash cow? 🐮  who’s going to be happy? 
Don’t have very high cells and higher profit - consistent 
Shareholders, because they’ll get a slice of the profits through dividends 
113
What do businesses want to do to the cash cow?
Want to milk the cash cow they want to stay as a cash cow
because it’s consistent profits
happy shareholders 
114
What stage of the life cycle is a cash cow at?
Maturity where sales are gonna be the highest maximise sales
and revenues 
115
Why do we have cash cows?
For our future, we can use them to invest in research development for new products if you want to do product development in the Boston matrix -
let shareholders for the stars 🌟 so they can become the cash cows 🐮 
Good for the long term
116
 what do cash cows allow you to have?
Positive cash flow 
117
What made dogs lead to?
And negative sales trend  - always losing cash 
118
What are you gonna do to the dogs?
Try and drag out their sales - decline 📉 
119
What are businesses gonna do to dogs?
Lots of rebanding a lot of extension strategies
You can use the dog as lost leader if people eat in the shops they may come in and purchase other things such as stars, cash cows or Problem children instead 
120
What can you do with dogs? 🐕 
You could do some break even analysis on your dog 
121
What do you need to decide with dogs? 
When is it to divert? 
122
What are some evaluated points about the Boston matrix?
It is just a decision making tool only helps you make decisions it doesn’t show everything
You want to get all your products in the cash card quadrant

123
What do we hope within the boston matrix?
Sure you have lots of question marks ❓ and hope they turn to stars ✨ and turn to cash cows 🐮 
124
What were the long versus short term of the Boston matrix?
For the short time you may find out that none of your products are cash costs which is good but they may become dogs. You may start thinking to take profits and invest them ti question marks so it keep long-term games strong 💪
125
What is soft and hard HRM?
Human resource management soft HRN suggest a business to treat employees as strategic assets 
126
What is hard HRM?
You treat employees as a tactical resource 
127
What are the three ways we can use soft HRM? 
Most important asset business has its formed overtime and developed over a time democratic leadership of parental theistic whether the welfare of them are prioritised lots of delegation - decentralised structures increases employee moral/productivity 
128
What are the three ways we can use soft HRM? 
Most important asset business has its formed overtime
and developed over time 🕰️ - democratic leadership or parentalistic whether the welfare of them are prioritised
lots of delegation - decentralised structures increases employee moral/productivity 
129
What are the two issues with soft HRM? 
Focusing on training may increase costs which may be effective - price of our products? decreases competitiveness
Issues with delegation may need senior member to do so 
130
What are the positives with hard HRM? 
They are viewed in the same manner as components  or raw materials
Better able to focus efficiently competitive advantage association with centralised structures or authoritarian leadership

131
What are the two issues with HRM
Absenteeism and turnover issue
its not easy to replace/find staff 
132
Induction training 
Training new employees to enable them to perform their job 
133
What are the three induction training items? 
Presentations/document to explain business 👩💼
and such objective specific role
or personal specification
and job specification
Tour of the building and a meet and greet with existing staff to build relationships 
134
What does the length of induction training depend on? 
Nature of the job and the industry 
135
What are the present cons of induction training? 
 I’ll make employees productive sooner
cons - takes time and costs for example we may need to step out of the usual tasks to meet and introduce a new worker 
136
How do we evaluate induction training?
If there’s a higher staff turnover that’s gonna increase how much induction training  we do -
as there’s a lot of people leaving
which is gonna
increase cost in time existing staff will not be as productive as they need to be and be highly demotivated
as they will have to refrain from actually producing work and invest their energy in induction training 
137
What are the positives and negatives of on the job training?
On the job training is when you receive your induction training from within the business 👩💼
Positives
cheaper-no excel costs decrease the risks 
hands on - producing fro
within the business they will feel confident 
Builds relationships - mentor, new area productivity -communication
Negatives
mentors ability - are there any good? Can Pass bad practice on
Mentors time - they a job time constraints 
friction - down to management -people may need the mentors help as well than producing goods 
138
What are the positives and negatives of off the job training?
Getting training off the job
Focus 🧘♀️ -mentor is focused on you 
mentor an expert
new skills-  you have the time in space to learn a full grasper skill not in the pressure of a real life business that depends on you producing goods
Expensive - not run in the house - travel cost 💲 🧳
, not at work, short term work long-term there is a benefit maybe more productive
not bespoke -is not individual to you or your business 👩💼 
139
What are matrix structures? 
organisation structure where employees report to both the function manager and project manager 
140
What is the matrix structure used by?
Large corporations dynamic projects technology 
141
What are the three pros of three kinds of metric structures? 
Flexibility of organisation - adapt quickly to the project/business - conditions dedicate resources accordingly 
efficiency - expertise and skills can be shared across projects increasing productivity 
collaboration - purchase will have holistic view as all functional areas
Cons
employees are unclear what the priority is
Power of conflict between part two areas and projects which may lead to burn out slow communication too many stakeholders 
142
What are centralised structures? 
When control and therefore decision-making is made by high layers of management 
143
What are the pros and cons of centralised structures? 
Quicker decision making - top layer fewer staff
experience plus skilled
decision-making - cascaded to staff 
Or train your management can prevent crisis or make decisions within a crisis 
Consistency - aim vision plus culture of business 👩💼 stakeholders
Supplier can purchase economy of scale services brunch out to some however need a consistent experience 
Motivation - clear role/job to do
Motovation ⬆️productivity increases
Budgets - financial control 
Cons - rigid, decision making 
Always have to check with other people can miss opportunities can’t react at local level middle managers lack authority
Motivation, middle lack authority decreases empowerment, motivation, productivity, innovation
but status and compliance 

144
What is the decentralised structures? 
Well, control and decision making is delegated by the highest layer of management to the middle lower layers department and locations 
145
What are the three pros of decentralised structures? 
Motivational - empowered take initiative increase productivity increase innovation 
flexible decision making - sees opportunities, promotion sales cost savings no need to check with the top 🔝
intetnal recruitment - middle managers can do on the job training
146
What are the three cons of decentralised structures?
Less consistency - , different agendas and ideas in every layer not the same aims and vision and culture customers experience and quality issues may need to a bad reputation
Depends on the skills - and experience of those making the decisions poor skills decreasing quality poor skills decrease in motivation 
Crisis - suits centralised it’s good if there’s just one voice clear
147
What is the difference between tall and flat structures? 
Tall - authoritarian? - obedient standardised. 
Flat democratic management innovative and creative fast paced lots of changes. Skilled workers is based on trust. 
148
What did Maslow find out? 
Individual workers have similar needs motivated by the next need 
149
What are the five news that Maslow found?  what does Maslow say?
Psychological needs - wages to exist 
safety needs - job security safe working conditions

Social needs - canteens or social gatherings 
and esteem needs - promotion 
self actualisation  -up skiing in new areas - mother states that cannot be fully achieved 
150
What the two negatives of Maslow’s hierarchy needs ?
How to judge with work is -you need to work out where they are and then the lay above them so you can know what to put in a business 👩💼
if the order Correct ✅ ?
151
How did Taylor’s scientific management increase efficiency?
they based training on their employees to increase efficiency and made it bespoke to them
152
What do mans do after developing the best way to complete a job? (Taylors)
 They define what procedures are for the employees and then they calculate a realistic target 🎯 output per day 
153
What happens if they produce less or greater than the target? 
Less - more training
Greater - get a bonus 
154
What is Taylor’s view and Taylor scientific management? 
Money motivates workers so pay piece rate 
155
What are the two issues? 
Subjective - just money ?
The knowledge of economies is changing. People are more creative and innovative. -not accounted for 
156
What are the two factors Herzberg found out and examples? 
hygienic factors - that if present may cause workers to be dissatisfied 
Working conditions
basic pay
company procedures
that are quite petty
dissatisfied workers 
157
What do we need to do in order to prevent hygiene factors? 
Put them in place to stop complaints - doesn’t mean that they will be motivated

158
What are motivating factors? 
They motivate workers like training responsibility- Maslow’s self actualisation 
159
What are the two positives of Herzberg’s motivational theory?
Put hygiene effect in place and select appropriate motivation factors 
160
What are the two positives of Herzberg’s motivational theory?
Put hygiene effect in place and select appropriate motivation factors 
161
Also with piece work what do you get?
National minimum wage 
162
What are the pros and cons of peace work?
What does it depend on ?
Pros
increased productivity as monetary incentive
Cons
and encourages shortcuts
decrease quality
depends on quality control - make sure that your product meets the sufficient quality to be sold 
163
What are the negatives of a commission? 
Ethics - leads to aggressive sales
Neglecting on sales aspects of the role 
164
 What is profit sharing? 
When staff are given shares of annual profits 
165
What are the pros and cons of profit sharing? 
1. Incentives to staff considered their personal contribution
encourage staff to try and cut out costs as increases profits
Shares a small less incentives a profit increase shares amounts may decrease dividends 
166
What is the three non-financial methods?
Job rotation - provide authority with an increase prior to task within the workplace - Skills unmotivated? 
Enrichment when businesses give employees additional responsibility - - motivated productivity staff retention 
and autonomy - when a business gives employees more independent and their decision-making - more freedom specific role
cons -
they depend on the employee good decisions
detach from business aims and adjectives 
167
What is delegation? 
When a manager gives authority to subordinates employees to perform tasks or make specific decisions
168
What is three positives of delegation? 
Subordinates may be empowered by new authority and responsibility.
169
What are the pros of delegation? 
It may be empowered by the new authority and responsibility
Motivation
productivity
and efficiency
Fosters the culture of internal recruitment about style of off the job training
170
What does delegation depend on?
The ability of an employee and manager managing this - maybe harder in a larger business as more employees 
171
What are the full roles of a manager?
organising planning communication coordination - more day to day limit risks
172
What are the roles of a leader?
Visionary motivates - risktaking strategic 
173
What are the five things a manager does ?
set
objectives - may need to look at the constraints due to resources 
analyse - data/departments 
lead
make decisions- scientifically/intuition 
and they review  -need to see the pros and cons and also why 
174
What is an authoritarian parentalistc democratic and lazier faire leader? 
Authoritarian - makes all the decisions communicate top to down
Good - business crisis
New workers
Bad - de motivating
and low staff regulation 
175
What do parentaistic management styles do?
Consult employees before making decisions
explain and persuade they feel more involved - increasing motivation but in the long term it may be
May be too time consuming so may need to some issues 
176
Why may revenue decrease on a br even chart?
Price may decrease and it may be due to increase in rival competition by safety would decrease 📉 
177
What happens if cost increase to the margin of safety?
Increase in fixed costs and VC margins of safety will decrease 
178
What happens to the margin of safety if costs decrese? 
Increased
179
What are the pros of break even analysis?
Useful tool of management - predicts break even analysis 🧐
MOS
estimated profits
Highlights the importance of fixed costs if it decreases breaking decreases and increases margin of safety - Leads to lower risk of survival 
Good for business decisions
Data generated used in a business plan, help get sources of finance 
180
What are the cons of breakeven analysis? 
Based unpredicted data or actual data 📊
Unrealistic assumptions,
same price used multiple mix price and strategies
- assume you have no waste no recalls or defects or it seems that all units produced are sold refunds could be made

It seems only one product sold no product portfolio 
181
Does the accuracy of a break even analysis depend on? 
Accuracy or predicted data -
Price fixed costs variance costs change due to rent etc 
182
Why do we have a statement of comprehensive income?
to compare previous years - management 
help current investors  - shareholders 
183
What is the statement of financial of income known as? 
Profit and loss account 
184
What are the five reasons we do statement of comprehensive true parts of income them? 
Legal reasons- tax government
Compared to rivals good for - management
These are published, so if they’re good, encouraging investors become shareholders
Get to compare previous years
help current investors - shareholders 
185
What are some analysis tips on the cost of sales in increasing?
It’s not always bad because it could be a result of sales revenue increasing

186
What do you think cost to sell by finding the cheapest supply due to the statement of comprehensive income?
Cheaper supplier was quality need to decrease themselves revenue
187
What does the increase in marketing lead to 
Increase an operating expenses increase in sales revenue under statement of comparative income 
188
What does operating profit exclude under a statement of comprehensive income? 
Exclude debt - profit for the year doesn’t 
189
What will the statement of comprehensive income allow us to do?
Ratio analysis 
190
Why is a higher gross profit margin better?
It’s accounts for direct costs leads to measure of productive efficiency 
191
What does ratio analysishelp inform?
Management and decision-making previous years, rivals 
