235 External influences 3 THE COMPETITIVE ENVIRONMENT This complete lesson includes: a) The effects on businesses of competition in terms of competitor: • numbers • size • behaviour b) Ways for a small business to compete in a competitive market This lesson is written by Sarah Hilton at Revisionstation

235 External influences 2 LEGISLATION This complete lesson includes: a) The effects on businesses of: • consumer protection • employee protection • environmental protection • competition policy • health and safety • intellectual property rights (copyright, patents and trademarks). This lesson is written by Sarah Hilton at Revisionstation

235 External influences 1 ECONOMIC INFLUENCES This complete lesson includes: a) The effect on businesses of, and how they can best respond to, changes in: • the rate of inflation • exchange rates (appreciation, depreciation) • interest rates • taxation and government spending • the business cycle. This lesson is written by Sarah Hilton at Revisionstation

234 Resource Management 4 QUALITY MANAGEMENT This complete lesson includes: a) Quality: • control • assurance • circles b) Total Quality Management (TQM) c) Continuous improvement (Kaizen) d) Competitive advantage from quality management This lesson is written by Sarah Hilton at Revisionstation

234 Resource Management 3 INVENTORY CONTROL This complete lesson includes: a) Interpretation of inventory control diagram b) Buffer inventory c) Implications of poor inventory control d) Just in time (JIT) e) Waste minimisation f) Competitive advantage from lean production This lesson is written by Sarah Hilton at Revisionstation

234 Resource Management 2 CAPACITY UTILISATION This complete lesson includes: a) Capacity utilisation: current output (divided by) maximum possible output (× 100) b) Implications of under and over-utilisation of capacity c) Ways of improving capacity utilisation (under and over utilisation) This lesson is written by Sarah Hilton at Revisionstation

234 Resource Management 1 PRODUCTION, PRODUCTIVITY AND EFFICIENCY This complete lesson includes: a) Methods of production: • job • batch • flow • cell b) Productivity: • output per unit of input per time period • factors influencing productivity • link between productivity and competitiveness • ways to improve productivity c) Efficiency: • production at minimum average cost • factors influencing efficiency • ways to improve efficiency d) The distinction between labour- and capital-intensive production e) Competitive advantage from short product lead-in times This lesson is written by Sarah Hilton at Revisionstation

233 Managing Finance 3 BUSINESS FAILURE This complete lesson includes: a) Internal causes of business failure: • poor management of cash flow • overestimation of sales • overtrading • poor inventory control • poor marketing Poor quality b) External causes of business failure: • market conditions • competition • economic • exchange rates • interest rates • government regulations • supplier problems • natural phenomena. This lesson is written by Sarah Hilton at Revisionstation

233 Managing Finance 2 LIQUIDITY This complete lesson includes: a) Distinction between profit and cash b) Statement of financial position (balance sheet): • measuring liquidity: calculating current ratio and acid test ratio • ways to improve liquidity, including assets, supplier credit terms, factoring, inventory JIT c) Working capital and its management: the importance of cash This lesson is written by Sarah Hilton at Revisionstation

233 Managing Finance 1 PROFIT This complete lesson includes: a) Statement of comprehensive income (profit and loss account): b) Calculation of: • gross profit • operating profit • profit for the year (net profit) • measuring profitability: calculation of gross profit margin, operating profit margin, and profit for the year (net profit) margin c) Ways to increase profits • ways to improve profitability This lesson is written by Sarah Hilton at Revisionstation

232 Financial Planning 5 BUDGETS This complete lesson includes: a) Purposes of budgets b) Types of budget: • based on historical figures • zero based c) Variance analysis d) Difficulties of budgeting This lesson is written by Sarah Hilton at Revisionstation

232 Financial Planning 4 CASH FLOW This complete lesson includes: a) Construction and interpretation of simple cash-flow forecasts b) Use and limitations of cash-flow forecasts This lesson is written by Sarah Hilton at Revisionstation

232 Financial Planning 3 BREAK-EVEN This complete lesson includes: a) Contribution: selling price − variable cost per unit b) Break-even point: • total fixed costs + total variable costs = total revenue c) Using contribution to calculate the break-even point d) Margin of safety e) Interpretation of break-even charts f) Limitations of break-even analysis This lesson is written by Sarah Hilton at Revisionstation

232 Financial Planning 2 SALES FORECASTING This complete lesson includes: a) Purpose of sales forecasts b) Factors affecting sales forecasts: • consumer trends • economic variables • actions of competitors c) Difficulties of sales forecasting This lesson is written by Sarah Hilton at Revisionstation

232 Financial Planning 1 SALES, REVENUE AND COSTS This complete lesson includes: a) Calculation of sales volume and sales revenue b) Calculation of fixed, variable costs, total costs and average costs c) Ways of improving sales volumes and sales revenues This lesson is written by Sarah Hilton at Revisionstation

2.3.1 Planning a business and raising finance 5 LIABILITY This complete lesson includes: a) Implications of limited and unlimited liability, including advantages and disadvantages b) Finance appropriate for limited and unlimited liability businesses This lesson is written by Sarah Hilton at Revisionstation

2.3.1 Planning a business and raising finance 4 FORMS OF BUSINESS This complete lesson includes: a) Sole trader, partnership and private limited company (Ltd) b) Franchising, social enterprise, lifestyle businesses, online businesses c) Growth to public limited companies (plc) and stock market flotation This lesson is written by Sarah Hilton at Revisionstation

2.3.1 Planning a business and raising finance 3 EXTERNAL FINANCE This complete lesson will include: a) Sources of finance and their suitability for different circumstances: • family and friends • banks • peer-to-peer funding • business angels • crowd funding • other businesses b) Methods of finance and their suitability for different circumstances: • loans • share capital • venture capital • overdrafts • leasing • trade credit • grants This lesson is written by Sarah Hilton at Revisionstation

2.3.1 Planning a business and raising finance 2 INTERNAL FINANCE This complete lesson will include: a) Owner’s capital: personal savings b) Retained profit c) Sale of assets This lesson is written by Sarah Hilton at Revisionstation

2.3.1 Planning a business and raising finance 1 PLANNING This complete lesson includes: a) Content of a business plan b) Relevance and uses of a business plan This lesson is written by Sarah Hilton at Revisionstation