paper-3

Question 1

what are stakeholders? give examples of stakeholder needs and how do they impact a business’s decision making?

Answer 1

everyone or groups of people affected by a business are called stakeholders they can be customers who want quality and low prices not meeting the customer needs may mean that there would be a decrease in customer loyalty and demand for their product furthermore low quality can affect the brand image leading to customers finding other alternative competitors with better products or with cheaper prices
stakeholders who want higher profits and dividends this may lead to less of the retained profit to be put back into the business limiting the many factors such as being able to keep up with the competition due to the lack of financial support in innovation and keeping up with the market’s technology such online streaming and may lead to the prices of the products to be higher furthermore it can lead to short-termisum this is when the business is fou=cused on short term profits instead of long term investments in the business
it may be employees with better training better working environment or higher wages such support can be costly for the business however they can help motivate the employees leading to higher productivity and effectively increasing the retained profit furthermore it can improve the reputation of the business this means more skilled worker would be interested in working there, as a result, they could improve the overall workforce as they could bring new innovative ideas that can eventually help the business and productivity however a business may need to make decisions and prioritise which stakeholder to concentrate on depending on the importance of meeting customer needs or how workforce dependent the business is or if they mainly use machinery to make product how much the stakeholder help the in funding different projects

Question 2

what are the 7 different marketing mix

Answer 2

price place promotion product process planet people

Question 3

what influences of the marketing mix

Answer 3

competition can impact the price or the product itself competition may lead to the business needing to lower the prices to stay competitive this can be for supermarkets such as Aldi which provides low prices for low-income customers with less disposable income this means they can increase demand and get her market share furthermore they may need to stay innovative and dynamic to keep up with the new technologies and adapt their product to it to stay competitive
the type of business may influence place this is because physical stores tend to be located near their targeted customers for expla dominoes a pizza fat food restaurant may want to establish their business near highly populated town with a small town in all directs to be assessable to all customers however for some they may choose onion for multi distributional channels to reduce fixed cost and real a wider range of customers
the process may impact customer service eg how easy it is to get an appointment

Question 4

why would a business choose to change its marketing mix

Answer 4

new technology
competition
economic changes

Question 5

what is a product portfolio with examples and why is it important

Answer 5

A product portfolio is the complete collection of products or services that a business sells diversification

Question 6

what is the Bostons matrix used for and explain each section shown for a products

Answer 6

star- high market share and growth
cow low market growth high market share
question mark- low market share high market growth
dog-low market share low market growth

Question 7

name and explain each section of a life cycle

Answer 7

introduction growth maturity and decline

Question 8

how can extension strategies and product development be important?

Answer 8

improving or redesigning can prolong the life cycle it can provide new innovative ideas for the next project

Question 9

what is price skimming and price penetration

Answer 9

price skimming is when a product is sold for a high price due to high-quality innovative idea or use so customers are willing to pay for it
price penetration is when a product is introduced with low prices to attract customers and gain market share

Question 10

advantages of digital advertisement

Answer 10

it’s cheaper and can make use of viral marketing and target marketing

Question 11

why is a multi-channel distribution

Answer 11

they sell their product online and in stores which means you can reach more customers while giving them the leisure of identifying the quality of the product and them buying it online later

Question 12

why might a business choose people process and physical environment

Answer 12

people= customer services provided by eg barber
process= technology- improving payment methods how easy it is to make appointments
physical environment = aesthetics- how the staff look decided personality and Decor

Question 13

what is finical and cash flow objectives

Answer 13

finical goals eg increase 10 % of profit margin within next three years
cash-flow objectives are set when there are problems within cash flow eg if the large payment to invest new computer can disrupt the cash flow or if they don’t ask for payments from customers quick enough to pay the suppliers etc

Question 14

how to find gross profit operating profit and profit of the year how to find margins for them

Answer 14

gross profit is sales revenue - the cost of sales
operating profit please revenue -cost-operating cost
profits-costs of the year including tax google it

margins =divide by sales revenue times 100

Question 15

how can a business improve cash flow

Answer 15

overdrafts can be used when a business needs higher inflows of finance but over the long term interest rates can make it expensive
increase time taken to pay suppliers or reduce the time needed for customers to pay back the business this can after both relations with customers and suppliers
dept factoring a business pays dept bust keeps a percentage of what needs to be paid back

Question 16

what are the three different types of budget what are the benefits

Answer 16

income budget
expenditure budget
profit budget
budgets can be useful as a business can see whether they have an adverse or favourable result consequently they can make sudden finical and cashflow objectives that can control the cash flow and avoid disasters through overdrafts or debt factoring however there may be conflicts in the business about finance

Question 17

what is a variance in budgeting

Answer 17

favourable is profit can indicate more sales than expected the business can respond to this by increasing the budget snd capitalising on that product by being innovative or improving production to meet the demand
adverse is not profit they need to reduce cost this can be done by either reducing cost to increase demand or reducing prices of raw material from suppliers by bulk buying or economies of scale

Question 18

what is break-even what is the margins of safety

Answer 18

break even is the number of sales a business needs to cover its cost
the margin of safety is the actual output -beak even

Question 19

name two internal and external sources of finance

Answer 19

internal
retained profit is the profit the business has through sales and investments so there is no interest to be paid however shareholders may want dividends soo they may be against it
rationalisation selling assets however the assets may be useful in future
external
overdraft when the bank allows it to go negative but there is high-interest rate however it is very flexible and easier than a loan
dept factoring is business pays your loan but keeps a percentage

Question 20

what are the following economies of scale economies of scope diseconomies of scale and retrenchment?

Answer 20

economies of scale are when the improved experience helps the business increase productivity and reduce costs per unit
economies of scope are reduced in cost due to diversification as they already have the production for the product and have brand loyalty eg Cadbury has a different type of chocolate
dis economies of scale are when production increases the cost increases as larger business are harder to manage
retrenchment includes reducing jobs output delayering etc to reduce cost could be due to low demand

Question 21

what is over-trading and synergy

Answer 21

overtrading is when a business grows beyond its capability to support the growth they could increase prices to reduce demand
synergy is merges

Question 22

explain griener model of growth

Answer 22

leadership crisis-in need of a strong leader for directions
autonomy crisis- who employees want to make decisions
delegation crisis- the need for delegation of authority
coordination crisis- problems with new procedures to coordinate
collaboration - different department collaboration is found difficult

Question 23

what is innovation? what are the advantages and disadvantages?

Answer 23

innovation can be product innovation or process innovation these are new ideas that can improve the product this suggests they can use the research and development department to innovate the product by adding new features and using up-to-date technology to meet customer demand, increase product value and demand this suggests they can get a competitive advantage, as a result, they can set price due to having used this is known as price skimming, as a result, they can increase profit and gain chigger market share furthermore being an innovate company like apple may help create a reputation and brand loyalty ac the customers may see apple as the most trustworthy in terms of making sure the latest technology is available to their customers however creating the better and more innovative product can be expensive and if a competitor has already researched and interacted the new technology into their product may mean that the research and development was a waste and can give no competitive advantage
Making production more efficient means that there is less waste material, and as a result, the unit cost decrease this indicates that the business can set the price for the product much lower than their competitors consequently they can this can increase demand especially if the product is price elastic however if the product is a luxury item this strategy may not imply to
business-like blockbuster who was not innovative and dynamic to stay competitive went bankrupt due to the business not keeping up with new technology such as online streaming

Question 24

how does innovation affect functional areas

Answer 24

finance- there may be a higher short-term cost this may mean they need to increase capital through loans for research and development however in the long term the business may get a return investment due to the competitive advance and high demand for their new innovated product
operation- the operations department may need higher budgets due to the new expensive machinery furthermore they would need skilled workers to operate the new machinery, as a result, this can increase costs
marketing- through innovation the business can achieve market objectives scuba s increasing market share through implementing more research and development to understand the needs of the customers and providing them
HR-the business may replace a current worker with new skilled workers that can provide innovative ideas or operate new machinery this can cause redundancy decreasing the employees motivation this can change the overall culture within the business

Question 25

what are the three-way a business can be innovative

Answer 25

kaizen- implementing small changes over a long period of time suggest creating a business culture where the employee has more control over decision-making to get to the root of problems in the organisation consequently this means that they don’t need to spend their capital or time on innovation however these change may only be self-centred on the problem only involving their own satisfaction and not the overall business and its goal of meeting customer needs

intrapreneurs- business like google allow their employees to use their resources to save problems or create innovative ideas this suggest they don’t need extra employee worker to experiment with new ideas however this may depend on how much of an innovative mind they have

benchmarking-is, when business adopt new ideas or similar methods, from other business, this can motivate staff as it is an already working and sucessful idea so there is less risk furthermore implementing these ideas can mean that they don’t give competitors too much of an advantage over them however these ideas can be protected through patents or may to be suitable or achievable due to the culture and resources available to the business

Question 26

name and explain three-way to protect original or innovation ideas

Answer 26

patents-a business can apply for a patent to protect their product or methods from being copied by competitors over a period of time this suggests they can maintain their combative advantage
trademark-they are used to protect logos slogans and or names this means other business could not use their name to scam people or damage their reputation by providing a similar but low-quality product to use their customer base to gain profit
copyright- these are for origami writing music videos

Question 27

what is organisational culture

Answer 27

it is the interaction and attitude each employee has toward their job and the mission of the business
this can be a strong culture where fewer supervisors is needed and more staff retention and motivation
weak culture is when it needs to be forced

Question 28

what are 4 handy task of culture

Answer 28

power culture-this is when there is a centralised group of people who make the designs this highlights that employees have no say or can’t voice their opinions this may mean they feel less involved and may be resistant to change
role culture -authority is determined by job title ge senior manager this may mean that employees have less say and a wrong decision by the senior manager
without listening to the opinions of employees can be worn resulting in it affecting the overall performance of the team
person-joint design making employees feel more involved eg doctors accountants
task -the culture is taking orientated a group of a team directed to achieve goal or objective however there may be conflicts for resources between groups and less resistance to change

Question 29

how ca culture affect stake holder

Answer 29

customers - good culture suggests great customers service and a good culture can be customer-focused meaning better innovative ideas to get customer loyalty
employees- better working environment increases motivation, higher employment rate due to reputation better-skilled workers

Question 30

what influences changes in culture in a businesses

Answer 30

new managers may want to implement the culture in the previous workplace this indicates that may not work in the business creating conflicts furthermore competition can cause a change in culture which means that they could be a task culture as they may need to adapt to changes for this they need to meet different functional objectives as a result task culture means they can work toward each task as groups and focus on competing and achieving the necessary standard to be competitive furthermore growth can affect culture as growth may mean the business is constantly changing to adapt ed may go for power culture to be given direct and consistent direction to allow growth or to role culture as it goes international and needs to be decentralised

Question 31

why is changing culture challenging

Answer 31

resistance by employees as they want it to stay as it is due to their own benefit and not the business
use examples of power person tasks and role
it can be expensive as employees may need training eg task culture they need to work in teams while contributing their part for the team

Question 32

what is Hofstede’s national culture

Answer 32

différent culutres business i différent nation have
power distance -accepting unequal distribution of wealth
uncertainty avoidance -they are don’t trust or are unsure of the decisions made by th business
individualism- they care for themselves more than others
masculinity- power and wealth bases while feminine is more caring and quality of life
long-term orientation- they care for the future not traditions
indulgence -how their desires to take over eg laziness

Question 33

how does leadership communication impact strategic implementation?

Answer 33

the leader would delegate and make sure the change happens smoothly they would have a car vision and be a role model to their employees
communication is important in implementing a strategy as the ideas should be clear to all staff so they know what going on and feel involved otherwise it may reduce productivity due to low morale

Question 34

what are the 4 organisational structures to implement a strategy?

Answer 34

there are 4 different organisation structures according to the strategy
functional -functional groups run separately for a project
the product-based-each product works independently, they are separate businesses that may be diversified or beached from the small company
matrix-functional areas work together for different projects
regional-based off of the place, an international business has different branches or groups in different nation s

Question 35

how to find critical path analysis using network analysis what are the advantages and disadvantages

Answer 35

it helps with time management and help revise the resources available it also helps manager decision making however the data is an estimate and external event may cause changes

Question 36

why is strategic decision-making and implementing strategy difficult?

Answer 36

risk as unsure of the possible crisis in the future
the external and internal environment there is the uncertainty of natural disaster or lack of information may mean that strategy is unneeded
there may be a miscommunication with the strategy or the organisational change cause problems in the culture

Question 37

planned and emergent strategy

Answer 37

“planned strategy” (the intended strategy which is determined by a formal strategic planning process) and
it is expensive and time-consuming for something tah may never happen
or magers bad at predicting and implementing future strategies

“emergent strategy” (the strategy that actually happens as a business responds to changes in its external environment).
they are strategies due to changes in current events

Question 38

what is strategic drift

Answer 38

the strategy becomes less and less relevant to helping the business this may be due to a technological change to appoint where the strategy is no longer nr=esassary