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Job enlargement involves the addition of extra, similar, tasks to a job.read more...»
A commodity is a product for which there is demand and which is supplied without any clear difference in product quality or standard.
An important feature of a commodity is that its price is determined as a function of its market as a whole – by the interaction of market demand and market supply.read more...»
Retained profit is the profit kept in the company rather than paid out to shareholders as a dividend. Retained profit is widely regarded as the most important long-term source of finance for a business.read more...»
Supply is defined as the quantity of a product that a producer is willing and able to supply onto the market at a given price in a given time period.
Market supply is the total quantity that all producers in a market are prepared to supply at each price level.read more...»
Demand is the quantity of a good or service that consumers and businesses are willing and able to buy at a given price in a given time period.
Market demand is the sum of the individual demand for a product from buyers in the market. If more buyers enter the market and they have the ability to pay for items on sale, then market demand at each price level will rise.read more...»
A checklist of things to do when starting a business can run to many pages. There are many practical issues to address in terms of setting up the administration of the business, obtaining the resources to trade and then, even harder, finding and keeping the first customers! Here is a summary of the main actions that a start-up needs to address:read more...»
A good way to look at what happens if a currency strengthens (an increase in the exchange rate) is to work through an example.read more...»
An exchange rate is a price of a currency. The price is determined by the forces of demand and supply in the currency markets. Just like the commodity markets for wheat, oil and coffee, the price of a currency will reflect the amount of the currency that consumers and businesses want to buy (demand) and sell (supply).read more...»
An exchange rate is the price of one currency expressed in terms of another currency.read more...»
The effect of a change in interest rates will depend on several factors, such as:
• The amount that a business has borrowed and on what terms
• The cash balances that a business holds
• Whether the business operates in markets where demand is sensitive to changes in interest rates
There is a wide variety of ways in which a business can offer money (or “financial rewards”) as part of the “pay package”, including:read more...»
Taylor put forward the idea that workers are motivated mainly by pay. His Theory of Scientific Management argued the following:read more...»
A well-motivated workforce can provide the following advantages:read more...»
Motivation is essentially about commitment to doing something. In the context of a business, motivation can be said to be about...“the will to work”read more...»
The job description and specification are important parts of planning the workforce needs of any business. So what are they?read more...»
Recruitment and selection is the process of identifying the need for a job, defining the requirements of the position and the job holder, advertising the position and choosing the most appropriate person for the job.read more...»
An interest rate is the cost of borrowing money or the return for investing money.read more...»
Credit is the lifeblood of any business - it is very difficult for a business to survive, and certainly grow without it. But what is credit?read more...»
Products are at the heart of the marketing mix. The product needs to exist for the other elements of the mix to happen.read more...»
An effective marketing mix is one which…read more...»
The marketing mix deals with the way in which a business uses price, product, distribution and promotion to market and sell its product.read more...»
Look at the payroll of many start-ups and small businesses and it won’t take you long to count the people. There are over 4.5 million businesses in the UK, and about three-quarters of them don’t employ any staff! That is about 3.3 million businesses that have just one employee – the owner, manager and staff all rolled into one person!read more...»
Quite simply, a business that has a “customer focus” is one which takes the time and trouble to understand and address customer needs.read more...»
Leasing is another word for renting assets (e.g. property) over a period of time. Leasing is a way of financing the use of such assets without actually having to buy them outright.read more...»
Most entrepreneurs know that making a success of a new business requires hard work, the ability to multi-task, persistence and a decent amount of good luck.
One way in which a start-up can reduce the need for good luck is to ensure that weaknesses in specific skills required by the business are covered. Many start-ups find that there are some skills for which it is always best to seek outside professional help.read more...»
Whether hired on fixed-term contracts or not, temporary employees are particularly useful if the business has seasonal peaks and troughs in workload. Temporary workers also enable a business to fill short-term gaps, for example caused by illness or maternity leave.read more...»
When a business buys raw materials, components, services or other goods from another business it will often look to pay for those at a later date. If it is allowed to do so, then that supplier is said to offer “trade credit” to the business. The supplier becomes a trade creditor – someone to whom the business owes money.read more...»
Approximately 25% of employees in the UK are employed part-time. That means that they work “less than full-time”. Not a very helpful definition! What that means is that part-time employment is the term used to describe various methods of employing people who don’t work a full working week.read more...»
The main interests of each main stakeholder group can be summarised as follows:read more...»
In the UK, there are about 30 million employees working in businesses, of which around three-quarters are in full-time employment. Full-time is generally taken to mean an employee working 30 hours or more each week. However, it is not the hours that really matter; it is the fact that a full-time employee is fully committed to working for a business in return for the employment rights contained in the contract of employment.read more...»
A stakeholder is anyone who has a vested interest in the activities and decision making of a business.read more...»
Getting a profitable customer to buy from a business for the first time is often difficult and expensive. The key to a successful business is to persuade that customer to buy again, and again. That is what is meant by repeat business.read more...»
Incorporation is the creation of a company which then operates as a business. In the vast majority of cases, the type of company created is a “private limited company”.read more...»
A bank loan is the most common form of loan capital for a business.read more...»
The potential benefits to a business from providing a consistently high level of customer service include:read more...»
There is a big downside to operating as a sole trader. It occurs because, in the eyes of the law, there is no difference between the person running the business and the business itself. When it comes to chasing money owed by a business, a sole trader has to settle up.read more...»
Most businesses in the UK are small businesses, owned and operated by one person. In most cases, these businesses operate as a “sole trader”.read more...»
Off-the-job training occurs when employees are taken away from their place of work to be trained.read more...»
With on the job training, employees receive training whilst remaining in the workplace.read more...»
Induction training is the training that an employee receives when he/she first joins a business or organisation.read more...»
Effective training starts with a “training strategy”. The three stages of a training strategy are:read more...»
A super video to use at various stages for an AS or A2 SOW. The world’s largest wind turbine manufacturer (Vestas) is considering closing its wind turbine blade factory on the Isle of Wight due to a lack of future orders - despite wind power being perceived as a high growth market! Great for considering the nature of investment in capacity, the effect of factory closure on a local community and topics too!
A classic method of for a business to conserve cash is to rent assets rather than buy them. Consumers in the UK seem to be picking up on this tactic - the market for product rentals is booming. The growing demand for rented products could see a return to the high street of rental businesses similar to Rediffusion. A great video case study to illustrate how demand can shift from one market to another:
Business angels continue to invest in start-ups and small businesses - despite (or perhaps because of) the credit crunch.
Every year the Advertising Standards Authority (ASA) issues a report outlining those adverts that had provoked the most complaints. Did you spot many that would be likely to offend? Which adverts do you think appeared in the top 10 (link follows below)?
I don’t think it was an extremely provocative year for advertisers, who have played it a bit safer than in the recent past. For the first time I can remember, none of the top 10 most controversial ads were banned, although one was voluntarily withdrawn by the company involved.read more...»
Online auction site eBay has had a bad couple of weeks: a banned advert and reports of falling profits.read more...»
Launched on 5 May 2009, the AQA AS Business Revision Quiz Bank is a great way for students to test their knowledge and understanding of all the key AQA Unit 1 and Unit 2 topics in the run-up to the AS`exams.read more...»
You might expect a new Barbie store to open in London or New York, but instead, Mattel, the doll’s makers, have opted for Shanghai. A couple of video clips (here and here) go some of the way in explaining why.read more...»
A couple of years ago the newspapers’ ‘rich lists’ seemed to offer us all hope, inspiration and people to look up to. Today the tone seems to have changed. We are seeing those fortunes dwindle and few of us can do much more than shrug our shoulders. There’s a thinly veiled mood of satisfaction too. So who is hurting?read more...»
The Biz Quiz returns from its Easter break with the first quiz of the summer term. The 10 questions in this quiz are taken from the business news of the last two weeks.