1. B120: An Introduction to Business Studies Revision Tutorial 9 January 2010 08/06/20161John C Jackson

2. Reminder You should use these presentation slides in conjunction with my previous presentations Please be sure to re-read the key themes in your Books – do NOT rely just on my presentations 08/06/2016John C Jackson2

3. 08 June 2016B300 John C. Jackson3 Examination Approach (1) Questions: – 5 questions to be answered – from 15 – 1 question per Book – from 3 – Be sure to answer all 5 questions!!! Timing: – 3 hours total 30 minutes MAXIMUM per question!!! 10-15 minutes reading through & selecting 15-20 minutes reviewing, finalising, admin. 30 minutes is enough for a good answer

4. 08 June 2016B300 John C. Jackson4 Assume each question needs to be ‘critically discussed’ – Look for: Strengths and weaknesses Pros and Cons Advantages and Disadvantages Remember to define key aspects/issues/etc. Highlight your assumptions Examination Approach (2)

5. 08 June 2016B300 John C. Jackson5 Make mind-map or plan notes of key concepts and models for each question Do NOT cross these out Use B120 course materials, including case studies you have already studied Think of examples before the exam. so that you can apply them during the exam. Focus on your hand-writing and use double spacing Examination Approach (3)

6. 08 June 2016B300 John C. Jackson6 Answer the question actually set – NOT the one you would have liked Take a critical perspective to concepts and models Read the question very carefully APPLY models – that is, illustrate with examples Don’t assume because it was a TMA question that it won’t be an exam. question! Read my TMA and PT3 feedback Examination Approach (4)

7. Content – this is where you show that you know the contents of a particular theory, it shows me that you have read materials and that you know what information is relevant. Understanding – this shows me that you have understood the work, for example you know why using a particular theory will help answer a question. Analysis – this is where you use the understanding of a theory to make sense of what is happening in a business situation. Application – this skill is linked to analysis – when you show me that you understand theory and can use this to make sense of a particular situation, this is application; you are applying your understanding to a given situation. These are the skills that you will need to develop as you study Business at higher levels Assessment Skills in Business Studies 08/06/20167John C Jackson

8. Why do we use Business Theories and Models? B120 introduces a lot of business theory – why? Take the STEEP model as an example. This provides a framework for analysing business What does this mean? It is a model we can apply to any business to describe its external environment. Why do we need a framework? To give our work structure To allow for easy comparison between businesses 08/06/20168John C Jackson

9. Internal External Structuring a SWOT Analysis Strengths:Weaknesses: Opportunities:Threats 08/06/20169John C Jackson

10. A SWOT analysis allows a business to identify strengths, weaknesses, opportunities and threats. Strengths and weaknesses a rise as a result of what is going on within the business, opportunities and threats come from the external environment. A business has control over strengths and weaknesses but rarely over opportunities and threats. There are many reasons why a business would carry out a SWOT analysis. It may be looking to assess its position relative to competition, it may be considering a business proposal, such as the launch of a new product. SWOT Analysis 08/06/2016John C Jackson10

11. Business Types (Public / Private, Profit / Not for Profit) Morgan’s Metaphors (Morgan) STEEP & SWOT Analysis Business Structures (Pugh & Hickman) National Cultures (Hofstede) Organisational Culture (Trice & Beyer / Drennan) The Role of Ethics in Business (CSR) Stakeholder Analysis (Johnson & Scholes) Introduction to other Business Functions Book 1: Key Theories

12. Different Structures Functional Product Service Geographical Hierarchical Flat 08/06/201612John C Jackson

13. FORMAL vs. INFORMAL 08/06/201613John C Jackson

14. Motivational Theory (Maslow, Macgregor) Psychological Contract (Guest) Job Characteristics (Hackman & Oldham) Taylorism / Socio-Technical Approach (Trist & Bamworth) Recruitment / Selection / Induction & Socialisation Performance Management Training and Development Academic Models of HRM (Harvard vs Michigan) Book 2: Key Theories 08/06/201614John C Jackson

15. HR Management Theories of motivation – Content and process of motivation – Employee and employer expectations – ‘Psychological contract’ Designing satisfying work Recruitment, selection, induction and socialisation Assessing and developing people at work 08/06/2016John C Jackson15

16. Job Description This explains what the job holder will be responsible for and what they are required to do within their work. This is about the job Person Specification This details the skills, knowledge, qualifications and attributes that are required to do the job. This is about the person Recruitment 08/06/201616John C Jackson

17. This is where we make assumptions about an individual based on a particular group they may be a member of. Example English football fans have often behaved very badly when travelling to watch the England football team. Because of this we stereotype all English football fans and assume that they all behave badly. Stereotyping 08/06/201617John C Jackson

18. Stereotyping – problems for business: 1.Our examples show that because of stereotyping, particular groups of people are attracted to different careers, this can make it very difficult to recruit. An example of this is in UK primary schools (for children aged 5 – 11), these schools struggle to attract male members of staff, the majority of teaching staff are female (we have mixed gender education in the UK). 2.If the person who is recruiting staff believes in stereotypes, they may prejudge applicants and in doing so may not employ the right person for the job. 08/06/201618John C Jackson

19. Financial Stakeholders Characteristics of good financial information Cash Accounting and the Cash Flow Statement The Income Statement (profit and loss account) The Balance Sheet Accounting concepts Branches of accounting – management and financial Budgets and budgeting Book 3: Key Theories 08/06/201619John C Jackson

20. Accounting Information InvestorsLenders Employees Suppliers/ trade creditors Government and agencies Public Customers FINANCIAL STAKEHOLDERS Those people or organisations that have a financial interest in the business, the larger the business the larger the number of financial stakeholders. Financial stakeholders have differing needs in terms of the information they need: 08/06/201620John C Jackson

21.  Balance Sheet  Income Statement (Profit and Loss account).  Cash Flow Statement. Accounting Documents All of these are found within the Company Report which all Limited Companies in the UK are obliged to submit each year and which PLCs need to make available for anyone to see. 08/06/201621John C Jackson

22. The Income Statement (Profit and Loss Account) This shows all the income of the business (for example from the sales of its products), any costs associated with income (for example purchase of stocks of raw materials) and any resulting profit or loss for the business. Calculations that you may be required to carry out: Calculating Sales / Income You may be required to calculate the income earned by a business from sales of its products – this figure is sometimes called revenue. Sales, income and revenue can all be used to mean the same thing. The general formula for this is: Number of products sold x selling price = Sales income 08/06/201622John C Jackson

23. Calculating Gross Profit The accounting formula for this is Sales – Cost of Sales = Gross Profit  Sales is income earned by the business from selling its products and/or services  The cost of sales are those costs that can be associated directly with the sales. Calculating Net Profit The accounting formula for this is Gross Profit – Expenses = Net Profit  Expenses – any other costs paid by the business. 08/06/201623John C Jackson

24. Balance Sheet  A snapshot of the firm’s position at a point in time  Shows what a company owns (assets) and what it owes (liabilities)  Balance Sheet shows what assets a company has (use of funds) and where the money came from to acquire those assets (source of funds)  This is the reason why the balance sheet must balance. Calculations that you may be required to carry out: Calculating Woking Capital: The accounting formula for this is: Short-term assets – short-term liabilities = Working Capital 08/06/201624John C Jackson

25. Calculating Net Assets: The accounting formula for this is: (Long-term assets + Working capital) – long-term liabilities = Net Assets Calculating Owners Equity (which has several different names): The accounting formula for this is: (Profit/loss brought forward + profits from present year) – any drawings = Owners Equity. OR Assets – Liabilities = Equity You must make sure that you understand all the terms used within the Balance Sheet. 08/06/201625John C Jackson

26. A simplified Flow of Cash in a Business CASH – is a current asset Used to acquire stock – this creates creditors – a current liability. Stock is sold for cash – creating more of this current asset, this is used to pay creditors – reducing this current liability Stock is then used to produce saleable items or are resale items themselves – stock is a current asset 08/06/201626John C Jackson

27. Cash Flow Business Costs:  Fixed costs  Variable costs  Discretionary costs  Contingency costs The sum of these makes up the total costs of the business This is a financial statement which reports the inflows and outflows of cash for a particular period for the operating, investing and financing activities undertaken by a company 08/06/201627John C Jackson

28. Budgeting Budgets are short-term business plans expressed in money, covering a period of time The two main objectives of budgets are: 1.Planning – a comprehensive plan that links the whole business 2.Control – each manager monitors their actual results and compares them to the budget (the plan). Any differences (variances) can be investigated. Other objectives are motivation, communication, evaluation and co-ordination What are the behavioural implications of budgets? 08/06/201628John C Jackson

29. Branches of Accounting Management Accounting: Provides managers within a business way that the information to help them make planning and control decisions. Financial Accounting: The preparation of accounting reports mainly for external use. Both these types of accounting may use the same sources of financial information, it is just that this information is used for different reasons. 08/06/201629John C Jackson

30. The marketing concept Market segmentation, targeting and positioning Transaction and relationship marketing The marketing environment Consumer buying behaviour Social and cultural aspects of consumption The marketing mix Societal marketing Green marketing Porter’s Five Forces Book 4: Key Theories 08/06/201630John C Jackson

31. Marketing Environment The marketing department needs to work very closely with other functional areas in the business – link to relationship marketing. Porter’s 5 Forces can be used to assess the competitive environment STEEP can be used to analyse the macro marketing environment. 08/06/201631John C Jackson

32. The Consumer Society This is characterised by:  Most people within a society have access to a wide range of consumer goods.  People define themselves as by the products they purchase, for example, by having the latest mobile phone.  The products that we buy increasingly reflect our lifestyle. What this means is that it can be increasingly more difficult to define individual cultures within our society. 08/06/201632John C Jackson

33. Types of consumption Type of ConsumptionDefinition HedonisticShopping is enjoyed by many and the process of going to the shops and browsing brings pleasure for many. Often the products we buy are simply for the pleasure they give us rather than out of any real need. Consumption and identity We often buy products to reflect an image of who we are and what we believe. This may be something like buying a particular brand of running shoe, but can also have a deeper meaning, for example buying products that convey we follow a particular faith. Consumption and communication Often the products we buy change depending upon who we are with. The food we serve, for example, and the crockery and cutlery we use may vary depending on whether the guests are family, friends or business colleagues. 08/06/201633John C Jackson

34. The Societal Marketing Concept It is the desirable products that a business should be looking to sell to the consumer. 08/06/201634John C Jackson