business 3.2 0.0 / 5 ? Business Studies3.2GCSEEdexcel Created by: elizabeth longtonCreated on: 09-02-17 10:04 Product differentiation Making one product different from another. E.g by design, quality, packaging 1 of 31 Function How well a product works and how well it does what its supposed to do. 2 of 31 Cost Cheaper cost of production, the better, as it gives a competitive advantage. 3 of 31 Appearance Products that look/smell/feel better than competition, which makes the design a success 4 of 31 Design mix Appearance, Cost, Function 5 of 31 Consequences of no stock Bad image for business, dissatisfied customer, loss of sales revenue, customer may go to a competitor 6 of 31 Raw Materials Bought from other businesses 7 of 31 Work in progress These are the stock that have been semi-finished 8 of 31 Finished goods Products that are made and waiting to be delivered to customers 9 of 31 Just in case When stock reaches minimum level more is odered 10 of 31 Advantages of stock control Wont loose customers because they can supply goods, able to buy raw materials in bulk so its cheaper because of discounts 11 of 31 Just in time Order stock and use it immediately 12 of 31 Advantages of Just in time Reducing damage of goods 13 of 31 Disadvantage of Just in time If the stock is late the production is lost 14 of 31 Quality Achieving a minimum standard for a product/service which meets customer needs 15 of 31 Quality control Ensuring that a product meets minimum standards at the end of the production line 16 of 31 Quality assurance The quality is checked at every stage of the production line. every worker is responsible 17 of 31 Disadvantage of poor quality Potentially loose customers, have to remake the product, wasted materials, damage to brand image 18 of 31 customer service the experience a customer has when dealing with a business and how well that experience meets and exceeds customer needs and expectations 19 of 31 Disadvantages of poor service No repeat purchase, Bad 'word of mouth', decrease in sales and demand, loose potential customers 20 of 31 Output the amount produced by a business 21 of 31 Productivity Output per worker in a period of time 22 of 31 How to calculate *** much is produced total output divide number of workers 23 of 31 how to increase productivity train staff, better equipment, reduce down time , motivate employees 24 of 31 supply of goods act all products have to be satisfactory quality and fit for purpose 25 of 31 trade description legislation allows customers a guarantee on refund if the product is not fit for purpose or works as it should. 26 of 31 Ways to increase cash flow Destocking, external finance, improve cash flow from customers and increase sales revenue 27 of 31 factor financial company that will take on debt that is owed to you 28 of 31 improve cash flow from customer reduce trade credit, employ a factor 29 of 31 external finance loans 30 of 31 reduce cash flow delay paying invoice, lease rather than buy 31 of 31
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