Competitive Environment Determinants of competitiveness: Not all markets are the same, different markets have different market structures which are comprised of behaviour and characteristics of which are listed below The number and relevant size of business in the...
Cash-Flow Forecasting A Forecast is a prediction of what may happen in the future A cash Flow Forecast is therefore a prediction of the inflows and outflows of cash in the future Businesses use past figures and experiences to predict forecasts A Cash Flow statement...
Production and Efficiency Job Production- This is when a one-off item is produced such as a tailored suit + Can charge higher price, + work more interesting for staff Cost per unit is high, finding staff with sufficient skills hard Batch Production- creating a small...
Productivity Factors impacting productivity: Specialisation and Division of Labour Education and Training Motivation of Workers Working Practices Labour Flexibility Capital Productivity – Investment in new technology Labour-Intensive Production - reliant on...
Efficiency Factors influencing Efficiency: Introducing standardisation Outsourcing Relocating – Lower rents and better transport links Downsizing – Reducing capacity which allows for a leaner more competitive production system - - profitable business no longer...
Legislation Consumer Protection: These laws are designed to protect customers from being misled. For example: Sale of Goods Act (requires goods to be of the purpose advertised) Trade Description Act (the good must do what is advertised) Employee Protection:...
Sources of finance These are how businesses get money to finance growth, to overcome working capital / cash flow problems etc. Choosing the right source of finance - Businesses need to consider several factors when deciding what sources of finance to use: External...
Internal Finance Internal Finance: From inside the business e.g. directors - No time limit Internal Sources - Retained Profit Cheap and flexible Technically profit is shareholders, so they need convincing its used effectively Usually okay infrequently Idea retained...
External Finance External sources - From outside the business External Sources of Finance – Long Term Share Capital Limited companies can issue shares Shareholders receive dividends Shares can be - Preference shares – fixed % dividend - Ordinary shares – risk capital...
Financial planning - Sales forecasting Purpose of sales forecasting: -Right number of staff with correct skills -Marketing budgets -Profit forecasts and budgets -Production planning Factors affecting sales forecasts: -Consumer trends (they can be short lived, making...
Budgeting Quick revise A Budget is a forecast of costs and / or incomes Costs and Incomes must relate to a particular purpose Individual budgets must be based on a variety of different elements Individual budgets are brought together into a master budget which is for...
Business Liability Unlimited Liability is where owners are liable for business debts, aka can have their personal assets seized to clear the debt. Sole traders & Partnerships. Limited Liability is where owners can only lose what they have invested in the business,...
Business Planning Increases the likelihood of business success and is required in some finance applications such as a bank loan. The business plan shows how the business will develop over time – vision for the business and potential profitability. A well written...