weak areas

• What is a decision tree?

  A diagram mapping decisions and outcomes
• How do decision trees help businesses?

  They visually display choices and consequences
• In a decision tree, what might the branches represent?

  Choices like "Launch" or "Don't Launch"
• What is extrapolation?

  A method to estimate unknown values
• Why is extrapolation useful for businesses?

  It helps predict future sales and costs
• If sales increase by 10% annually, what can be predicted using extrapolation?

  Next year's sales based on past trends
• What is a confidence interval?

  A range likely to contain the true parameter
• What does a 95% confidence interval indicate?

  You can be 95% sure the true value lies within
• If a survey shows average spending of £50 with a 95% confidence interval of £45 to £55, what does this mean?

  The true average spending likely falls within that range
• What are flexible operations?

  The ability to adapt production processes quickly
• What is mass customization?

  Combining low costs of mass production with customization
• How does a car manufacturer exemplify mass customization?

  By allowing customers to choose features and colors
• What are the benefits of flexible operations and mass customization?

  Enhanced customer satisfaction and competitive advantage
• What does "producing to order" mean?

  Producing goods only after receiving an order
• What is an advantage of producing to order?

  Minimizes stock holding and waste
• What is a disadvantage of producing to order?

  Longer waiting times for customers
• What are consumer goods?

  Goods bought by individuals for personal use
• How do consumer goods differ from industrial goods?

  Consumer goods are for personal use, industrial for production
• What is gross profit?

  Sales revenue minus the cost of goods sold
• How is gross profit margin calculated?

  (Gross Profit / Sales Revenue) × 100
• What is operating profit?

  Gross profit minus operating expenses
• Why are gross and operating profit important?

  They assess financial health and profit generation
• What are receivables days?

  The average days to collect payment from customers
• What do payables days indicate?

  The average days a company takes to pay suppliers
• How do short receivables days affect cash flow?

  They lead to faster cash inflow
• What is flexible working?

  Working arrangements that vary hours or location
• What is a benefit of flexible working?

  Improved work-life balance for employees
• What is a strategy in business?

  A long-term plan to achieve goals
• How do tactics differ from strategy?

  Tactics are short-term actions supporting strategy
• Why is a clear strategy important for a business?

  It ensures a vision for the company
• What are internal influences on a business mission?

  Company culture, resources, skills, and leadership
• What are external influences on a business mission?

  Market trends, economic conditions, competition
• How does a mission statement guide a business?

  It reflects internal strengths and external realities
• What are core competencies?

  Unique strengths giving a competitive advantage
• What characterizes core competencies?

  Difficult for competitors to replicate and valuable
• How can core competencies be leveraged?

  Across multiple markets for competitive advantage
• What is short-termism?

  Focus on immediate results and quick gains
• What is a long-term focus in business?

  Emphasis on future growth and sustainability
• Why is finding a balance between short-termism and long-term focus important?

  To meet short-term needs without sacrificing future
• What is competition legislation?

  Laws promoting fair competition and preventing monopolies