OCR AS Business Studies Worksheets

Transcription

1 OCR AS Business Studies Worksheets No. Worksheet No. Worksheet 1 Accountability and Responsibility 51 Market v product orientation 2 Adding value 52 Marketing for AS 3 Aims and Objectives 53 Marketing mix 4 Break-even analysis 54 Marketing objectives and strategy 5 Break-even - changing the variables 55 Matching production to demand 6 Budgeting 56 McGregor's Theory X and Y 7 Budgets and variances 57 Motivation theory 8 Business ethics 58 Motivation - Using Financial Methods 9 Calculating percentages 59 Motives for entrepreneurship 10 Calculating profit 60 Operations for AS 11 Calculations for AS Opportunity costs 12 Calculations for AS Organisational structure 13 Capacity utilisation 63 Organisation and effective management 14 Cash flow difficulties 64 People for AS 15 Cash flow forecasting 65 Place (distribution) 16 Cash flow management 66 Price elasticity 17 Characteristics of entrepreneurs 67 Pricing decisions 18 Competition 68 Pricing methods 19 Competitiveness (and improving it) 69 Primary research 20 Contribution 70 Problems with sampling 21 Delegation, consultation & empowerment 71 Product differentiation 22 Difference between cash and profit 72 Product life cycle 23 Economies and Diseconomies 73 Product portfolio (Boston Matrix) 24 Evaluating a business opportunity 74 Productivity 25 External factors affecting small firms 75 Profit 26 External sources of finance 76 Promotion 27 Factors affecting demand 77 Purpose of marketing 28 Factors affecting supply 78 Quality management 29 Finance for AS 79 Recruitment and training 30 Fixed and variable costs 80 Reducing labour costs 31 Flotation 81 Remuneration 32 Franchises 82 Risk and uncertainty 33 Identifying a business opportunity 83 Safety margin 34 Improving profitability 84 Sampling and sampling methods 35 Income elasticity 85 Secondary research 36 Information Technology (IT) 86 Shares and shareholders 37 Internal and external constraints 87 Sole trader and company organisations 38 Internal sources of finance 88 Sources of finance 39 Investment appraisal 89 Stakeholders 40 JIT 90 Stock control 41 Job design and workforce motivation 91 Supply and demand 42 Job enrichment and rotation 92 Supply and demand - changes in 43 Kaizen 93 Technology and operations 44 Labour turnover 94 Working with suppliers 45 Leadership styles 95 Workforce performance 46 Lean management 96 Workforce planning 47 Management By Objectives 97 AS Unit 1 Revision 48 Market segmentation 98 AS Unit 2 Revision Market size, share and growth 99 AS Unit 2 Revision Market structure 100 AS Unit 2 Revision 3. Copyright: Ian and Claire Marcousé

2 1. Accountability, Authority and Responsibility 1. Fill in the gaps. is power that has been delegated down an organisation s hierarchy. The employee to whom the power is delegated is then to his/her boss for success or failure. The employee may be held to account if things go wrong. Nevertheless the for success or failure lies with the boss who delegated the power. Responsibility cannot be delegated, only authority. 2. Briefly explain why: 2.1 Responsibility cannot be delegated, only authority. 2.2 Accountability may be weakened if staff are answerable to more than one boss. 2.3 The delegation of authority to make decisions must be supplemented by authority over budgets and spending. 3. Analysing data. Look at this diagram of an organisational hierarchy, then answer the questions below: Managing Director Department A Department B Department C Assistant Manager Manager Manager Assistant Assistant Trainee Sales Sales Sales 3.1 Outline one potential problem of accountability in Department B. 3.2 Suggest two possible problems of authority within the organisation. 4. Tough, but crucial, questions. Write a brief answer to each. 4.1 When large organisations are investigated after a disaster, it seems that no one person feels responsible. Why may this be the case? 4.2 Why is the culture of the business of great importance when delegating authority?

3 1. ANSWERS Accountability, Authority and Responsibility 1. authority accountable responsibility 2.1 The person at the top is still responsible, because s/he has established the workplace culture and made the key appointments and decisions. 2.2 The junior employee can spread blame between the two bosses ( I didn t do this because Mr Jim told me to do that ). 2.3 Decision making power is useless without the resources to make things happen. 3.1 The manager of department B shares a subordinate with the manager of department A. This spreads authority and therefore undermines accountability Some managers have serious managerial responsibilities while others manage no-one. It looks as if some are much more powerful than others. 2. The Managing Director would probably struggle to have much authority within Department C. The M.D. is directly in charge of 3 departments and two assistants. S/he is unlikely to find the time to get to know the people within Department C. 4.1 If authority is delegated, the person at the top would rarely feel guilty if a subordinate did something wrong. Yet the junior employees feel guilt-free, because they feel that the bosses probably know every thing that s going on but don t put a stop to things that are being done wrongly. 4.2 The attitudes among staff are vital. Will staff who have challenging targets meet up with competitors to rig prices and markets (there have been a lot of cases of this, lately)? Successful delegation relies upon an positive culture.

4 2. Adding value 1. Missing words Adding value means creating a finished product that is worth more to the customer than the sum of the parts. At Starbucks, 25p of coffee beans, milk and flavourings turns into a selling price of The of value added pays for staff, the equipment, the sofas, the rent and still generates a generous. Adding value is the ultimate goal of Research and Development teams and marketing departments. It generates the surplus that pays the bills. The formula for calculating value added is: - bought-in goods and services. 2. Ways to add value (Match the points A H to the relevant product type or types) Product type Ways to add value Ways to add value 1. Car manufacturing A. Obtain a prestigious address E. Carry out the process faultlessly 2. Biscuit production B. Measure up, then make to fit F. Excellent design and styling 3. Running a private hospital C. Offer a short lead time G. Impressive, prestige packaging 4. Making wedding dresses D. Add a technical innovation H. Use low cost materials where they re not visible to the customer 3. Calculations 3.1 Tardew Car Dealers buys a 6 year old Fiesta for 700 cash. One car seat is replaced and a new exhaust fitted - the parts cost 105. After a thorough clean-up inside and out and a squirt of air freshener inside (materials cost: 5), the Fiesta goes onto the forecourt at 1,495 and is sold for 1,400 a week later. a) Calculate the added value b) Explain why this added value cannot be treated as pure profit. 3.2 Strength is a cure for baldness based on herbal medicines. It sells in bottles priced at 24 that provide enough for two weeks. A full cure is said to take one year, though the packaging says that only 50% of users will find the cure effective. Jenny Ireland, the inventor of Strength, has hired a well-known TV and film actor to promote the product on a series of TV commercials. The production process and costs of Strength are a closely guarded secret, but the materials themselves cost no more than 30p - the same as the packaging. Jenny often refers to the huge overheads of running the business, but with sales of 2 million bottles last year, no wonder she has just bought herself a Mercedes sports car. a) Calculate the i. value added per bottle ii. total value added in the last year b) Give one justification Jenny might find to defend the high price she charges for Strength. 4. Outline one example of: 4.1 Added value based upon deception or cleverness (such as Aero adds value by blowing air through chocolate) 4.2 Added value based upon a unique selling point (a USP) 4.3 TV advertisements you have seen recently that seem focused upon adding value

5 2. ANSWERS - Adding value p profit. Sales revenue (or price) 2A: 3 or 4 2B: 4 2C: 1,4 2D: 1,3 2E: 1,2,3,4 2F: 1,4 2G: 2 2H:1,2,3,4 3.1 Price 1,400 ( ) = a) i p = ii x 2m = 46.8 million 3.2b) There may be very high overheads. The 46.8 million is not profit; there are many other costs to consider, e.g. advertising, admin staff, R&D staff, office costs and so on 4.1 Easter eggs sometimes come in huge boxes, though the egg is disappointingly small 4.2 In 2007/2008 the only way you could get a really user-friendly (and glamorous) phone was to get an iphone 4.3 L Oreal: Because You re Worth It.