Exam technique Knowledge Application Analysis Evaluation

Application USE THE INFORMATION YOU ARE GIVEN IN THE CASE STUDY! Think first about the: Products / services the business offers What size of business – eg Ltd, PLC Who are the competitors What is the business image / USP? Convenience, speed of service, quality, premium price, Brand NOT ENOUGH JUST TO MENTION THE COMPANY NAME!

Connectives Remember: Point Explain Expand Use connectives: However Because Depends on The most significant is Furthermore On the other hand But This leads to The probable result is This will affect Which will mean/ lead to Remember: Point Explain Expand

Product life cycle Extension strategy Research & Development

Sales revenue – Total costs = Profit Selling Price x Quantity Fixed costs + (Variable costs pu x quantity) Increase revenue Cut costs AND/OR Cheaper raw materials Cut wages or make redundancies Reduce marketing Cut back on investment eg training, new equipment etc Improve marketing eg more advertising Increase selling price Launch new or improved products

Boston matrix

BAR GATE STOCK CONTROL GRAPH Buffer stock

Breakeven chart showing reduction in costs Original breakeven is 80 units Reduction in costs means the business needs to sell less products to breakeven New breakeven is lower at 55 units

Breakeven chart showing increase in price Increase in price means the business needs to sell less products to breakeven New breakeven is lower at 40 units Original breakeven is 80 units

Calculating breakeven quantity: Fixed costs Selling price pu – Variable costs pu Calculating revenue at breakeven: Breakeven quantity x selling price Margin of safety: Actual output – breakeven output

Organisation chart Shows roles and responsibilities Line managers oversee work of subordinates

Chain of command – how instructions are passed down the hierarchy Organisation chart Chain of command – how instructions are passed down the hierarchy

Span of control – number of people reporting directly to a manager - eg Managing Director has 4 Organisation chart

Organisation chart Centralisation – most decisions made by senior managers Delayering – reducing costs by removing a layer of management Decentralisation – authority to take decisions is passed down the chain of command

Maslow’s Hierarchy of Needs Refer to Maslow’s theory when making any reference to motivation of staff Realise potential Promotion Team working Job security Fair pay

The 4ps of the marketing mix:

Do the right thing.... Paying workers a fair wage and good working conditions Paying fair prices to suppliers eg fair trade Supporting the local community and charities Paying suppliers promptly and giving them long-term contracts Protecting the environment by using renewable sources and minimising pollution

International trade – the buying and selling of products between countries Import protection – UK government measure to reduce quantity of foreign goods sold in UK Exports and imports Exchange rate: SPICED Strong Pound Imports Cheaper Exports Dearer Quotas – limits on the quantity of a product allowed into a country Tariffs – tax on imported products, that increases their price

From inside the business Where do businesses get their money from? Internal sources Sale of asset Retained profit Internal sources Outside the business From inside the business External sources Interest Share capital Overdraft Trade credit

Quality control Quality culture Kaizen Total quality Management Quality assurance

Quality control It is someone's job to inspect the products at various points in the production

Quality assurance The processes that ensure production quality meets the requirements of customers - Aims to achieve quality by organising every process to get the product ‘right first time’and prevent mistakes ever happening.

Quality control Quality assurance The job of an inspector The process where everyone one checks the products to ensure they are the correct standard

Staff training Meeting the needs of customers On time service Quality Dealing with complaints Innovation Spotting problems Going beyond expectations

Trade descriptions act Protects against: GIVING FALSE INFORMATION FAILING TO GIVE IMPORTANT INFORMATION ACTING AGGRESSIVELY Sale of Goods Act MATCH THE DESCRIPTION BE OF SUITABLE QUALITY FIT FOR PURPOSE

The Design Mix – 3 Elements FUNCTION How well a product works COST OF PRODUCTION The cheaper the better! A design that costs less to produce than rivals will give a business a competitive advantage, however a business may choose more expensive production if they are looking for quality APPEARANCE Stylist products are likely to sell more than plan products so appearance is very important in design

The communication process Anything that stops the message getting to the receiver is a barrier

Barriers to communication Physical Emotional Technical Knowledge

Remuneration – methods of pay Salary Share ownership FRINGE BENEFITS Remuneration – methods of pay Time rate Piece rate Profit sharing