EDEXCEL AS Economics & Business Studies Worksheets

Transcription

1 EDEXCEL AS Economics & Business Studies Worksheets No. Worksheet No. Worksheet 1 Adding value 52 Labour and capital intensity 2 Aims and Objectives 53 Leadership styles 3 Barriers to entry and exit 54 Lean management 4 Branding 55 Macroeconomic change 5 Break-even analysis 56 Market mapping 6 Break-even - changing the variables 57 Market segmentation 7 Business ethics 58 Market size, share and growth 8 Business plans 59 Marketing objectives and strategy 9 Calculating percentages 60 McGregor's Theory X and Y 10 Calculating profit 61 Monopoly and monopsony 11 Calculations - Revision for Unit 1 62 Motives for entrepreneurship 12 Capacity utilisation 63 Niche v mass marketing 13 Cash flow forecasting 64 Opportunity costs 14 Changes in demand and supply 65 Organisational structure 15 Changes in price 66 Organisation and effective management 16 Characteristics of entrepreneurs 67 Price elasticity 17 Company culture 68 Primary research 18 Competition 69 Problems with sampling 19 Competitive advantage 70 Product differentiation 20 Competitiveness 71 Productivity 21 Degree of competition 72 Profit 22 Delegation, consultation & empowerment 73 Profit margins 23 Difference between cash and profit 74 Purpose of marketing 24 Different market structures 75 Quality management 25 e-commerce and the long tail 76 Real and nominal values 26 Economic cycle and GDP 77 Reasons for bigger businesses 27 Economies and diseconomies of scale 78 Recruitment and training 28 Effects of inflation 79 Reducing labour costs 29 Effects of market v product orientation 80 Research & Development (R&D) 30 Effects of unemployment 81 Risk and uncertainty 31 Environmental factors 82 Safety Margin 32 Estimating sales 83 Sampling and sampling methods 33 Evaluating a business opportunity 84 Secondary research 34 Evaluating a business plan 85 Shifts in demand and supply curves 35 Exchange rates 86 Shock 36 External factors affecting small firms 87 Short lead times 37 External sources of finance 88 Small is beautiful 38 Factors affecting demand 89 Social cost 39 Factors affecting supply 90 Sole trader and company organisations 40 Fixed and variable costs 91 Sources of business ideas 41 Government decisions and business 92 Stakeholders 42 Government spending and taxation 93 Start-up failure 43 How to reduce uncertainty 94 Start-up objectives 44 Identifying a business opportunity 95 Start-up success 45 Income elasticity 96 Structural change 46 Interest rates 97 Supply and demand 47 Internal and external constraints 98 Test marketing 48 Internal sources of finance 99 TQM and company culture 49 Just In Time 100 Unemployment and inflation 50 Job enrichment and rotation 101 AS Unit 1 Revision. 51 Knowledge economy 102 AS Unit 2b Revision.

2 1. 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

3 1. 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.

4 2. Aims and Objectives 1. Fill in the gaps: Business success relies upon a clear vision of the (goal/role) being pursued. The starting point is to agree on the, which present the goals in a general way. To achieve these general aims, it helps to set, which are more precise targets of what should be achieved and by when. A strategy can then be agreed on how best to achieve these objectives. The logical order, then, is: AIMS OBJECTIVES STRATEGY 2. Theory into practice A student was asked about her aims and objectives. She replied: My aim is to be rich and my objective is to make my first 250,000 by the time I m 25. a) Identify two features of her objective that make it more likely to be effective b) Which of the following seem plausible strategies for achieving her objective: i. Go to University, get a top class degree, than get a well-paid job in the City of London ii. Leave school at 18 and open a retail business with the potential for many branches nationally iii. Leave school and get a job as a trainee manager for Barclays Bank 3. Data response question S. Davis Ltd is a web-based travel agent owned by two brothers that has grown hugely in the past two years. The staff level has risen from 11 to 92 and the number of customers from 213 to 1,143! Suggest three ways in which S. Davis Ltd might benefit from clear aims and objectives Place an A (aim), an O (objective) or an S (strategy) by each of the following statements: 4.1 To diversify our business 4.2 To make home-delivery, authentic Italian pizza available to every home in Britain 4.3 To allocate 400,000 to developing a brand new website 4.4 To increase market share to 8% by the end of next year 4.5 To achieve brand awareness among the majority of the target market within three months 4.6 To finance growth by gaining investment from a venture capital company 4.7 To get promotion to the Premiership within 5 years

5 2. ANSWERS Aims and Objectives 1. goals aims objectives 2a) Quantified and with a clear timescale 2b i. and ii. only 3.1 Helps in delegating authority if all share a clear view of the future 3.2 May help motivate staff, especially if the aims are visionary or inspiring 3.3 Should avoid the business getting side-tracked, eg opening High Street branches 4.1 A 4.2 A 4.3 S 4.4 O 4.5 O 4.6 S 4.7 O