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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…

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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…

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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…

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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…

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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=…

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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.


%…

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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…

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+ve
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…

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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. Answer from step one divided by initial out lay x 100…

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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 (6.3m), working from home,
ageing workforce,
+ve -ve
Less stress for workers · employees isolated= harder…

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