Nature of Business
What are the four stages of the business life cycle?
Establishment, growth, maturity and post-maturity
What are the four key business functions?
Operations, marketing, finance and human resources
1-199 people
What does RUDE strategy stand for?
Read the question twice
Underline syllabus content
Directive of the question
Essentials (of the questions)/Eliminate multiple choice options
Recognise and name.
Identify
What is the difference between a good and service?
A good is a tangible item that can be purchased, whereas a service is an intangible product performed through expertise and human skill.
Outline the three approaches to management.
Classical - hierarchical, autocratic, planning, organising, controlling
Behavioural - teams, participative/democratic, leading, motivating, communicating
Contingency - adapting to changing circumstances
Identify 3 critical issues in business success and failure.
importance of a business plan
management – staffing and teams
trend analysis
identifying and sustaining competitive advantage
avoiding over-extension of finance and other resources
using technology
economic conditions
What is the structure of the business report?
Title
Executive Summary
Body paragraphs with subheadings and numbers
Recommendations (may be in body paragraphs)
Conclusion
Sketch in general terms; indicate the main features of.
Outline
List five different stakeholders in a business.
- employees
- managers/owners
- environment
- wider society
- shareholders
- customers
Describe a business goal.
Ideas: profits, market share, growth, share price, social, environmental. Must be specific.
What are 5 influences in establishing an SME?
Personal qualities, sources of information, business idea, establishment options, market, finance, legal, human resources, taxation.
What are the four steps in an executive summary?
1. A statement of the report brief from the client.
2. A summary of what the report covers, in the same order as the full report.
3.Recommendation/s
4.Reasons or justification to support the recommendations
Provide reasons in favour.
Recommend
What are all the ways of classifying a business? What are the different categories underneath them?
Size - micro, small, medium, large
Location - local, national, global
Industry - primary, secondary, tertiary, quaternary, quinary
Legal structure - sole trader, partnership, private company, public company, government enterprise
Describe the four Ps of the marketing mix.
Price
Product
Place
Promotion
What are 3 of the main roles of SMEs?
Providing employment (70% of private sector)
Creating jobs (80% in 10 years)
Producing goods and services (50% of products each year)
Research and development (20% of total money)
Earning large profits
What are the three steps in writing a recommendation sentence?
State what the business should do using modal language
Use a connective to show cause and effect
Explain the reason why the business should follow your recommendation
Show how things are similar or different.
Compare
Ext: economic, financial, geographic, social, legal, political, institutional, technological, competitive situation, markets
Int: products, location, resources, management and business culture
Identify a strategy for each of the four business functions to increase profits.
Operations:
Finance:
Marketing:
Human resources:
What is the formula for calcluating break-even quantity?
(Fixed cost)/(Price - Variable Cost)
What are five words that should not appear in your business reports?
I
We
Money
People
Go well
Make a judgement based on criteria.
Determine the value of.
Evaluate