2020

• financial methods of motivating an employee

  -bonus

  -commission

  -remuneration
• Non-financial methods of motivating an employee

  -job rotation
• organisational structure e.g

  hierarchal
• one benefit to a business of using external recruitment to employ new staff

  • Employees from outside the business will bring new ideas to the business (1).
  • Therefore, the workforce may become more productive (1).
  • As a result, the average total cost of producing products may fall (1).

  OR

  • External employees will have a different way of thinking to employees who already work for the business (1).
  • As a result, creativity may improve (1).
  • Thus, the business may be able to find new ways of gaining a competitive advantage (1).
• one impact on a business from a lack of communication

  -employees will be unsure of what work they have to do.This means they may make mistakes. As a result the quality of the good/services may fall
• external sources of finance

  -share capital

  -loan capital
• Internal sources of finance

  -retained profit

  -selling assests
• external growth methods

  -merger

  -takeover
• Internal growth methods

  -improve promotion

  -innovation

  -research and development
• one benefit of a business of withdrawing its products when it enters the decline phases of its product life cycle

  -Products in the decline phase are likely to make a loss. Therefore, withdrawing a product reduces the loss the business makes.As a result, the business can have a greater level of retained profit to invest in new products.
• Explain why AESTHETICS may be important in the design mix of a product

  -This makes a product look more attractive.Therefore, customers may choose their products over rivals. As a result, market share may increase.
• stage in the sales process

  -product knowledge
• one drawback to a business from differentiating its products

  -Differentiating its products may be expensive.This means the cash outflows may increase.Therefore ,this causes the business to suffer with poor cash flow.
• One impact on business from increased globalisation-

  The businesses have an opportunity to sell globally/more markets. Therefore, the business has the ability to generate global brand awareness, as a result, the business can make higher levels of revenue
• Impact on a business of becoming a Public Limited Company-

  • The business can now issue new shares to a large number of potential shareholders to raise capital for expansion .
  • Therefore, with the ability to sell their shares easily, shareholders may purchase large numbers of shares raising large amounts of capital to fund growth .

  OR

  • The issuing of new shares will dilute the existing owners’ percentage ownership of the company .
  • Therefore, the original owners may lose control of the business that they helped to create, and the company may become part of a much larger one .
• Batch production -Pro and Cons

  Pro-

  -cost savings

  -still offer customer variation

  Cons-

  -less automation-expensive than flow production

  -not as flexible as job production