...AQA AS Business Studies Unit1 (BUSS1) Course Companion AQA AS Business Studies Unit 1 (BUSS1) Course Companion Publishers Information AQA AS Business Studies Unit 1 Course Companion 1st Edition August 2008 Author: Jim Riley © Tutor2u Limited All Rights Reserved No part of this material may be reproduced in whole or in part without the express written permission of Tutor2u Limited. This publication is not endorsed or approved by AQA. Tutor2u Limited Boston House 214 High Street Boston Spa LS23 6AD Please contact jimriley@tutor2u.net with details of any errors, omissions or suggestions for future editions. © Tutor2u Limited All Rights Reserved www.tutor2u.net AQA AS Business Studies Unit 1 (BUSS1) Course Companion Contents Introduction to AQA AS Business Unit 1 .....................................................................6 Section 1: Starting a Business ......................................................................................7 Enterprise and Entrepreneurs .......................................................................................8 Introduction ......................................................................................................................................... 8 Entrepreneurs ..................................................................................................................................... 9 Motives for starting a business ................................................................
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...Attribute A characteristic or quality of the phenomenon to be measured Magnitude The extent to which the phenomenon has the attribute Often we can’t directly observe a phenomenon of interest We need to find a substitute Direct observation- the only time we can accurately observe the attribute and phenomenon How happy is the baby? Phenomenon-baby Attribute-happiness Can you measure this attribute directly? NO Smiles per hour Laughter per day Financial Statements: When investors focus on a company’s net income, is net income necessarily the investors’ attribute of interest Firm performance Firm future performance What two things do accounting measures often represent Performance- what have we done? Position- what do we have? Business Strategy and Accounting USSBA Too many teams to manage What is strategy according to Porter? Strategy is creating a fit among an organization’s activities (to enable it to realize its goal or mission). The success of a strategy depends on doing many things well and integrating among them Operational Effectiveness versus Strategic Positioning Operational effectiveness Performing similar activities better than rivals Strategic positioning Performing different activities better than rivals What limits the sustainability of profits associated with operational effectiveness? Operational effectiveness techniques can be imitated Competitive convergence (hard to differentiate between each other) Three bases for strategic positioning ...
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...Seacoast science center must deal with declining numbers of museum goers. S-Science related attractions have recently been declining in interest amongst the general population as sports and ambiguous entertainment grow . T-A lot of research has been done and seems to be plateauing , plus there is only so much money that states and lenders will give to update technology that only analyzes science not just progression in it. E-The science center seems to not be leaving that big of a carbon footprint. L-The increasing sea level is beginning to remove some of the nearby beach from the center’s property. Not many regulations have been put on the science center. Perform a Porter’s 5 Forces Industry Analysis as it relates to SSC. (Note: The amount of information you have about the different forces varies tremendously. Also, many not-for-profits like SSC have two customer groups, as Visitors and Donors can both be considered customers. Take this into account as you do your analysis.) Threat of New Entrants: (Low) The seacoast Science center is specific to the region of new hampshire. Anything within a 50 mile radius would not be able to bring in visitors because as there is already low numbers of them it would be hard to beat out the history of the SSC . Bargaining Power of Suppliers: (Medium): For the visitors their bargaining power is medium because there are other attractions nearby. The price of entry is low compared to theme parks but they do bring in more...
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...Case study - disbenefits relevant to project + value ($ values) 950 words * We understand that this may be somewhat novel for students but given the wide spread publicity (all the source information and media attention) and the potential issues that arise in this scenario we felt that you would enjoy the challenges this set of circumstances brings up now and in the future. * Obviously we want you to relate this back to Australian Copyright Law but also point out some of the difficulties that can occur and why we need to think about these problems (because this is an international issue) * I have put up a marking guide for you to use. Please note it is a guide only. We will be looking for your insight into the area and well aware that this may be new for you, as it is for us. * Try and make your answer interesting and use argument/analysis rather than just descriptive language of the situation. * Don’t forget to reference your work. Only footnotes required. Please make sure you use your own work and adequately acknowledge all material and sources. Remember we have most likely read what you have read; we are interested in your particular insight and work (not someone else). * You have quite a bit of scope to answer this question and there is plenty of relevant information available to you to do so in an interesting and constructive way. Plan your response by doing an outline of how you are going to set this work out. Maybe you could ask yourself what...
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...International Business Exam Chapter 1 Notes Domestic vs International Business * Business: is the manufacturing of goods or services in order to make a profit * Term “trade” is used interchangeably with business * Transactions: exchange of things of value * Domestic Business: business that transacts mainly in the country it was base din * ie owned by Canadians, in Canada, selling to Canadians (Rare) * International Business: economic system of transactions conducted between businesses in different countries * Domestic Transaction: between 2 Canadian companies * International Transaction: between Canadian + non Canadian company * Domestic Market: the customers of a business who are in the same country as the business * Foreign Market: the customers of a business who are in a different country as the business * 5 Ways for businesses to must be international * MUST own retailers or distributors in another country * MUST own manufacturing plant in another country * MUST export to other countries * MUST import from others * MUST invest in other country businesses * Trading Partner: Canada businesses make relationship with businesses in another country, so they would be Canada’s trading partner. History of Canadian Trade * European Trade * 1700s – trades grew fast after permanent Canadian settlement * Demand for raw materials (beaver pelts, fish, lumber) ...
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...Statutory Interpretation (not examinable) • Literal Rule There are three (3) principles of law that can be applied to interpret the law, where the Literal rule can be applied and if absurdity exist either the Golden or the Mischief rule can be used. The Literal rule considers the law as what it says where the natural meaning of the words are used for interpretation; this can be depicted in the case Regina v Barrymore where the defendant was charged with the offence of wounding with the intent to murder, however the learned magistrate of St John’s Magistrate’s court committed the defendant to stand trial on a charge of wounding with intent to do grievous bodily harm. The court however had no power to commit the defendant for any offence other than the offence with which he had been charged. • Golden Rule The Golden rule is an extension of the literal rule, giving either narrow or wide meaning to the law; the Narrow meaning can be exemplified in the case of Marilyn Spenser v the Attorney General (AG), where the appellants, members of the Executive of the Committee of the Hallelujah Square Tabernacle church submitted to the Attorney General (AG) articles of incorporation of the church as a religious non- profit organization. However, the AG rejected the request stating that a nonprofit company must be a commercial enterprise which is to be carried out without financial gain to its members. Wide Meaning on the other hand is used to give law a wider meaning...
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...Notes on Business Organization Centralisation and Decentralisation Centralisation implies the concentration of authority at the top level of the organisation while decentralisation means dispersal of authority throughout the organisation According to Allen Centralisation is systematic and consistent reservation of authority at central points within an organisation. Decentralisation applies to the systematic delegation of authority in an organisation context. Advantages of Decentralisation * Decentralisation reduces the workload of top executives. * It improves job satisfaction and morale of lower level managers by satisfying their needs for independence, participation and status. * Decision making is quicker. * It facilitates growth and diversification. As each product division is given sufficient autonomy for innovation and creativity. * It gives opportunity to subordinates to exercise their own judgment. They develop managerial skills which will be useful to the organisation in the longer run. * Decentralisation requires wider span of control and fewer levels of organisation. It speeds up communication. * Decentralisation increases the administrative expenses and each division or department has to be sufficient in terms of physical facilities and trained personnel. * As each department or division enjoys substantial autonomy it might lead to co-ordination problems. * There might be lack of uniformity and inconsistent procedures as each...
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... financial management is the process of setting objectives throughout the business and deciding what resources are needed to achieve these objectives. The ‘finance’ part comes through the specific decisions as to how the resources will be financed. Financial management has a strategic role because it takes place in a changing environment and plans need to be flexible and ready to change. Strategic financial planning sets out the broad series of steps that need to be taken to achieve the business’ strategic objectives. Examples of changing business environments: o Taxation and other laws o Technology o Economy o Financial Innovations Within this changing environment the foals of the business need to be reached. o Liquidity o Solvency o Profitability o Growth o Efficiency Objectives of Financial Management Liquidity • A business is liquid when it can pay its debts as they fall due. ...
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...Business Studies Notes Role of operations management Effective operations management adds value to a business by: • Increasing productivity • Reducing costs • Improving quality - This achieves a strategic competitive advantage through lower costs and/or differentiated goods. - Role of the operations manager will require skills such as communication, decision-making, delegating and complex problem solving. Strategic role of operations management - A strategic decision affects the business in the long-term - Strategic goals improve productivity, efficiency and quality of outputs - Long-term decisions will cover three broad areas: • Planning production and delivery • Controls to manage quality • Improving operations o Cost leadership - Business aims to be the lowest cost manufacturer within its industry - Products are basic, fewer features, lower quality and low cost packaging - Small profit-margin, high volume of sales - Low costs can be achieved through: • Outsourcing • Economies of scale in production and distribution • Access to cheaper raw materials • Inventing an innovative method of production - Achieving cost leadership would allow the business to be an above average performer with healthy sales and profits - Benefits of cost leadership can be maintained through effective marketing, finance and human resources strategies - Disadvantages: • Competitors can use the same strategy • Consumer preferences change and the market for a ‘low-cost...
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...Ch5 Formation of a Contract: Offer and Acceptance An invitation is not an offer; a merchant is not obligated to sell to everyone who reads an ad (its supply may be limited) he is the offeree Both parties must be aware of the offer and counter offers, else any coincidental acceptance under the same terms still don’t qualify as an acceptance Protection against Standard Form Contracts 1. If business is regulated by govt board, its terms are subject to approval 2. Some segments of the public are offered special protection i.e. consumers 3. For unregulated activity, the public receives as much protection as the courts can find in contract laws All terms binding?- if offeree convinces courts that she wasn’t aware of a certain term, then the offerer must prove that it made sufficient efforts to make the offeree aware of it, else the offeree is not bound by it Contract terms on a sign must be evident to offeree AT the time of making contract How an offer may lapse: 1. Not accepted within specified time 2. Not accepted within reasonable time (if not specified) 3. Either party dies or becomes insane prior to acceptance Revocation Offeror may revoke an offer any time before acceptance, even if he promised elsewise. He must provide notice to make it effective Must revoke before it is accepted If offeree has sufficient reason to believe that the offer may have been revoked even without notice, the courts will consider it revoked Offeree Powers Can bind offeror...
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...International Business Final Chapter 16: Marketing Globally - country differences may cause companies to apply marketing principles differently Marketing Strategies - worldwide marketing commonly found and market segmentation and targeting Marketing Orientations - five common marketing orientations around the world: production, sales, customer, strategic marketing and social marketing 1. Product Orientation - when companies focus on production and little emphasis is on marketing (commodity sales, passive exports, foreign niches) 2. Sales Orientation - companies sell abroad what they sell domestically with the same approach – assume consumers are similar 3. Customer Orientation - country or type of customer is held constant and the product/marketing method varies 4. Strategic Marketing Orientation - strategy that combines production ,sales and customer orientations 5. Social Marketing Orientation - environment Segmenting and Targeting Markets - by country, by global segment, by multiple criteria, mass markets vs. niche markets, Why Firms Alter Products Legal - labeling requirements, environmental protection regulations, indirect legal considerations, issues of standardization Cultural and Economic - infrastructure (economic) The Product Line: Extent and Mix - company may only offer only a portion of its product line, perhaps as an entry strategy Sales and Cost Considerations - consider costs of having large vs small...
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...Chapter One: The Legal Environment 1. Business activities and the legal environment 2. Sources of American law 1) Primary sources of law * Constitutional law (The U.S. Constitution, state constitutions) * Statutory law ( federal statutes, state statutes, ordinances; uniform laws) * Administrative law (administrative agencies: federal, state, local) * Case law 2) Secondary sources of law * Books , articles 3. The common law tradition 1) Stare decisis * Two aspects * Controlling precedents (binding authorities) * Departures * Persuasive authorities 2) Equity * Remedy, courts of law(king’s courts), remedies at law(legal remedies) * Equity, chancellor, courts of equity(chancery courts), remedies in equity(equitable remedies) * Plaintiffs, defendant * Action at law, action in equity * Merging * Equitable principles and maxims 3) Schools of legal though Jurisprudence * The natural law school * Legal positivism * The historical school * Legal realism, sociological school 4. Classifications of law 1) Substantive law & Procedural law 2) Civil law & Criminal law 3) National law & International law Chapter Two: Constitutional Law 1. The constitutional powers of government 1) Federal form of government: national government and the states share sovereign power. 2) Separation of powers: a system of checks and balances * Legislative...
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...CHAPTER 4 SECTION 1 – PAYMENT OR PERFORMANCE Payment - In ordinary parlance, payment refers only to the delivery of money. - In legal mode of extinguishing an obligation, it also consists of the giving of a thing (other than money), the doing of an act, or not doing of an act. - When debtor pays damages or penalty in lieu of the fulfilment of an obligation. When debt is considered paid Debt - May refer to an obligation to deliver money, to deliver a thing (other than money), to do an act, or not to do an act. 1.) Integrity of Prestation - A debt is not understood to be paid unless the thing or service has been completely delivered or rendered. Partial or irregular performance will not extinguish the obligation. - In case of partial performance there is no payment under the law and the creditor can refuse payment. - Creditor has the right to refuse partial performance or not to pay it. 2.) Identity of the Prestation - The very prestation due must be delivered or performed. - When existence of a debt is admitted by the debtor or established by the creditor, the burden of proving payment is upon the debtor. Requisites for when recovery allowed in case of substantial performance in good faith (article 1234): 1. There must be substantial performance. 2. The obligor must be in good faith. - Good faith is always presumed in the absence of proof. When recovery is allowed when incomplete or irregular performance is waived - Founded on the principle of estoppel...
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...International Business (lectures) Balance of payments It has to balance (zero). In theory, it should always be zero, but in real life, it does not always balance. A current account surplus of goods and services exceed imports. The currency here is likely to rise. A current account deficit means imports of goods and services are greater than exports. The US has a great debt. You often have to borrow in this case, if you do not have a savings. It can be easy to borrow one time, but eventually you have to pay the money back that you have borrowed, plus interest. The value of the currency of the given country will fall, and therefore it can be more difficult to export goods to other countries. The US has a low savings rate compared to some of the more poor countries in the world. FDI - Foreign direct investment Greenfield investment, you build an enterprise from the bottom up. Horizontal: FDI in the same industry as the firm operates at home Vertical, two types: * Backward: * Forward: FDI is expensive and it is risky compared to just exporting goods. In the past governments were skeptic about FDI’s, but now they want to try to have a positive effect of FDI’s. Culture Cultural preferences will stay for many years, so therefore a company needs to modify their products, so it meet the costumer’s needs in a given country. Maybe a company can just change the package, so consumer are able to buy the product. Customize an escalator for India? ...
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...E-business task 1 Jennifer Strange Western Governors University QRT2 Task 1 February 04, 2014 E-business task 1 A1. Viability of product or service: Strange Transmission, LLC. Is an automotive repair company based out of Graham, Washington serving its customers since 2004. Strange Transmission specializes in transmission repairs both for daily drivers and for custom vehicles. Currently Strange Transmission has a very limited online presence. The company does have a small website with minimal introductions into its services. The company does not sell product online through its website. Strange Transmission is now 10 years old, and in the last decade has seen increases in sales driven mostly through word-of-mouth advertising from its current clientele. The business can increase its sales through a larger online presence by selling product online, expanding its website, and creating a technical blog for the automotive enthusiast. The company could expand to a larger facility with more sales driven through the Internet. By creating a larger online presence this has the potential to drive traffic locally and globally, tapping into a larger market and into their target customer groups. By going online, the company can gain brand awareness just like their competitors. There are several transmission repair companies’ online currently selling and shipping transmissions globally. The company’s customers will also benefit from the larger online presence by being able to research products...
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