Flashcards in Business 3 Deck (28)
What is a Design Mix?
A method of differentiating from competitors in a business. It contains 3 sections - apperance, Cost, and function with different levels of focus given to each factor.
Describe a stock control chart
Its the ZigZag Chart, with stock amount on one side and the time across the bottom. A buffer stock is set, the minimum amount wanted to be sold.
Experience is then used to set a max stock level, and a re order amount.
From this, order quantity and lead time can be found
What is it called, the amount of time it takes for stock to arrive after re-ordering from a stock control chart?
Stock is the amount of material or finished products a business currently holds. Orders of this must be carefully controlled to prevent loss of stock or potential profits
Describe 3 Problems with ordering too much stock
Not enough storage space, Food may go out of date, Technology in particular may become obsolete and outdated.
Describe 3 problems with ordering too little stock.
Loss of potential profits, loss of repeat customers, Stores may look empty and unattractive,
Name the three types of stock stored within a business.
Raw materials, semifinished materials, finished materials.
What are the two types of stock control?
Just in case, where a buffer is used, or just in time without.
Define just in case stock control. Adv
this is a type of stock control with a buffer, giving less risk to the business should unexpected events occur. Businesses can meet unpredicted changes in demand, replace damaged goods and receive discounts for bulk buying
Define just in time stock control. Adv.
This is where a buffer stock is not used, and stock is bought near to when it is needed. It gives a cost saving in terms of storage, there is less chance of damaged/stolen stock, and employees can focus on tasks that are more productive.
Name 3 costs of holding stock
Intrest loss when stock bought, less money in bank
Define imports + Exports
imports is the process of a uk citizen or business buying in products or services, exports are the other way round.
Define Visible and Invisible exports/Imports
Visible = Tangiable, product that can be held
Invisible = Intangiable, such as loan
3 reasons why Britain trades
We can bring in more products that cannot be found here such as minerals to increase quality of life, can increase foreign relations, can fill market that would otherwise not have a high enough quantity.
Name the two ways to improve quality and describe them
Quality control - inspector at end of production
Quality Assurance - inspected at each stage, aims to involve the whole workforce and improve production so that it may become zero defect
Name 3 benefits of a quality system
can improve selling price
can improve sales volume
can provide a unique selling point
3 differences between quality control, quality assurance
Assurance = medium to long term, slow to impliment, focus on each process rather than end product, aims to improve process rather then individual procuct, emphasizes customer rather than standars, quality built into product, rather than defects inspected out
Name 3 negatives of quality control
costs, time consuming training, disruption to production at start
What is productivity/formula?
increasing the amount that can be made with the resources available. Productivity = goods purchased divided by number of workers
Name 3 benefits of productivity.
The average cost of the unit is Lower, prices could be Lower, profits could be higher.
2 ways increase productivity
Use new technology, control stock so less waste
what is customer service?
The experience the customer gets when dealing with a business AND the extent to which that experience meets expectations
Why is customer service beneficial (3)
Better public image
Edge over competitiors
how to provide good customer service?
meet needs of customers, have high quality in identifying problems etc. , provide on time service, Develop innovation
describe the trades description act.
you cant : give false information, failed to give important information, or act aggressively
describe the sale of goods act
The product must: match description, be satisfactory quality, be fit for purpose.
What is a quota?
A limit to the amount or value of goods that can be imported or exported from a country.