Unit 7

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YM

Cards (12)

  • The three key organisations are flat, hierarchical and matrix
  • The four product portfolios are cash cow, dog, car and question mark.
  • porters five forces include rivalry, threat of new entry, buyer bargaining power, supplier bargaining power and threat of substitute.
  • Ansoff matrix includes market penetration, market development, product development and diversification.
  • Aims and Objectives of a business are the goals the business wants to achieve and the steps they need to take to achieve them.
  • Competitors are businesses that are in the same market industry as you. You can identify their strengths and weaknesses, this can drive your business idea.
    1. Business idea - name, legal structure, general concept
    2. Aims and objectives (SMART)
    3. Market (Research) - size, customers, competitors
    4. Location (where and how).
    5. Staff/ Personnel
    6. Buying and production (Suppliers? Cost of production?)
    7. Premises and equipment (Computer? Machinery)
    8. Financial forecasting (break-even cash flow)
    9. Marketing mix 4Ps (Price, promotion, product, place)
    10. Sources of Finance (How? Where?)
    • Business plan is a way to create a successful business - model
    • Helps you identify your strengths and weaknesses of your business idea.
    • A good business plan helps you manage risks.
    • Provides you with financial planning.
    • Helps you get loans
  • the implications of resources includes: human resources, physical resources, financial and time.
    • Gross Profit Margin: (Gross Profit / Revenue) * 100
    • Net Profit Margin: (Net Profit / Revenue) * 100
    • Return on Capital Employed (ROCE): (Operating Profit / Capital Employed) * 100
    • Current Ratio: Current Assets / Current Liabilities
    • Quick Ratio (Acid Test): (Current Assets - Inventory) / Current Liabilities
  • Break-even analysis is used to determine the point at which revenue equals costs. The formula is:
    • Break-Even Point (in units): Fixed Costs / Contribution Margin per Unit
    Where:
    • Contribution Margin per Unit: Selling Price per Unit - Variable Cost per Unit
  • Revenue - Cost of Goods Sold = Gross Profit