What is the relationship between mission & objectives? All objectives should be S M A R T. List 5 Business Objectives 1. WHAT IS BUSINESS?
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1 AQA A-Level Business Year 1 Unit 1 The Different Legal Forms of Business Type of Ownership Sole Trader Partnership Example Advantages Disadvantages What is the relationship between mission & objectives? All objectives should be S M A R T List 5 Business Objectives The Hierarchy of Objectives Mission Statements Corporate Aims Corporate ObjecEves FuncEonal ObjecEves Why would a business write a mission statement? The Importance of Profit Output 10,000 Units Private Limited Company (LTD) Public Limited Company (PLC) What is the formula for market capitalisation? Explain one reason why private individuals invest in shares. 1. WHAT IS BUSINESS? Price 5 per unit Fixed Costs 5,000 Variable Costs Profit 3 per unit Why is profit so important to a business? Explain how these external factors impact costs and demand Explain one influence on share prices. Why would someone set up notfor-profit business? Explain one reason why a business would change ownership? What is the difference between the public & private sector?
2 AQA A-Level Business Year 1 Unit 2 The Functions of Management O P D C Decision Trees Relaunch 2.5 M New product 6 M Do nothing 1 2 Success 0.7 Failure 0.3 Success 0.6 Failure M 0.5 M 12 M 2 M Benefits of Decision Trees Drawbacks of Decision Trees Management is the art of getting things done through Decision making always involves Influence How does it influence decision making? Types of Management & Leadership Style AutocraEc DemocraEc Key Features R R Un Op Business ObjecEves Ethics External Environment Resource Constraints Laissez- faire Tannenbaum & Schmidt Continuum AutocraEc Style DemocraEc Style 2. Managers, leadership & Decision-making Blake-Mouton Leadership Grid Examples of Stakeholders Stakeholder Mapping T S C S D What is the key to managing stakeholder relations?
3 AQA A-Level Business Year 1 Unit 3 The MARKETING MIX 7p s The main variables compromising a firms marketing strategy. An integrated marketing mix fits together to support the sale. PRODUCT USP Product Mix Boston Matrix Life Cycle Extension Strategy PRICE Skimming Penetration Leadership Taking Loss Leaders PROMOTION Advertising Branding Packaging Sales Promo Merchandising Personal Selling PR PLACE Distribution Channels Traditional Modern Direct PEOPLE PROCESS PHYSICAL ENVIRONMENT ELASTICITY OF DEMAND The responsiveness of demand to a change in a variable. How have developments in technology affected marketing functions? Price Elasticity of Demand Income Elasticity of Demand Price Rise Price Fall ElasEc Demand Revenue é ê Revenue é ê InelasEc Demand Revenue é ê Revenue é ê Interpreting MARKETING DATA +ve Correlation -ve Correlation Extrapolation 3. Decision Making To Improve Marketing Performance List three typical Marketing objectives Market Share How do you calculate the following? Sales Growth Niche Market List three methods of market segmentation MARKET RESEARCH MARKET Segmentation Mass Market Why does a business use confidence intervals? Market Growth Market Size Why do it? Types Examples
4 AQA A-Level Business Year 1 Unit 4 Efficiency Using fewer inputs to produce a given output IMPROVING Quality A quality product will satisfy customer needs. Quality Assurance TQM Managing Inventory (Stock) Increasing labour productivity Methods Difficulties Using Capacity More Efficiently How? Benefits of Improving Quality Using the key terms explain what this chart shows Use Technology Benefits Choosing the Right Mix of Resources L L C E Capital Intensive LEAN PRODUCTION Problems Labour Intensive Requires a committed and co-operative workforce focused on reducing waste. Explain one way of reducing waste. Consequence of poor quality 4. Decision Making To Improve OPERATIONAL Performance List three typical Operational objectives How do you calculate/explain the following? Labour Productivity Capacity Give three influences on the amount of stock held Explain how a business manages supply to match demand Managing the supply chain Businesses aim to have the right in the right at the right. This requires managers to decide to produce, to produce and to produce. Just-In-Time (JIT) Benefits Drawbacks How does efficiency lead to lower costs per unit? Unit Cost Capacity Utilisation
5 AQA A-Level Business Year 1 Unit 5 List three types of BUDGETS Calculate the variance Benefits of Budgets Cash Flow What is cash flow? Drawbacks of Budgets Gross Profit Margin Operating Profit Margin Profitability Revenue 200,000 Cost of Sales 147,000 Gross Profit Item Budget () Actual () Variance () Profit for the Year Margin Overheads 22,500 Sales Revenue 39,500 42,420 Fixed Costs 9,500 9,500 How is it different from profit? OperaEng Profit Profit for the Year 10,000 Total Costs 33,725 36,331 Profit/Loss 5,775 6,089 Formula for contribution Formula for break-even What is the margin of safety? Give two ways it could be improved Complete the table & the calculate the margins How could profitability be improved? Complete the cash flow forecast Spot the issues Item Jan Feb Mar Apr Cash In Cash Out Calculate break-even output Net Cash Flow Fixed Cost 10,000 BREAKEVEN 40 Label the break-even chart - Mark Break-even 35 - Shade profit & loss Costs & Revenues (000) Selling Price 60 Variable Cost Decision Making To Improve Financial Performance List three typical financial objectives Why set objectives? What could influence the objectives? Opening Balance 50 Closing Balance Sources of finance Retained Profit Selling Assets Equity Loans Advantages Disadvantages Monthly Output Debt Factoring Trade Credit
6 AQA A-Level Business Year 1 Unit 6 Motivational Theorists HR FLOW Organisational design 1 R _ & S _ Maslow Herzberg Taylor Mayo 2 3 T _ A & P Key Term DefiniLon 4 R _ & R _ Authority Span of Control Hierarchy DelegaEon CentralisaEon DecentralisaEon Job Design Hackman & Oldham Job Characteristics Model Financial Motivators Non-Financial Motivators How does managing the HR Flow help meet the HR objectives? What is the key to good employer-employee relations? Explain the value of changing job & organisational design. 6. Decision Making To Improve HR Performance List three typical HR objectives What are the benefits of fulfilling these objectives? Complete the table with the correct formula Analysing Human Resource Performance Labour Turnover Labour RetenEon Benefits Trade Unions Drawbacks Labour ProducEvity Hard HR Approach Soft HR Approach What could influence the objectives? Employee Cost as % of Turnover Labour Cost per Unit
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