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Business Studies by Mind Map: Business Studies

1. Unit 1: Business and it's environment

1.1. 1. Enterprise

1.2. 6. Business Structure

1.2.1. Trade and Globalisation Trade Barriers Tariffs Quotas Voluntary Export Limit Protectionism Benefits of Int. Trade More consumer choice Competition leads to high quality products/lower costs Specialization Higher living standards through cheaper products

1.2.2. Multinational Businesses Benefits for Multinationals Lower cost of production better market information consumer loyalty Problems for Multinationals Communication Problems Language, legal, cultural difference Low quality of workers Difficulty coordinating other plants Benefits created by Multinationals Brings in foreign currency, if exported further foreign exchange is earned More jobs/income/training opportunities Local industries have to improve quality to international standards Local industries may benefit from supplying services and components to multinational Boosted tax revenues Management expertise increased, more positions Increase in GDP Problems created by Multinationals Exploitation of local workforce Pollution from plants Depletion of natural resources Forces local competing firms out of business due to inferior equipment and resources Profits may be sent back to home country instead of re investing Power of advertising may reduce cultural identity

1.2.3. Privatisation Advantages of Privatisation Increases motivation More responsibility Decision making by beauraucratic bodies may take a long time Government may exploit industries for political reasons Sale of nationalized industry raises finance which can be spent on other state projects Market forces will be allowed to operate Disadvantages of Privatization Essential industries ought to be handled by the private sector Monopolized industries through strategic industries may exploit consumers with high prices Competing firms will have a difficult time reaching a coordinated policy State ownership makes industry accountable to the country Breaking up industries reduces opportunities for cost saving through economies of scale.

1.3. 7. Size of Businesses

1.3.1. External Growth Integration Horizontal Integration Forward Vertical Intergration Backward Vertical Intergration Conglomerate Intergration Joint Ventures/Strategic Alliances Problems from rapid growth Financial Managerial Marketing Loss of control by original owners

1.4. 8. External Influences on Business Activity

1.4.1. Constraint Objectives Prevent exploitation of workers Prevent overuse of trade union collective action

1.4.2. Areas of Constraint Employment Practices Recruitment, contracts, termination of contracts Health and safety at work Minimum Wages Trade union rights and responsibilities Impact on Businesses Marketing Behaviour/Consumer Rights Consumer Rights Impacts Reasons why governments take legal action Business Competition Benefits of Competition Monopoly Location of Businesses

1.4.3. Impact of Technology Limitations Cost Labour relations Reliability Data Protection Management Benefits Obtain data quickly Analyse data quickly Communicate more quickly Introducing IT effectively Analyse the potential use Involve managers and staff Evaluate diff. systems and programs assess cost and expected efficiency Plan for the introduction of the new system

1.4.4. Social/Demographic Influences Ageing Population Changing patterns of demand Age structure and workforce may change Changing role of women Rising rate of divorce Job insecurity due to technological changes Early retirement in high-income countries Pattern of Employment Labour replaced by capital Transfer of labour to new high-tech industries Increase in no. of women in employment Increase in part time/temporary employment More flexible hours Ageing population More women in full time employment More women taking maternity leave and returning to work

1.4.5. Environmental Constraints Benefits of adopting Real marketing and promotional advantage Reduces chances of businesses breaking environmental law Improvement in number and quality of employee applications. Reducing long term costs Arguments against adopting Real marketing advantage from low costs Profits may be reduced if expensive but low pollution machinery is used Weak inspection systems Economic development is more important than environmental protection Pressure Groups Publicity through media coverage Influencing consumer behaviour Lobbying governments

1.4.6. Audits Social Environmental

1.5. 9. External Economic Influences on Business Behaviour

1.5.1. Economic Objectives Economic Growth Importance Factors leading to econ. growth Low inflation Cost Push Demand Pull Impact Deflation Low rate of unemployment Cyclical Unemployment Structural Unemployment Frictional Unemployment Costs of unemployment Exchange rate stability Economic problems Exchange rates Appreciation of currency Depreciation of currency Reduction in income inequality

2. Unit 2: People in organizations

2.1. 13. Further Human Resource Management

2.1.1. KPI (Key Performance Index)

2.1.2. Hard/Soft HRM Hard Difficulties Soft

2.1.3. Contracts Temporary Part time Advantages for business Advantages for workers Disadvantages for business Disadvantages of workers Flexi time Outsourcing

2.2. 11. Motivation

2.2.1. Theories Taylor Mayo Maslow Herzberg Motivators Hygiene factors McClelland Vroom

2.2.2. Reward systems Time based wage rate Piece rate Salary Commision Bonus payment Profit sharing Fringe benefits

2.2.3. Non financial methods of motivation

3. Unit 3: Marketing

4. Unit 4: Operations and project management

4.1. 23. Operations Planning

5. Unit 5: Finance and accounting

6. Unit 6: Strategic management