A-Level Business Studies key content part 2

what are the factors that influence demand acroym

Proud Iguanas Chase Tasty Strawberries.

what does p stand for

price

what does i stand for

income

what does the t stand for

tastes and fashion

what does the c stand for

competitor actions

what does the s stand for

seasonal chnages

what is the formula for total revenue

volume sold x average selling price

how do you increase revenue

increase quantity of products sold

achieve a higher selling price by increasing quality e.g. bath salts come with scooper

what is the formula for total costs

fixed costs + variable costs

traditionally managers and leaders roles were

order subordinates, controlling, make all decisons

in the modern world managers and leaders roles are

inspire employees, create a visions and build effective teams

what is a leader

someone who inspires people to build relationships and have followers

what is a manager

someone who enacts the plan using their authority and takes risks

what are strategic leaders

people who influence / control the corporate strategy of a business

what are the 3 traditional levels of management

senior, middle and junior

what’s an example of a senior management

board of directors

what’s an example of middle management

department leaders

what’s an example of junior management

those who answer to middle management

what’s the nature of changing organisational structures

constantly happening, requires teamwork and sometimes is a rapid change

why would someone choose a private limited company

retain control

make decisions for the long term

what are the pros of a private limited company

cheap to set up, shares sold privately, limited liability

why choose a public limited company

perform takeover-issue shares for finance and gain capital from sale of shares publicly

what are features of a public limited company

tend to be big, accounts are public and audited (checked)

what is the formula for market capitalisation

share price x number of issues shares