Cambridge International AS and A Level Business Studies

1 Revision GuideCambridge International AS and A LevelBusiness StudiesPeter StimpsonPeter JoyceCambridge University Press978-1-107-60477-3 - Revision Guide: Cambridge International AS and A Level : Business StudiesPeter Stimpson and Peter JoyceFrontmatterMore in this web service Cambridge University Presscambridge university pressCambridge, New York, Melbourne, Madrid, Cape Town,Singapore, S o Paulo, Delhi, Mexico CityCambridge University Press4381/4 Ansari Road, Daryaganj, Delhi 110002, on this title: Cambridge University Press 2013 This publication is in copyright. Subject to statutory exception and to the provisions of relevant collective licensing agreements, no reproduction of any part may take place without the written permission of Cambridge University Published 2013 Printed in India byA catalogue record for this publication is available from the British LibraryISBN 978-1-107-60477-3 PaperbackCambridge University Press has no responsibility for the persistence or accuracy of URLs for external or third-party internet websites referred to in this publication, and does not guarantee that any content on such websites is, or will remain, accurate or effort has been made to trace the owners of copyright material included in this book.

2 The publishers would be grateful for any omissions brought to their notice for acknowledgement in future editions of the University Press978-1-107-60477-3 - Revision Guide: Cambridge International AS and A Level : Business StudiesPeter Stimpson and Peter JoyceFrontmatterMore in this web service Cambridge University PressContents Introduction ix Acknowledgement xiii Chapter 1 Enterprise Business activity Adding value The role and characteristics of successful entrepreneurs Why some new enterprises fail Enterprise benefits for the country Social enterprises 3 Multiple Choice Questions 4 Exam-style Question 4 Chapter 2 Business Structure Economic activity Private sector and public sector Forms of Business organisation (private sector) Other important types of Business organisation Privatisation The growth of multinational companies and the impact they can have on an economy 9 Multiple Choice Questions 10 Exam-style Question 10 Chapter 3 Size of Business Measuring Business size Small firms can benefit an economy Common strengths and weaknesses of family businesses The relative advantages of small and large businesses How businesses grow Business integration do all stakeholders benefit?

3 Rapid growth can cause problems as well as bring benefits 17 Multiple Choice Questions 17 Exam-style Question 18 Chapter 4 Business Objectives Why should businesses set objectives? Why should objectives be SMART? Linking mission statements, objectives and strategies Factors influencing corporate objectives Potential conflicts between objectives Ethics should Business objectives reflect ethical standards? 22 Multiple Choice Questions 23 Exam-style Question 24 Chapter 5 Stakeholders Stakeholders and the stakeholder concept How stakeholders are affected by Business actions Rights and responsibilities of stakeholders Corporate social responsibility Conflicting stakeholder objectives 28 Multiple Choice Questions 29 Exam-style Question 29 Chapter 6 External Influences on Business Activity Legal influences on Business activity Technological change the opportunities and threats Impact of social changes on Business activity Influences on environmental policies of Business 34 Multiple Choice Questions 35 Exam-style Question 36 Chapter 7 External Economic Influences Government economic objectives Economic growth and the Business cycle impact on Business strategy 37 Cambridge University Press978-1-107-60477-3 - Revision Guide.

4 Cambridge International AS and A Level : Business StudiesPeter Stimpson and Peter JoyceFrontmatterMore in this web service Cambridge University Pressiv Inflation and unemployment how Business activity can be affected Government economic policies how Business strategy can adapt Exchange rates how Business activity can be affected 40 Multiple Choice Questions 41 Exam-style Question 42 Chapter 8 Management and Leadership Functions of management Mintzberg s management roles Qualities of leaders Important leadership positions Styles of leadership McGregor s Theory X and Y Choice of leadership style Informal leadership Emotional Intelligence (EI) 47 Multiple Choice Questions 47 Exam-style Question 48 Chapter 9 Motivation Motivation Taylor s scientific approach Mayo Maslow Herzberg McClelland Process theories Motivation in practice Financial methods Motivation in practice Non-financial methods 52 Multiple Choice Questions 53 Exam-style Question 54 Chapter 10 Human Resource Management Purpose and role of HRM Strategic workforce planning Recruiting and selecting staff Staff development Contracts of employment Expanding the workforce 58 Multiple Choice Questions 60 Exam-style Question 60 Chapter 11 Further Human Resource Management Measuring human performance Improving employee performance Management By Objectives (MBO)

5 Industrial relations legislation Relationship between workforce and management Trade unions Conciliation and arbitration 65 Multiple Choice Questions 66 Exam-style Question 66 Chapter 12 Organisation Structure Need for structures Hierarchical structure Matrix structure Delegation Factors influencing organisational structure Consequences of organisational structure 71 Multiple Choice Questions 72 Exam-style Question 72 Chapter 13 Business Communication Communication process Choice of communication medium Barriers to effective communication Removing barriers to effective communication Types of communication network One way or two way communication Other types of communication 77 Multiple Choice Questions 78 Exam-style Question 78 Chapter 14 What is Marketing? The role of marketing Marketing objectives Distinguish between market orientation and product orientation Demand, supply and price Market size, market growth and market share Adding value Niche marketing and mass marketing Market segmentation 85 Multiple Choice Questions 86 Exam-style Question 86 Cambridge University Press978-1-107-60477-3 - Revision Guide: Cambridge International AS and A Level : Business StudiesPeter Stimpson and Peter JoyceFrontmatterMore in this web service Cambridge University PressContents vChapter 15 Market Research Need for market research Market research process Sampling methods Questionnaires Is primary data always reliable?

6 Presentation of information Statistical analysis 92 Multiple Choice Questions 92 Exam-style Question 93 Chapter 16 Marketing Mix: Product and Price The marketing mix Customer Relationship Marketing (CRM) and the 4 Cs Product decisions and the product life cycle Price Elasticity of Demand Pricing decisions Pricing methods Why pricing is important 97 Multiple Choice Questions 99 Exam-style Question 99 Chapter 17 Marketing Mix: Promotion and Place Different forms of promotion Promotional objectives Promotion decisions the key factors Deciding which distribution channels should be used The impact of the Internet Integrating the marketing mix 104 Multiple Choice Questions 105 Exam-style Question 105 Chapter 18 Marketing Planning Marketing plan Elasticity Promotional models: AIDA and DAGMAR New product development Research and Development (R and D) Sales forecasting 111 Multiple Choice Questions 112 Exam-style Question 112 Chapter 19 Globalisation and International Markets Globalisation of markets and the impact on marketing Differences between selling in home markets and International marketing How to enter foreign markets International marketing strategies 115 Multiple Choice Questions 116 Exam-style Question 117 Chapter 20 The Nature of Operations Production The production process Adding value Increasing added value Increasing efficiency 119 Multiple Choice Questions 120 Exam-style Question 121 Chapter 21 Operations Planning Operations planning Production methods Location decisions Scale of operation Enterprise resource planning (ERP)

7 127 Multiple Choice Questions 128 Exam-style Question 129 Chapter 22 Inventory (Stock) Management Why businesses hold stocks Businesses have to decide stock levels Just-in-Time 133 Multiple Choice Questions 134 Exam-style Question 134 Chapter 23 Capacity Utilisation What is capacity utilisation? Excess capacity Working at full capacity/Capacity shortage Outsourcing 138 Multiple Choice Questions 140 Exam-style Question 140 Cambridge University Press978-1-107-60477-3 - Revision Guide: Cambridge International AS and A Level : Business StudiesPeter Stimpson and Peter JoyceFrontmatterMore in this web service Cambridge University Pressvi Contents Chapter 24 Lean Production and Quality Management Lean production Kaizen Quality methods Other quality issues 144 Multiple Choice Questions 145 Exam-style Question 146 Chapter 25 Project Management Managing projects Critical Path Analysis (CPA)

8 Evaluating CPA 149 Multiple Choice Questions 149 Exam-style Question 150 Chapter 26 Business Finance The need for finance Working capital Sources of finance The choice of finance 155 Multiple Choice Questions 157 Exam-style Question 157 Chapter 27 Forecasting Cash Flows Cash flow Difference between cash and profit Uses and limitations of cash flow forecasts Forecasting cash flows Presenting cash flow forecasts Causes of cash flow problems Improving cash flows Relationship between cash flow and working capital Managing working capital problems 163 Multiple Choice Questions 164 Exam-style Question 165 Chapter 28 Costs Importance of costs Classifying costs Break-even Uses of costing information Costing methods Using contribution costing Full costing versus contribution costing 170 Multiple Choice Questions 170 Exam-style Question 171 Chapter 29 Accounting Fundamentals Need for keeping accounting records Income statement?

9 What is a balance sheet? Why calculate ratios? How is profitability measured? Are accounts and accounting ratios useful? 178 Multiple Choice Questions 179 Exam-style Question 179 Chapter 30 Budgets Why budgets are needed Stages in preparing budgets Types of budget Usefulness of budgets Budgetary control variance analysis 182 Multiple Choice Questions 183 Exam-style Question 184 Chapter 31 Contents of Published Accounts Amending income statements Common amendments Valuing items on the balance sheet Depreciation Valuation of Inventories 187 Multiple Choice Questions 187 Exam-style Question 188 Chapter 32 Analysis of Published Accounts Uses of ratios The ratios Limitations of ratio analysis 192 Multiple Choice Questions 193 Exam-style Question 193 Chapter 33 Investment Appraisal Investment Investment appraisal: non-discounting methods Discounting the future Net Present Value (NPV) Other methods Limitations of investment appraisal 198 Multiple Choice Questions 198 Exam-style Question 199 Cambridge University Press978-1-107-60477-3 - Revision Guide: Cambridge International AS and A Level : Business StudiesPeter Stimpson and Peter JoyceFrontmatterMore in this web service Cambridge University PressContents vii Chapter 34 What is Strategic Management What is meant by corporate strategy ?

10 Strategy and tactics what are the differences? The need for strategic management How strategy can influence organisational structure? Competitive advantage what it is and how to achieve it? 203 Multiple Choice Questions 204 Exam-style Question 205 Chapter 35 Strategic Analysis How strategic analysis helps a Business ? SWOT analysis PEST analysis Vision statements and mission statements Boston Matrix Analysis Porter s Five Forces Core competences 210 Multiple Choice Questions 210 Exam-style Question 211 Chapter 36 Strategic Choice What is meant by strategic choice? Ansoff s Matrix and making strategic choices Force-Field analysis and making strategic choices Decision trees and making strategic choices 215 Multiple Choice Questions 216 Exam-style Question 217 Chapter 37 Strategic Implementation Strategic implementation Business plans Corporate plans Corporate culture Change management Contingency planning 223 Multiple Choice Questions 224 Exam-style Question 225 Answers and Tips 227 Index 230 Cambridge University Press978-1-107-60477-3 - Revision Guide: Cambridge International AS and A Level : Business StudiesPeter Stimpson and Peter JoyceFrontmatterMore in this web service Cambridge University PressCambridge University Press978-1-107-60477-3 - Revision Guide: Cambridge International AS and A Level .