Business Management

• Primary
• Secondary
• Tertiary

A business is a group of people who use the resources available to make a product or provide a service

A name, aims, rules, resources and an image

• Make a product
• Or
• Provide a service

This is normally a family run business whereby members of the family are entitled to a share of the profits. These shares are not sold on the stock market and the liability of the shareholders is limited to the value of their shares

A company that operates in a number of different countries

A Franchise is an existing business that allows people to but into it, using their name and reputation under which to operate

Wealth is created at each stage of the production chain by adding value to the product and then making a profit

• To provide a public service eg NHS
• For charitable reasons eg Comic Relief
• To make a profit
• To develop good ideas

An Entrepeneur is someone who not only had an idea for a business but gets all the resources needed to make the dream a reality. They are a risk taker as the venture may not necessarily be a success

A person or a group of people who have an interest in a business organisation and in the way in which it is run or managed

• Customer satisfaction
• Wages and salaries for the community which in turn results in a higher standard of living
• Contributions made to the local community eg sponsoring local sports events
• Improved roads
• New schools

• Air pollution
• Noise pollution
• Water pollution
• Traffic congestion
• Larger class sizes
• Health problems

• The links between departments
• The lines of authority - who is in charge of who
• The lines of responsibilty - who is responsible for who
• Visitors the layout of the company

many

a few

• Marketing
• Human Resources
• Operations/Production
• Finance

• Field
• Desk

• Recruitment
• Training
• Conditions of Service
• Welfare

• They want to be their own boss
• They do not like their present job
• They think they can earn more money working for themselves
• They have lost their existing job eg been made redundant
• They have an idea for a new product or service
• They have an interest or hobby they would like to make money from
• They have skills but cannot find a job and decide to set up on their own eg painter, electrician, etc

• Product
• Price
• Place
• Promotion

• Introduction
• Growth
• Maturity
• Decline

Fixed assets are things the company will own for a long period of time, eg vans and buildings, whereas current assets are things the company will own for a short period of time, eg cash and stock

• Land
• Labour
• Capital
• Enterprise

A Business Plan is a outline prepared by a business to show how they are going to attempt to achieve their objectives

• The Business
• The Personnel
• The Product
• The Market
• The Premises
• Profit Estimates
• Cash Flow
• Finance

• Easier to manage
• Workers feel they belong
• Flexibility
• Fewer union problems
• More jobs

The advantages of being big

• Management
• Financial benefits
• Marketing
• Buying advantages
• Technical
• Recruitment and Training

• Better roads and transport facilities
• Colleges offering training courses in their speciality
• Local labour will train in relevant subjects to gain work
• Training agencies in the area will gain expertise and advice all firms in the industry

• Communication worsens
• The standard of quality can fall
• Loss of customers

• Congestion
• Pollution
• Damage to the environment

Internally and Externally

• Horizontal
• Vertical - backward and forward

• Market control
• Market power
• Control of raw materials
• Internal Economies of Scale
• Rationalisation
• Diversification

• Planning
• Estimating the demand for its product or service

A plan of how much money you have and how you will spend it

All the money coming in and going out of the business during a specific period of time

The trading, profit and loss account and The Balance sheet

Money taken out of the business by the owner(s) for their own personal use

• To:
• compare the firm's performance in one year to that of the previous year
• compare the firms performance with other companies in the same industry
• highlight any problem areas that need attention
• highlight areas of improvement which they can continue to concentrate on

Current assets / Current liabilities : 1

Current assets - stock / Current liabilities : 1

Net profit / Capital x 100

Gross profit / Sales x 100

Net profit / Sales x 100

Cost of Sales / Average Stock*

*Average Stock = opening + closing stock / 2

When the economic activity within a country begins to slow down

• Quality control
• Quality assurance
• TQM
• Human Resources
• Competitiveness

• Offering quality goods
• Keeping control on prices
• Advertising
• Maintaining a good reputation
• Delivering goods on time
• Late opening
• Market research to see what consumers want

• Falling sales
• Reduction in profits
• Bad reputation
• Reduction in sales
• Low staff morale

The Business Cycle is the patterns of ups (booms) and downs (slumps) over a period of time in the economy - the level of economic activity

• The demand for products in increasing
• Profits are rising from previous years
• Profits are better than the industry adverage
• Wage increase for workers
• Renown for producing quality products
• Market share is increasing

• Shares
• Debentures
• Morgage
• Loan
• Hire Purchase
• Factoring
• Overdraft
• Leasing
• Trade Credit
• Small Business Loans Guarantee Scheme

The Central and Local Government

The term used to explain how the world has almost become one big market through better communication eg fax, e-mail, etc

• To earn money
• To have security (money) for the future
• To have friends and be part of a team
• To feel good about what we do and gain pleasure from our job
• To develop skills

• UNSKILLED WORKERS (Maunal or Blue Collar)
• have no formal qualifications
• few worl related skills
• limited work experience

• SKILLED WORKERS (Professional or White Collar)
• have formal qualifications
• have several skills
• accept responsibilites

• Prepare a job analysis
• Job Specification
• Person Specification
• Advertise Jobs
• Design an application form
• Application Recieved
• Interviews
• Training

The tasks to be carried out and all of the main details relating to a particular job

The particular skills, qualities or talents needed for the job. These qualities can be split into essential or desirable

A two way discussion between employees at different levels of an organisation eg a manager and a supervisor OR a receptionist and the head receptionist

Both the employers and the employees have the opppurtunity to discuss issues and concerns. This improves communication and working relations within the company

• Word processing
• Databases
• Spreadsheets
• Graphics
• Internet
• Communication (Networks - LAN's and WAN's)
• Intranet
• Video-conferencing
• Fax
• Mobile phones
• Teletext
• Electronic mail

• By:
• generating information very quickly
• providing accurate information
• storing large amounts of information

• Television
• Radio
• Newspapers
• People
• Computers
• The internet
• Phone calls
• Videos
• Books Reports
• Memos

• Accurate
• Relevant
• Timely
• Meaningful
• Cost effective
• Up to date

• Verbal/oral
• Written
• Visual
• Electronic

• Job
• Batch
• Line/Flow
• Just in Time (JIT)

Mechanisation is when workers are replaced by machines but they still play a role in production whereas Automation is then workers are totally replaced by machines