Row 1
An analytical tool that helps managers to choose and devise various product and market growth strategies
Ansoff's Matrix
An investment appraisal technique that calculates the total discounted cash flows, minus the initial cost of an investment project.
Net present value
The company that has the highest sales revenue of the whole market.
Market leadership
A modern adaptation of assembly line production whereby sets of tasks are completed by teams
cell production
According to Herzberg, job security, supervision and coordination, physical working conditions are examples of?
hygiene factors - that must be met to prevent dissatisfaction
Refer to an increase in the average costs of production as a firm grows due to factors beyond its control.
external dis-economies of scale
Refers to how many levels of responsibility are in a business
Levels of hierarchy
An annual financial statement that contains information on the value of an organisation’s assets, liabilities, and the capital invested by the owners.
The act of distinguishing a business or its products from rivals in the industry.
This theory explains that each worker should receive salary and fringe benefits that reflects their efforts.
Equity and expectancy theory
The growing integration and interdependence of the world's economies, causing consumers around the globe to have increasingly similar habits and tastes.
Globalisation
What are the causes of culture clashes in organisations?
Growth of firms and subsequent increased bureaucracy, mergers and acquisitions and change in leadership.
Refers to the cash or liquid assets available for the daily running of a business. It shows the funds that are available for a business to pay its immediate costs and expenditure eg raw materials, wages and paying suppliers.
Activities designed to discover the opinions, beliefs, preferences of potential and existing customers.
What is market research?
The concept of inter-generational equity, ie production enables consumption of goods and services today without compromising consumption for future generations.
sustainability
A method used by employer by closing the business in order to force workers to renegotiate or compromise.
Closure
Tariffs (customs duties), quotas, subsidies, embargo's, technological and safety standards
What are protectionist measures that governments can use to safeguard domestic businesses from foreign competitors?
A type of management based on objectivity, facts and empirical evidence
Scientific thinking management
Non-physical fixed assets that have the ability to earn revenue for a business, eg, brand names, goodwill, trademarks, copyright and patents.
What are intangible assets?
This refers to organisations being able to take advantage of another channel of distribution as well as another source of revenue, greater flexibility for organisations to be able to respond more quickly to competitors, reduced packaging, fewer overheads, reduced overheads and increased choice and convenience for customers.
What are the benefits of e-commerce?
When manufacturing or provision of a product relies heavily on machinery and equipment, such as automated production systems.
Capital intensive
What are the three accounts in the profit and loss account?
Trading, profit and loss and appropriation
Communication problems, added complexities, compliance costs, disclosure of information, bureaucracy and loss of control.
What are the disadvantages of being a public limited company?
Someone with decision making authority within the organisation and has responsibility for problem solving to achieve organisational goals
manager
A business could be making a loss but has plenty of cash, or it could be profitable but lack working capital.
What is the difference between profit and cash flow?
involves temporarily reducing price in an attempt to force rivals out of the industry as they cannot compete profitably. The strategy often stems from a price war, whereby firms compete by a series of intensive price cuts.
What is predatory pricing or destroyer pricing?
Availability, suitability and cost of land/labour, proximity to customers, access to raw materials, government incentive and limitations.
What are the quantitative reasons for a specific location of production?
formula for depreciation based on units of production
first step: determine the depreciation/unit
purchase cost minus scrap value divided by expected number of units over lifetime
second step:
depreciation/unit multiply by number of units produced