Business Org
State and describe the 4 sectors of business.
Primary production: this involves acquiring raw materials. For example, metals and coal have to be mined, oil drilled from the ground, rubber tapped from trees, foodstuffs farmed and fish trawled. This is sometimes known as extractive production.
Secondary production: this is the manufacturing and assembly process. It involves converting raw materials into components, for example, making plastics from oil. It also involves assembling the product, eg building houses, bridges, and roads.
Tertiary production: this refers to the commercial services that support the production and distribution process, eg insurance, transport, advertising, warehousing and other services such as teaching and health care.
Quaternary sector is an improved form of tertiary sector as it involves the services related to the knowledge sector, which includes the demand for the information- based services like taking the consultancy from tax managers, statisticians and software developers.
What is a check on the skills and qualifications of all existing employees.
Workforce Audit
List all three marketing mix
price ,product ,promotion ,place ,people ,process, physical evidence
1. Hire Purchasing
2. Leasing
3. Mid-term bank loan
list five of the production methods:
Batch production
Flow production and mass production
Mass customization
Cell production
What are the pros and cons of a partnership?
Advantages:
two heads (or more) are better than one
your business is easy to establish and start-up costs are low
more capital is available for the business
you’ll have the greater borrowing capacity
high-caliber employees can be made partners
there is an opportunity for income splitting, an advantage of particular importance due to resultant tax savings
partners’ business affairs are private
there is limited external regulation
it’s easy to change your legal structure later if circumstances change.
Disadvantages:
the liability of the partners for the debts of the business is unlimited
each partner is ‘jointly and severally’ liable for the partnership’s debts; that is, each partner is liable for their share of the partnership debts as well as being liable for all the debts
there is a risk of disagreements and friction among partners and management
each partner is an agent of the partnership and is liable for actions by other partners
if partners join or leave, you will probably have to value all the partnership assets and this can be costly.
How to calculate labor turnover.
number of employees leaving in 1 year / average number of people employed X 100
An inward-looking approach that focuses on making products that can be made ,or have been made for a long time and then trying to sell them.
product orientation
Define the term 'contribution per unit'.
Contribution of each unit of sale to the recover the fixed cost.
Outsourcing
What is the Ansoff Matrix used for?
Market Penetration. Market Development. Product Development. Diversification.
Define hard HRM and soft HRM
Hard HRM- An approach to managing staff that focuses on cutting costs, e.g. using temporary and part-time employment contracts, offering maximum flexibility but with minimum training costs
Soft HRM- An approach to managing staff that focuses on developing staff so that they reach self-fulfillment and are motivated to work hard and stay with the business
Define predatory pricing or destroyer pricing
Deliberately undercutting competitors prices in order to try to force them out of the market
Give a limitation of a long payback period.
- High interest payment
- risk (eg./ impacts from external environments)
What is the name of a community to develop processes and structures of current and future members to maintain a healthy community
Social sustainability
State the differences between external and internal growth.
Internal growth strategies involve innovation effort that is mostly incremental in nature - by definition internal means create new value that optimizes the existing business model. Innovation programs like internal brainstorming, internal crowdsourcing, etc are tapping to internal staff and their inherit company assumptions hence ideas are general more incremental in nature.
External growth Strategies involve innovation effort to explore potential new business models. Innovation programs like external intellectual property, external brainstorming (ie Design Thinking agencies like IDEO), external crowdsourcing (eg hackathon), etc are tapping to new mindsets and have no inherit company assumptions hence ideas are general more transformative in nature.
How to improve worker productivity based on F.W. Taylor and scientific management? Please list 3.
Define product position map or perception map
A group that analyses consumer perceptions of each of a group of competing products in respect of two product characteristics
Evaluate the investment appraisal 'average rate of return'.
Benefits:
- consider risk
- A long payback period means high interest payment.
- quick and easy to calculate.
- used to eliminate projects that give returns too far into the future.
Limitation:
- doesn't measure the overall profitability of a project.
- Time is not considered.
What is the measurement of the level of labor and/or capital efficiency of a business by comparing its level of inputs with the level of its output
Productivity
Explain why high inflation rate could be bad for the company?
High inflation stymies major investment. When inflation rises materially above the federal target, investor confidence in the economy is reduced. This causes punitive interest rates on loans as investors seek a return on their investments. This is because they want compensation for the increased risk of lending money.
List all types of organizational cultures
person culture, task culture, power culture, role culture, entrepreneurial culture
List three types of marketing strategies and tactics.
Targeted marketing ,outbound marketing ,inbound marketing .
How to calculate gearing ratio? And what does the number indicates?
Long-term liability / capital employed x 100%
The value compares some form of owner equity to funds borrowed externally by the company (percentage of how much money the company borrowed are long-term source of finance.
P: Little ongoing maintenance, significant economies of scale, low labor cost, fast response time, consistent quality, planning.
C: High initial cost, breakdowns, dependent upon mass demand, inflexible, demotivating.