Professional Documents
Culture Documents
sTUDIES
OVERALL sUMMARY
nOTES - bY nATHAN
rEIDY, 1ST IN THE STATE.
Publication By:
Evolutionary
Tutors
2 Nathan Reidy, Co-Founder of Evolutionary Tutors & 1st in the
State 2014
- Nathan Reidy
Evolutionary Tutors 2017 3
TOPIC 1: OPERATIONS
Topic 1: Operations
Cost leadership lowest costs/most price competitive; Economies of
scale.
Good differentiation: features, quality, augmented.
Service differentiation: timve, expertise, qualifications + experience,
quality.
TOPIC 1: OPERATIONS
Scheduling tools:
1. Gantt chart (adv. of plan and monitor).
2. Critical Path Analysis (CPA): SHORTEST length of time it takes to
complete ALL TASKS necessary to complete the process or project. (adv.
of direction/organisation
Process layout, product layout, fixed position layout, office layout, plant
layout.
TOPIC 1: OPERATIONS
E-Commerce: B2B/B2C.
Advantages of Outsourcing
Simplification
Efficiency and cost savings
Increased process capability
Increased accountability
Access to skills/resources lacking within the business
Capacity to focus on core business or key competencies
Strategic benefits (get around trade barriers, expertise)
Improvement to in-house performance
6 Nathan Reidy, Co-Founder of Evolutionary Tutors & 1st in the
State 2014
TOPIC 1: OPERATIONS
Disadvantages of outsourcing
LIFO: may overstate cost, understate gross profit, under value stocks at
end of period.
FIFO: may understate cost, overstate profit, over value stocks at end of
period.
Evolutionary Tutors 2017 7
TOPIC 1: OPERATIONS
TOPIC 2: MARKETING
TOPIC 2: MARKETING
The product life cycle consists of the stages a product passes through:
introduction, growth, maturity and decline.
TOPIC 2: MARKETING
The primary target market is the market segment at which most of the
marketing resources are directed. The secondary target market is usually
a smaller and less important market segment.
TOPIC 2: MARKETING
1. Cost estimate.
2. Revenue estimate.
1. Sales analysis.
2. Market share analysis.
3. Marketing profitability analysis.
Points of differentiation
Customer service
Environmental concerns
Convenience
Social and ethical issues
TOPIC 2: MARKETING
TOPIC 2: MARKETING
TOPIC 2: MARKETING
Global marketing:
Global branding
Standardisation
Customisation
Global pricing (customised pricing, market-customised pricing,
standardised worldwide pricing)
Competitive positioning
Evolutionary Tutors 2017 15
TOPIC 3: FINANCE
With recourse means that bad debts will still be the responsibility of
the business, without recourse = converse.
16 Nathan Reidy, Co-Founder of Evolutionary Tutors & 1st in the
State 2014
TOPIC 3: FINANCE
Leasing Advantages
Leasing Disadv.
TOPIC 3: FINANCE
TOPIC 3: FINANCE
Set-up costs.
Interest costs.
Availability of funds.
Flexibility of funds.
Level of external control.
Structure of the business.
TOPIC 3: FINANCE
Financial ratios
TOPIC 3: FINANCE
- Control of current assets (CRI) cash (put money in bank and earn
interest, invest in short term securities), receivables (discounts for early
payment, factoring, have a credit policy), inventories (JIT for quick
inventory turnover, alternative to stock=consignment).
- Control of current liabilities (PLO) payables (pay by due date to avoid
extra charges, talk to supplier to seek a discount for early payment),
loans (seek the lowest possible interest rate on the loan), overdrafts
(should be minimised however often help seasonal businesses bridge
short term problems with cash).
- Strategies leasing, sale and leaseback.
Evolutionary Tutors 2017 21
TOPIC 3: FINANCE
A high current (working capital) ratio may indicate the business has
invested too much in current assets that bring in a small return = lower
profits due to lower risk.
A low current (working capital) ratio may mean that the business is
more profitable if it is investing its resources in longer term assets and
generating more profits = increased productivity however increased risk
of not being able to pay current liabilities.
- Cost controls fixed and variable (source new supplier at a lower price),
cost centres, expense minimisation (general expenses-try pay less rent
(e.g by moving business location), leasing; sales expenses-commission
+ lower base salary rather than just a higher base salary; financial
expenses-try decrease interest repayments).
- Revenue controls marketing objectives (sales mix, pricing policy-
increase prices if market will cope/decrease prices in a high volume
rapid turnover good).
Could potentially improve return on equity by increasing debt.
Increased risk = increased potential for profitability through greater
returns/revenue.
- Exchange rates.
- Interest rates.
- Methods of international payment (People Like Clean Bills) payment in
advance, letter of credit, clean payment, bill of exchange (document (bill)
against payment-importer can collect goods only after paying for them,
document (bill) against acceptance-importer can collect goods before
paying for them).
- Hedging- the process of minimising the risk of currency fluctuations.
- Derivatives (forward exchange contracts, option contracts, swap
contracts).
22 Nathan Reidy, Co-Founder of Evolutionary Tutors & 1st in the
State 2014
Providing work.
Payment of income and expenses.
Meeting requirements of industrial relations legislation.
Duty of care.
From 2010, the employees base rate of pay for ordinary hours worked
has been determined by:
The award of agreement that covers the employee (cannot be less than
the minimum wage).
The national minimum wage (applies to employees not covered by
awards or agreements).
Acquisition
Development
Separation
Dismissal
Directive.
Visionary.
Affiliative.
Participative.
Pacesetting.
Coaching.
Job design is the process of designing the content of a job and how it
will interact with other jobs and employees, so as to motivate and retain
an employee and achieve the businesss goals.
Job rotation.
Job enlargement.
Job enrichment.
Semi-autonomous work groups.
Cross-functional, team-based matrix structures.
Flexible work structures.
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Performance management
The Lost Time Injury Frequency Rate (LTIFR) = (Number of lost time
injuries x 1,000,000)/(Total hours worked in accounting period). The
LTIFR is the number of lost-time injuries per million hours worked. A lost-
time injury is an event that results in a fatality, permanent disability or
time of one day/shift or move lost from work.
Evolutionary
Tutors