F291 - Business studies

F291

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  • Created on: 15-05-11 19:07
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F291 BUSINESS STUDIES
Two characteristics of an entrepreneur:
Ability to be comfortable with risk taking
Leadership skills such as motivation and communication
Likely relationship between risk and reward:
An entrepreneur will take risk with an unknown outcome of whether the money invested will
become successful and reward is the success gained from the risk taken
Affect of rise in consumers income:
More customers are able to pay for the product so a higher price can be charge. Although
the same number of consumers will be buying the product the demand will increase as more
people are able to pay.
This would cause an increase in revenue and therefore profit will increase because a higher
price had been charged
Monitoring of income and spending, demographics and other social trends are very important. How
may they affect the business?
Income and spending: How people spend their money. Even if income rises, product will not
be bought very much because of social trends
Demographic changes: A larger target population means more spending but for businesses
such as zoos and theme parks, will be aiming for the population surrounding the area and not
the whole of the UK. As well as local demographics, there may be other aspects such as age
because it is usually the younger age groups who would like to go to the zoo e.g. The gender
is unlikely to have an effect on Zoos
Zoos may not be ethical for some people who create pressure groups on animal right and
against zoos. However they may offer a lot of educational services which schools may like to
use.
Concept of opportunity costs in development:
Opportunity costs are the cost of the next best alternative that has to be given up when a
decision is made.
If money is sued for one area, the opportunity of funds for another area are lost
Two factors affecting span of control of managers:
Skills of employees: More skilled employees are likely to perform better therefore less
problems will be occurred/generated if wider span of control
Level of responsibility: there would be more responsibilities associated with smaller span of
control.
Skills of manager: More able managers can cope with a wider span

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Stakeholder benefiting from success/growth of business: (zoo scenario)
The business si successful means that more funs are available to spendmore money on the
business. This would therefore mean that owners will benefit as they would have benefits
from enhanced reward for their services
Employees will benefit as they want pay rises and job security. If the zoo is doing well, it may
mean more job security because they are also contribution to the success.…read more

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Factors influencing success of a business
HRM- training for staff to make them work at best of potential. Also hiring rightly skilled staff
that are likely to change the business in a good way and help the business achieve the ebst
of its abilities
Good relationship with supplier
Ability to response to technological changes
Adequate cash flow
Appropriate or SMART objectives
Market research- finding out what customers want and then making changes e.g. to price
and services
Ability to respond to market-e.g.…read more

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Characteristics of a monopoly
Single firm/ own 25 percent or more of market share
Price setter
Possibility of high profits
Characteristics of oligopoly:
market dominated by a few large firms
Keep prices stable and higher than they would if in a competitive market.…read more

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How size of a business can be assessed/ measured
Level of sales
Profits
Market share
Number of stores
Number of employees
Corporate objectives:
Strategic: long term eg should enter a new market
Tactical : short term eg specification of a new products
Why corporate objectives may change overtime:
Changes to nature of market
Economic issues
Response to competition
Change in views of stakeholders
Demographic, social, cultural and moral as well as ethical changes
Changes in the law
Poor management decision
Differences between strategic and tactical…read more

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Reasons for using sampling in market research
It cost less and therefore is more efficient
Easy and simple way
Processing time for data is quicker
Not necessary to research the whole market
Representative of the whole market
Sources of secondary data
Businesses own sales figure ­ will show them how well or how poorly they are performing.…read more

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Global warming
CO2 emissions
Damage to ozone layer
Congestion (around
airports/roads around
airports)
`Spoiled landscape'
`Destroys local culture'
Negative effect on UK
tourism
People take holidays in term
time
When expanding or diversifying into new markets, a business human resources management
area needs to consider:
new post to be filled-managers will ahev to devote time into examining or determining
types ofemployees necessary to staff them
right people have to be employed- time consuming, costs and arecruitment
new employees ahev to be trained
employees have to…read more

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Partnerships are businesses owned by two or more people. A contract called a deed
of partnership is normally drawn up.
Also have unlimited liability
Franchise
franchisee, who buys the right from a franchisor to copy a business format.
And a franchisor, who sells the right to use a business idea in a particular location.…read more

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