STRESS Flashcards
(163 cards)
1
Q
Factors of production
A
Capital - money buildings machinery
Enterprise - development of ideas and drive for implementation
Land - natural resources (water fish trees)
Labour - human workers (mental physical effort)
2
Q
Sectors of industry
A
Primary - extraction of earths natural resources
Secondary - manufacturing of raw materials to be turned into finished goods
Tertiary - selling of goods and providing services
3
Q
Sectors of economy
A
Private - owned and run by private individuals
Public - owned by taxpayer run by government
Third - owned and run by private individuals with the purpose of helping a group or raising awareness for a cause
4
Q
Entrepreneur
A
An individual who develops a business idea and takes on the associated risks and responsibilities
5
Q
Sole trader
A
Owned by one person
Controlled by that person as they make all the decisions
Financed by the capital they invest in the business
6
Q
Advantages of sole trader
A
Make your own decisions
Profits aren’t shared
No special paperwork required
7
Q
Disadvantages of some trader
A
Long hours
Hard to raise finance
Unlimited liability for debt
8
Q
What’s a business plan
A
Helps you lay out the aims and ideas you have for your business
9
Q
Why have aims
A
- competitive advantage
- indicate further direction
- what employees should believe
10
Q
Aims
A
Survival Maximise profits Growth Eliminate competition Provide high quality service Customer satisfaction
11
Q
What’s a mission statement
A
Statement that defines the purpose of a company
12
Q
What can customer satisfaction lead to
A
- customer loyalty
- repeat purchases
- increased reputation
13
Q
Ways business can improve customer satisfaction
A
- provide high quality product
- highly trained employees
- customer care strategy
- customer complaints procedure
14
Q
Short term finance
A
Bank overdraft
Grant
15
Q
Medium term finance
A
Bank loan
Leasing
16
Q
Long term finance
A
Owners savings
Mortgage
17
Q
Grant pros and cons
A
Doesn’t need to be repaid, can only get once
18
Q
Bank overdraft pros and cons
A
Simple to arrange, not a long term solution
19
Q
Bank loan pros and cons
A
Can access large amounts of finance, repaid with interest
20
Q
A partnership
A
Owned by between 2 and 20 people
Controlled by those people
Financed by the capital they invest in the business
21
Q
Advantages of partnership
A
Raise more capital
Risks and responsibilities are shared
22
Q
Disadvantages of partnership
A
Profits are shared
Unlimited liability
Disagreement amongst partners
23
Q
Unlimited liability
A
Owners must pay off all debts of the business, may result in losing personal possessions
24
Q
Limited liability
A
The owner(s) are only liable for the debts of the company up to what they have invested
25
PLC
Owned by shareholders
Controlled by board of directors
Financed through selling shares
26
Advantages of PLC
Raise more capital through selling shares
Shareholders have limited liability
Bigger firm
27
Disadvantages of PLC
Accounts are not private
Have to share profits, DIVIDENDS
More complex and expensive to set up
28
Public sector
Owned by taxpayer (the state)
Financed through taxes
Controlled by the government
29
Public sector aims
Make good use of taxpayers money
Stay within a budget
Provide value for money
30
Third sector
Owned by private individuals
Controlled by private individuals
Financed through selling goods, donations
31
Types of third sector organisations
Charities
Non profit making organisations
Social enterprises
32
Third sector aims
Provide support for worthy causes
| Raise awareness of an issue
33
Social enterprise
Business that trades for a social and/or environmental purpose
34
Social enterprise features
Funded by grants and sponsorship
Has employees and volunteers
Creates jobs in local community
Provides benefits to local community
35
Advantages of social enterprise
Improve on a social mission
| Use local skills and life experience
36
Disadvantages of social enterprise
Need specific skills/knowledge/experience
| Must meet their social aims
37
Stakeholders
Individuals with an interest in and an influence on a business
38
Employees interests
Job security
| Improved salaries
39
Employees influence
Level of productivity
| Can take industrial action
40
Management interests
Improved salaries
| Career opportunities
41
Management influences
Quality of decision making
42
Banks interests
Ability to pay back loans
43
Bank influences
Give/refuse loan application
| Setting interest rates
44
Suppliers interests
Continuing custom
| Ability to pay invoices
45
Suppliers influences
Set price of raw materials
Quality of raw materials
Set credit terms
46
Competing aims stakeholders
Senior management wants to maximise profits whereas customers want low prices
47
Internal factors
```
Employees
Management
Finance
Equipment
Information
```
48
Employees internal factors
Quality of production
| Work rate
49
Management internal factors
Quality of decision making
50
Finance internal factors
Capital available for changes to be implemented
51
Technology internal factors
Do they have the required technology to carry out their decisions
52
Information internal factors
Can they access the information they need
53
SWOT analysis
Strengths weaknesses opportunities threats
54
Strengths
New products
Experienced staff
Finance available
55
Weaknesses
Declining products
Aging work force
Poor premises
56
External factors
```
Political
Environmental
Social
Technological
Economic
Competition
```
57
Roles of marketing
Increase sales and therefore maximise profits
| Help a business achieve increased market share
58
Field research
Gathering primary information first hand
59
How to find out field research
Surveys/questionnaires
Interviews
Focus groups
60
Types of questionnaires
Postal
Telephone
Online
Face to face
61
Pros and cons of surveys
Cheap and easy but response rates are low
62
Pros and cons of interview
Expensive method (trained interviewer) and time consuming
63
Test marketing pros and cons
Effective feedback but no guarantee the product will be a success
64
Focus group pros and cons
Variety of opinions but some members may dominate
65
Observation pros and cons
Allows companies to gather information but often people do not want to take part
66
Field research pros and cons
Specific to your needs, accurate, up to date
Time consuming, expensive
67
Desk research
Secondary information gathered from an external source
68
How to gain desk research
Newspapers
Internet
Market research agencies
69
Desk research pros and cons
Less time consuming, less expensive
Not accurate to your needs, information may be out of date
70
Market segmentation examples
Age gender religion
71
Product development
Idea, analyse, prototype, test and launch
72
Product lifecycle
Introduction
Growth
Maturity
Decline
73
Branding benefits
Charge a premium price
High awareness
Perceived high quality
Easier to launch new products
74
Branding costs
High marketing costs
Counterfeit goods
Own brands
75
What price should be based on
Competitors prices
Cost to manufacture
Time of year
76
Types of promotion
Advertising
Sales promotion
Public relations
77
Advertising aims to be
Informative
Persuasive
A reminder
78
Types of advertising
Print (newspapers)
Broadcast (TV)
Outdoor (billboards)
79
Sales promotion
BOGOF
Competitions
Free gifts
Discounts
80
Direct mail
Mail delivered to your address promoting a product or service
81
Personal selling
Salesmen coming to homes to sell a product
82
Businesses can promote using
```
Website
Email
QR codes
Apps
Texting
```
83
Other types of promotion
Product placement
Product endorsment
Sponsorship
84
PR department deals with
Press
Government
Public
85
Activities PR takes part in
Press statements
Charitable donations
Customer care
86
Factors of place
Competition, resources, cost of premises, nature of the product
87
Role of operations
Making products
Working with suppliers
Managing levels of stock
88
Pros of job production
Meets customers needs
High customer satisfaction
High prices as product is unique
89
Cons of job production
High labour costs as its labour intensive
| Costs are not recovered until completion of project
90
Pros of batch production
Batches can be changed to meet requirements
| Raw materials bought in bulk saving money
91
Cons of batch production
Equipment and employees not working between batches
| Motivation reduced
92
Pros of flow production
Large quantities of goods can be produced
93
Cons of flow production
Every product is identical
| Lack of motivation
94
Pros of labour intensive
Employees can be creative
| No need for expensive equipment
95
Cons of labour intensive
Expensive to recruit and train employees
| Quality of work can vary
96
Only machines
Automation
97
Humans and machines
Mechanisation
98
Pros of capital intensive
Can work 24/7
| Consistent quality
99
Cons of capital intensive
Expensive to purchase
| Can’t meet individual requirements
100
Quality control
Carrying out inspection at the end
101
Quality management
Ensuring the product is made perfectly every time - commitment from all employees
102
Quality assurance
Checking every product throughout all stages of production process
103
Methods of recruitment
```
Job analysis
Job description
Person specification
Advertisement
Applications
```
104
Methods of selection
Interiew
Testing
Making the appointment
105
Job analysis
Establishing whether a job vacancy actually exists
106
Job description
Document that allows all applicants to see what the job will involve
107
Person specification
Identify the type of person you want to do the job
108
Advertisement
How the organisation lets potential applicants know the job exists
109
Internal advertisement
Staff memo
Notice boards
Newsletter
110
Externally advertising
Newspapers
Job centre
Recruitment agency
111
Why advertise internally
Allows them to develop skills
| Improve staff morale
112
Why advertise externally
Wider choice of candidates
| Brings in new people with new ideas
113
Applications
Application form or CV
114
Interview
One on one, panel, group
115
Testing
Aptitude (skill based)
Psychometric (attitudes)
Personality (roles they’re suited to)
116
Making the appointment
Successful and unsuccessful candidates are informed
117
Induction training
Before the employee starts the job
118
On the job training
Within the organisation
119
Off the job training
College or training centre
120
Benefits of training
Increased productivity
| Increased motivation
121
Costs of training
Financial costs
Staff resistance
Staff may leave once trained
122
Non financial motivation
Appraisal, promotion opportunities, improved working conditions
123
Financial motivation
Salary, time rate, piece rate, overtime, bonus
124
Core workers
Employed by the firm and are involved in core activities of business
125
Casual workers
Hired and released by the company when they’re needed
126
Contractual workers
Employed on a fixed term contract usually for one or two years
127
Flexi-time
Workers only need to be at workplace at certain times in the day
128
Home/tele-working
Employees working from home making use of ICT
129
Job-share
Two or more employees share the duties associated with one job
130
Employees relations groups
Trade union, ACAS
131
Trade union
Set up to protect and stand up for the rights of employees
132
What do trade union do
Collective bargaining (negotiating)
133
ACAS
Employee relations experts who aim to help employees and employers work together
134
Industrial action
Strike
Sit in
Work to rule
Overtime ban
135
Motivation benefits
Increased productivity
| Increased quality
136
Motivation costs
Financial costs
| Staff conflicts
137
Equality act 2010
Protect people from discrimination in the workplace
138
National minimum wage act 1998
Creates a minimum wage for all workers across United Kingdom
139
Freedom of information act 2000
- right to know whether information exists
| - right to access that information
140
Data protection act 1998
Protects the rights of the individual by governing the collection, storage and use of information held
- accurate and up to date
- kept secure
141
Health and safety at work act 1974
Raise the standard of health and safety for all individuals at work
142
Employees must (h+s)
Comply with training
Take care of themselves and others
Report any hazards or accidents
143
Employers must (h+s)
Provide toilets and drinking water
Necessary training
Necessary equipment and clothing
144
Break even chart
Shows how many units must be sold before the company stops making a loss and starts making a profit
145
Break even point
Not making a loss or a profit
Total costs = sales revenue
146
Fixed costs
Costs that remain constant even when volume of production changes
147
Variable costs
Costs that vary directly with the volume of production
148
TOTAL COSTS =
Fixed costs + variable costs
149
Sales revenue
Total money a business has made from its sales
150
Cash budget
Forecast of money expected to be received and the money expected to be paid out over a period of time
151
Infows
Cash sales
Credit sales
Bank loan
152
Outflows
Purchases
Wages
Rent
Utilities
153
Importance of cash budgets
Allows greater control of business
Less uncertainty and fear of future
Forecast costs and income in advance
154
Problems and solutions with cash budgets
Decreased cash sales - increased sales (promotions)
Increase raw material costs - decrease raw materials
155
Income statement
Statement that shows how much profit a business has made over a period of time
156
Gross profit
Profit made from sales activity
157
Gross profit =
Sales - cost of sales
158
Sales revenue
Income received from customers from sales of products
159
Less cost of sales
Cost of buying in the stock sold during the year
160
Expenses
Expenses that have to be paid for other than stock (wages rent)
161
Net profit =
Gross profit - expenses
Overall profit made by the business during an accounting period
162
Income statement problems and solutions
Decrease in sales - increase selling price
Increase in expenses - reduce expenses through better deals
163
Role of technology in finance
Database - create reports of overdue accounts
PowerPoint - display financial information at the shareholders meeting
