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1_A-level Business Studies

katie.langridge English 25 cards

Cards in this deck (25)

  1. 1What is a budget?Budgets forecast earings and spending for the coming year. They help managers control their spending. Each budget contains financial targets - objectives which help motivate staff monitor performance. The master budget is the total budget for the whole business.
  2. 2Corporate AimsThese are long term targets of a business. They provide the direction for the business and there businesses performance is measured against them.
  3. 3Functional ObjectivesThese are short term objectives of each major business function e.g. Finance, HR etc. They help to achieve corporate objectives.
  4. 4Corporate ObjectivesMedium term targets of a business. They should be SMART, and help to achieve corporate aims. Broken down further into functional objectives.
  5. 5Common Corporate Objectives-Survival
    -Profit
    -Growth
    -Meeting Stakeholder needs
    -Market share/ Position
    -Diversification
  6. 6SMART ObjectivesShort term and medium term objectives should be SMART.
    SMART stands for Specific, Measurable, Achievable, Realistic and Timebound.
    Example "I want to increase the sales revenue of the company by 10% within 12 months.
  7. 7Why is setting objectives important?-Setting clear objectives at all levels reduces the risk of failure
    -However, it does not remove it completely
    -Staff have a common purpose.
    -Objectives are used to decide on strategies
    -Businesses should constantly review their strategies, to see if it will still achieve their objectives.
  8. 8What is a strategy?The way/ method that will be used to achieve the aim.
  9. 9What is a corporate Strategy?Corporate strategy is the direction and activities of a business over the long-term. Corporate strategy should give a business competitive advantage. A good strategy makes sure resources are used wisely, and will also keep stakeholders happy. It is set at senior level.
  10. 10What is functional strategy?This is the plan of action for each functional area which will achieve their functional objectives. Set by each individual department.
  11. 11Why would a business want to globalise1. Increase cust
  12. 12Why would a business not want to globalise?1. Exposed to more competition
    2. Large investment required, meaning a barrier to small firms
    3. Legislation differences
    4. Language differences (communication diseconomies)
    5. Cultral differences.
  13. 13Strategic Decisions-Made up by business owners or directors
    -Usually expensive and high risk
    -Once made, difficult to reverse
    -Concern long-term direction of business
    -Help the business achieve its corporate objectives
    -E.g changing business ownership
  14. 14Tactical Decisions-Medium-term decisions made by senior managers
    -Used to implement strategic decidions
    -E.g launching a new product
  15. 15Operational Decisions-Routine day to day (short-term) decisions made by middle or junior managers
    -E.g What time to close that day
  16. 16Internal constraints on decision making-Leadership and Corporate Culture
    -Ethical Position
    -Availible Resourses
    -Company Policy
    -Staff
  17. 17External Constrants on Decision Making-Economy
    -Pressure Groups
    -Competition
    -Technology
    -Legislation
  18. 18Scientifically made decisions-Businesses gather data; analyse it; devise best strategy; implement and review it
    -Involves techniques like break even analysis, investment appraisal, ratios and decision tree
    -Advantages = rational thinking so less biased, good analysis and planning
  19. 19Intuitively made decisions-Making decisions on the basis of instinct; hunch; feeling; experience
    -Advantages = No need to collect and analyse lots of data, takes less time and is less costly.
  20. 20What is a mission statementThe vision, values and long-term aims of the business.
  21. 21Name 1 positive and 1 negative of a mission statement.Positive = -gives staff a focus point to encourage them to work towards the aims
    -Gives customers faith in the organisation
    Negatives = -Businesses don't have to prove whats in them, so could just be used as a PH tool.
    -Business is constantly changing, so it will get outdated quickly
  22. 22SWOTIts a strategic analysis tool, it identifies and analyses the internal and external factors facing the business
    STRENGTHS
    WEAKNESSES
    OPPORTUNITIES
    THREATS
  23. 23Advantages of SWOT-Can take action to maximise strengths and opportunities and minimise weaknesses and threats
    -E.g A strong brand name may mean a high selling price which could reduce the cash flow problems
    -Can lead to an competitive advantage
  24. 24Disadvantages of SWOT-Takes time money and resources e.g staff/managers
    -Opportunities and threats might not happen as predicted
    -Strenghts and weaknesses can be very subjective
    -Its useless if you don't act on it
  25. 25—

Information

Description
Businesses Studies
Created by
katie.langridge
Views
12
Tags
businessalevelbudgets
History
  • Created by katie.langridge · Nov 9, 2015
  • Copied by katie.langridge · Nov 9, 2015
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