Business Objectives And Strategy Continued Flashcards
Evaluate quantifiable and unquantifiable risks to a business
Quantifiable risks are staff members leaving, creditors not paying on time
Unquantifiable would be a fire, or natural disaster
Evaluate the specific risks faced by an entrepreneur
Can face risks such as bankruptcy, pushed out the competitive market or economic risks
Explain the nature and purpose of contingency planning
Designed to help the business respond effectively to a significant future event that may or may not happen
Recommend and justify a contingency plan for a business
It allows the business to go back to its regular activities as quickly as possible after an event eg if a fire happened then having employees have laptops means they can work from home till it’s repaired
Explain the nature and purpose of crisis management
The application of strategies to help an organisation deal with a sudden negative event eg natural disaster
Evaluate a business’ crisis management
Analyse if the plan is effective and flexible to the challenges of the current situation and determine how helpful it is to those effected eg employees
Distinguish between qualitative forecasting and quantitative forecasting
Qualitative forecasting is based on information that can’t be measured eg consumer surveys
Quantitive is measurable information eg trend projections
What is the Delphi technique?
Process use to arrive at a group decision by surveying a panel of experts opinions
What is brainstorming and intuition?
Brainstorming is group ideas spontaneously made to tackle a problem, intuition is more of a strong gut feeling without using data
Advantage and disadvantages of qualitative forecasting
An advantage would be that you can predict based off senior experience, a disadvantage is that it’s open to human error
advantages and disadvantages of quantitative forecasting
Numerical data is easier to interpret and categorise how downside is that it may lack detail
How can cyclical and seasonal variation impact forecasting
It will need to be taken into account due to the impact it can have in sales levels as using forecasting for earlier in the year can be damaging towards the end
How’s correlations used to analyse trends?
Looks at the strength between two variables,It is useful for marketing to analyse if there is a predictable relationship between sales and factors
Formula for time series analysis used to predict future values
Moving averages-odd number of years
Evaluate the usefulness of time series analysis for a business
Useful for seeing how a given asset, security or economic value changes over time
