Business Studies GCSE Unit 3- Production, Finance and External Environment

What is Job production?
make one product at a time.
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State 2 advantages of Job Production
Unique/Made to a customer's particular order/Flexible factory layout/Premium Prices/Motivated workforce/Quality
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State 2 disadvantages of Job production
Time consuming/expensive/unpredictable demand/high wage cost/complicated production scheduling
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What is Batch production?
Batch: Make a variation of a product in a set number of groups, then change variation.
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State 2 advantages of Batch production
Meet Demand/Flexible/Can use machines
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State 2 disadvantages of Batch Production
May have surplus products and wastage/spend time between products/need space to store resources
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What is flow production?
Flow: Assembly Line, each person does a different part of the production process
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State 2 advantages of Flow production
Mass scale production/specialist workers/take advantage of TQM/just in time
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State 2 disadvantages of Flow Production
High start-up costs/if one process slows or stops, it can have a negative knock on affect/have to work hard to motivate workforce.
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What is process production?
A number of automated processes to create a finished product
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State 2 advantages of Process Production
Large amounts can be made/Automation means running costs kept low/need to pay less wages.
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State 2 disadvantage of Process Production
High Maintainance costs/requires all processes to be functioning/high start-up costs
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Name the 3 types of technology in production
CAD (computer aided design), CAM (Computer aided manufacture) and CIM (Computer integrated manufacture)
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2 advantages of technology in production
Large amounts can be made/productivity improves/labour costs fall/quality improves/flexible/repetitive and dangerous jobs can be done by computer.
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2 disadvantages of technology in production
could make workers redundant/may need to recruit new employees with skills to use new tech/re-training/big startup costs
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Advantage of TQM
Quality assurance takes place so issues can be addressed at the specific stage of production
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How do you calculate break even?
total fixed costs divided by (selling price minus variable costs)
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What is margin of safety?
Amount of sales above break even point
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What are fixed costs?
Costs that don't change as quantity produced rises
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What are variable costs?
Costs that change as the quantity produced changes
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What is Total Sales revenue and how to you calculate it?
Money coming into the business from sales. Selling price multiplied by number of sales
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What are total costs and how are they calculated?
The total costs of the business. Total fixed costs add total variable costs.
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Where is the break even point on a break even graph?
where total sales revenue and total costs meet.
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Name the 6 economies of scale
Technical, Managerial, Financial, Risk-bearing, Purchasing, marketing
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What is economies of scale?
Ocurs when average costs decrease as output increases
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What is the opposite of economies of scale and why does it occur?
Diseconomies of scale occurs when the average costs increase as output increase, often because a business is too big to be managed efficiently.
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What are the time periods of Short, Medium and Long term sources of finance?
Short: Less than a year. Medium: 1-3 years Long: 3+ years
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Name all 13 sources of finance
Overdraft/Trade Credit/Retained Profit/Sale of assets/Bank Loan/Lease/Hire Purchase/Grants/Owner's inverstment/cash in bank/mortgage/new partner/Share issue
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Name 2 internal sources of finance
Owner's investment/cash in bank/retained profit
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Name 2 external sources of finance
Overdraft/bank loan/mortgage/grants/trade credit/lease/hire purchase
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Where does the opening balance figure come from?
Closing balance of previous month
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How do you work out gross profit?
Sales revenue minus cost of product
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How do you work out net profit?
Gross profit minus expenses
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How do you work out gross profit/net profit margin?
GP/NP divided by sales revenue x 100
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What is a monopoly?
Where there's only one business dominating a market
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What is an oligopoly?
Where a few businesses dominate a market
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What is perfect competition?
Where there is lots of competition in a market
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What are the benefits of a competitive market?
Lower prices/better quality/more variety
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What are the drawbacks of a competitve market?
Businesses make less profit due to lower prices.
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What is FairTrade?
Where farmers get a fair price for their produce
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Benefits of FairTrade
Good reputation/helps local economy/can justify charging more for for products
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Drawbacks of FairTrade
More expensive/increased selling price may put of customers
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What is a social cost?
A problem for society caused by a business' actions
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What is a social benefit?
Benefit to society caused by a business' actions
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What is inward investment?
Where foreign firms invest in the UK
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What is the EU?
Group of european countries whose governments works together
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What is the Eurozone?
Eu countries using the Euro as a currency
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What is free movement of people?
People can move between EU countries without border checks
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What is Free Movement of capital?
Where Money can be used/moved across any EU country
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What is free movement of goods and services?
Goods/services can be moved and sold in any EU counrty
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What are common standards?
Labelling in the UK can be the same for a product in any country in the EU
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What is an advantage to businesses for being in the EU?
No tariffs/enlarged market/No quotas/common standarsbigger pool of people to pick from when recruiting
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What is a disadvantage to businesses for being in the EU?
More competition/foreign firms can come and put smaller UK businesses out of business
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How do you convert £ to $ and €?
Multiply by the exchange rate
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How do you convert $ and € to £
Divide by exchannge rate
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What is a strong pound, who is it good for and why?
Where you get more currency for £1, good for importers, more spending power for £1
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What is a weak pound, who is it good for and why?
Where you get less currecy for £1, good for exporters, you recieve the same amount of £££s but your products seem cheaper.
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What is globalisation?
Where firms rely on firms in other countries for customers/supplies
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Benefits of globalisation for UK
Consumer choice/lower prices/cheaper labour/larger market/economies of scale/more jobs/inward investment
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Drawbacks of globalisation for UK
Lower profits/Lower sales/business closure/loss of jobs
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Benefits of globalisation for developing countries
Jobs/Living standards (multinationals tend to pay higher wages)
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Drawbacks of globalisation for developing countries
Exploitation/Culture affected by global branding/Pollution
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Other cards in this set

Card 2

Front

State 2 advantages of Job Production

Back

Unique/Made to a customer's particular order/Flexible factory layout/Premium Prices/Motivated workforce/Quality

Card 3

Front

State 2 disadvantages of Job production

Back

Preview of the front of card 3

Card 4

Front

What is Batch production?

Back

Preview of the front of card 4

Card 5

Front

State 2 advantages of Batch production

Back

Preview of the front of card 5
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