A3 Mind Maps for Unit 1 and 2 (1)

7/25/2019 A3 Mind Maps for Unit 1 and 2 (1)

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Unit 1&2

WARM UP


2/18

Questions.......

What is meant by? (2 marks)

Explain two methods/ ways (4- marks)

!ow "ould? #e"ommend? ($ marks)

%se the "ase study& when you state somethin'ba"k it up with a su''estion or the business.

$ marks *ssess ad+anta'es anddisad+anta'es& e+aluation


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4/18

%nit ,., tartin' abusiness

#easons or settin'up a business& readthe "asewn boss& keeppro0ts& es"ape

employment&pursue an idea&so"ial enterpriseo"ial enterprise-a business set upto help so"iety

not 1ust or pro0t

ap in the 3arket(i"he)5ene0ts less"ompetition& 'rowin'

market& potentialhi'h sales

6ran"hise7 %sin' anexistin' ran"hisor nameand produ"tsAdv - existingreputation, brand

name, trainingsupport, nationalmarketing supportDis- balance of powerbetween franchisorand franchisee, givesome prots away

*ims andob1e"ti+e

ur+i+al3ake a pro0t8ustomersatisa"tion5e ethi"al3arket sharetakeholders

employees&suppliers&"ustomers &"ommunity&mana'ers

5usiness plan redu"erisk& la"k o experien"e&need "apital 9: 8ant 'uarantee su""ess owners maybe unsure

how to write one

ole ;rader ADV Quick, handle all

decisions, keep allproftD! Unli"itedlia#ilit$, stress%ulorkload, "a$ fndfnance di'culto"ation 3aximise re+enue& minimise

"osts *+ailability& "ompetitors & employees& "osts&


5/18

%nit ,.2 3arketin'3arket resear"henables a 0rm to0nd out about itsmarket& "ustomersand "ompetitors


6/18

%nit ,.C

6inan"e

!ources o% fnanceWhat do they needfnance or?ank +oan*9@ *d+i"e/

instalments9: - :nterest3a"il$ and 3riends*9@ 6lexible payments9: 8onDi"t/erdra%t*9@ 8an re'ularly useit9: !i'h"har'es/interestMort)a)e

*9@ instalments/spread "ost9: - interestrade credit*9@ 6inan"e period9: Extra debt

0oern"ent 0rant*9@ 6ree

8al"ulations#e+enue ellin' pri"e x units sold8osts @ariable "osts F 6ixed "osts


7/18

9emand orlabour

ature othe 1ob

Gobad+ertiseme

ntele"tion *ppointment :ndu"tion

!owmany?

6ull- orpart-time

Whathours?

When tostart

What will betheir dutiesandresponsibilities?

G59E8#:


8/18

%nit ,.J operations

Gob produ"tion makin'one oA spe"ialisedprodu"t or ea"h"ustomer*9@- meet "ustomerreBuirements/ "har'ehi'h pri"e9: slow to make/labour "oats/ material"ost hi'h

5at"h produ"tion 'roupso identi"al items that

pass throu'h diAerentsta'es o the produ"tionpro"ess*9@ >ower unit "osts/make more o the sameitem

9: lose somespe"ialisation

perationally eK"ient Leepin' "osts low butmaintainin' a 'oodstandard

Ways to be moreoperationally eK"ient?

EK"ient ma"hinery 3oti+ated staA

3inimum waste EAe"ti+e mana'ement

*9@ 8an "har'e lowerpro"ess

8han'es in te"hnolo'y7*9@ >ower unit "osts/ 5etter

"ommuni"ations/ Qui"ker/ 6lexible9: 8ost/ trainin'/ demoti+ation/

Quality

*ssuran"e "he"kin'produ"ts/ser+i"es

8ustomerser+i"e 5eore 9urin' *ter

8onsumerprote"tion7

ood should

be 0t orpurpose.

8ustomersprote"ted bylaw

:8; E"ommer"e

*9@ and 9: to"ustomers

*9@ and 9: to business


9/18

271 he usinessor)anisation

#easons orrowth ;o in"rease

sales ;o in"rease

market share ;ake

ad+anta'es oe"onomies os"ale

#eputation

in"reases

#easons a'ainst'rowth >ose "ontrol 3ay lose a

personalser+i"e with"ustomers

#isk :n"reased

workload

3ethods or expansion r'ani" 'rowth

expansion within the

business :nor'ani" 'rowth

expansion by mer'in'or takin' anotherbusiness.r'ani" 'rowth

pen more bran"hes/

laun"h a new produ"t ellin' on the internet

(e"ommer"e) ell 6ran"hises

:nor'ani" rowth!oriIontalinte'ration(;*LE@E#)

Disadanta)es88onDi"ts betweenstakeholdersE. 8ustomers mi'ht

not be happy

Employees mi'htlose their 1obs

hareholders ha+eto sell shares& lose"ontrol

Priate +i"ited .o"pan$ 4ltd56eatures 3ore status than a sole trader >imited liability ri'inal owners be"ome

dire"tors #aise share "apital rom pri+ate

Pu#lic +i"ited .o"pan$ P+. ell shares to the publi" on

to"k ex"han'e !i'her status/ reputation


10/18

271 he usinessor)anisation

8han'in' aims andob1e"ti+es


11/18

272 Marketin): P;s 4Marketin) Mi65

3arket #esear"h in%nit 2 is limited. *s a'rowin' businessthey re"ei+e marketresear"h throu'h

8ompetitors&"onsumer eedba"k&"onta"t withprodu"ers/suppliers$roduct portfolio sellin' a ran'e o

produ"tsenefts88ustomer spendsmore9iAerent tar'etmarket

9i+ersiy i produ"tailin'Dra#acks o% lar)eport%olio3any mana'ers ha+eto be employedoss leader


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272 Marketin): P;s 4Marketin) Mi65

Ai"s o%pro"otion :norm

"ustomer 8reate brand

ima'e upport


13/18

>ar'e businessesneed extra 8*(money) to expand

#etained oan or mort'a'e5orrowin' moneyrom the bank&

mort'a'e or aproperty

ellin' unwantedassetsellin' an asset su"has a buildin' to 'ain

"apital. 8ould

27< 3inance

o interest paido loss o "ontrol

hare "apital does not tobe repaid

o interest

o loss o "ontrol>ower interest or lar'er

"ompanies

o loss o "ontrol6inan"e raised but "anstill use the asset i

leased


14/18

27< 3inance6inan"ialstatements*"id test #atio 8*-sto"k/8>

;est liBuidity. 6or e+er N,assets how mu"h liability


15/18

27: People in usiness

/r)anisational structure8 3akes "lear who is

responsible or whi"hdepartment

!ow employees "an"ommuni"ate

*llows layers omana'ement

o t$pes6lat stru"ture >essle+els o mana'ement&more span o "ontrol

all structure morele+els o mana'ement&less span o "ontrol

+a$ers o%"ana)e"ent8umber odiAerent

mana'ers in anor'anisation

!pan o%control8;he number o

employeesea"h mana'eris responsibleor.

6lat ad+anta'esQui"ker "ommuni"ation tothe top as less le+els omana'ement

3ore responsibility to theworkers moti+ated bythis

;all *d+anta'es6ewer staA to "ontrolenior mana'ers make de"isions less risk;rainin' "osts ewer


16/18

27: People in usiness

9e"entralisationor'anisation 9e"ision makin' spread

a"ross middle mana'ers >o"al mana'ers may

ha+e better knowled'e 3oti+ation 'i+in'

responsibility or lowermana'ersRecruit"ent

ta'e , *nalysethe 1obta'e 2 Gobdes"ription/ 1obspe"i0"ationta'e C *d+ertise:nternally or

externallyta'e 4 *ppli"ationta'e J;estin'/:nter+iew

*d+anta'es o taAtrainin' 8ope with

"han'es :n"rease

produ"ti+ity #edu"e "han"e o

poor Buality taA moti+ated

9isad+anta'es otaA trainin' 8ost Workers trained

and not workin' Employees mo+e

on withBuali0"ations'ained

taA appraisal 9one between

mana'ers andemployees


17/18

/perations

Ai"s o%operations8EK"ien"y >ittlewasta'e& low "osts &helps to "ompete

!i'h Quality 3aintain standards&1ustiy pri"e

Production Methods6low 8ontinuousprodu"tion line3eatures8 >ar'e s"ale&usually one produ"t&

spe"ialisation o labour&9i+ision o labour

Diision o% la#our85reakin' a 1ob into smallertasks repeated by ama"hine or worker

Adanta)es o% 3PE"onomies o s"ale8omputer/ma"hinerya""ura"y>ess sto"k need to be

held

Disadanta)es o%3Pet up "osts


18/18

/perations

enefts o%)roth6inan"ial market

share& re+enue&pro0tperations >ower unit "osts(E)

Main -cono"ies o%scaleulk u$in) lar'erorders with dis"ountsechnical more eK"ient

te"hnolo'y and "omputers!pecialist "ana)ers aAord to employ spe"ialista mana'ers3inancial bene0t romlower interest rates onloans

Main Disecono"ies o%scalePoor co""unication>ar'e businesses ha+e

layers o mana'ement diK"ult to pass throu'hthe whole businessPoor Motiationome workers eelunin+ol+ed

Poor coordination8 l d i i

Main causes o%

poor @ualit$

A3 Mind Maps for Unit 1 and 2 (1)

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