This section of my summarised notes covers the topic 'Business and its Environment' in CIE 9609 Business Studies.
These are simple, stylised note pack which are perfect for AS business studies revision. They cover all the topics in the CIE syllabus with needed detail to ensure you get the perfec...
Operations
Inputs
• Human Resources
Management of stakeholders
Business requires human skill → physical and mental
• Land
Physical space for premises that must have particular characteristics
The physical site the business is based on
• Capital
Manmade forms of production, inputs such as computers and machinery
Intellectual Capital: intangible capital such as human capital (trained workers), structural
capital (database and information systems) and relation capital (good links with suppliers
and customers).
• Money
Essential for day to day transactions so bills paid on time
Transformation Process
Converts inputs into outputs by:
- changing nature of substances
- Supplying information that is available elsewhere
- Retrieving resources and transporting them
Chain of production: process involved in the making of final product
Efficiency: producing outputs at highest ratio of output to input
Effectiveness: meeting objectives of the business bu using inputs productively to meet customer
needs
Labour Productivity: how well a firm’s workers are working.
Output per period
Number of employees per period
• Any increase in productivity suggest efficiency improvement
• Higher productivity leads to lower labour costs per unit and greater competitiveness
Labour cost per unit = total labour costs
Number of units
How to improve Productivity:
- Improve training to raise skills
- Improve worker motivation
- Purchase more technologically advanced equipment
- More efficient management
Capital Productivity: efficiency of capital used compared to output generated
Output
Capital Employed
→ can help to identify if fewer need to employed and it helps reduce unit cost of production
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