Business Revision Paper 2

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  • Created by: deieso
  • Created on: 30-05-15 12:08
What is function in the design mix?
How well something does its job.
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What is aesthetics in the design mix?
How visually appealing something looks.
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What is economy of manufacture in the design mix?
The cost to make something.
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Advantages and disadvantages of labour intensive
Adv: cheaper short term, hand made quality can be sold for more Dis: Need to be trained which can be expensive, wages, time off, less productive.
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Advantages and disadvantages of capital intensive
Adv: low wage costs, can pay themselves back over time, constant production Dis: issues may occur with machinery being expensive, high start up cost.
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When would it be appropriate to become more capital intensive?
Good for businesses who mass produce goods, constant manufacturing.
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What are the implications of firms underutilising capacity?
Not achieving maximum profits, money tied up in machines, however sudden increase with demand can be dealt with.
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Two advantages of having spare capacity?
Higher productivety meaning better performance, but also meaning they will be more competitive.
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5 Warehouse costs
Rent, stock going off (money tied up), wages of security etc., electricity (heating etc.)
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Advantages and disadvantages of just in time production (JIT)
Adv: lowers warehouse costs, forcs firms to address bottle necks eg. poor suppliers Dis: emergency stock may be needed to supply to a quick customer.
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What is lean management?
Minimising inputs, saving on costs.
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What is continuous improvement and Kaizen?
A team of workers who generate ideas of how to improve production.
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Quality insurance
Focuses on how products are made, prevents failures, to capture best practise and ensure first time production, defines systems and process.
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Quality inspection
Relies on product testing, is costly and wasteful, happens after the event, investigates in failures.
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What would a company need to introduce TQM?
Managment and to write a written procedure for the workforce to total quality.
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What is consumer protection? Sales of goods act.
The legal system which enables transactions to take place and provide a mechanism for reducing disputes.
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What would you expect to see in a business plan?
Goals of the business, budgets, cash flow forecast, marketing ideas.
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What is the purpose of budgets?
A financical plan for the firms income and spending, which is based off of predictions for the future. It helps a firm know whether it is likely to make a profit or a loss.
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What are the problems with budgeting and historical figures?
It is just a preidciton and you may be biased towards it, also historical figures may be outdated again giving false predictions.
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What is zero budgeting?
Applying to money which is needed and is asked for when needed. Prevents over spending.
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What are the difficulties with sales forecasting?
External factors aren't taken into account (economic changes).
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What different ways could a firm attempt to increase sales?
Advertising or reducing costs.
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What is profit?
Profit is money gained from selling a certain number of goods or a service greater than the cost of producing them.
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What is cash?
Money which you have physically and can be spent up front for day to day things.
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Why is cash vital in the short run, but profit is vital in the long run?
Cash is vital for day to day running, whereas profit are needed to make sure cash is coming in.
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What is working capital?
Money for day to day running within a business.
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What is a flat structure?
Each manager has many subordinates.
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What is a tall structure?
Lots of managers and small span of control.
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What is a centralisation structure?
Head office makes the decisions for the business.
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What is a decentralisation structure?
Branches have the decisions over suppliers etc.
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What is span of control?
How many subordinates a manager is responsible for within a work force.
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Taylor's Theory Principles of Scientific Managment
He beileved that it was the managers job to decide how each task should be completed most efficiently. Experiments should be done to find the best way, and he though people are motivated by economic interests.
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Herzberg's Two Factor Theory of Motivation
Hygeine factors such as money adn working conditions were important and if not right would create disatifaction, but didn't in themselves motivate people. Motivators such as recognition, achievement and successful training however motivated.
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Maslow's Hierarchy of Needs theory
He studied why people worked and ranked their needs. The basic needs at the bottom being critical and need to be met, then security needs, social needs, self esteem needs and finally self actualisation.
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Pros and cons of a firm having a flexible workforce?
Adv: reduction in disrutioption to production cuased by staff absences, greater employee motivation meaning better production Dis: more training required being costly and time consuming.
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What causes high labour turnover and the disadvantages?
A poor recruitment, ineffective motivation and managment, lowever wage rates, better transport links. The cost of recruitment of replacements may be costly and the time taken to get new staff. Also will the new employees fit in/ risk element.
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Advantages and disadvantages of training
Adv: Suboridinates learn news things/ ways to do things improving efficiency, but also motivates them as they enjoy learning Dis: however it is very costly for a business.
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Labour productivity=
Output per period / number of employees per period
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What are Financial incentives?
Monetary benefit offered to consumers, employees and organizations to encourage behaviour or actions which otherwise would not take place.
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What is Piecework?
Work paid for according to the number of units turned out.
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What is a Bonus?
A sum of money added to a person's wages as a reward for good performance.
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What is Profit sharing?
A system in which the people who work for a company receive a direct share of the profits.
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What is a Performance related pay?
A salary paid relating to how well one works.
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What is a Delegation?
The assignment of responsibility or authority to another person (normally from a manager to a subordinate) to carry out specific activities.
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What is a Consultation?
A discussion with someone about something that you are planning, in order to get their opinion or advice.
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What is a Empowerment?
A management practice of sharing information, rewards, and power with employees so that they can take initiative and make decisions to solve problems and improve service and performance.
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What is Team working?
Work done by several associates with each doing a part but all subordinating personal prominence to the efficiency of the whole"
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What is flexible working?
A way of working that suits an employee's needs, eg having flexible start and finish times, or working from home.
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What is Job enrichment?
A medium through which management can motivate self-driven employees by assigning them additional responsibility normally reserved for higher level employees.
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What is Job rotation?
The practice of moving employees between different tasks to promote experience and variety.
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What is High labour turnover?
A high proportion of a firm’s workforce that leaves during the course of a year.
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Labour turnover=
(Number of employees leaving during period / number of average employed during this period) x 100
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Other cards in this set

Card 2

Front

What is aesthetics in the design mix?

Back

How visually appealing something looks.

Card 3

Front

What is economy of manufacture in the design mix?

Back

Preview of the front of card 3

Card 4

Front

Advantages and disadvantages of labour intensive

Back

Preview of the front of card 4

Card 5

Front

Advantages and disadvantages of capital intensive

Back

Preview of the front of card 5
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