Summer Induction Work
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1 Summer Induction Work Business Deadline: Monday 11th September The Hazeley Academy
2 Edexcel GCE Business Theme 1 Aims My SMART target to improve my knowledge is Knowledge/content Application/context Analysis Evaluation Product and market orientation Primary and secondary market research data (quantitative and qualitative) used to: o identify and anticipate customer needs and wants o quantify likely demand o gain insight into consumer behaviour Limitations of market research, sample size and bias Use of ICT to support market research: o websites o social networking o databases Market segmentation Market mapping Competitive advantage of a product or service The purpose of product differentiation Adding value to products/services Factors leading to a change in demand: o changes in the prices of substitutes and complementary goods o changes in consumer incomes o fashions, tastes and preferences o advertising and branding o demographics Market Research Market Positioning Demand
3 o external shocks o seasonality Factors leading to a change in supply: o changes in the costs of production o introduction of new technology o indirect taxes o government subsidies o external shocks The interaction of supply and demand The drawing and interpretation of supply and demand diagrams to show the causes and consequences of price changes Calculation of price elasticity of demand Interpretation of numerical values of price elasticity of demand The factors influencing price elasticity of demand The significance of price elasticity of demand to businesses in terms of implications for pricing Calculation and interpretation of the relationship between price elasticity of demand and total revenue Calculation of income elasticity of demand Interpretation of numerical values of income elasticity of demand The factors influencing income elasticity of demand The significance of income elasticity of demand to businesses Design mix: o function o aesthetics o cost Supply Markets Price Elasticity of Demand Income Elasticity of Demand Product/Service Design
4 Changes in the elements of the design mix to reflect social trends: o concern over resource depletion: designing for waste minimisation, re-use and recycling o ethical sourcing Types of promotion Types of branding The benefits of strong branding: o added value o ability to charge premium prices o reduced price elasticity of demand Ways to build a brand o unique selling points (USPs)/differentiation o advertising o sponsorship o the use of social media Changes in branding and promotion to reflect social trends: o viral marketing o social media o emotional branding Types of pricing strategy: o cost plus (calculating mark-up on unit cost) o price skimming o penetration o predatory o competitive o psychological Factors that determine the most appropriate pricing strategy for a particular situation: o number of USPs/amount of differentiation o price elasticity of demand o level of competition in the business environment Branding and Promotion Pricing Strategies
5 o strength of brand o stage in the product life cycle o costs and the need to make a profit Changes in pricing to reflect social trends: o online sales o price comparison sites Distribution channels Changes in distribution to reflect social trends: o online distribution o changing from product to service The product life cycle Extension strategies: o product o promotion Boston Matrix and the product portfolio Marketing strategies appropriate for different types of market: o mass markets o niche markets o business to business (B2B) and business to consumer (B2C) marketing Consumer behaviour how businesses develop customer loyalty Staff as an asset; staff as a cost Flexible workforce: o multi-skilling o part-time and temporary o flexible hours and home working o outsourcing Distinction between dismissal and redundancy Employer/employee relationships o individual approach Distribution Marketing Strategy Approaches to Staffing
6 o collective bargaining Recruitment and selection process: o internal versus external recruitment Costs of recruitment, selection and training Types of training: o induction o on-the-job o off-the-job Structure: o hierarchy o chain of command o span of control o centralised and decentralised Types of structure: o tall o flat o matrix Impact of different organisational structures on business efficiency and motivation The importance of employee motivation to a business Motivation theories: o Taylor (scientific management) o Mayo (human relations theory) o Maslow (hierarchy of needs) o Herzberg (two factor theory) Financial incentives to improve employee performance: o piecework o commission o bonus o profit share o performance-related pay Non-financial techniques to improve employee Recruitment, Selection and Training Organisational Design Motivation in Theory and Practice
7 performance: o delegation o consultation o empowerment o team working o flexible working o job enrichment o job rotation o job enlargement Leadership: o the distinction between management and leadership Types of leadership style: o autocratic o paternalistic o democratic o laissez-faire Creating and setting up a business Running and expanding/developing a business Innovation within a business (intrapreneurship) Barriers to entrepreneurship Anticipating risk and uncertainty in the business environment Characteristics and skills required Reasons why people set up businesses: o financial motives: profit maximisation and profit satisficing o non-financial motives: ethical stance, social entrepreneurship, independence and home working Survival Profit maximisation Other objectives: Leadership Role of an Entrepreneur Entrepreneurial Motives and Characteristics Business Objectives
8 o sales maximisation o market share o cost efficiency o employee welfare o customer satisfaction o social objectives Sole trader, partnership and private limited company Franchising, social enterprise, lifestyle businesses, online businesses Growth to PLC and stock market flotation Opportunity cost Choices and potential trade-offs The difficulties in developing from an entrepreneur to a leader Forms of Business Business Choices Moving From Entrepreneur to Leader
9 Edexcel Business (2015) GCE in Business (9BS0) Objective: To establish effective exam technique Activities (a) Using your personal learning checklist, create a glossary of 20 key terms that you will use as part of your course. You may use the Internet to help you, but your definitions should be in your own words. (1 hour) (b) Again, using your personal learning checklist, find a news article that relates to each topic that is listed. These articles should be compiled in a Word document or PowerPoint presentation and clearly labelled to show the topic(s) that they are related to. (2 hours) Assessment Extract - Business Culture at Google Google believes that it is really the employees who make Google the kind of company it is. It hires people who are highly intelligent and creative, and favours ability over experience. Although Google s employees share common goals and visions for the company, they come from a variety of different backgrounds and speak dozens of languages to reflect the global audience that Google serves. Google strives to maintain the open culture often associated with start-ups, in which everyone is a hands-on contributor and feels comfortable sharing ideas and opinions. In weekly meetings not to mention over or in the café Google s employees ask questions directly to executives about any number of company issues. The company s offices and cafés are designed to encourage interactions between employees both within and across teams, and to encourage conversation about work as well as play. Google wish to improve the productivity of their employees. The two strategies they are considering are either empowerment or using financial rewards. Evaluate these two strategies to increase labour productivity and recommend which one is most suitable for a business such as Google. (20 marks) Guidance A 20 mark answer will demonstrate accurate and thorough knowledge and understanding, supported throughout by use of relevant and effective use of the business behaviour/context. An effective response will use well-developed and logical, coherent chains of reasoning, showing a range of causes and/or effects. Arguments are fully developed. Quantitative and/or qualitative information is/are used well to support judgements. A full awareness of the validity and significance of competing arguments/factors, leading to balanced comparisons, judgements and an effective conclusion that proposes a solution and/or recommendations. For each strategy, you should define and explain what it is. You should then analyse why it may and may not increase labour productivity, whilst applying it to the business/context. It is really
10 important that you use counter arguments throughout your response, in order to develop your evaluation. All you points should be related to Google and the type of industry it operates in. You should then conclude by explaining which strategy you would recommend to Google and why. The recommendation made should be critiqued by explaining possible issues that the company may face if it follows the suggested strategy. (2/3 hours research time and maximum 1 hour to write up your essay) Useful Links All work must be submitted by Monday 11th September 2017
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