Corporate%Aims% FuncEonal%%ObjecEves% S M A … · What is the relationship between mission &...
Transcript of Corporate%Aims% FuncEonal%%ObjecEves% S M A … · What is the relationship between mission &...
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