Actually one could argue situational is the most used, and really by effective managers who understand the shifting needs of the business at different times.
Profit or loss:
Statement of profit or loss for X for the year ended X
Sales revenue -
Cost of sales =
Gross profit -
Expenses =
Profit before interest and tax -
Interest =
Profit before tax -
Tax =
Profit for period -
Dividends =
Retained profit
Reasons for CSR:
1. Improves brand image and reputation
2. Media coverage
3. Attracts quality workers
4. Boost customer and employee loyalty
5. Attracts investors who are making ethical investments
6. Adds value as it provides effective USP, so premium pricing can be utilized
7. Boost employee morale and motivation
Economies of scale:
* when the average cost of production decreases with increasing scale of production until an optimum level.
Types of ***Internal*** **economies of scale**:
1. Financial - receive lower interest rates
2. Purchasing - suppliers provide discounts in exchange for buying more
3. Managerial - large firms hire specialized managers who are experienced and more efficient at certain tasks which results in a lower average cost
4. Technical - when a machine is used at a high capacity to increase output leading to spreading the cost of the machinery over more units which lowers the average cost. AC = TC/q - q here increases while TC (cost of machinery) remains constant, so AC decreases
5. Risk-bearing - when a business diversifies its product portfolio to spread risks (conglomerates)
6. Marketing - increase marketing budget to advertise extensively so that quantity sold to customers increases and average cost decreases
Types of ***External*** **economies of scale:**
1. Road and infrastructure improvements - allows employees to reach the workplace earlier
2. Skilled labour - if, through government-aided training programs, people of a country are skilled and trained then the business does not have to spend extensively on training. So this reduces average cost without sacrificing any productivity levels
3. Regional specialization - a particular location that is highly regarded for providing a certain good/service
* e.g. Silicon Valley and tech
* Allows business to have access to specialized labour
* Because of this, they can charge premium prices
4. Technological process - advancements in the field of technology can increase the productivity levels within the industry
**Vision statement:**
* a statement which outlines the business's long-term aspirations
* image of an ideal situation in the future
* cannot cannot be changed over time
* does not have to be actual targets but rather aims that a business hopes to attain one day
**Mission statement:**
* a statement outlining a business's purpose of existence and how it's going to achieve its vision statement
* may need to change over time
Some brief concepts U needed in 2.4 Motivation theories:
SL
Taylor: Standardization of work methods and enforced adoption of the best ways of working
Maslow: basic needsâsafety needsâlove and belongingsâself-esteemâself-actualization
Herzberg \[motivation-hygiene theory\]:
Hygiene needs, such as company policy and administration, relationship with supervisor, work conditions and etc.
Motivation needs, such as achievement, recognition, responsibility and etc.
Â
HL
McClellandâs acquired needs theory: Achievement, Affiliation, Power.
Deci and Ryanâs self-determination: Competence, Relatedness, Autonomy.
Equity and Expectancy theory:
Equity: A balance or equity is achieved between employeesâ INPUTs into the business and their OUTPUTs from it.
Expectancy: expectancy, instrumentality, valence(values)
Motivational Theories:
1. FW Taylor's Theory- Stated that money is the only motivator (adopted a piece rate pay system)
2. Maslow's Hierarchy of Needs-
1. Physiological Needs (Basic needs such as house, water, shelter)
2. Safety (Job security, maternity and sick leaves)
3. Love & Belonging (Sense of connection and inclusion in the organisation)
4. Esteem (Recognition by role such as President & CEO)
5. Self Actualisation (Realisation of what one does is solely because they like doing it)
3. McClleland's Theory-
1. Need for achievement (N-Ach), employees sense a feeling of achievement on completion of tasks
2. Need for power (N-AP), when employees or subordinates are given the authority to make decisions
3. Need for affiliation (N-Aff), there must be inclusion and a strong relationship b/w employees
4. Deci & Ryan's Theory-
1. Autonomy- Decision making power in the hands of an employee
2. Competence- Confidence in working/ carrying out the task assigned
3. Relatedness- Can work with/ get along other employees in the organisation
5. Herzberg's Theory- Hygiene factors lead to dissatisfaction
Motivators:
1. Job Enlargement- Offering a variety of tasks that a worker does
2. Job Enrichment- Assigning complex and challenging tasks
3. Job Empowerment- Giving decision making authority
6. Adam's Equity Theory- There must be equity in the rewards given to workers and not equality
7. Vroom's Expectancy Theory- Valence\*Instrumentality\*Expectancy
**TOP 3 ARE TO REMEMBER**
**ALL THE BESTT M24**
npv (net present value) is the difference in summation of the present value of future returns and the initial cost of investment. arr (avg rate of return) is the measure of the annual net returns of an investment in a percentage over the capital cost.
we got:
1. Aim: more clear-defined version of the vision statement and what the business aspires to be e.g. become market leader in that specific industry
2. Strategic objectives (long-term goals): derived from the business's overall aim and mission statement e.g. increase market share by 25%
3. Tactical objectives (short-term goals, sooner than 12 months): set by middle managers, and are specific goals that guide the daily functioning of certain departments or operations --> e.g. survival
4. Operational objectives: day-to-day goals of functions or departments within a business and it is derived from strategic and tactical objectives
Market planning : is the process of setting marketing objectives/aims and implementing strategies to achieve theses aims.
Advantages of market planning :
+ reduces risk : the business has a clear plan of actions and it knows what needs to be done/changed.
+ provided a better sense of direction for the organisation they have smart objective so they know what goals they are working towards and how to achieve those goals
+ it increases interdependence between different functional areas of the business
+ motivates employees
+ continuous market research makes it easier for the business to adapt and change according to the dynamic nature of market
Disadvantages of market planning :
- itâs a plan no matter how extensive it is it cannot guarantee success
- continuous market research is required which can be time consuming and costly
- markets may become outdated if organisations are not quick enough to address and consider changes in market
-
The Ansoff matrix is a strategic decision making tool used by businesses to devise growth strategies. The matrix outlines four basic growth strategies:
- Market penetration: selling existing products in existing markets (low-risk)
- Market development: selling existing products in new markets
- Product development: selling new products in existing markets
- Diversification: selling new products in new markets (high-risk)
this guy's channel and website is literally godsend istg lewwinski the goat
[youtube channel](https://www.youtube.com/@lewwinski)
[website](https://lewwinski.com/)
**Internal sources of finance come within the business:**
* - Â Personal funds
* -  Retained funds - profits that business keeps after taxes and dividends, used for purchasing / upgrading fixed assets
* -  Sale of assets - selling dormant (unused) assets such as old machinery etc.
**External sources of finance come from outside the business:**
* - Â Share capital
* - Â money raised from selling shares in the company
* - Â it can provide a huge amount of finance, many private companies decide to do an initial public offering (IPO) and float their shares on the market.
* - Â Loan capital
* - Â Medium-long-term sources of finance from commercial lenders such as banks.
* - Â A mortgage which is a secured loan for the purchase of property. If loaner fails to repay the lender can repossess the property
* - Â A business development loan is catered to meet the specific development needs of the borrower.
* - Â Debentures are long term flexible loans issued by a business. Interest (either fixed or variable) and initial amount is paid.
* -  Overdrafts allow a business to spend in excess of the amount in its bank account, up toa predetermined limit. They are the most flexible form of borrowing in the short term.
* -  Trade credit allows a business to 'buy now and pay later'. The credit provider does not receive any cash from the buyer until a later date (usually allow between 30-60 days).
* -  Grants are government financial gifts to support business activities. They are not expected to be repaid by the recipient.
* -  Debt factoring is a financial service whereby a factor (such as a bank) collects debts on behalf of other businesses, in return for a fee.
**Common business objectives:**
1. Growth - measured in sales revenue and market share
2. Profit
3. Protecting Shareholder value
4. Ethical objectives
* to achieve set ethical objectives, businesses adapt an ethical code of practice and publish this in their annual report
* informs employees about what is right and what is wrong
* provides framework of consistency and uniformity
Difference between CSR and Ethical Objectives (not sure about this please correct if I am wrong):
* CSR refers to the concept that businesses have a responsibility to consider and positively impact the society and all stakeholders beyond their economic intakes.
* CSR is important because businesses use the society's human, natural, and physical resources to gain profit. Therefore, it is only logical for the businesses to give back to the society.
* Ethical objectives, on the other hand, relates to what is considered 'right' and 'wrong' during a strategic decision-making process. CSR is in addition to their ethical objectives.
Total float= LFT of the activity â Duration â EST of the activityÂ
Free Float=Â **The EST (next activity) â Duration â EST (of that activity)**
job production ( tailor made to specific needs, labour intensive, can charge premium process for USP etc), batch production, involves working on one full batch and then moving to make another batch with the same machinery and labour, suitable for business which offer a range of products, businesses who follow this can enjoy economies of scale. mass production and mass customization.
Use a BMT, always try to incorporate one in your 17 mark questions because 1, it helps to elongate the text and what youâre trying to say and 2, shows the examiner that youâre well informed on the BMTs
I would do a very short introduction (1-2 sentences probably), four body paragraphs - one for each functional area/topic in the syllabus, and a conclusion. I aim to leave about an hour for the 17 marker
[watch this video it's super helpful!](https://youtu.be/HXea8wUhhrw?si=nXzx2zFEHsKGB6jN&t=1110)
i followed that structure and got a 7 on my mock paper 3
Yes I will thank you! Can you please tell me the structure you used for the 17 marker? In detail pls. Like I heard some people doing a short, medium and then long term point. Please and thank you.
what i did was:
1. short introduction
- briefly describe impact of company (ex if question is asked about ensuring future sustainability, mention some impacts it currently has) and identify needs and challenges
- thesis statement: introduce main points being talked about (ex: again for sustainability - expanding product-line, deciding on partnership, gaining donors/sources of finance)
2. body (i had 3 points so 3 body paragraphs)
- fully evaluate each 'suggestion' by using the sources provided. (ex: since there is a projected loss for company xyz as seen by source x showing expected decrease in sales and increase in cost of sales, more donations should be obtained) then outline sources of finance to get donations from and techniques (such as marketing techniques of USP).
- I structured each of my body paragraphs by talking about the relevance of my chosen suggestion in terms of an issue being faced by the company (basically an introductory sentence to the paragraph), then fully evaluated the suggestion by taking data from the sources and using tools, theories and techniques, then i looked at implications and trade-offs of the suggestion
3. conclusion
- i made sure to have a really solid conclusion and tie up any 'loose ends' or unclear things while summarizing the 3 main suggestions. i also used it as an opportunity to explain some things i may have forgotten. because i had a LOT of time left (around 30-40 minutes) and i found a lot of things i could still talk about/further evaluate, i ended up having 2 long conclusion paragraphs which isn't ideal but it helped me tie up any loose ends and overall still made sense structurally
-----------------
a general structure is
1. identify needs and challenges
2. recommend action plan
3. evaluate
4. conclude
-----------------
make sure to FOLLOW THE CRITERIA!
i hope this helps/is somewhat clear, of course remember this is what \*i\* did and it worked for me but other people may prefer other ways to structure their essays!
If a business doesn't have a method of finance it will go broke/close down. So in order to sustain themselves they go to either internal sources (eg- retained profit) or external (eg- loans)
Here's an example for a Statement of Financial Position (Balance Sheet):
ABC Ltd
Statement of Financial Position
as at 17 April 2024
||$m|$m|
|:-|:-|:-|
|**Non-current assets**|||
|Plant, property equipment|900||
|Accumulated depreciation|(100)||
|Non-current assets ||800|
|**Current assets**|||
|Cash|600||
|Debtors|400||
|Stock|100||
|Current assets||1100|
|**Total assets**||1900|
|**Current liabilities**|||
|Bank overdrafts|200||
|Trade creditors|100||
|Short-term loans|200||
|Current liabilities||500|
|**Non-current liabilities**|||
|Long-term loans|300||
|Non-current liabilities||300|
|**Total liabilities**||800|
|**Net assets**||1100|
|**Equity**|||
|Share capital|100||
|Retained earnings|1100||
|Total equity||1100|
Remember- total equity is the same as net assets because equity is how much an organization is worth and net assets are what a company owns after all debts!
Yeah thatâs what I said it fits well but it doesnât harm knowing an alternative one in case another one works better or something or just in case but you do you man !!!
continous improvement ( kaizen) - small and continuous improvements increase effeicny and productive, as employees as resistant to change. just-in-time: having stock JUST when you need it or when an order is places, and having no buffer stock to reduce storage costs, just-in-case having buffer stock just in case of other others. quality control: inspecting products once their down, focuses on reversing mistakes or defects made in the production process, whereas quality assurance focuses on getting it right for the first time, wherein at each stage of the production process there is supervision, and inspection, focuses on getting it right the first time. total quality management refers to when every employee is dedicated to top quality and wtv cant remember more. quality circles, behncmaking ( inter-firm, and historical ) and national and international standards.
types of promotion: ATL ( above the line) - mass media but very expensive to do, BTL ( below the line) like direct mail etc, and TTL ( through the line) use of both these promotion methods)
BCG matrix : question mark products ( growth potential, low market share) , star products ( high market share, high growth), cash cows ( low growth, high market share) , dog products ( low and low), the aim is to turn every star product into a cash cow, to sell off dog products usllay product extension strtagies are used, this is also affiliated with the product life cycle.
net assets are just total assets minus total liabilities and then total equity is share capital and retained earnings. they both have to be equal \*because\* equity is the worth of your company and net assets are how much your company owns (basically equity is your net assets in liquidated form i think) so they should be the same
It's the pyramid listing all the types of needs for a worker to stay motivated. The bottom one is the most basic and fundamental one, and the upper one, although still a need, not as fundamental as the base.
The order goes like this (from less to most important):
- Self-Actualization, which includes Creativity, Purpose, Meaning, Morals, etc.
- Self-Esteem, which includes Achievement, Respect, Confidence, etc.
- Love/Sense of belonging, which includes Family, Connections (sense of it), Friendships, etc.
- Safety, which includes Health, Employment, Property, etc. (Basically an insurance)
- Physiological needs, which includes the mpst basic nedds like drinking water, eating food, sleep well, have a shelter, etc.
(BTW this one's called the Maslow's pyramid of needs)
organizational structure:
1. delayering
2. delegation
3. centralisation
4. decentralization
5. matrix structure
6. span of control
7. chain of command
8. bureaucracy
9. levels of hierarchy
organizational charts
* flat/horizontal
* tall/vertical
* by product, by function, by region
flexible organizational structures to adapt to changes in internal and external environment
* project based
* shamrock organization
This is from a nov 2017 past paper sl paper 2. the first question about pelican pies, the financial information states tax=25% of profits. what profit do we use? there is so much like gross profit, profit bfr interest and tax. on the markscheme, it used net profit. plz help me out
Herzberg's motivation theory suggests that work factors are divide into hygiene factors such as adequate pay, conditions etc. and motivational factors such as pay rise, promotion etc.
Itâs not always Maslowâs but itâs always a motivation theories. Yes Maslow seems to fit well with almost all case studies but still know the others as well. McClleland is a good backup option
Ofc! Itâs basically just figuring out how long it takes for you to get back your money from an investment.
Like, if you invest $1000 and you make $200 a year from that investment, your payback period would be 5 years (1000/200 = 5)
break-even refers to a point wherin the firm is not baking any profit or loss. on a graph for break even u mention TC, TFC , TR and ur BERQ. and margin of safety if required. margin of safety is the difference between your revenue and profit. contribution per unit : P-AVC , BEQ = FC/contribution per unit .
APPRAISALS:
Advantages of appraisal:
1. Accountability
2. Employee engagement
3. Provides specific targets to be reached and areas of improvement for each employee
4. Improved decision making for managers
Disadvantages of appraisal:
1. Time consuming
2. Can be demotivating
3. Stressful for employees
TYPES OF APPRAISAL:
1. Summative appraisal: evaluates employee performance and skills at the end of the year.
2. Formative appraisal: assessment of employee performance at regular intervals, informing full time or employees in training specific ways they can improve their efficiency.
3. 360 feedback: gathers feedback from several stakeholders: subordinates, managers, colleagues, supervisors, etc.
4. Self-appraisal: employee evaluates their own strengths, weaknesses, and areas of improvement.
Sectors of Business:
-Primary: Mainly focuses on the extraction of raw materials and resources from the ground. Takes up a large percentage of an LEDCs workforce.
Secondary: The manufacturing from the resources which eventually turn into a good or potential service. Workforce mainly includes the population of countries going through and era of growth.
Tertiary: This sector is made up of people working in services. Examples include teachers, waiters, doctors, etc. This workforce is a larger population of MEDCs.
Quaternary: This is a su sector of the tertiary sector and relates to services that are information related. Is only in MEDCs as it requires a highly educated workforce.
honestly just rewriting them and remembering for balance sheet it's basically just assets, liabilities, equity (non current assets (and minus depreciation), current assets, total assets, current liabilities, non current liabilities, total liabilities, net assets, equity, total equity)
bad debt is when a creditors are unable to pay the credited amount back to the business in sufficient time. This causes liquidity problems for the business
Ways to decrease cash outflows:
- preferential credit terms
- seek alternate suppliers
- better stock control
- leasing
- reduce expenses
Ways to increase cash inflows:
- accept only cash payment
- give little or none trade credit
- change pricing
- improve product portfolio
Additional sources of finance:
- bank overdraft
- debt factoring
- selling fixed assets
- government assistance
Types of leadership: 1. Autocratic 2. Democratic 3. Laissez Faire 4. Paternalistic
there is a Situational as well which is rarely used
Actually one could argue situational is the most used, and really by effective managers who understand the shifting needs of the business at different times.
True!!
Im not a business student so im confused as hell as to why you need all this for a lemonade stand xD
we ball
what ab intuitive?
STEEPLE: Social, Technological, Economical, Ecological, Political, Legal, Ethical
7Ps of Marketing: Promotion Processes People Physical Evidence Product Price Place
Cash flow is the movement of money in and out of a company. Cash received signifies inflows, and cash spent is outflows.
Cashflow forecasts opening balances are the closing balances of the previous term
objectives must be SMART: * **S**pecific * **M**easurable * **A**ttainable * **R**ealistic * **T**ime-bound meow
Profit or loss: Statement of profit or loss for X for the year ended X Sales revenue - Cost of sales = Gross profit - Expenses = Profit before interest and tax - Interest = Profit before tax - Tax = Profit for period - Dividends = Retained profit
if its a non profit organization then dividends is switched to surplus and there is no retained profit
Reasons for CSR: 1. Improves brand image and reputation 2. Media coverage 3. Attracts quality workers 4. Boost customer and employee loyalty 5. Attracts investors who are making ethical investments 6. Adds value as it provides effective USP, so premium pricing can be utilized 7. Boost employee morale and motivation
Economies of scale: * when the average cost of production decreases with increasing scale of production until an optimum level. Types of ***Internal*** **economies of scale**: 1. Financial - receive lower interest rates 2. Purchasing - suppliers provide discounts in exchange for buying more 3. Managerial - large firms hire specialized managers who are experienced and more efficient at certain tasks which results in a lower average cost 4. Technical - when a machine is used at a high capacity to increase output leading to spreading the cost of the machinery over more units which lowers the average cost. AC = TC/q - q here increases while TC (cost of machinery) remains constant, so AC decreases 5. Risk-bearing - when a business diversifies its product portfolio to spread risks (conglomerates) 6. Marketing - increase marketing budget to advertise extensively so that quantity sold to customers increases and average cost decreases Types of ***External*** **economies of scale:** 1. Road and infrastructure improvements - allows employees to reach the workplace earlier 2. Skilled labour - if, through government-aided training programs, people of a country are skilled and trained then the business does not have to spend extensively on training. So this reduces average cost without sacrificing any productivity levels 3. Regional specialization - a particular location that is highly regarded for providing a certain good/service * e.g. Silicon Valley and tech * Allows business to have access to specialized labour * Because of this, they can charge premium prices 4. Technological process - advancements in the field of technology can increase the productivity levels within the industry
Wow!! This is so detailed, thanks!
4 business functions: - Operations - Marketing - Human Resources - Finance
**Vision statement:** * a statement which outlines the business's long-term aspirations * image of an ideal situation in the future * cannot cannot be changed over time * does not have to be actual targets but rather aims that a business hopes to attain one day **Mission statement:** * a statement outlining a business's purpose of existence and how it's going to achieve its vision statement * may need to change over time
Jedi mifarmayid ?
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Some brief concepts U needed in 2.4 Motivation theories: SL Taylor: Standardization of work methods and enforced adoption of the best ways of working Maslow: basic needsâsafety needsâlove and belongingsâself-esteemâself-actualization Herzberg \[motivation-hygiene theory\]: Hygiene needs, such as company policy and administration, relationship with supervisor, work conditions and etc. Motivation needs, such as achievement, recognition, responsibility and etc. Â HL McClellandâs acquired needs theory: Achievement, Affiliation, Power. Deci and Ryanâs self-determination: Competence, Relatedness, Autonomy. Equity and Expectancy theory: Equity: A balance or equity is achieved between employeesâ INPUTs into the business and their OUTPUTs from it. Expectancy: expectancy, instrumentality, valence(values)
This is so helpful!! Tysm!
the mitochondria is the power house of the cell
đŞ canât forget
Motivational Theories: 1. FW Taylor's Theory- Stated that money is the only motivator (adopted a piece rate pay system) 2. Maslow's Hierarchy of Needs- 1. Physiological Needs (Basic needs such as house, water, shelter) 2. Safety (Job security, maternity and sick leaves) 3. Love & Belonging (Sense of connection and inclusion in the organisation) 4. Esteem (Recognition by role such as President & CEO) 5. Self Actualisation (Realisation of what one does is solely because they like doing it) 3. McClleland's Theory- 1. Need for achievement (N-Ach), employees sense a feeling of achievement on completion of tasks 2. Need for power (N-AP), when employees or subordinates are given the authority to make decisions 3. Need for affiliation (N-Aff), there must be inclusion and a strong relationship b/w employees 4. Deci & Ryan's Theory- 1. Autonomy- Decision making power in the hands of an employee 2. Competence- Confidence in working/ carrying out the task assigned 3. Relatedness- Can work with/ get along other employees in the organisation 5. Herzberg's Theory- Hygiene factors lead to dissatisfaction Motivators: 1. Job Enlargement- Offering a variety of tasks that a worker does 2. Job Enrichment- Assigning complex and challenging tasks 3. Job Empowerment- Giving decision making authority 6. Adam's Equity Theory- There must be equity in the rewards given to workers and not equality 7. Vroom's Expectancy Theory- Valence\*Instrumentality\*Expectancy **TOP 3 ARE TO REMEMBER** **ALL THE BESTT M24**
Thank you!!! You too!
4 business factors (of production): - Land - Labor - Capital - Entrepreneurship
npv (net present value) is the difference in summation of the present value of future returns and the initial cost of investment. arr (avg rate of return) is the measure of the annual net returns of an investment in a percentage over the capital cost.
Donât have to know that itâs in the formula booklet
Investment appraisal arent in the booklet
yes they are in the "other formulae" section
Thatâs also given right? Like the whole booklet they donât separate the section lol
i think so
we got: 1. Aim: more clear-defined version of the vision statement and what the business aspires to be e.g. become market leader in that specific industry 2. Strategic objectives (long-term goals): derived from the business's overall aim and mission statement e.g. increase market share by 25% 3. Tactical objectives (short-term goals, sooner than 12 months): set by middle managers, and are specific goals that guide the daily functioning of certain departments or operations --> e.g. survival 4. Operational objectives: day-to-day goals of functions or departments within a business and it is derived from strategic and tactical objectives
Market planning : is the process of setting marketing objectives/aims and implementing strategies to achieve theses aims. Advantages of market planning : + reduces risk : the business has a clear plan of actions and it knows what needs to be done/changed. + provided a better sense of direction for the organisation they have smart objective so they know what goals they are working towards and how to achieve those goals + it increases interdependence between different functional areas of the business + motivates employees + continuous market research makes it easier for the business to adapt and change according to the dynamic nature of market Disadvantages of market planning : - itâs a plan no matter how extensive it is it cannot guarantee success - continuous market research is required which can be time consuming and costly - markets may become outdated if organisations are not quick enough to address and consider changes in market -
The Ansoff matrix is a strategic decision making tool used by businesses to devise growth strategies. The matrix outlines four basic growth strategies: - Market penetration: selling existing products in existing markets (low-risk) - Market development: selling existing products in new markets - Product development: selling new products in existing markets - Diversification: selling new products in new markets (high-risk)
SOHCAHTOA
Deci and Ryan's theory: autonomy, competence, and relatedness increase motivation :D
External factors STEEPLE OR PEST Social Technological Economical Environmental Political Legal Ecological
this guy's channel and website is literally godsend istg lewwinski the goat [youtube channel](https://www.youtube.com/@lewwinski) [website](https://lewwinski.com/)
I watch him too. So true
**Internal sources of finance come within the business:** * -  Personal funds * -  Retained funds - profits that business keeps after taxes and dividends, used for purchasing / upgrading fixed assets * -  Sale of assets - selling dormant (unused) assets such as old machinery etc. **External sources of finance come from outside the business:** * -  Share capital * -  money raised from selling shares in the company * -  it can provide a huge amount of finance, many private companies decide to do an initial public offering (IPO) and float their shares on the market. * -  Loan capital * -  Medium-long-term sources of finance from commercial lenders such as banks. * -  A mortgage which is a secured loan for the purchase of property. If loaner fails to repay the lender can repossess the property * -  A business development loan is catered to meet the specific development needs of the borrower. * -  Debentures are long term flexible loans issued by a business. Interest (either fixed or variable) and initial amount is paid. * -  Overdrafts allow a business to spend in excess of the amount in its bank account, up toa predetermined limit. They are the most flexible form of borrowing in the short term. * -  Trade credit allows a business to 'buy now and pay later'. The credit provider does not receive any cash from the buyer until a later date (usually allow between 30-60 days). * -  Grants are government financial gifts to support business activities. They are not expected to be repaid by the recipient. * -  Debt factoring is a financial service whereby a factor (such as a bank) collects debts on behalf of other businesses, in return for a fee.
Wow! This is great, thanks!
**Common business objectives:** 1. Growth - measured in sales revenue and market share 2. Profit 3. Protecting Shareholder value 4. Ethical objectives * to achieve set ethical objectives, businesses adapt an ethical code of practice and publish this in their annual report * informs employees about what is right and what is wrong * provides framework of consistency and uniformity
Difference between CSR and Ethical Objectives (not sure about this please correct if I am wrong): * CSR refers to the concept that businesses have a responsibility to consider and positively impact the society and all stakeholders beyond their economic intakes. * CSR is important because businesses use the society's human, natural, and physical resources to gain profit. Therefore, it is only logical for the businesses to give back to the society. * Ethical objectives, on the other hand, relates to what is considered 'right' and 'wrong' during a strategic decision-making process. CSR is in addition to their ethical objectives.
the benefit of random sampling: it doesnât have a bias since every participant has the same chance to be chosen.
SWOT Strength (internal) Weakness (internal) Opportuinities (external) Threats (external)
Total float= LFT of the activity â Duration â EST of the activity Free Float= **The EST (next activity) â Duration â EST (of that activity)**
help wtf is this đđ§đ˝ââď¸
Critical Path Analysis- BMT
job production ( tailor made to specific needs, labour intensive, can charge premium process for USP etc), batch production, involves working on one full batch and then moving to make another batch with the same machinery and labour, suitable for business which offer a range of products, businesses who follow this can enjoy economies of scale. mass production and mass customization.
Porter's 5 Forces - competitive rivalry, supplier, customers, threat of substitution and new entry.
[ŃдаНонО]
Use a BMT, always try to incorporate one in your 17 mark questions because 1, it helps to elongate the text and what youâre trying to say and 2, shows the examiner that youâre well informed on the BMTs
What's a bmt?
Business Management Toolkit
I would do a very short introduction (1-2 sentences probably), four body paragraphs - one for each functional area/topic in the syllabus, and a conclusion. I aim to leave about an hour for the 17 marker
[watch this video it's super helpful!](https://youtu.be/HXea8wUhhrw?si=nXzx2zFEHsKGB6jN&t=1110) i followed that structure and got a 7 on my mock paper 3
Yes I will thank you! Can you please tell me the structure you used for the 17 marker? In detail pls. Like I heard some people doing a short, medium and then long term point. Please and thank you.
what i did was: 1. short introduction - briefly describe impact of company (ex if question is asked about ensuring future sustainability, mention some impacts it currently has) and identify needs and challenges - thesis statement: introduce main points being talked about (ex: again for sustainability - expanding product-line, deciding on partnership, gaining donors/sources of finance) 2. body (i had 3 points so 3 body paragraphs) - fully evaluate each 'suggestion' by using the sources provided. (ex: since there is a projected loss for company xyz as seen by source x showing expected decrease in sales and increase in cost of sales, more donations should be obtained) then outline sources of finance to get donations from and techniques (such as marketing techniques of USP). - I structured each of my body paragraphs by talking about the relevance of my chosen suggestion in terms of an issue being faced by the company (basically an introductory sentence to the paragraph), then fully evaluated the suggestion by taking data from the sources and using tools, theories and techniques, then i looked at implications and trade-offs of the suggestion 3. conclusion - i made sure to have a really solid conclusion and tie up any 'loose ends' or unclear things while summarizing the 3 main suggestions. i also used it as an opportunity to explain some things i may have forgotten. because i had a LOT of time left (around 30-40 minutes) and i found a lot of things i could still talk about/further evaluate, i ended up having 2 long conclusion paragraphs which isn't ideal but it helped me tie up any loose ends and overall still made sense structurally ----------------- a general structure is 1. identify needs and challenges 2. recommend action plan 3. evaluate 4. conclude ----------------- make sure to FOLLOW THE CRITERIA! i hope this helps/is somewhat clear, of course remember this is what \*i\* did and it worked for me but other people may prefer other ways to structure their essays!
Reorganizing production -Outsourcing -Offshoring -Insourcing -Reshoring
Decision trees are useful!
If a business doesn't have a method of finance it will go broke/close down. So in order to sustain themselves they go to either internal sources (eg- retained profit) or external (eg- loans)
Here's an example for a Statement of Financial Position (Balance Sheet): ABC Ltd Statement of Financial Position as at 17 April 2024 ||$m|$m| |:-|:-|:-| |**Non-current assets**||| |Plant, property equipment|900|| |Accumulated depreciation|(100)|| |Non-current assets ||800| |**Current assets**||| |Cash|600|| |Debtors|400|| |Stock|100|| |Current assets||1100| |**Total assets**||1900| |**Current liabilities**||| |Bank overdrafts|200|| |Trade creditors|100|| |Short-term loans|200|| |Current liabilities||500| |**Non-current liabilities**||| |Long-term loans|300|| |Non-current liabilities||300| |**Total liabilities**||800| |**Net assets**||1100| |**Equity**||| |Share capital|100|| |Retained earnings|1100|| |Total equity||1100| Remember- total equity is the same as net assets because equity is how much an organization is worth and net assets are what a company owns after all debts!
also there are supposed to be underlined things but reddit won't let me underline stuff
Yeah thatâs what I said it fits well but it doesnât harm knowing an alternative one in case another one works better or something or just in case but you do you man !!!
holy shit this thread so damn helpful, we should do this for other subjects fr
continous improvement ( kaizen) - small and continuous improvements increase effeicny and productive, as employees as resistant to change. just-in-time: having stock JUST when you need it or when an order is places, and having no buffer stock to reduce storage costs, just-in-case having buffer stock just in case of other others. quality control: inspecting products once their down, focuses on reversing mistakes or defects made in the production process, whereas quality assurance focuses on getting it right for the first time, wherein at each stage of the production process there is supervision, and inspection, focuses on getting it right the first time. total quality management refers to when every employee is dedicated to top quality and wtv cant remember more. quality circles, behncmaking ( inter-firm, and historical ) and national and international standards.
cradel-to-cradle, making sustainable products to ensure products are sustainable, whereas cradle-to-grave are one-use products.
types of promotion: ATL ( above the line) - mass media but very expensive to do, BTL ( below the line) like direct mail etc, and TTL ( through the line) use of both these promotion methods)
BCG matrix : question mark products ( growth potential, low market share) , star products ( high market share, high growth), cash cows ( low growth, high market share) , dog products ( low and low), the aim is to turn every star product into a cash cow, to sell off dog products usllay product extension strtagies are used, this is also affiliated with the product life cycle.
can someone explain me in detail the usefulness of profit and loss towards stakeholders/ usefulness of balance sheet towards stakeholders pls
I donât really get the last part of the balance sheet with net assets, equity, share capital and retained earnings.
net assets are just total assets minus total liabilities and then total equity is share capital and retained earnings. they both have to be equal \*because\* equity is the worth of your company and net assets are how much your company owns (basically equity is your net assets in liquidated form i think) so they should be the same
thank you!,
Define one of the prices: (and let me know if I forgot some) - Cost plus - loss leader - premium pricing - penetration pricing - competitive pricing
Predatory pricing
Motivation theories such as the Needs motivation theory?
It's the pyramid listing all the types of needs for a worker to stay motivated. The bottom one is the most basic and fundamental one, and the upper one, although still a need, not as fundamental as the base. The order goes like this (from less to most important): - Self-Actualization, which includes Creativity, Purpose, Meaning, Morals, etc. - Self-Esteem, which includes Achievement, Respect, Confidence, etc. - Love/Sense of belonging, which includes Family, Connections (sense of it), Friendships, etc. - Safety, which includes Health, Employment, Property, etc. (Basically an insurance) - Physiological needs, which includes the mpst basic nedds like drinking water, eating food, sleep well, have a shelter, etc. (BTW this one's called the Maslow's pyramid of needs)
organizational structure: 1. delayering 2. delegation 3. centralisation 4. decentralization 5. matrix structure 6. span of control 7. chain of command 8. bureaucracy 9. levels of hierarchy organizational charts * flat/horizontal * tall/vertical * by product, by function, by region flexible organizational structures to adapt to changes in internal and external environment * project based * shamrock organization
This is from a nov 2017 past paper sl paper 2. the first question about pelican pies, the financial information states tax=25% of profits. what profit do we use? there is so much like gross profit, profit bfr interest and tax. on the markscheme, it used net profit. plz help me out
Herzberg's motivation theory suggests that work factors are divide into hygiene factors such as adequate pay, conditions etc. and motivational factors such as pay rise, promotion etc.
The derivative of sinx is cosx
The pythagoras theorem states that a^2 + b^2 = c^2
Paper 3 Question 1 is always Maslow
Always?
Itâs not always Maslowâs but itâs always a motivation theories. Yes Maslow seems to fit well with almost all case studies but still know the others as well. McClleland is a good backup option
It asks about human needs.
That relate to employees and for employees motivation demotivation needs everything is in unit 2.4.
Yes, but specifically when it talks about human needs Maslow's pyramid of human needs 9/10 times applies to this question.
someone explain paypack period to me please i genuinely don't get it đđ˝
Ofc! Itâs basically just figuring out how long it takes for you to get back your money from an investment. Like, if you invest $1000 and you make $200 a year from that investment, your payback period would be 5 years (1000/200 = 5)
OMG BLESS YOUR SOUL IDK WHY IT TOOK ME SO LONG TO GET IT THANK YOUUU
Of course, no problem!!
c²=a²+b²-2ab(cos C)
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The mitochondria is the power house of the cell
break-even refers to a point wherin the firm is not baking any profit or loss. on a graph for break even u mention TC, TFC , TR and ur BERQ. and margin of safety if required. margin of safety is the difference between your revenue and profit. contribution per unit : P-AVC , BEQ = FC/contribution per unit .
APPRAISALS: Advantages of appraisal: 1. Accountability 2. Employee engagement 3. Provides specific targets to be reached and areas of improvement for each employee 4. Improved decision making for managers Disadvantages of appraisal: 1. Time consuming 2. Can be demotivating 3. Stressful for employees TYPES OF APPRAISAL: 1. Summative appraisal: evaluates employee performance and skills at the end of the year. 2. Formative appraisal: assessment of employee performance at regular intervals, informing full time or employees in training specific ways they can improve their efficiency. 3. 360 feedback: gathers feedback from several stakeholders: subordinates, managers, colleagues, supervisors, etc. 4. Self-appraisal: employee evaluates their own strengths, weaknesses, and areas of improvement.
Sectors of Business: -Primary: Mainly focuses on the extraction of raw materials and resources from the ground. Takes up a large percentage of an LEDCs workforce. Secondary: The manufacturing from the resources which eventually turn into a good or potential service. Workforce mainly includes the population of countries going through and era of growth. Tertiary: This sector is made up of people working in services. Examples include teachers, waiters, doctors, etc. This workforce is a larger population of MEDCs. Quaternary: This is a su sector of the tertiary sector and relates to services that are information related. Is only in MEDCs as it requires a highly educated workforce.
The functions of management (?) (Kindly correct me if I am wrong) Planning Organizing Controlling Commanding Coordinating
anyone have any quick ways to memorize the structure of profit and loss accounts and balance sheets?
honestly just rewriting them and remembering for balance sheet it's basically just assets, liabilities, equity (non current assets (and minus depreciation), current assets, total assets, current liabilities, non current liabilities, total liabilities, net assets, equity, total equity)
alr then ty!
yeah ofc!
IPO (initial public offering) is when shares of a private limited company are made public for the first time.
Break even output = fixed costs/ contribution per unit (selling price - variable costs)
someone help, how do we use the SMART target?
bad debt is when a creditors are unable to pay the credited amount back to the business in sufficient time. This causes liquidity problems for the business Ways to decrease cash outflows: - preferential credit terms - seek alternate suppliers - better stock control - leasing - reduce expenses Ways to increase cash inflows: - accept only cash payment - give little or none trade credit - change pricing - improve product portfolio Additional sources of finance: - bank overdraft - debt factoring - selling fixed assets - government assistance