Unit 10 Flashcards
(26 cards)
Steeple - BM Toolkit 3
S = social
T = technology
E = economic
E = environmental
P = political
L = legal
E = ethical
Framework used for looking at possible future external factors that might affect an organization in a positive or negative way
Can use a STEEPLE to systematically analyze opportunities and threats
Pros and cons of STEEPLE
Pros
- Quick and easy
- A systematic way of considering things that could happen in the future
Cons
- Other factors that these 7
- Cannot predict the future
Market research
Collecting and analyzing data that is relevant to the market for the business about customers
- Customers buying habits
- Competitor strengths
- Future market trends
Quantitative vs. qualitative research
Quantitative research
Research based on numbers - numerical results
Qualitative research
Not based on numbers
Pros and cons of market research
Pros market research
- Identify future trends
- Identify gaps in the market
- Improve your product
Cons market research
- Costly
- Time-consuming
- Not always correct
Types of primary research
Surveys, interviews, focus group, observation
Survey
- A document where respondents fill-out the answers to a variety of questions.
- Can collect large number of responses at once
- But often low response rate and can’t ask follow up questions
Interviews
- A discussion where an interviewer asks questions an interviewee
- Usually focused on qualitative data
- More time consuming
- But you can ask follow up questions
Focus groups
- Small and interactive discussion groups with multiple people
- E.g. consumer panels
- Can get a wider range of opinions than interviews,
- But one member may dominate
Observations
- Watching how people behave rather than asking
- Can watch natural behavior
- Time-consuming, ‘what’ results not ‘why’
Methods of Secondary research
Market analyses, academic journals, government publications, media articles, online content
Sampling
Identifying a group of people that are a representation of the whole population
Convenience sampling
Identify respondents because they are easy to ask
E.g. asking people that you see on the street
Likely to have sampling bias
Random sampling
Respondents are chosen using some random chance, each member of target population has equal chance of being selected
Less bias
Quota sampling
Respondents are chosen in proportion to the overall population
Communication
When information moves from (exchanged) from one person to another person
- Verbal
- Non-verbal
- Written
- Images
Formal Communication
Communication through official means in structured ways directly about the businessperson
Emails
Meetings
Video conferencing
Reports
Presentations
etc
Informal Communication
Communication through unofficial means that is unstructured and not always directly about the business
Water Cooler Chats
Messages
Team events
etc
Pros of email / pros of meeting in person
Pros of Email:
- Easier geographically
- Often more time effective
- Provide a paper trail - can be read again later
Pros of meeting in person
- Less likely to misinterpret what is communicated
- Provide audio and visual information as well
- Easier to build trust
Barriers to Communication
- Language and culture
Are things said directly or not? - Too much use of business speak (jargon)
Our blue sky thinking this year is to try to obtain synergies…… - Location
Can’t see body language - Preference of form of communication
- Some managers really like meetings
- Assumptions
Assuming the other person has understood
Whats is Break-even quantity
The quantity at which total costs equals total revenue, so profit is 0
The quantity a business must sell to cover its costs above this quantity, the business will make a profit after this quantity
Break-even quantity (AO4)
Fixed Cost / (Price-Variable Cost)
FC/CPU
Contribution per unit (CPU) (AO4)
The profit made from selling each product (profit per unit)
Price - Variable Cost
Constructing a break-even chart (AO4)
