Business Management

Business Management

1. Mrs. Shaw's work

   • Business Cycle
     • A business sells goods/a service for money
     • Uses the money to pay others
     • Other spend money on the business
     • Businesses have more money to spend on goods
   • Factors of Production
     • Capital
       • Anything man-made including machinery and money
     • Enterprise
       • Ideas, risk-taking, decision making etc
     • Labour
       • Human workers who are paid wages
     • Land
       • Resources from the land that are part of raw materials
   • Added Value
     • Farmer harvests some wheat
       • A baker buys the grain and makes bread
         • Baker then sells the grain to the consumer for a higher price so that he gains a profit

2. Types of business

   • Sole Traders
     • A Sole Trader is run by one person
     • It is usually a small business
     • It has unlimited liability
   • Partnerships
     • A Partnership is run by 2-20 people
     • It has unlimited liability
     • It is usually a small company
   • Limited Companies
     • Public Limited
   • Public Funded organistaions
     • These are usually funded by the Government
     • They are run by multiple people
   • Charities
     • Run by multiple people
     • Employees are not payed

3. Product Portfolio

   • I.e. when a business has a number of products on the market
   • This is when brand loyalty has been gained
   • When a product has been released, the busines may use that logo for their next product, e.g., coca-cola > diet coke

4. Product Line Extension

   • This happens when a product has reached saturation or decline
     • The product is then introduced to do somthing new or have a new label etc

5. Product Endorsement

   • This is when a celebrity is used to advertise the product

6. Research

   • Desk
     • Desk research is finding information on what product/service consumers want through second hand information
       • For example, newspapers, the internet, the radio, etc
   • Field
     • Field research is finding information on what product/serviceconsumers want through first hand information
       • For example, surveys, intervies, focus groups, etc.

7. Branding and Own Label Branding

   • Branding
     • High cost advertising
     • Manufacturer and Retailer are different companies
     • More attractive packaging
     • Advantages
       • Brand Loyalty
       • Higher price means more money earned per product sold
   • Own Label Branding
     • Low cost advertising
     • Manufacturer and Retailer are the same company
     • Less attractive packaging
     • Advantages
       • Loyal customers may also be loyal to brand
       • Lower price = more customers
   • Expensive
   • Cheap

8. Production

   • Job
     • Job production is when a product is produced using labour (and sometimes minor machinery) usually made by hand
   • Batch
     • Batch production is when a product is produced by an equal split of machinery and labour
   • Flow
     • Flow production is when a product is produced using machinery (and sometimes minor labour) 24/7

9. Intensive production

   • Capital
     • Advantages
       • Can work 24/7
       • Can do things a person can't
     • Disadvantegs
       • Initial cost high
       • IT expert required
   • Labour
     • Advantages
       • Can do things Machinery can't
     • Disadvantages
       • Has to be paid with a wage/salary
       • Staff Moral

10. Keeping excess stock

    • The cost for storge space
    • No space for new stock