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WorksheetsHigher January Prelim Revision
Total questions: 40
Worksheet time: 25mins
Outline a benefit of becoming a multinational
Wages and raw materials costs are lower in host countries
Language barriers can slow down communication
Cultural differences can affect production e.g. siesta's in Spain
Outline a disadvantage of becoming a multinational
Wages and raw materials costs are lower in host countries
Language barriers can slow down communication
Business can avoid legislation in the home country
Outline an objective of an organisation in the third sector
Providing a quality good or service
Maximising profit
Increasing market share
Outline a conflict of interest between two groups of stakeholders
Owners need suppliers to provide raw materials and suppliers need owners to continue to buy from them
Employees want a pay rise whereas owners want to maximise profit
Owners need customers to buy their products, while customers need owners to provide a good quality product/service
Outline the impacts of an external factor
The government may increase National Minimum Wage which will increase wage costs for the organisation
The economy may be in a recession which means customers have less disposable income and sales may decrease
Businesses are increasingly encouraging employees to work from home which means employee motivation may increase as they have a better work-life balance
If an organisation is providing free Wi-Fi then this is likely to attract customers who need to use it
Describe a centralised structure
This is where decision-making and control is kept at the very top of the organisation.
Decision-making and control is delegated to individual branches or departments in these organisations
Describe a decentralised structure
This is where decision-making and control is kept at the very top of the organisation.
Decision-making and control is delegated to individual branches or departments in these organisations
Outline a benefit of a centralised structure
The business can respond quickly to changing external factors
A high degree of corporate identity exists as decisions are made for the whole organisations
More subordinates are empowered which encourages creativity
Outline a benefit of a decentralised structure
Procedures are standardised which ensures consistency
A high degree of corporate identity exists as decisions are made for the whole organisations
More subordinates are empowered which encourages creativity
Outline a disadvantage of centralised structure
The organisation can lose an overall corporate image if each department/branch is operating differently
Decisions do not reflect the needs of local markets
Additional training required for middle management
Outline a disadvantage of decentralised structure
The organisation can lose an overall corporate image if each department/branch is operating differently
Decisions do not reflect the needs of local markets
Less responsibility given to subordinates which can be demotivating for staff
Strategic decisions are...
High risk
Medium risk
Low risk
Tactical decisions are...
High risk
Medium risk
Low risk
Operational decisions are...
High risk
Medium risk
Low risk
Strategic decisions are...
Made long term
Made in the medium term
Made short-term, day-to-day
Tactical decisions are...
Made long term
Made in the medium term
Made short-term, day-to-day
Operational decisions are...
Made long term
Made in the medium term
Made short-term, day-to-day
Strategic decisions are...
Made by senior managers
Made by middle managers
Made by supervisors/all staff
Tactical decisions are...
Made by senior managers
Made by middle managers
Made by supervisors/all staff
Operational decisions are...
Made by senior managers
Made by middle managers
Made by supervisors/all staff
Outline 2 characteristics of a market led business
The business develops products based on customer wants
The business produces products that it believes customers will want
Market research is not seen as important
High levels of market research are carried out to determine customer wants
Outline 2 characteristics of a product led business
The business develops products based on customer wants
The business produces products that it believes customers will want
Market research is not seen as important
High levels of market research are carried out to determine customer wants
Describe desk research
Involves researching and analysing information that has already been gathered
Involves gathering brand new information suitable for the business's exact needs
Describe field research
Involves researching and analysing information that has already been gathered
Involves gathering brand new information suitable for the business's exact needs
Describe random sampling
Random sampling is where a sample of customers are chosen indiscriminately e.g. using a telephone directory
Random sampling is where the researcher choose from a group of people with certain characteristics
Describe quota sampling
Quota sampling is where a sample of customers are chosen indiscriminately e.g. using a telephone directory
Quota sampling is where the researcher choose from a group of people with certain characteristics
Select the relevant field research methods
Telephone survey
Personal interview
Newspapers
Hall tests
Internet websites
Outline 2 into-the-pipeline methods of sales promotion
Trade credit is where manufacturers offer retailers the chance to pay for goods at a later date
Point of Sale materials are free posters are display materials given to retailers to display products to customers
Loyalty schemes allow customers to collect points by making purchases in exchange for discounts
Competitions are used to encourage customers to buy in order to take part e.g. McDonalds Monopoly
Outline 2 out-of-the-pipeline methods of sales promotion
Trade credit is where manufacturers offer retailers the chance to pay for goods at a later date
Point of Sale materials are free posters are display materials given to retailers to display products to customers
Loyalty schemes allow customers to collect points by making purchases in exchange for discounts
Competitions are used to encourage customers to buy in order to take part e.g. McDonalds Monopoly
Outline 2 advantages of using JIT to manage stock
No money is tied up in stock, improving cash flow and working capital
If deliveries are late, the business may have to halt production
Requires an excellent relationship with suppliers
No warehouse required which saves storage costs
Outline 2 disadvantages of using JIT to manage stock
No money is tied up in stock, improving cash flow and working capital
If deliveries are late, the business may have to halt production
Requires an excellent relationship with suppliers
No warehouse required which saves storage costs
Outline 2 benefits of capital intensive production
Humans can use creativity and initiative which boosts productivity
Robots don't take breaks, holidays or sick leave so can work 24/7
Fewer employees are needed which helps reduce wage costs
Labour can be less expensive than capital intensive
Outline 2 benefits of labour intensive production
Humans can use creativity and initiative which boosts productivity
Robots don't take breaks, holidays or sick leave so can work 24/7
Fewer employees are needed which helps reduce wage costs
Labour can be less expensive than capital intensive
Outline 2 disadvantages of capital intensive production
Breakdowns can be catastrophic, losing hours of production and wasting materials
Humans have to take breaks, holidays etc. which limits production time
High investment is needed
Recruitment, training and wage costs need to be considered
Outline 2 disadvantages of labour intensive production
Breakdowns can be catastrophic, losing hours of production and wasting materials
Humans have to take breaks, holidays etc. which limits production time
High investment is needed
Recruitment, training and wage costs need to be considered
Quality control is a method of inspecting raw materials or finished goods to check they meet a standard at the end of the production process.
Quality control
Quality assurance
Quality circles
Total Quality Management
Benchmarking
This involves a group of employees meeting with a line manager to discuss problems in the production process and how to solve them.
Quality control
Quality assurance
Quality circles
Total Quality Management
Benchmarking
This is a holistic approach to ensuring quality. This ensures all people in an organisation are committed to quality to ensure zero errors occur.
Quality control
Quality assurance
Quality circles
Total Quality Management
Benchmarking
This is a method of prevention i.e. where the product is checked to see that they are of high quality at different stages in the production process, rather than just at the end.
Quality control
Quality assurance
Quality circles
Total Quality Management
Benchmarking
This involves copying the quality of a finished product, and the processes used to achieve it, used by the market leader
Quality control
Quality assurance
Quality circles
Total Quality Management
Benchmarking
