Influences for Supply and Demand

Businesses work on a complex demand and supply based method of producing products and services. Supply is the quantity of a good or service that a producer is offering to supply into the market Demand is the quantity that the customers are willing to buy at a given price over a given period of time External factors, such as income or environmental or ethical change may mean that a product is no longer viable, smoking for example is no longer as profitable as it was as people no longer smoke as much as they used to. Influences may be out… Continue reading Influences for Supply and Demand

Business Pricing Strategys

When businesses want to compete with competitors, they may use one of numerous methods in order to encourage the sale of their products. Psychological Pricing Psychological Pricing involves selling products and services at prices that people wrongly assume they are cheaper than they are, an example would be selling a product for £1.99, the aim is that the potential customer would often round down, and assume that the price of the product was £1, rather the fact that it is much closer to £2. Highly effective for large purchases, such as holidays, as the rounding amount is much larger. A study by Marketing… Continue reading Business Pricing Strategys

Market Research

When conducting market research businesses need to take risks and may be uncertain on the performance of those risks, however market research allows businesses to minimize the risk. Market research in a dynamic market can be difficult as it can be hard to gauge what is an acceptable metric and one that will not change or become inaccurate. Businesses invest thousands in trying to calculate what the next big trend will be and even more in advertising. Selling Products is the ultimate goal for market research, however it may allow a business to better define its product for market Dynamic… Continue reading Market Research

What actually is Marketing?

Marketing is Anticipating, and satisfying, customers wants and needs, efficiency and profitability, Marketing includes Market Research The Marketing Mix What is the purpose of Marketing? To make profit, essentially by improving sales To remind the customer of your product through promotion To see what the customer wants by offering their product To link the product to the brand and create a brand association To communicate and offer competition to other businesses (to compete) There are two types of business orientations, Business to Business where businesses sell products to other businesses, such as tools, office equipment and building supplies. Business to Customer… Continue reading What actually is Marketing?

The Bank of England

The Bank of England sets the base interest rates that the rest of the UK banks will follow, doing so allows them to control the UK inflation rate, which therefore allows them to dictate how much spending and saving occurs. A high Interest rate, will mean that savers will prosper as their savings will mature and eventually have more than what they started with. A low interest will mean that individuals are more likely to spend and therefore the economy will improve as the pound will strengthen against other currencies. Businesses are more likely to buy large quantities during low… Continue reading The Bank of England

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Stock Control and Resource Management

Just In Time is a lean production technique, It involves ordering a product right as it is about to run out, but before the business has to stop manufacture, this allows a business to work effectively when creating a product that requires a lot of parts and accessories. Raw Materials Work in Progress Finished Goods Bought from suppliers Supplier may not be able to meet demand Supplier could not raise prices Used in assembly or as ingredients Parts for assembly Not Sellable Costs business money to make into product May be a slow process… Continue reading Stock Control and Resource Management

How Customers Associate Quality with a Brand

Within any business there are multiple factors that a customer can imprint on to recognise a brand and associate with quality. Businesses can use the customers intuition to their advantage, targeting on the key aspects of a quality product in order to maximise return. Here is a list of the common points a business can tailor in order to maximise their revenue;   Profitability, Businesses must decide how much profit each product or service should undertake, whether it be a large return or a small one. Customers may be willing to buy a product purely on its premium price point.… Continue reading How Customers Associate Quality with a Brand

Capacity Utilisation

Capacity utilisation within a business can be easy or hard to calculate, for a printing shop, it is easy to calculate how many sheets they can produce per hour for example and in a metal fabricators, it is easy to calculate how many sheets of metal they can produce per hour, however for a company that has varied demand, it can be very hard to predict how much the business should utilise its capacity, a clearly noticeable example would be an understaffed restaurant, although they have staff working the shift, it is clear that they did not account for the demand… Continue reading Capacity Utilisation

Advantages and Disadvantages of Capital and Labour Intensive Production

In Business, production generally has two techniques; Labour Intensive Production aims to use a large workforce to complete work by hand, this usually employs a lot of people to create a product. Some products may be seen to have more value if they were manufactured by hand. Capital Intensive Production aims to create a product using as little people as possible, the process could be entirely or partially automated and can sometimes be used to assist individuals in manufacture, such as a custom robotic factory worker that moves parts of a product to assembly, or a robot that screws in… Continue reading Advantages and Disadvantages of Capital and Labour Intensive Production

Kanban Systems in Lean Manufacture

Kanban systems in business allows them to effectively manage their stock internally, essentially for businesses that require large amounts of stock, such as small parts, screws or trolley-based workstations, they will likely use a Kanban system to effectively manage their stock. A typical Kanban asset tag will have the item description, part number and sometimes will include the cost of the unit, should the business want to try to regulate the use of the item. What is the purpose of Kanban? A Kanban system ensures that employees always have access to the tools they need and JIT systems can be… Continue reading Kanban Systems in Lean Manufacture