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Transcript of 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8...

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Brand

Question List

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A name, term, design or symbol that identifies a sellers product and

makes it distinct

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Break-even point

Question List

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The number of units you need to produce / sell to stop making a loss

and start making a profit

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Cash Inflow

Question List

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Cash that comes in to the business, main source is from customers

buying products

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Design Mix

Question List

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The 3 main areas to be considered when designing a new product.

1) Aesthetics - How it looks2) Function - How it works

3) Economic - How much it costs to make

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Two ways of improving cashflow

Question List

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1) Destocking2) Reducing credit terms

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Ethics

Question List

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How morally a business conducts itself.  Sometimes doing the right thing costs money! 

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European Union

Question List

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Group of European countries who have come together to create a

single market

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Exports

Question List

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Goods produced in one country but sold in another

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Export subsidy

Question List

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Government policy to help encourage the export of goods

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Hierarchy

Question List

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The number of levels of management in an organisations

structure

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Imports

Question List

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Goods bought from another country

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Import protection

Question List

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Government restricts imports into their country

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Just In Time

Question List

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Stock arrives JUST when required

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Lead time

Question List

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The time between stock being ordered and arriving

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Margin of Safety

Question List

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Any sales above the break-even point is your margin of safety (or safety net)

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Marketing Mix

Question List

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Product, price promotion, place.  The elements to consider in order

to launch a product

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The 4 orientations of a business

Question List

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Market, sales, product, production

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5 levels in Maslow’s Hierarchy of needs

Question List

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Level 1 - Survival needsLevel 2 - Safety needsLevel 3 - Social needsLevel 4 - Self esteem needsLevel 5 - Self actualisation needs

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Maximum Stock

Question List

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The maximum quantity set for each order a company makes

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What are X managers in McGregor’s X/Y theory

Question List

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Strict, tight control

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Merger

Question List

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Where two businesses join together to form a new business e.g. PC

World and Currys

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Minimum stock

Question List

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The minimum level of stock a company must have in order to

keep trading

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4 stages in the product life cycle

Question List

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Introduction, growth, maturity, decline

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Re-order level

Question List

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When this level of stock is reached, the company must place their next

order

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Research and Development

Question List

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Investing time creating and designing an innovative product

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Share capital

Question List

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Money obtained through the sale of shares

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Sustainability

Question List

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The responsible management of resources.  For instance using renewable energy sources like solar power instead of fossil fuels like oil

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Takeover

Question List

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Where one business buys at least 51% of another business

in order to control it

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Quality control

Question List

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Checking finished products for problems or defects at the end of

the production process

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Quality Assurance

Question List

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Monitoring and evaluating quality throughout the production process

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Venture Capital

Question List

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Money invested into a business by business angels or "dragons"

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3 internal sources of finance

Question List

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1) Retained profits2) Owners funds3) Sale of assets

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2 ways to improve profit

Question List

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1) Increase price2) Reduce costs

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Advantage of customer service

Question List

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Get repeat businessIncrease sales

Gain an advantage over competitors

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Disadvantage of recycling waste

Question List

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Costs increase

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Trade descriptions Act

Question List

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Goods must be as described

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Span of control

Question List

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The number of people you are responsible for

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Internal communication

Question List

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Communication between employees

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External communication

Question List

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Communication between employees and individuals outside the business

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Formal communication

Question List

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Communication through recognised channels

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2 methods of informal communication

Question List

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1) Gossip2) Meetings

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3 different payment methods for workers

Question List

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1) Flat rate2) Commission3) Profit sharing4) Share ownership5) Piece rate

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Give an example of a pressure group

Question List

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GreenpeaceFathers for justiceTescolopolyAmnesty International

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2 advantages of a single european market

Question List

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1) No barriers to trade2) Access to more labour

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Operating (Net) Profit

Question List

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= Gross Profit - Expenses

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Making a Profit

Question List

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Objective for all firms in the private sector except charities. Profit can be used to expand the firm (retained) or paid to owners as a reward for risking their money.

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Question List

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Red = fixed costBlue = sales revenueGreen = total costs

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Advantages of using break even charts

Question List

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1 Helps planning2 Identifies how much a firm has to sell to make a profit

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Disadvantages of using break even charts

Question List

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1 Only a forecast!2 Selling price may have to fall if competition is strong3 Fixed or variable costs may go up/down e.g. rent increase.

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Formula for break even output

Question List

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= Fixed Cost(Price – Variable Cost)


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