Wednesday, 28 March 2012

Batch Production

Batch production occurs when many similar items are produced together. Each batch goes through one stage of the production process before moving onto next stage.  Good examples include:
  • Cricket bat manufacture
  • Baking / meal preparation
  • Clothing production
The benefits and drawbacks of batch production include:
AdvantagesDisadvantages
Making in batches reduces unit costsTime lost switching between batches – machinery may need to be reset
Can still address specific customer needs (e.g. size, weight, style)Need to keep stocks of raw materials. Cash also investment in work-in-progress
Use of specialist machinery & skills can increase output and productivityPotentially de-motivating for  staff

Job Production

Job production involves firms producing items that meet the specific requirements of the customer. Often these are one-off, unique items such as those made by an architect or wedding dressmaker. For an architect, each building or structure that he designs will be different and tailored to the needs of each individual client.
With job production, a single worker or group of workers handles the complete task. Jobs can be on a small-scale involving little or no technology. However, jobs can also be complex requiring lots of technology.
With low technology jobsproduction is simple and it is relatively easy to get hold of the skills and equipment required. Good examples of the job method include:
  • Hairdressers
  • Tailoring
  • Painting and decorating
  • Plumbing and heating repairs in the home
High technology jobs are much more complex and difficult. These jobs need to be very well project-managed and require highly qualified and skilled workers. Examples of high technology / complex jobs include:
  • Film production
  • Large construction projects
  • Installing new transport systems
The main advantages and disadvantages of using job production include:
AdvantagesDisadvantages
Product usually high qualityCost of producing one unit or job is higher
Producer meets individual customer needsLabour –intensive
Greater job satisfaction – involved in all stages of productionRequires investment in skills and training

Wednesday, 11 January 2012

Marketing Mix - Place

Manufacture ----------------------------------------> Customer 

Competition

 When competitors in the same market, compete: 
  • Market share
  • Product/service
  • Customers
  • Finance
  • Levels of profit
  • Volume/Value
  • Location
  • Price
  • Advertising
  • Reputation
  • Number of outlets
Examples: Debenhams- Marks and spencer
                 McDonalds- KFC
                 HMV- Game
                 Next- New look

Wednesday, 28 December 2011

Business Plan/Planning and its importance

A business plan is a plan of what the business is and what type of business it is. It is an overview of the business, accessing possible risks and opportunities.
Business planning is important because its the whole business, it determines whether it is successful or not, it helps organise the business. It also lets the bank to decide whether to invest or lend money to this business idea.
Keys aspects in a business plan:
  • Background information of the desired business.
  • business objectives.
  • information about the business
  • how the business will compete
  • financial information
  • an analysis of the market
  • business idea (product idea/service)
  • how will they promote/market their business.
Here is a quick video clip on the importance of business planning:


Public and Private Sector

Public and Private sectors contains two different types of organisations.
The Public sector is owned by the government.
The Private sector is owned by an individual.
When a public sector company moves into the Private sector it is called 'Privatisation'


Examples of Public and Private sector companies:

  • NHS (Public)
  • London Transport (Public)
  • Schools (Public)
  • BBC (Public)
  • Bank of England (Pubic)
  • Metropolitian Police (Public)
  • Private Schools (Private)
  • HSBC (Private)
  • Natwest (Private)
  • McDonald's (Private)
  • Holly House (Private)
  • London Attractions (Private)
  • Heathrow Airport (Private)

Stakeholders-Internal/External

Stakeholder-are individuals and organisations that are interested in the success/failure of a business. They will be affected by and can affect the activities of a business.


Internal Stakeholders-are people within the business. eg. Employees


External Stakeholders-are people outside the business. eg. Government


Some examples of stakeholders:


  • Government (external)
  • Customers (external)
  • Suppliers (external)
  • Competition (external)
  • Shareholders (external)
  • Local community (external)
  • Banks (external)
  • Pressure groups (external)
  • Employees (internal)
  • Business owner (internal)