Summary
Summary A level busines revision guarantee c and above
- Institution
- AQA
Summary of 29 pages for the course Unit 1 BUSS1 - Planning and Financing a Business at AQA (Helps to get an A)
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The tannenbaum and schmidit continuum demonstrates the relationship between the levelof freedom that a manager chooses to give a team , and the level of authority used by the
manager
Four style of leaderships
tells - leader identifies the problem
Selss -leader still makes decisions
consults - leader identifies problems and present them to the group
Join- the leader defines the problem and passes on the solving decision
Blacke mouton grid
Improvised management the concern for people are 1 and concern for task are 2
Country club management concern people =9 and concern task=1
Task management = concern people 1 and concern task 9
Team management= concern people 9 and tasl 9
Middle of the road management =concern people =5 and concern task = 5
Examples of scientific decision-making
Decision trees
Investment appraisal
Benefits and drawbacks of scientific decision-making
Data driven=evidence based
Removes some subjective judgement from decision
j
Drawbacks
May still rely on assumptions
Does not guarantee the correct direction
Opportunity cost
The cost of missing out on the next best alternative
Opportunity cost is important
For most business resources are limited .
When resources are limited, decisions have to be made about what to spend /invest
and where to focus .
Decision tree is a mathematical model used to help managers make decisions when
faced with choices.
Decision trees use estimates and probabilities to calculate likely outcomes.
Shareholders
Own the business
May also work in the business
Benefit directly from increases in the value of the business
,Marketing objective a specific goal or target relating to the marketing activities and
performance of a business
Main types of marketing objectives
Sales volumes
Market share
Brand loyalty
Potential problems with marketing objectives
New competitors enter the market
Potential conflict between marketing objectives
Easy to be too ambitous with marketing objectves
Internal influences on marketing objectives
Corporate objectives-the most important internal influence
Finance - the financial position of the business
External influences on marketing objectives
Economic enviroment key factor in determining demand
Competitor actions-marketing objectives have to take account or likely possible
Primary research
Secondary research
The marketing map
A market map illustrates the range of positions that a product can take in a market based on
two dimensions that are important to customers
Advantages
Helps spot gaps in market
Useful for competitor
Disadvantages
Just because no gap doesnt meant demand
Not guarantee success
Sampling in market research
Sampling involves gathering data from a sample of respondents
Pros
Sampling is flexible and quick
Drawbaacks
Risk of bias in research questions
, Correlation looks at strength of a relationship between two variables
independent variable
The factor that causes the dependent variable to change
dependent variable
The variable that is influence by the independent variable
A confidence interval gives the percentage probability range of possible values
Elasticity measures the responsiveness of demand to a change in a relevant variable such
as price or income
Price elasticity of demand measures the extent to which the quantity of a product demanded
changes in response to a charge in price
Price elasticity of demand =
%change in quantity demanded
—-----------------------------------------
%change in price
Price elastic more than 1 change in demand is more than the charge in price
Price inelastic less than 1 change in demand is less than the change in price
Income elasticity of demand measures the extent to which the quantity of a product
demanded is affected by a change in income
Income elasticity of demand
% change in quantity demanded
—---------------------------------------------
%change in income
Interpreting income elasticity of demand
Most normal products
A rise in consumer income will result in a rise in demand
Market segmentation
Market segmentation involves dividing a marker into parts that reflect different customer
needs and want
Main categories of market segment
Demographic segments
Income segments
geographic segments
Behavioural segments
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