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Business Studies: Unit 2 Exam PracticeRevision Notes

Business Structures
Hierarchy: A series of levels in a business where each level has responsibility for and authority over the levels below.
Tall Structure: Lots of levels. Narrow spans of control. Messages take a long time to get from one end to the…

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Absenteeism = Number of staff days lost x 100%
Number of working days
Low is best
Analyse figures in the context of the job (e.g. police officers may have higher figures considering the stress that comes with the job)
Causes include poor working conditions, poor relationships, stress and poor…

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Motivating the Workforce
Taylor and Scientific Management

Thought workers were motivated by money
He did time and motion studies, timing work activities with a stopwatch
He favoured division of labour ­ small repetitive tasks (scientific management approach)
Believed financial incentives would motivate workers and raise productivity
Increased productivity meant less…

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Financial Incentives

Weekly wage: The more hours you do the more you get paid.
Piecework: Get paid per finished item.
Commission: Get a percentage of the sales they achieve.
PerformanceRelated Pay: Gives more money to employees who reach targets.
Fringe Benefits: Staff discount, employed contributions to employee pensions, private medical…

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Quality Awards

BS 5750: Given out by the British Standards Institution to firms with good quality assurance systems
ISO 9000: European quality award (equivalent to BS 5750)
To get the award, businesses must set quality targets and then make sure their production process achieves them. Should continually monitor
production quality.…

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Capacity: Need suppliers who are able to meet any peaks in demand
Reliability: They need to deliver on time, or give plenty of warning if they can't
Flexibility: Need to be able to respond easily to changes in a company's requirements.

Relationships with suppliers

Linked Networks: Shared IT systems such…

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Advantages and Disadvantages

Increased productivity, improved quality, reduced waste, more effective and efficient delivery, more effective marketing, more productive staff
utilisation, reduced admin costs, better communications.
Initial costs of technology may be high, technology requires constant updating in order to stay current which can also be expensive, may create

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Effective Marketing
Identifies customers needs and wants

Tries to anticipate what they'll want in the future so that the business can get one step ahead of the market
Ensure the business supplies goods and services that customers want in order to make a profit.

In a competitive environment

Rely on…

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Boston Matrix

Question Marks: New products with low market share and high market growth. Could succeed or fail.
Stars: Have high market share and high market growth. In their most profitable growth stage.
Cash Cows: Have high market share but low market growth. In the maturity phase. Bring in plenty…

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Other things the consumer considers to create a USP. E.g. customer service, moneyback guarantee's and availability of spare parts.

Product Development Stages

Ideas Stage: Find a gap in the market, research and development etc
Screening Stage: Analyses the idea for the new product to see if it's easy to market,…




found this reallly helpful!!



Is there a unit1 ??

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