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Unit 2 notes......

As level AQA

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Improving organisational structures

Span control is the number of employees for whom a manager is responsible.
Span of control depends on:
skill and experience of manger
Size and complexity of business
Whether a business if centralised of decentralised

The chain of command
The chain of command describes the lines of…

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Delayering is removing layers of management from the hierarchy of the organisation. This:
Reduces the number of layers within the hierarchy
Lowers labour costs
Faster decisions making
Shorter communication paths
Greater emphasis on team work and empowerment

This is the assignment to others of the author for particular…

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Business notes

Working with suppliers

What is a supplier a business or individual that provides goods and services to another

The supply chain

Origination ­ publishing manufacturing ­ distribution ­retail

Why suppliers are important

For a business to meet the needs and demands of its customers to needs as…

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Direct marketing
Trade associations

Contracting with a supplier

Relationships between supplier and customer are finalised with a supply contract
Contract set out how a business and its supplier will work together
Key features of service agreement

Suppliers and cash flow

Trade credit= where a business buys goods…

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Concerned with checking and reviewing production
Mainly about detecting defective output rather than preventing it
Can be expensive

Problems with quality inspection
Often too late e.g. end of production
Inconsistent inspections
Done by inspectors rather than staff
Often not compatible with modern production systems

Quality assurance the process that…

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Can help brand a market

Quality products and services that meet customer needs and wants
Roles of customer service
Ensuring customers needs are met
Taking measures and keeping records
Providing assistance
Dealing with problems and handling complaints
Presenting an appropriate image of the business

How customers are different
Individual or…

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Behave in a good way to make the business look good

Mystery shopping
Good method of research
Mystery shoppers are hired to test customer service levels e.g. transactions, quality
of service, store ambience
Powerful feedback if organised properly.

Elasticity of Demand

Price Elastic Products.

The demand for the product changes…

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Price Elasticity of Demand

% Change in Quantity

% Change in Demand

What factors contribute to a product being Elastic or Inelastic?

Proportion of Income spent on Product.
Demand for the Brand V's Demand for the Product. (Petrol)

Conspicuous consumption is a term used to describe the lavish spending on…

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