Operations
What are 2 performance objectives for operations?
Quality, Speed, Dependability, Flexibility and Cost
What are the factors that influence customer choice?
Psychological, Sociocultural, Government, Economic.
What are the four elements of the HR cycle?
Acquisition, Development, Maintenance and Separation.
What is working capital?
the funds available for the short-term financial commitments of a business. Day to day operating
What is an advantage of outsourcing.
Access to skills/resources lacking within the business.
What is quality management?
Processes that a business undertakes to ensure consistency, reliability, safety and fitness of purpose of product.
What is an example of consumer law?
Competition and Consumer Act 2010.
What are extrinsic rewards?
those given or provided outside the job.
What is the current (working capital) ratio?
currents assets over (divided by) current liabilities
What are implied conditions?
unspoken and unwritten terms of a contract.
What is the difference between established technology and leading edge technology?
established (technology that has been developed and widely used for a long time) - Examples include: barcoding and point-of sales, computer-integrated manufacturing and computer aided design.
leading edge (the most advanced or innovative technology at a particular point of time) - Examples include: robotic tech, social media and apps
What is puffery?
Exaggerated claims
What are indicators?
Performance measures used to evaluate the organisational or individual effectiveness.
What does a current ratio of 2:1 mean?
(Current Assets/Current Liabilities)
A business is a positive position as they are able to cover their liabilities and still have assets left over
What is factoring?
A business sells their accounts receivable to an external party for a lower value, who themselves now have the responsibility to receive the debt
What is one inventory management strategy?
LIFO, FIFO, JIT
What is the difference between cost-based pricing and market-based pricing?
Cost-based pricing is a pricing method that involves purchasing a product and then adding a mark up?
Market-based pricing involves setting prices based off supply and demand - whatever the market is prepared to pay
What are 2 elements of a well designed job?
Task, challenge, flexibility, resources, social interaction, opportunity for achievement and ongoing development.
What is the 'Costs of Goods Sold' COGS equation?
Opening Stock + Purchases - Closing Stock
What are best practice businesses?
Businesses that are seen as the leading business in a particular industry
What are 2 change management strategies?
- Communicating with employees
- Using change agents
- Rewards offered to encourage staff to engage with change
- Allow employees to be actively involved in the change processes
What is price skimming?
When a business charges the highest possible price for their product during the introduction stage of its lifecycle to maximise consumer interest
Name all forms of debt financing
- Overdraft
- Commercial Bills
- Factoring
- Mortgage
- Debentures
- Unsecured Notes
- Leasing
What is hedging?
The process of minimizing the risk of currency fluctuations.