Q&A - What is absenteeism and what can businesses do about it?
Absenteeism concerns employees who don’t turn up for work and who don’t have a legitimate reason. It is, therefore, largely about unauthorised absence from work.
read more...»Q&A - Why might high labour turnover be bad news for a business and what can it do about it?
There are many reasons why a high labour turnover figure (poor employee retention) may cause problems for a firm…
read more...»Q&A - Explain what labour turnover is and why it happens
Labour turnover (or “staff turnover” as it is sometimes called) is all about employee retention - i.e. the ability of a business to convince its employees to remain with the business.
read more...»Q&A - Outline some ways in which a business might improve its labour productivity
How can a business improve its labour productivity? Here are some possible approaches;
read more...»Q&A - Explain what is meant by labour productivity and how it can be measured?
Labour productivity is concerned with the amount (volume) of output that is obtained from each employee. It is a key measure of business efficiency, particularly for firms in which the production process is labour-intensive.
read more...»Q&A - Why do acquisitions often fail to deliver acceptable returns?
It is widely accepted that over 50% of takeovers destroy shareholder value – i.e. they do not earn a return (higher profits) that justify the investment made. Why is this?
read more...»Q&A - What is meant by “synergy” in the context of a business acquisition
A business making an acquisition of another firm often justifies the decision (in part) by the available “synergies” which are expected to occur as a result of putting two businesses together. So what is a synergy?
read more...»Q&A - Why are acquisitions so popular as a method of business expansion?
The takeover of one business by another is big business in itself! Tens of thousands of business advisers (lawyers, accountants, venture capitalists, merchant bankers, PR consultants) spend their lives researching, organising and negotiating acquisitions - earning billions of pounds in fees each year for their services. In the first 9 months of 2010 alone, the value of businesses bought and sold in this way exceeded 2 trillion US dollars. We know that acquisitions are risky. So why are they so popular?
read more...»Q&A - Explain what is meant by acquisitions or takeovers
Acquisitions (often also called “takeovers”) are the main method of external growth for firms. They are also a source of significant change for businesses – both the business being acquired and the business doing the buying!
read more...»Q&A - Should a business use franchising as part of its growth strategy?
Why is growing a business using a franchise system so popular, particularly in the service sector? Franchising provides a way to grow a business nationwide or internationally without having to invest in staff or premises. There are several pros and cons for this growth strategy:
read more...»Q&A - Explain “organic” or internal growth
Internal (or organic growth) can be defined as: “Expansion from within a business by expanding the range of products and/or locations”
As you read the business news or watch business stories on television on online, you should be able to identify lots of stories of businesses that are growing organically. Here are some good examples…
read more...»Q&A - How can the expansion of a firm be measured?
What do we mean by expansion? In general, expansion is about making the business bigger. But, remember that we can measure the size of a business in different ways. For example:
read more...»Q&A - What is the difference between niche and mass marketing?
In most markets there is one dominant (mass) segment and several smaller (niche) segments…
read more...»Q&A - Outline the main business benefits from market segmentation
Market segmentation offers the following potential benefits to a business:
read more...»Q&A - What is market segmentation?
Market segmentation is the technique used to enable a business to better target it products at the right customers. It is about identifying the specific needs and wants of customer groups and then using those insights into providing products and services which meet customer needs.
read more...»Q&A - Explain the role of marketing objectives
Marketing objectives set out what a business wants to achieve from its marketing activities. They need to be consistent with overall aims and objectives of the business. They also provide an important focus for the marketing team.
read more...»Q&A - Explain how a marketing orientation differs from a production orientation
Businesses tend to develop new products based on either a marketing orientated approach or a product orientated approach.
read more...»Q&A - What is the purpose of marketing?
What makes someone buy a product? Or more importantly, what makes them buy the product you are trying to sell?
In business, you need to persuade a customer to part with money in exchange for a good or a service. You have decide on what the product is going to be like (e.g. shape, colour, size, features); at what price are you going to sell it; where you are going to sell it (e.g. in a shop, over the Internet, by mail order); and how you going to help the customer find out about the product (e.g. advertise in the local newspaper or on the radio). Marketing is all of these things. Its hard work – but it is a vital part of running a successful business.
read more...»Q&A - What are the advantages and drawbacks of marketing planning
The main benefits and problems of marketing planning can be summarised as follows:
read more...»Q&A - What factors affect the marketing budget?
The marketing budget sets out how much money is allocated to the marketing function and how it is intended to spend it.
The size of the marketing budget can be determined in several ways; for example:
read more...»Q&A - Outline the main stages in the marketing planning process
Macdonald (1995) suggests that several stages have to be completed in order to arrive at a strategic marketing plan. These are summarised in the diagram below:
read more...»Q&A - What methods can a business can use to expand into international markets?
Selling into international markets is increasingly attractive for UK businesses. For example because of:
• Stronger economic growth in emerging economies such as China, India, Brazil and Russia
• Market saturation and maturity (slow or declining sales) in domestic markets
• Easier to reach international customers using e-commerce
• Greater government support for businesses wishing to expand overseas
The four main methods of investing in international markets are summarised briefly below:
read more...»Q&A - Explain Ansoff’s Matrix
The Ansoff Growth matrix is another marketing planning tool that helps a business determine its product and market growth strategy. Ansoff’s product/market growth matrix suggests that a business’ attempts to grow depend on whether it markets new or existing products in new or existing markets.
read more...»Q&A - Is there an optimal level of gearing?
Gearing varies from firm to firm and from industry to industry. It is important not to rush to judgement about the gearing level of a business without considering other factors such as profitability, liquidity and the competitive position of the business.
read more...»Q&A - What is gearing?
Gearing focuses on the capital structure of the business – that means the proportion of finance that is provided by debt relative to the finance provided by equity (or shareholders).
read more...»Q&A - Explain price skimming
Price skimming is a pricing strategy that involves setting a high price before other competitors come into the market.
read more...»Q&A - What is the difference between pricing strategies & tactics?
Pricing is a very powerful weapon in marketing, but there are many different ways to use it to help achieve marketing objectives. It is important to make a distinction between pricing strategies and pricing tactics.
read more...»Q&A - Explain what is meant by price positioning
How much would you pay for a portion of fish & chips? In the UK, the average price is around £3.30. However, you can find fish & chips sold for much less than that in some parts of the country, and for significantly more in an upmarket restaurant. So what accounts for the variation in price – and what signals does price provide to a potential customer? The answer lies in price positioning.
read more...»Q&A - What factors should a business consider when setting its prices?
There are several factors a business needs to consider in setting the price:
read more...»Q&A - How does pricing link to the objectives of a business?
The price a business charges needs to take account of, and be consistent with the strategic objectives of the business.
read more...»
