AQA BUSS4 REVISION POSTERS

An analysis of Apple Inc:

An analysis of BAE Systems:

An analysis of Nissan Sunderland:

 

 

An analysis of Dyson:

 

 

 

An analysis of GlaxoSmithKline:

 

An analysis of JCB:

An analysis of Jaguar Land Rover:

An analysis of Rolls-Royce:

An analysis of Samsung:

An analysis of Warburtons:

Important theorists and ideas for analysis:

This years (2015) research topic is manufacturing in the UK. Here is a look at the factors surrounding location (Research bullet point 4):

Here is a look at the opportunities and threats for UK manufacturers (Research bullet point 5):

Recommended Revision Websites/Videos

1.

The first website I recommend is linked below and can be used for both AS and A2 Business Studies.

I love how all the chapters and units are organised into folders and in each chapter it provides:
- The specification of what you need to know
- Theory (in the form of a PDF which you can print)
- It has activities/worksheets with questions, so you can practice what you had learnt from the theory.
- It has additional reading on the topic which can help improve your understanding and knowledge of the theory.
- Finally, it has revision notes which you can add to your own class notes and print off.

Check this website out, it is a difficult one to find on the internet and is a real gem! :)

http://www.holyfamily.ngfl.ac.uk/minisites/a-levelbusiness/

2.

This is an excellent website which can be used for GCSE and A-level.

http://www.businessstudiesonline.co.uk/live/

3.

The Student Room is a forum for all students, which is open for you to read and you can join it if you want to participate and ask questions. I used this website a lot during my exams, and even after my exams to see what people thought of the test. If you also want to discuss careers in business or doing a degree in it, this site is great.

http://www.thestudentroom.co.uk/forumdisplay.php?f=111

4.

Want some model answers to questions? This is the place!! Print them off and learn how to get full marks in your AS Business Exam.

http://www.hodderplus.co.uk/ocrbusiness/

5.

If you want to revise critical path analysis or you need it to be explained to you again, you are sure to understand it after watching this video! I also recommend you check out more of this youtuber's videos as they are really helpful and good.

https://www.youtube.com/watch?v=-EqWGSdQSvI&list=PLBuW3SAj0djnHfFQG4m9VbN03mA_MMLlv

Chapter 24: Quality

Quality is those features of a product or service that allows it to satisfy (or delight) customers.

 

Benefits of having a quality system:

A Quality System is the approach used by an organisation to achieve quality. Most quality systems can be classified as either quality control or quality assurance.

1. Impact on sales volume

• If the product/service meets customer needs --> Demand would increase --> Enable the business to increase the level of its profits.
• People become richer --> Desire for high quality goods increase rapidly --> Because of less constrained by level of income.

2. Creating a USP

• Not achievable for all businesses, especially those trying to keep costs low
• Can use quality as a USP --> To increase demand.
• E.g. Often there is an 8-week waiting list for weekend bookings for afternoon tea at the Ritz Hotel in London. Potential customers see service as unique, a mix of:
• Tangible quality --> High quality of products and services provided.
• Intangible quality --> Image linked to the name of the hotel.
• The uniqueness of the service increases customers' desire to enjoy it, ensuring regular and high demand.

3. Impact on Selling Price

• Quality as a USP encourages consumers to pay a higher price for products/services.
• E.g. Food prices in M&S is higher than other supermarkets.
• Customers are willing to pay a higher price for better quality.
• Increases profit margins
• Note: Better quality materials and production needed to achieve high quality products.
• Quality as a USP is common in niche markets e.g. Harrods or Hotel Chocolat
• Greater perception of quality --> The higher the selling price the firm can charge
• E.g. Afternoon tea at the Ritz costs £36 pp.

4. Pricing Flexibility

• Reputation for quality gives business ability to be more flexible in its pricing.
• E.g. British airways charges higher prices to customers who value quality of service on flights. They also have flexibility to offer discounted prices in order to fill planes where necessary - the high price paid by customers would have already guaranteed the firm a profit.

5. Cost reductions

• It is costly to implement a quality system but can reduce business costs.
• No wastage of faulty goods or possible recall of many products already sold --> Expensive Process
• Costs of reworking products in a faulty manner or waste of materials.

6. The firm's reputation

• No quality system = Costly to business reputation.
• E.g. 2006 - Cadbury's reputation was damaged by negative publicity --> Salmonella scare and faulty labelling of products.
• Customers remember unfavourable publicity
• Good quality system --> Prevent problems --> Help business avoid any damage to reputation 

Issues involved in introducing and managing a quality system:

1. Costs

• Administrative expense to set up
• Continual monitoring of production, materials and processes
• For an overall assessment of the value of a quality system --> Costs compared with financial benefits arising from high quality achieved EXCEED costs incurred to achieve it.

2. Training

• Quality assurance relies on a well-trained workforce who can understand and implement the quality system.
• Training is quite expensive
• Create cultural changes e.g. more consultative style of management and greater willingness to give responsibility to workers.

3. Disruption to production

• Short-run -Training programme disruptive to existing production methods.
• Training --> Staff will be taken off the current production line to undergo training.
• This would short term damage quality and quantity of production.
• After training complete --> Further disruption --> Workforce, managers and suppliers must adapt to new systems of quality.
• During this period, mistakes are more likely to happen + danger of company's reputation for quality may suffer.
• Yet once new system established --> Problems should disappear.

Quality Control

Quality Control: A system that uses inspection as a way of finding any faults in the good or service being provided.

- This is where there is inspection at the end (with the end product)

- Firms have now moved on from quality control onto quality assurance.



Quality Assurance

Quality assurance is a system that aims to achieve or improve quality by organising every process to get the product 'right first time' and prevent mistakes ever happening.

 This involves self-checking, concentrating on the process of production.

Benefits of Quality Assurance:

• Ownership of the product rests with the workers, giving them greater responsibility.
• Herzberg argues that there are positive effects on motivation because of this sense of ownership and recognition of the worker's responsibility.
• Costs are reduced because there is less waste and less need for reworking of faulty products.
• With all staff responsible for quality, there should be a higher and more consistent level of quality, which can lead to marketing advantages for the firm.

The problems are the same: Cost, training and disruption to production.

Total Quality Management (TQM)

It is the most widely recognised quality assurance system.

Total Quality Management is a culture of quality that involves all employees of a firm.

It is based on the philosophy of 'right first time'.

Kaizen

Kaizen is a policy of implementing SMALL, incremental CHANGES in order to achieve better quality and/or greater efficiency.

Focussed on making 'continual improvement'.

Quality Standards

Quality Standard: A set of criteria for quality established by an organisation. The standard also requires an organisation to have systems for implementing and monitoring its standards.

BS 5750: A British standards award granted to organisations that possess quality assurance systems that meet the standards set.

ISO 9001: The international standard of quality assurance that is equivalent to BS 5750.

The benefits of these awards are:
- Marketing advantages from the acknowledgement of higher quality standards
- Assurance to customers that products meet certain standards
- Greater employee motivation from the sense of responsibility and recognition
- Financial benefits in the long term (due to elimination of waste and improved reputation of firm).

Quality Summary:

Chapter 22: Developing and retaining an effective workforce: Motivating Employees

Motivation: The causes of people's actions - why people behave as they do.

Motivation Theory: The study of factors that influence the behaviour of people in the workplace.

Scientific Management: Business decision making based on data that are researched and tested quantitatively in order to improve the efficiency of an organisation.

Links between Maslow and Hertzberg

Intrinsic Rewards
Rewards that come from the job itself
e.g. responsibility, achievement of tasks etc...
Hertzberg's motivators and Maslow's esteem and self-actualisation

Extrinsic Rewards
Rewards that DO NOT come from the job itself but by means of association.
e.g. Working conditions, fringe benefits, making friends etc...
Hertzberg's hygiene factors and Maslow's physiological, safety and social needs.

Random question:
Q: What is Appraisal?
A: Appraisal is the meeting of an employer and an employee to discuss targets, issues, achievements and work.

Financial and Non-financial Motivators

Financial Methods

1. Time Rates
- Wage or a salary
- Safety need in Maslow's Hierarchy of needs.
- Paid according to input rather than output
- Motivation to work not guaranteed

2. Piece-work (Payment based on the number of items each worker produces)
- Refers to Taylor's theory
- Payment according to output
- Designed as an incentive to work harder
- Could sacrifice quality for quantity
- Costs could increase through carelessness, waste and reduced quality
- A firms output may be heavily influenced by worker's needs rather than customer demand. Output tends to increase at Christmas and summer holidays.
- Only movement not motivation (as shown by Herzberg)

3. Performance-related Pay (A bonus or increase in salary usually awarded for above-average employee performance)
- An overall increase in salary or a bonus given for performance above expectations.

4. Profit Sharing (A financial incentive in which a proportion of a firm's profit is divided among its employees in the form of a bonus paid in addition to an employee's salary)
- Basing employee's rewards on the performance of the company.

5. Share Ownership
Companies give shares to their employees or sell them at favourable rates below the market price.
- Used to encourage employees to identify more directly with company objectives, recognising that their rewards - share value and dividends - are dependant on company performance.

6. Share Options
A financial incentive in which chief executives and senior managers are given the choice of buying a fixed number of shares at a fixed price, by a given date.
- Are believed to provide senior management with the incentive to perform at their very best.
- Some people believe they it would only be short-term until the share option is due, in order to make a profit from the sale of shares. It is not long-term focussed.
- Unfair as excessive financial rewards given to senior managers when the workforce may deserve just as much credit as the directors.

7. Fringe Benefits
Benefits received by employees in addition to their wages or salary.
e.g. discounts when buying the firm's products, a company car or a company pension scheme.
- Encourages staff loyalty and commitment
- Reduces labour turnover


Non-financial methods of Motivation

1. Job enrichment
A means of giving employees greater RESPONSIBILITY and offering them CHALLENGES that allow them to utilise their skills fully.

- Herzberg suggested only job enrichment is likely to provide long-term job satisfaction.
- Enriched jobs introduce new and more difficult tasks and challenges at different ability levels.
- An enriched job involves a complete task which is meaningful rather than a repetitive part of a larger process - said by Taylor.
- Regular feedback on performance so employee is aware of how well they are performing.
- Increase accountability of individual for his/her own work (e.g. Lush)

2. Job enlargement
Increasing the SCOPE of a job, either by job enrichment or by job rotation.
- Gives: more recognition, improves promotional prospects and job achievement in themselves.
- If not used carefully --> Demoralise workforce by giving excessive workloads.

Job enrichment is where the job is expanded vertically (vertical extension) by giving workers more responsibility.

Job rotation is where the job is expanded horizontally (horizontal extension) - giving workers more tasks but the same level of responsibility.

Job Rotation
- Systematic programme of witching jobs
- Greater variety
- Varied work but same level of challenge.

Advantages of Job Rotation:

• Relieve boredom
• Useful if 1 person is absent --> Others can cover job without difficulty
• More motivated --> Wider range of skills + be more flexible
• Greater sense of participation in production process.

Disadvantages of Job Rotation:

• Retraining cost Increase
• Decrease in output due to less specialisation
• Could be seen as involving greater number of boring tasks, but lacking in social benefits of working as groups constantly change.

3. Empowering Employees
Empowerment is = giving employees the means by which they can exercise power over their working lives.
- The freedom to decide what to do and how to do it.
- Achieved through informal systems or formals systems of autonomous work groups
         --> These provide workers with autonomy and decision-making powers, and aim to increase motivation while improving flexibility and quality- adding value to the organisation.

Empowerment involves:

• Recognising workers who are capable of doing more
• Make workers feel trusted, confident in their jobs and make decisions without supervision
• Recognise workers' achievements
• Create an environment where workers wish to contribute and be involved.

3. Teamworking
Teamworking is = A system where production is organised into LARGE UNITS OF WORK and a GROUP of employees work together in order to meet shared objectives.
- By using Teamworking, an organisation gets a more motivated, flexible workforce that can cover absences more easily.
- Used with job rotation/job enrichment and decision-making --> Team work can enhance motivation and relieve boredom. 
- Teamworking can be linked to Mayo (group norms) and Maslow (Social Needs)


Links between organisational structure and the motivational techniques available to managers

1. Flat organisation

- With wide span of control
- Effective delegation could empower employees by giving them more autonomy an responsibility --> Improving Motivation

- Recognition (Mayo and love and belonging needs)
- Profit Sharing?

2. Tall organisation
- Good communication is crucial in maintaining high levels of motivation
Solution: Vertical meetings, teamwork/cross jobs

Lines of Accountability
Must be clear --> Easier to recognise achievement --> To reward this -->Improved Motivation.

Communication
- Employees feel valued and important part of the organisation
- Raises morale
- Regular feedback on employee performance is needed
- Good communication is likely to mean that employees are praised for their efforts --> Maslow (Esteem needs) --> Improve motivation.
- Also good communication can help to make employees feel involved and meet their social needs (Maslow)
- Effective feedback is one of Herzberg's motivators.

Flexible working
- Allowing employees to work more flexibly
- Improved Staff motivation
- Increased productivity
- Improved client service
- Reduced absenteeism

Chapter 21: Developing an effective workforce: recruitment, selection and training

The Recruitment and Selection Process
 
1. A vacancy arises
Why might there be a vacancy?
- If an existing employee leaves
- If the workload increases and more staff are needed to cope with demand
- If an employee is going to be off for a set amount of time
Will there always be a vacancy if an employee leaves?
 
2. Job Description
An outline of the tasks, skills, responsibilities, duties and performance level required.
 
Contains a job title, purpose of the job, who they will answer to, authority given and additional aspects to the job.
 
Informs candidates of what will be expected of them.
 
3. Person Specification
Details of the 'ideal candidate'
Lists ESSENTIAL and DESIRABLE characteristics
 
Essential?                                                          Desirable? 
~ Depends on the job                                        ~ Depends  on the job
but may include:                                                 but may include:
- Punctual                                                          - Sociable
- Reliable                                                           - Interests
- Qualifications                                                  - Extra Qualifications
 
4. Internal or External

Internal Recruitment: Filling a job vacancy by selecting a person who is already employed in the organisation.
 

 
 










External Recruitment: Filling a job vacancy by advertising outside the firm.
 

 
 










5. Advertisements Made
Adverts should include:

• An outline of the job description
• An outline of the person specification
• An outline of the organisation's activities
• Location
• (Wage arrangements) - Varies
• Reward Package
• Contract Type (e.g. Permanent, temporary, part-time etc....)
• Contact for application

6. Advertisements Placed

• Newspapers (Local or National)
• Trade Magazines
• Job Centres
• Employment Agencies
• Local Radio
• Specialist career centres
• Local Schools/colleges
• TV (e.g. Army)
• Internet
• Internal noticeboards/newsletters/shop windows
• Word of mouth
• Headhunting (Poaching from another company)

7. Application Forms
Application forms allows a business to collect information from job applicants in a systematic way. They can assess objectively a candidate's suitability for a job, therefore making it easier to pre-select candidates.

 
8. CVs (Curriculum Vitaes)
CVs are sent to the company via post, in person or online along with the application form.
 
CVs may give more details about the applicant than the application form allows.
 
- CVs contain similar info but are harder to compare than an application form due to diversity of the pool of applicants.

 
9. Shortlisting

• Employers receive many applicants
• Sorting into potential candidates according to who are not suitable in person specification
• Potential sorted through best 'fits' to organisation
• References may be gained before interviews are offered.

10. Interviews
Traditional methods of meeting the applicant to determine their suitability.
Reliance on first impressions and appearance.
 
But there are now new methods of interviews:
 
~ Aptitude Tests
Testing how the applicant copes with a given situation
- It establishes their level of skill
- Could be tested on basic skills such as calculating changes, role play etc...
 
~ Psychometric or personality tests
Establishes whether they have the necessary characteristics e.g. attitudes, creativity, social skills....
- A way of measuring the traits of the candidates through questions and answers
 
~ Assessment Centres
Selection process that can last a day at a time. Observations, tasks, interviews and testing takes place
- Allows a more in depth assessment of the candidates
- Most effective but most expensive
- Most likely to be used for senior positions

 
 
 
 
 






Training

Training is the provision of work-related education, either on-the-job or off-the-job, involving employees being taught new skills or improving skills they already have.

Training needs
Training essentially arises when the knowledge and skills required by the firm exceed or differ from those that workers currently possess.
Often a response to some sort of change, possible changes are=
- Development and introduction of new products
- Deconstructing of a firm
- Development and introduction of technology
- Changes to procedure, including improvements to customer service
- High labour turnover
- Low moral
- Changes in legislation

Benefits of Training

• The workers will work to the standard of an experienced worker.
• Means the employees will have the required skills, qualifications etc...
• It develops a knowledgeable and motivated workforce, increasing job satisfaction.
• Increases efficiency and productivity therefore resulting in production of high quality goods/services, which could lead to an increase in profits
• It reveals the employees potential, therefore increases chances of promotion, increasing motivation.
• Reduces cost in long run, due to reduced number of injuries, reduction of poor quality/wasted goods, and increased worker's productivity.
• Encourages employees to work towards the organisations objectives/aims.
• Improve image of the company
• Customers have more confidence in well trained staff.

Internal and External Training
 
External Training
Takes place away from the workplace.
Such as joining a college course on business management.
External training gives employees the opportunity to meet people from other organisations allowing an interchange of ideas and broadening of understanding.
Can make employees feel valued and increase motivation.
 
Internal Training
Takes place within the organisation in a work context.
Appropriate if training needs to be specific to the individual organisation.
E.g. If an employee needs to learn how to use a particular new computer system.



On-the-job and Off-the-job Training

On-the-job training is where an employee learns a job by seeing how it is carried out by an experienced employee.

• On-the-job is likely to be cheaper than off-the-job training. This could be because existing employees and equipment can be used.
• It is a realistic environment. Avoids problems in adjusting (e.g. between college and work situations). There is also no loss of output.
• The negatives are that the quality of training depends on the ability and willingness of the instructor and time available.
• Also the employee chosen as an instructor ay be unable to teach proper skills and may have developed bad habits/shortcuts.
• The work situation may be noisy or stressful. Making it hard to conduct effective learning.

Off-the-job training is all forms of employee education apart from that at the immediate workplace.

• Internally (e.g. a conference room) or externally (at college)
• Less immediate pressure from work
• More generic skills and knowledge than job-specific content.
• Uses specially trained experts --> More highly valued by employees --> Increases motivation
• More straight forward to estimate costs of training and easier to monitor progress.
• expenses.
• Expensive

Induction Training

Induction Training is education for new employees, which usually involves learning about the way the business works rather than about the particular job that the individual will do.

- To help new employees settle in quickly
- Ensure they reach the performance required and feel welcome.
- Inductions could include these ideas: Health and safety issues, policies of the organisation, physical facilities, hierarchy an departmental systems

The programme is likely to:

• Reduce labour turnover
• Employees contribute to organisation quickly
• Increased motivation
• Improves understanding of corporate culture and the situation in which the organisation is placed.