Notesale: Turn your study into money

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AS BUSINESS (9609)
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The main objective for businesses is to generate
profit, but some of them can also have broader objectives such as growth,
innovation, and social responsibility
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○​ Services: Intangible products, such as banking, consulting, and healthcare
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○​ Example: A mining company that extracts coal
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○​ Example: A car manufacturing company that assembles vehicles from raw
materials
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○​ Example: A retail chain that sells clothing or a bank providing financial
services
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●​ Growth: Companies often pursue growth to increase market share, expand their
reach, or enhance profitability
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●​ Survival: For some businesses, particularly start-ups or those in difficult financial
positions, survival is the key objective
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It’s easy to
set up but offers no limited liability
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●​ Partnerships is a business owned by two or more people who share responsibility
for running the business and its profits/losses
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●​ Limited Liability Companies (Ltd): Shareholders have limited liability, meaning they
are only liable to the extent of their investment
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●​ Public Limited Companies (PLC): A company whose shares are traded on the
stock exchange, and owners (shareholders) have limited liability
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●​ Organizing: Allocating resources, assigning tasks, and ensuring the appropriate
structures are in place
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●​ Controlling: Monitoring performance and making necessary adjustments to stay on
track
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This style is effective when quick decisions are needed, for example
during an emergency, but can lead to low morale
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●​ Laissez-faire Leadership: The leader gives employees freedom to make decisions,
allowing for high creativity but may lack direction
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Motivational Theories
●​ Maslow's Hierarchy of Needs:
○​ Physiological needs: Basic necessities like food and shelter
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○​ Social needs: Relationships, teamwork
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○​ Self-actualization: Personal growth and fulfilling one's potential
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○​ Hygiene factors: Factors that prevent dissatisfaction, such as salary and
working conditions
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○​ Theory Y assumes that employees are motivated and capable of
self-direction
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○​ Attention and Care is needed to tend to workforces’ needs in order to
increase productivity
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●​ Taylor’s Scientific Management:
○​ Simplifying Tasks into smaller and simpler steps to prevent
time-consumption
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○​ Implementing Wage Incentives based on the quality and number of output
to encourage labour productivity
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○​ Example: A company conducts an online survey to understand customer
preferences
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○​ Example: A business uses industry reports to understand market trends
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Businesses must
design products that meet the needs and desires of their target market
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●​ Price: The amount customers are willing to pay for the product
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○​ Example: Setting a price based on the value perceived by customers
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○​ Example: A product sold via an online marketplace like Amazon
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○​ Example: An advertisement campaign on social media to increase brand
awareness
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g
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○​ Demographics: Age, gender, income
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○​ Behavior: Purchasing habits, brand loyalty
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Operations Management
Production Methods
●​ Job Production: Producing custom or one-off items based on specific customer
needs
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●​ Batch Production: Producing a set of identical products in batches
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●​ Flow Production: Continuous production of standardized products, usually through
automated processes
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Quality Control
●​ Quality Control involves ensuring that products meet specific standards and
specifications, often through inspections or testing
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Lean Production
●​ Focuses on reducing waste, improving efficiency, and increasing productivity
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○​ Sale of assets: Selling business assets (e
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, land, equ
Total Contribution: Unit Contribution x Output
Contribution: Selling Price x Variable Cost
Working Capital: Current Assets – Current Liabilities

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