Beruflich Dokumente
Kultur Dokumente
Aims / goals
General statements of what a business intends to achieve. Precise details of those intentions are set out in objectives How a business attempts to compete successfully in a particular market
Corporate objectives Objectives that relate to the business as a whole. Usually set by top management. Corporate strategy Cost leadership Concerned with the overall purpose and scope of the business activities A business strategy concerned with aiming to be the lowest-cost producer in an industry. Usually requires exploitation of economies of scale
Functional objectives Set for each major business function designed to ensure that the corporate objectives are met Shareholder value SWOT analysis Where shareholders earn a return from their investment which is greater than their required rate of return Assessment of the internal strengths and weaknesses of a business and the external opportunities and threats that the business needs to consider Similar to objectives. Targets are often set at an individual or team level
Targets
Debentures Debtor days Depreciation Discount factor Dividend Dividend yield Going concern Goodwill
Investment appraisal
Payback period
BUSS3 Key Words Profit centres A separately-identifiable part of a business for which it is possible to identify revenues and costs and calculate a relevant profit The sustainability of profit from one period to the next. Higher quality profit is profit that is likely to be repeated rather than affected by oneoff items The amount of profit earned in a period (absolutely measure) or rate of profit earned compared with revenue (relatively measure) Amounts set aside to cover future costs or liabilities (e.g. redundancies, business closures, legal disputes) Interpretation of financial performance by calculating and interpreting ratios Spending on day-to-day operation of the business e.g. paying for materials, staff costs, management salaries, advertising The issue of new shares to existing shareholders in order to raise new finance. The new shares are usually offered at a significant discount to the existing share price to encourage take-up A measure of the percentage return that a business earns from the capital employed in the business. Often referred to as the primary ratio The amount invested into a company by shareholders The rewards earned by shareholders = dividends paid to them + any increase in the value of their shares A liquidity ratio that looks at how often a business rotates its stock during a year Amounts that a business owes to its suppliers Amounts that are owed to a business from its customers The net amount invested by a business to finance day-to-day trading: usually calculated as current assets less current liabilities
Profit quality
Profitability
Rights issue
ROCE
Share capital Shareholder returns Stock turnover Trade creditors Trade debtors Working capital
Marketing Strategies
Ansoffs Matrix A strategic model for helping a business analyse the relationship between general strategic direction and suitable marketing strategies A term for various measures of central tendency, including the mean, mode and median Skills, competences, resources and other advantages that enable a business to out-perform its competition
Customer relationship The process of building a long-term, profitable relationship management (CRM) between a business and its customers
The relatively risky strategy of trying to enter new markets with new products (from Ansoff matrix) The use of trends established by historical data to make predictions about future values A growth strategy where the business seeks to sell its existing products into new markets - e.g. exporting (from Ansoff matrix) The actions that management intend to take via the marketing mix in order to achieve marketing objectives A growth strategy where a business aims to introduce new products into existing markets (from Ansoff matrix) The way in which the marketing function tries to create an image or identity in the minds of the target market Changing the marketing mix for a product to appeal to a different market segment Techniques for estimating the likely demand (revenue and volume) for a product in future periods The market segment or segments which a business is attempting to enter with the chosen marketing mix Launching a new product or service in a limited part of the target market in order to gauge the viability of the product and assess the most appropriate marketing mix A general direction in which something tends to move
Trend
Operational Strategies
Capital intensity Efficiency Industrial inertia Innovation Just-in-time Kaizen The extent to which production or operations depend on investment in and use of capital i.e. machinery, IT systems, buildings etc A measure of the ability of a business to achieve the required level of production whilst minimising the use of resources Where a business decides to stay in its existing location despite potentially better locations being available to it Putting an new idea or approach into action the commercial exploitation of ideas Method of lean production where production resources arrive at the moment they are required rather than being held in stock An approach to lean production and quality assurance. Involves encouraging employees to constantly seek and implement small changes in order to improve quality and efficiency. Continuous Improvement. The extent to which production or operations depend on investment in and use of labour i.e. people, training The level of output per unit of labour The period of time between an order being placed and being received An approach to management that focuses on cutting out waste whilst still ensuring quality. Where a business has work done for it overseas Where a business has work done for it by someone else Cost savings that arise from buying in bulk or from a more powerful relationship with a supplier due to increased output A restriction on the volume or quantity of a good that can enter or be sold in a market (form of trade barrier) The size or output of a business, best measured relative to that of direct competitors Part of outsourcing where another business is used to provide part of the production process A tax levied on imports to increase their price compared with domestic goods (form of trade barrier) Reductions in unit costs arising from the effective use of technology
Labour intensity Labour productivity Lead-time Lean production Offshoring Outsourcing Purchasing economies
Hard HRM
Peripheral workers