Everything to remember Flashcards
(31 cards)
Explain Porters generic strategies.
Cost Leadership - lowest cost in a broad market with high profit margins.
Cost Focus - Niche market still lowest price
Differentiation Leadership - broad market selling at a premium price but selling something different and desirable
Differentiation Focus - niche market but premium price and desirable
Explain Ansoff Matrix.
Market penetration - same product same market
Market development - same product new market
Product development - same market new product
Diversification - new product new market
What’s the formulas for Gross Profit, Operating Profit and Profit for the year? How could you work out the margins for these?
Gross Profit = sales revenue - cost of sales
Operating Profit = Gross Profit - expenses
Profit for the year = Operating profit - Interest/Tax
Put them all over Sales Revenue and x 100
What are the 4 level to Carroll’s CSR pyramid?
-Economic - the idea of having to be profitable
-Legal - the idea that a company must follow laws
these two are mandatory
-Ethical - the idea that company’s should act fairly and accordingly
-Philanthropic - being an overall good corporate citizen and helping with charity
these two are option but highly recommended for a good brand image
What are Porters 5 forces?
-Threat of entrants - how easy for people to enter the market
-Bargaining power - how well a supplier can change their prices
-Buying power - how well a buyer can get lower prices
-Threat of substitutes - how many other products available that people can go and get
Industry Rivalry - how many competitors in the market overall
What are Kotter and Schlesinger’s four reasons for resisting change.
-Self interest - people only want what is best for them
-Lack of trust - employees may feel that the company won’t do what’s right for the employees and will do things for profit
-Different assessment - employees may not think the change is necessary
-Fear of unknown - employees are worried for what might come from the change and so dont want it
What are the 6 ways of overcoming resistance to change?
- Education and communication
-Participation and involvement (take them along with the process of change)
-Facilitation and support ( provide support to help make more comfortable)
-Negotiation and agreement (offer incentives to make the personal change worth it)
-Manipulation (influence groups)
-Explicit and implicit coercion (forceful change, normally a last resort)
Explain the different cultures
Power - the power of the company lies within just a couple of people, decisions are made quickly
Role - defined roles and formal rules, good routine
Task - focused more on getting the task done than anything else
Person - individuals believe they are more important than the organisation
What is debt factoring
A company may have debtors who owe them £10,000, this company can sell it to a debt factoring company for £9000. The company will then collect the debt and keep the profit
What is strategic planning
Planning for the future and a way to set out its long term goals, setting long term objectives.
Tell me the formula for payables and receivables days
Payables = (trade payables/ cost of sales) x 365
Receivables = (trade receivables/revenue) x 365
What is the formula for PED and YED
percentage change in demand / percentage change in PRICE / INCOME
How can you interpret values of PED
If it is between 0 and 1/-1 then it is inelastic, and greater than 1 or less than -1 and it is elastic
How can you interpret values of YED
if YED is negative its an inferior good (like instant noodles as people have more money to get better things)
if YED is is between 0 and 1 then its a normal good and demand will rise slowly with higher income
if YED is greater than 1 then its a luxury good and demand grows rapidly with higher income
What is the formula for break even and margin of safety
break even = fixed cost/selling price - variable costs
margin of safety = actual sales - break even sales
what is the difference between quality control and quality assurance
control - checking everything over at the end
assurance - checking things at each stage of the process
what did taylor, maslow and herzberg do
Taylor - thinks money is main motivator and introduced piece rate pay
Maslow - hierarchy of needs, 1. physiological 2.safety 3.social 4.esteem 5.self-actuailsation.
Herzberg - hygiene (pay, working conditions and job security) and motivating factors (promotion, recognition and personal growth)
what is the formula for ROCE
operating profit / total equity + non current liabilities (capital employed) all x100
what is the formula for gearing
non-current liabilities/ total equity + non current liabilities x 100
what is the formula for inventory turnover
cost of sales/average inventories held
what is the formula for average rate of return
average profit / initial cost of project x 100
where do all of the leadership styles link to the tannenbaum schmidt continuum?
autocratic - tells,sells
paternalistic - suggests,consults
democratic - join, delegate
laissez Faire - abdicate
how do you calculate market growth
new market size-original market size/original market size x100
what are the three business sampling methods and what do they mean
random - everyone has an equal chance of being selected,random.
stratified - split the population in certain groups like age, then randomly select from groups.
quota - the researcher selects people from the certain groups, this can be bias.
