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Business theories

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Business theories

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1. Power culture (handy's organisational culture types)

Compares the cost of all sales to the cost of the average stock held. Tells you how many times during the year a business sells all its stock. Cost of sales / cost of average stock heldThings like clothes and appliances bought less regularly than convenience products. More expensive and sold in fewer places.- centralised structure where decision making limited to few people. - employees likely to be more resistant to change. - this type may struggle when business grows and cannot be run from the centre.When there are many sellers and few buyers. - buy supplier out (backward vertical integration) - form a buying group with other businesses

2. Buyer power (Porter's five forces)

- centralised structure where decision making limited to few people. - employees likely to be more resistant to change. - this type may struggle when business grows and cannot be run from the centre.When there are many sellers and few buyers. - buy supplier out (backward vertical integration) - form a buying group with other businessesCompares the cost of all sales to the cost of the average stock held. Tells you how many times during the year a business sells all its stock. Cost of sales / cost of average stock heldThings like clothes and appliances bought less regularly than convenience products. More expensive and sold in fewer places.

3. Inventory turnover (def. and formula)

When there are many sellers and few buyers. - buy supplier out (backward vertical integration) - form a buying group with other businessesThings like clothes and appliances bought less regularly than convenience products. More expensive and sold in fewer places.- centralised structure where decision making limited to few people. - employees likely to be more resistant to change. - this type may struggle when business grows and cannot be run from the centre.Compares the cost of all sales to the cost of the average stock held. Tells you how many times during the year a business sells all its stock. Cost of sales / cost of average stock held

4. Shopping products

When there are many sellers and few buyers. - buy supplier out (backward vertical integration) - form a buying group with other businesses- centralised structure where decision making limited to few people. - employees likely to be more resistant to change. - this type may struggle when business grows and cannot be run from the centre.Compares the cost of all sales to the cost of the average stock held. Tells you how many times during the year a business sells all its stock. Cost of sales / cost of average stock heldThings like clothes and appliances bought less regularly than convenience products. More expensive and sold in fewer places.

5. Task culture (handy's organisational culture types)

- emphasis on getting specific tasks done. - respond well to management by objectives e.g.. specific targets for departments/employees. - generally have low resistance to change because employees are used to it.Compares the cost of all sales to the cost of the average stock held. Tells you how many times during the year a business sells all its stock. Cost of sales / cost of average stock heldWhen there are many sellers and few buyers. - buy supplier out (backward vertical integration) - form a buying group with other businesses- centralised structure where decision making limited to few people. - employees likely to be more resistant to change. - this type may struggle when business grows and cannot be run from the centre.

6. Average rate of return

Compares the cost of all sales to the cost of the average stock held. Tells you how many times during the year a business sells all its stock. Cost of sales / cost of average stock heldWhen there are many sellers and few buyers. - buy supplier out (backward vertical integration) - form a buying group with other businesses- centralised structure where decision making limited to few people. - employees likely to be more resistant to change. - this type may struggle when business grows and cannot be run from the centre.Average net return / investment x100

7. Most risky

8. Kaizen

Constant improvements instead of one offs- centralised structure where decision making limited to few people. - employees likely to be more resistant to change. - this type may struggle when business grows and cannot be run from the centre.When there are many sellers and few buyers. - buy supplier out (backward vertical integration) - form a buying group with other businessesCompares the cost of all sales to the cost of the average stock held. Tells you how many times during the year a business sells all its stock. Cost of sales / cost of average stock held

9. Operating profit

Sales revenue - cost of sales - operating expensesWhen there are many sellers and few buyers. - buy supplier out (backward vertical integration) - form a buying group with other businessesCompares the cost of all sales to the cost of the average stock held. Tells you how many times during the year a business sells all its stock. Cost of sales / cost of average stock held- centralised structure where decision making limited to few people. - employees likely to be more resistant to change. - this type may struggle when business grows and cannot be run from the centre.

10. Retained profit

- centralised structure where decision making limited to few people. - employees likely to be more resistant to change. - this type may struggle when business grows and cannot be run from the centre.Compares the cost of all sales to the cost of the average stock held. Tells you how many times during the year a business sells all its stock. Cost of sales / cost of average stock heldWhen there are many sellers and few buyers. - buy supplier out (backward vertical integration) - form a buying group with other businessesProfit after dividends - Profit after tax - dividends

11. Convenience products

Compares the cost of all sales to the cost of the average stock held. Tells you how many times during the year a business sells all its stock. Cost of sales / cost of average stock heldInexpensive - everyday items bought by lots of peopleWhen there are many sellers and few buyers. - buy supplier out (backward vertical integration) - form a buying group with other businesses- centralised structure where decision making limited to few people. - employees likely to be more resistant to change. - this type may struggle when business grows and cannot be run from the centre.

12. Market development

When there are many sellers and few buyers. - buy supplier out (backward vertical integration) - form a buying group with other businessesBringing an existing product to a new market.- centralised structure where decision making limited to few people. - employees likely to be more resistant to change. - this type may struggle when business grows and cannot be run from the centre.Compares the cost of all sales to the cost of the average stock held. Tells you how many times during the year a business sells all its stock. Cost of sales / cost of average stock held

13. Recievables days

14. Specialty products

Compares the cost of all sales to the cost of the average stock held. Tells you how many times during the year a business sells all its stock. Cost of sales / cost of average stock heldThings consumers believe to be unique in some way. Perceived image and quality are more important than price- centralised structure where decision making limited to few people. - employees likely to be more resistant to change. - this type may struggle when business grows and cannot be run from the centre.When there are many sellers and few buyers. - buy supplier out (backward vertical integration) - form a buying group with other businesses

15. Low tolerance for change (kotter + schlesinger's reasons for resistance to change)

Used to doing things the same way so don't like changeCompares the cost of all sales to the cost of the average stock held. Tells you how many times during the year a business sells all its stock. Cost of sales / cost of average stock held- centralised structure where decision making limited to few people. - employees likely to be more resistant to change. - this type may struggle when business grows and cannot be run from the centre.When there are many sellers and few buyers. - buy supplier out (backward vertical integration) - form a buying group with other businesses

16. Barriers to entry (Porter's five forces)

When there are many sellers and few buyers. - buy supplier out (backward vertical integration) - form a buying group with other businessesCompares the cost of all sales to the cost of the average stock held. Tells you how many times during the year a business sells all its stock. Cost of sales / cost of average stock held- centralised structure where decision making limited to few people. - employees likely to be more resistant to change. - this type may struggle when business grows and cannot be run from the centre.How easy it is to enter the market - patents and trademarks - control of distribution (forward vertical integration) - price war

17. Person culture (handy's organisational culture types)

Compares the cost of all sales to the cost of the average stock held. Tells you how many times during the year a business sells all its stock. Cost of sales / cost of average stock held- common in loose organisations of individual workers (eg. accountants - soliciors) - objectives defined by the personal ambitions - firms must ensure individuals actually have common goals - decisions made jointly so employees are likely to be comfortable with change - but making decisions may be difficult due to employee self-interest.When there are many sellers and few buyers. - buy supplier out (backward vertical integration) - form a buying group with other businesses- centralised structure where decision making limited to few people. - employees likely to be more resistant to change. - this type may struggle when business grows and cannot be run from the centre.

18. Bartlett and ghosal's international business strategies

Measured against pressure to reduce costs and pressure for local responsiveness (adapting products for different locations/markets) Compares the cost of all sales to the cost of the average stock held. Tells you how many times during the year a business sells all its stock. Cost of sales / cost of average stock heldWhen there are many sellers and few buyers. - buy supplier out (backward vertical integration) - form a buying group with other businesses- centralised structure where decision making limited to few people. - employees likely to be more resistant to change. - this type may struggle when business grows and cannot be run from the centre.

19. Pestle

20. Diversification

- centralised structure where decision making limited to few people. - employees likely to be more resistant to change. - this type may struggle when business grows and cannot be run from the centre.Bringing a new product to a new market Compares the cost of all sales to the cost of the average stock held. Tells you how many times during the year a business sells all its stock. Cost of sales / cost of average stock heldWhen there are many sellers and few buyers. - buy supplier out (backward vertical integration) - form a buying group with other businesses

21. Boston matrix

22. Product

23. Pricing

Price skimming - penetration pricing - influences on pricingWhen there are many sellers and few buyers. - buy supplier out (backward vertical integration) - form a buying group with other businessesCompares the cost of all sales to the cost of the average stock held. Tells you how many times during the year a business sells all its stock. Cost of sales / cost of average stock held- centralised structure where decision making limited to few people. - employees likely to be more resistant to change. - this type may struggle when business grows and cannot be run from the centre.

24. Hackham and oldham

Compares the cost of all sales to the cost of the average stock held. Tells you how many times during the year a business sells all its stock. Cost of sales / cost of average stock heldBelieved that jobs needed to be designed to focus around people to make them motivated. Five key elements: skill variety - task identity - task significance - autonomy - feedbackWhen there are many sellers and few buyers. - buy supplier out (backward vertical integration) - form a buying group with other businesses- centralised structure where decision making limited to few people. - employees likely to be more resistant to change. - this type may struggle when business grows and cannot be run from the centre.

25. Role culture (handy's organisational culture types)

When there are many sellers and few buyers. - buy supplier out (backward vertical integration) - form a buying group with other businessesCompares the cost of all sales to the cost of the average stock held. Tells you how many times during the year a business sells all its stock. Cost of sales / cost of average stock held- common in bureaucratic firms where authority is defined by job title - decisions come from senior management. - usually have poor communication between departments so they respond slowly to change - bad in new or expanding markets. - avoid risks so change is quite rare - high resistance to change from employees because they're not used to it.- centralised structure where decision making limited to few people. - employees likely to be more resistant to change. - this type may struggle when business grows and cannot be run from the centre.

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25 Questions

❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

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All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | What Should We Know?
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Without work one finishes nothing. - Ralph Waldo Emerson
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