3.7.2 Analysing Internal Position.

Question 1

What is the non financial information to assess the overall internal position in the business.

Answer 1

Big data.

Question 2

What does big data consist of?

Answer 2

Operations data.

Human Resources data.

Marketing data.

Question 3

What is big data?

Answer 3

Data collected globally.

Question 4

What is operations data?

Answer 4

The planning and control of the production process.

Question 5

What does operations data include?

Answer 5

Productivity of labour and capital.

Measures of quality.

Capacity utilisation.

Question 6

What does analysing productivity data produce?

Answer 6

A measure of efficiency (level of converting inputs into outputs).

Question 7

How is efficiency usually measured?

Answer 7

In unit costs of production.

Question 8

How is productivity measured?

Answer 8

Single factor productivity.

Multi-factor productivity.

Question 9

What is included in single factor productivity?

Answer 9

Labour productivity.

Capital productivity.

Question 10

What is the disadvantage of single factor productivity?

Answer 10

Doesn’t give you a full picture.

Question 11

What is included in multi-factor productivity?

Answer 11

Measures all outputs in relation to inputs.

Question 12

How do we measure quality data?

Answer 12

Customer loyalty.

Customer satisfaction.

Measure specific elements in operational performance - number of faults.

Question 13

What does capacity utilisation measure?

Answer 13

Measures existing output relative to the maximum figure.

Question 14

What does capacity utilisation allow for?

Answer 14

Cheapest production costs to offer competitive prices - using optimum capacity?

Question 15

What can cheapest production costs do for some businesses?

Answer 15

Generate extra revenue at little extra costs e.g. cinemas.

Question 16

What does high levels of capacity utilisation in price competitive industries allow for?

Answer 16

Low unit costs - acceptable profit margins and therefore competitive prices.

Question 17

What is a weakness of measuring capacity utilisation?

Answer 17

Measuring cu takes no account of cost of resources, it just measures efficiency.

Question 18

What is the formula for capacity utilisation?

Answer 18

(Actual output / maximum possible output) x 100

Question 19

What does Human Resources data consist of?

Answer 19

Labour productivity rates.

Absenteeism rates.

Health and safety data.

Labour cost per unit of production.

Average wages and recruitment costs.

Labour turnover and retention.

Question 20

How do we measure HR data?

Answer 20

Financial measures.

Non financial measures.

Question 21

What are the benefits of financial measures of performance?

Answer 21

Easiest to analyse.

Easily comparable.

Lead to strategic decisions.

Allow judgements on the strengths and weaknesses of the business.

Question 22

How are absenteeism’s measured?

Answer 22

Health and safety data.

Labour turnover.

Question 23

What are the non financial methods of HR

performance?

Answer 23

Absenteeism.
Labour turnover dr.
Health and safety data.

Question 24

What are the disadvantages of non financial methods of performance.

Answer 24

Difficult to quantify in monetary terms.

Not directly financial.

Question 25

What are the advantages of non financial methods?

Answer 25

Most have an impact on financial measures of HR.

Question 26

What does absenteeism rates signify?

Answer 26

Low workforce engagement and motivation.

Question 27

What does a high labour turnover mean?

Answer 27

Additional recruitment and training costs.

Question 28

How can we avoid the effects of high labour turnover?

Answer 28

With high levels of labour or employee retention to avoid these costs. More motivated and engaged employees for higher levels of productivity.

Question 29

What impact can diversity have on the workforce?

Answer 29

Can benefit from different qualities and improve overall performance.

Question 30

What does HR safety data do?

Answer 30

Measure the extent to which the employees are protected and develop a strong employer brand. Recruit the most talented.

Question 31

What are the forms of data relating to performance in a specific market?

Answer 31

Historic and forecast data. Information on “key forces” driving change in the market. Data on consumer behaviour. Sales figures, brand recognition and market expenditures.

Question 32

What are the forms of data relating to entire markets:

Answer 32

Allows an individual company’s performance to be placed in context. The ease of distribution of specific products. The share of certain products in the wider market. Data on other competitive firms in the same market. Data on attitudes and motivators of target consumer groups.

Question 33

What is environmental data important for.

Answer 33

Current analysis. Future planning.

Question 34

What are the UK government identified 4 key areas of performance?

Answer 34

Emissions to air. Emissions to water. Emissions to land. Use of scarce/non renewable materials.

Question 35

What are the key issue to interpreting the data?

Answer 35

Must be relevant to the business. Must be in a comparable form. Way it is measured varies hugely between industries.

Question 36

What can marketing data help to do?

Answer 36

Available to stakeholders. Assess business performance in relation to market competitors. Assess strengths and weaknesses of the business and the markets in which It trades.

Question 37

What is the important data on issues affecting consumer behaviour?

Answer 37

Important in influencing buying decisions and stakeholder decision making. Data relating to products made available online and in the media. Customer reviews on products posted plus significant roles as investors expect updates about new product sales potential.

Question 38

Outline data on sales figures, brand recognition and market expenditure.

Answer 38

Likely to be historic to provide basis for stakeholders to judge expected future performance.

Question 39

What market info should we consider when analysing strengths and weaknesses?

Answer 39

Forms performance and prospects placed in context. Other info to fully assess the market and its consequences.

Question 40

What other information may we need to fully assess the market and its consequences?

Answer 40

Ease of product distribution. Share of certain products in the wider market. Data on competitors in the same market. Attitudes and motivations of relevant consumer groups.