Read the summary and the most important questions on Business notes YEAR 2

• 2017

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• tactical decisions vs strategic

  strategic is long-term and tactical is short-term
  strategic involves high commitment of resources, tactical uses fewer
  strategic is harder to reverse than tactical
  stragetic are normally decided by senior managers, junior look after tactical

• pros and cons of SWOT analysis

  Pros:
  low cost and straight forward,
  can be used within all functions of the business
  can encourage the management team to develop logical plans
  
  Cons:
  some factors can be a strength and a weakness
  provides info but not really a structure
  SWOT can be subjective as so many things to choose from

• Kaplan and Norton's balanced scorecard

  Pick an example for the 4 areas of measurement;
  Financial performance - revenues, cash flow
  Customer value  performance - customer loyalty, deliveries on time
  Internal business process p - productivity, quality
  Learning and growth p - labour turnover, effectiveness of training

• What political environment effects

  Encouraging enterprise 
  The regulation of markets
  The country's infrastructure
  Issues relating to the environment
  International trade

• Economic environment indicators

  Inflation
  GDP
  Taxation
  Fiscal policy
  Monetary policy
  Exchange rates
  Interest rates

• Stages of the business cycle

  Recovery - investment increases, production rises, confidence grows
  Boom - some struggle to satisfy demand, profit probably high but hit by the rising cost, inflatio often rises
  Recession - gove reduces inflation, profits fall, spare capacity increases
  Slump - gove lower interest rates, high levels of unemployment and little confidence

• Fiscal and monetary policy

  Fiscal p - use of taxation to manage the level of economic activity 
  Monetary p - controlling the amount of money and/ or interest rates within the economy

• Effect of changing interest rates

  Rising
  hope to reduce the level of consumer spending, limit inflationary pressure,
  business may experience falling sales, cancel of defer investment plans,
  Falling
  hope to reduce levels of unemployment, promot export sales, improve the level of production and so the GDP
  businesses demand grows, export sales of products in price elastic demand may rise, increased investment

• The importance of globalisation for businesses

  Advantages;
  increased sales/ revenue/ profits 
  cheaper resources
  economies of scale
  developing different products for different markets
      
  Disadvantages;
  downward pressure on prices
  new producers
  increased need for investment
  the threat of takeover

• Emerging markets (BRIC)

  Brazil. Russia. India. China
  Pros; Enormous labour resources, large markets, rapid growth rates, natural resources
  Cons; Economic risk, political risk, risk to brand or corporate image