Intro to BM
The definition of a publicly held company.
an sell shares on the stock exchange without permission from other shareholders
owned by member
The definition of the chain of command
The chain of command refers to the formal line of authority through which orders are passed down in an organization.
State two external sources of finance.
Share capital; Loan capital; overdrafts;Trade credit; Crowd funding; leasing; microfinance providers; business angels
Define market orientation
A firm that is market oriented will look to the market to see what consumers need and want.
State two methods of production.
Job production
Batch production
Mass/flow production
Mass customization
State the formula of market share.
sales of business/sales of industry * 100%
Outline 2 features of tall organization
1.have many levels in the hierarchy.
2.Managers tend to have a narrower span of control.
Define Working Capital Cycle.
The working capital cycle is the time difference between the firm paying cash for its costs of production and receiving cash from sales to customers.
Outline the differences between Brand awareness and Brand development
Brand awareness is about being noticed, like a first impression, while brand development is the ongoing process of building a strong and positive reputation for your brand over time. Both are important for the success and recognition of a brand
State the formula of Margin of Safety.
Level of demand - Break even quantity
Outline two features of Cooperative.
Owned by members
operate in a socially responsible way
profits earned are shared between their members
Contrast wage and salary
Salaries are financial rewards set at a fixed annual rate but paid on a regular basis (e.g., fortnightly or monthly)
Wages are the reward for labour services, usually expressed as an hourly rate (time) or as a measurable quantity of output (piece rate).
Seeking preferential credit terms
Seeking alternative suppliers
Better stock control
Reduce expenses
Leasing rather than buying
State two types of pricing strategies
Cost plus (Mark-up) pricing, Penetration pricing, Loss leader pricing, Predatory pricing, Premium pricing, Dynamic pricing, Competitive pricing, Contribution pricing
State two features of JIC.
maintain large amounts of stock in case there are supply or demand fluctuations.
Flexible
Can speed up production if necessary.
No need to wait for delivery of stocks
Discuss one disadvantage of MNCs for the host country
unemployment
high competition causing local firms to collapse
repatriation of profit to home country
Discuss one ADV and one DISADV of Performance Related-Pay rewards
ADV: create incentive for staff to work better
fair as hard work is reward
DISADV: targets may be unrealistic
Non-financial motivators may be ignored
Discuss two reasons for budgeting.
Planning and guidance
Coordination
Motivation
Control
Discuss one ADV and one DISADV of premium pricing strategy
ADV: higher revenue
DISADV: smaller customer base
Discuss two advantages of Just-In-Time production.
Reduces costs of holding stock.
Working capital can be better used elsewhere.
Improves cash flow.
Firms can be more flexible in times of changing demand.