BS4 summary of everything needed!

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Crisis Management-
Definition- responding to a sudden event that poses a significant threat to the firm
basically is a damage limitation strategy that poses heavy emphasis on PR and media relationships.
Examples of crisis-
Hostile takeover bids
Environmental disasters
Faulty or dangerous products
Strikes by the workforce
Major customers withdrawing their orders
Physical destruction
Contingency Planning
Definition- preparing in advance for the unexpected events that are reasonably
predictable and quantifiable.
+ve
Plan in place for possible crisis'
Reduce the amount at risk
Minimize loss
Reduces bad public relations
Can still run even in times of crisis
-ve
No risks occur= waste of money
Time consuming
Resources wasted could be better used elsewhere
Plan could become out-dated
Use lots of resources to keep it up to date
Data Analysis
Histograms
Definition- Shows group frequency giving totals within various ranges of data. Presented
on a summary graph- each band (group) = X axis, Frequency = Y axis

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Income Frequenc
y
0-15 200
15-20 300
+ve
Shows the shape of the distribution of a large set of data
Good for displaying data which has natural categories or groupings
Display data- allows large differences in shape or symmetry of data to be collected
-ve
Not to be used for precise judgement
Effectiveness of data falls when the range of data is too wide
Index Numbers
Definition- Shows changes over time in collections of data such as price levels or economic
output.…read more

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Good visual impression of relative sizes or of the shares as a whole
Representative data= compare a part of a group with the whole group
Opportunities for increased sales or where failures are occurring can easily be identified
-ve
Not detailed
Doesn't show increases or decreases over time
Data can't be extrapolated
Fails to show relationships between factors
Budgets
Definition-is a plan of a firm's revenue and expenditure.…read more

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Seasonal variations
Definition- numbers in quarters, find out the differences between quarters
Calculation- add up all for that quarter then find the average of each
Extrapolation
Definition- identifying the underlying trend in the past data and projecting the trend
forward.
Correlation
Definition- where there is a link between two factors eg link between advertising and sales
revenue.…read more

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Experience
Past data
Qualitative forecasting;
+ve -ve
Provides depth and detail · usually fewer people studied
Creates openness · less easy to generalise
Simulates peoples individual experiences · difficult to make systematic comparison
Attempts to avoid pre-judgements
Asset led
Definition- Focusing on the strengths of the organisation e.g. British airways= customer
experience. A market strategy based on firm's strengths not solely on the customers needs.…read more

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Human resource management
External influences
PESTLE
Competitors actions
Marketing budget
Definition-
Elasticity
Price elasticity of demand
Definition- measurement degree of responsiveness and sensitivity that demand has to
change in a product/ service price. The percentage change in quality demanded divided by the
percentage change in price or use formula.
% Change = difference between the two values x100
The original value
P.E.…read more

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Developing new products and offer them to existing customers, risky products often fail
Market development-
Offers existing products to new geographical markets, new product dimensions or
packaging, new distribution channels, different pricing policies to attract different
customers
Diversification-
Must have a clear idea about what it expects to gain from the strategy and an honest
assessment of the risks. New products to new markets. If successful reduce risk of
business overall as will be operating in two markets.…read more

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Motivation of staff
Monitoring of costs and expenditure
Improved management information on profitability
Monitoring of investment
-ve
Allocation of overheads = lead to under or over estimation of profitability
Increases administration and paper work
Demoralise staff
Profit centres
Definition- A department/ division or product in which costs and revenues can be
allocated therefore fairer overhead cost allocations
+ve
Decision making and power = delegated effectiveness
Speed and efficiency
Motivation
Effective use of bonuses/ financial motivation
-ve
Investment appraisal: NPV, ARR, PAYBACK,
Quantatitive and qualatitive factors…read more

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Ignores total profitability
Based on estimated
ARR (annual or average rate of return)
Definition- the project that chooses the highest rate of return.
Method-
1. Add up all income ­ initial outlay then divide by number of years
2.…read more

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Definition-
Original cost ­ residual values
Depreciation allowance = expected life (years)
Net book value= minus depreciation from each year
Changing working patterns
New ways- all flexible working practices- growth in Part time work (6.…read more

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