Corporate%Aims% FuncEonal%%ObjecEves% S M A … · What is the relationship between mission & objectives? ... Corporate%Aims% Corporate%ObjecEves% ... Elasticity of Demand

1. WHAT IS BUSINESS?

The Different Legal Forms of Business

Type  of  Ownership  

Example   Advantages   Disadvantages  

Sole  Trader  

Partnership  

Private  Limited  Company  (LTD)  

Public    Limited  Company  (PLC)  

What is the relationship between mission & objectives?

What is the difference between the public & private sector?

List 5 Business Objectives

Why is profit so important to a business?

* * * *

Explain how these external factors impact costs and demand

Name: AQA A-Level Business – Year 1 – Unit 1

The Hierarchy of Objectives

Mission  Statements  

Corporate  Aims  

Corporate  ObjecEves  

FuncEonal    ObjecEves  All objectives should be…

S M A R T

What is the formula for market capitalisation?

Output   10,000  Units  

Price   £5  per  unit  

Fixed  Costs   £5,000  

Variable  Costs   £3  per  unit  

Profit  

The Importance of Profit

Explain one reason why private individuals invest in shares.

Explain one influence on share prices.

Explain one reason why a business would change ownership?

Why would a business write a mission statement?

Why would someone set up not-for-profit business?

“Management is the art of getting things done through ______”

Name: AQA A-Level Business – Year 1 – Unit 2

2. Managers, leadership & Decision-making

The Functions of Management

Key  Features  

AutocraEc  

DemocraEc  

Laissez-­‐faire  

Examples of Stakeholders * * * * * * *

What is the key to managing stakeholder relations?

P

O

D

C

Types of Management & Leadership Style

Tannenbaum & Schmidt Continuum

T S C S D

AutocraEc  Style                        DemocraEc  Style         Blake-Mouton Leadership Grid

Decision Trees

Decision making always involves…

* R * R * Un * Op

Relaunch  

Do  nothing  

New  product  2  

Success  

Failure  

Success  

Failure  

1  0.7  

0.3  

0.6  

0.4  

£8.5M  

£0.5  M  

£12  M  

£2  M  £6  M  

£2.5  M  

Benefits of Decision Trees

Drawbacks of Decision Trees

Influence   How  does  it  influence  decision  making?  

Business  ObjecEves  

Ethics  

External  Environment  

Resource  Constraints  

Stakeholder Mapping

Name: AQA A-Level Business – Year 1 – Unit 3

3. Decision Making To Improve Marketing Performance

MARKET RESEARCH

List three typical Marketing objectives

* * *

How do you calculate the following?

Market Share

Sales Growth

Market Growth

Market Size

Why do it? Types Examples

Interpreting MARKETING DATA+ve Correlation -ve Correlation Extrapolation

Why does a business use confidence intervals?

ELASTICITY OF DEMANDThe responsiveness of demand to a change in a variable.

Income Elasticity of Demand

Price Elasticity of Demand

Price  Rise   Price  Fall  

ElasEc  Demand   Revenue    é ê   Revenue    é ê      

InelasEc  Demand   Revenue    é ê   Revenue    é ê      

List three methods of market segmentation

* * *

Niche Market Mass Market

The MARKETING MIX – 7p’s The main variables compromising a firms marketing strategy. An integrated marketing mix fits together to support the sale.

MARKET Segmentation

PRODUCT

PRICE

PROMOTION

PLACE

PEOPLE PROCESS PHYSICAL ENVIRONMENT

How have developments in technology affected marketing functions?

USP Product Mix Boston Matrix Life Cycle Extension Strategy

Skimming Penetration Leadership Taking Loss Leaders

Advertising Branding Packaging Sales Promo Merchandising Personal Selling PR

Distribution Channels Traditional Modern Direct

Name: AQA A-Level Business – Year 1 – Unit 4

Efficiency

LEAN PRODUCTION

How does efficiency lead to lower costs per unit?

Just-In-Time (JIT)

Requires a committed and co-operative workforce focused on reducing waste. Explain one way of reducing waste.

Increasing labour productivity

Using fewer inputs to produce a given output

4. Decision Making To Improve OPERATIONAL PerformanceList three typical Operational objectives

* * *

How do you calculate/explain the following? Labour Productivity

Capacity

Unit Cost

Capacity Utilisation

Benefits Drawbacks

IMPROVING Quality Managing Inventory

Methods * * *

Difficulties * * *

Choosing the Right Mix of Resources L___ L_____ C______ E_________

Using Capacity More Efficiently – How?

Use Technology Benefits * * *

Problems * * *

Capital Intensive Labour Intensive

A quality product will satisfy customer needs.

Quality Assurance TQM

Benefits of Improving Quality

Consequence of poor quality

(Stock)

Using the key terms explain what this chart shows…

Explain how a business manages supply to match

demand…

Give three influences on the amount of stock held

* * *

Businesses aim to have the right ____ in the right _____ at the right ____. This requires managers to decide ____ to produce, ____ to produce and ___ ____ to produce.

Managing the supply chain

Name: AQA A-Level Business – Year 1 – Unit 5

Advantages   Disadvantages  

Retained  Profit  

Selling  Assets  

Equity  

Loans  

Debt  Factoring  

Trade  Credit  

Profitability

List three types of

* * *

£  

Revenue   200,000  

Cost  of  Sales   147,000  

Gross  Profit  

Overheads   22,500  

OperaEng  Profit  

Profit  for  the  Year   10,000  

Gross Profit Margin

Operating Profit Margin

Profit for the Year Margin

5. Decision Making To Improve Financial PerformanceList three typical financial objectives

£ £ £

Why set objectives?

What could influence the objectives?

0            100            200            300            400            500            600            700            750  Monthly  Output    

 40    35    30    25    20    15    10    5    0  

Costs  &

 Reven

ues  (£000)    

Label the break-even chart -  Mark Break-even -  Shade profit & loss

Formula for contribution

Formula for break-even

What is the margin of safety?

What is cash flow?

How is it different from profit?

Complete the table & the calculate the margins

How could profitability be improved?

Item   Budget  (£)   Actual  (£)   Variance  (£)  

Sales  Revenue   39,500   42,420  

Fixed  Costs   9,500   9,500  

Total  Costs   33,725   36,331  

Profit/Loss   5,775   6,089  

Calculate the variance

Selling  Price   £60  

Variable  Cost   £35  

Fixed  Cost   £10,000  

Calculate break-even output

Benefits of Budgets Drawbacks of Budgets

Cash Flow

Give two ways it could be improved…

* *

Item   Jan   Feb   Mar   Apr  

Cash  In   150   300   400   400  

Cash  Out   400   400   350   350  

Net  Cash  Flow  

Opening  Balance   50  

Closing  Balance  

Complete the cash flow forecast… Spot the issues

BREAKEVEN

BUDGETS

Sources of finance

Name: AQA A-Level Business – Year 1 – Unit 6

R  _  _  _  _  _  _  _  _  _      &      S  _  _  _  _  _  _  _    

Key  Term   DefiniLon  

Authority  

Span  of  Control  

Hierarchy  

DelegaEon  

CentralisaEon  

DecentralisaEon  

HR FLOW

T  _  _  _  _  _  _  _  

A  _  _  _  _  _  _  _  _      &    P  _  _  _  _  _  _  _  _    

R  _  _  _  _  _  _  _  _  _    &  R  _  _  _  _  _  _  _  _  _  _  _          

1

2

3

4

How does managing the HR Flow help meet the HR objectives?

Organisational design

Financial Motivators

Non-Financial Motivators

6. Decision Making To Improve HR Performance

List three typical HR objectives

* * *

What are the benefits of fulfilling these objectives?

What could influence the objectives?

Hard HR Approach Soft HR Approach

Analysing  Human  Resource  Performance  

Labour    Turnover  

Labour    RetenEon  

Labour    ProducEvity  

Employee  Cost  as  %  of  Turnover  

Labour  Cost    per  Unit  

Complete the table with the correct formula

Job DesignHackman & Oldham Job Characteristics Model

* * * * *

* * * * *

Motivational Theorists

Herzberg Maslow Taylor Mayo

Explain the value of changing job & organisational design.

What is the key to good employer-employee relations?

Trade Unions

Benefits Drawbacks