Theme 1 Flashcards
(80 cards)
Demand
the amount of a good that consumers are willing and able to buy at a given price
Mass market
products made for the majority of public
Niche market
products made for certain people
Market share
How many customers a company has in a market
Dynamic market
A market that is subeject to rapid changes
Uncertainty
When a business are unable to predict external shocks or future events
Market mapping
the process of finding variables which differnate
Cost Leadership
The ability a business has to create products at the cheapest
Factors o designing a product
Asethetics
Price
Function
Knowledge
Defection of key terms
Cost plus pricing
A cost-plus pricing strategy seeks to set a price for a product or service which covers the costs AND provides a good profit margin for the busines
Doesn’t look at the price of the competitors
Skimming price
Price is set high at first to cover for cost of reasearch and development and then when competitors join the market they will drop the price
Risky strategy as customers may be put off from buying due to the high price
Competitive pricing
When company will base their price on competitors and will focus more on service etc to compete
Price Elasticity of demand
Elasticity measures the responsiveness of demand to a change in a relevant variable-price or income
Price inelastic of demand
Not matter price or income the product will still gain sales -water, petrol
Price elasticity of demand
%change in quantity demanded /%change in price
hard approach in hrm
Treats employees as a cost of the business
Soft approach in hrm
Treats employees as the most important asset in the business and a source of competitive advantage
Point of a hard approach
Pay at nmw
Use zero hours contract
Lack of job security
Minimum investment in training
Point of soft approach
Competitive pay structure and benefits
Effective requirement process
Per any contract providing job security
Effective two way communication
Recruitment process
1.identify the vacancy
2.write a job description
3.write a person specification
4.advertise the vacancy
5.candidates apply
6.candidates shortlisted
7.shortlisted candidates interviewed
8.other recruitments activities
9.successful candidates is offered a job
decentralisation
where a business divides up the organisation of its business into areas
Centralisation
where a business has its organisation of management and administration at one central head office
Chain of command
The chain of command in a business is the flow of information power and authority through the organisation