Business F291UNIT 1
- Created by: Victoria Prior
- Created on: 15-05-13 14:51
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- Unit 1... What Businesses Do.
- Decision making in a business.
- STRATEGIC - affect long term success of the business.
- E.G. creation of a new product line.
- TACTICAL - day-to-day decisions, directly affects individuals and groups.
- E.G. if a machine breaks the workforce will have to reorganise themselves.
- All decision making combines the use of measureable information.
- E.G. historic evidence, knowledge, skills, exoperience of managers and future forecasts and statistics.
- Been constrained by external forces.
- Legislation.
- Changes in the economy.
- Enviroment.
- Changes in technology.
- STRATEGIC - affect long term success of the business.
- Opportunity cost - cost of the next best alternative.
- Goods and Services.
- COMMERCIAL SERVICES - support businesses to operate.
- E.G. advertising, banking, insurance and transportation.
- DIRECT SERVICES - contribute to the needs of the stakeholders.
- E.G. hairdressers.
- COMMERCIAL SERVICES - support businesses to operate.
- Adding Value.
- LAND.
- LABOUR.
- FACTORS OF PRODUCTION. ADDS VALUE TO INPUTS.
- LAND.
- CAPITAL.
- FACTORS OF PRODUCTION. ADDS VALUE TO INPUTS.
- ENTERPRISE.
- FACTORS OF PRODUCTION. ADDS VALUE TO INPUTS.
- CAPITAL.
- FACTORS OF PRODUCTION. ADDS VALUE TO INPUTS.
- Meets all the needs of the stakeholders in a profitable way.
- Value added by brand names, styles, fashions and extra features.
- EVALUATION.
- Strategic decisions are only taken by senior management for the long term.
- Managers ignore market changes
- Opportunity cost ignored when decision is made quickly.
- Any decision carries an element of risk and results in the loss of alternative courses of action.
- Strategic decisions are only taken by senior management for the long term.
- Decision making in a business.
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