Edexcel Business A Level Revision

Portfolio analysis is a method of analysing a business' product according to their potential. It is based on the Boston matrix, which assesses each product in terms of the market growth in its segment plus its market share. It can be used to priorities resources such as cash to put behind its marketing spending. It may also be the starting point for selling off some brands to focus on others. The aim is to provide a framework for a business to look at the opportunity cost of investing in its different product, for example where to spend limited marketing budget for the greatest return. This can be developed into international portfolio analysis, which can look at a country's attractiveness, for example market size, compared with its strength, for example market share. For more on Boston Matrix, go to... http://edexcelbusinessalevel.blogspot.co.uk/2017/01/product-portfolio-boston-matrix.html

Porter's Strategic mix -  describes how a company pursues competitive advantage across its chosen market segment by using four generic strategies: mass vs niche and lowest cost vs highest differentiation strategies. Competitive advantage - An advantage over the competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher price. Lost-cost positioning -  Where a business is able to operate at the lowest unit cost in the market, enabling it to charge lower prices than the competition or earn a higher profit margin Differentiation positioning - Where a business is able to distinguish its product or service in the minds of consumers as offering better value - perhaps through quality, branding or other attributes that consumers value Porter suggested two overall business strategies that could be followed in order to gain a competitive advantage: Low cost Differentiation I...

When a business makes a profit it usually results in a similar cash inflow – but not always, and not straightaway! It is important to understand the basic reasons why net profit and net cash flow might not always be the same. Profit and cash flow are two different calculations – as shown above. There are two main ways in which net cash flow differs from net profit during any accounting period: (1) Timing differences These arise because a business may not received cash straightaway from a customer and it may also delay payment for its costs. For example, a customer may buy goods for £50,000 but be allowed to pay for those goods in 60 days. (2) The way that fixed assets are accounted for Fixed assets are the assets that a busines...

In terms of approaches to how management view human resources, a popular distinction is made between treating staff as an asset ("soft" HRM) and treating them as a cost ("hard" HRM). Staff as an Asset (SOFT HRM) ▪ Treats employees as the most important resource in the business and a source of competitive advantage. ▪ Employees are treated as individuals and then needs our plan accordingly. FOCUS = Concentrate on the needs of the employees - their roles, rewards, motivation etc Staff as a Cost (HARD HRM) ▪Treats employees simply as a resource of the business. ▪ Strong links with corporate business planning - what resources do we need, how do we get them and how much will they costs FOCUS = Identify workforce needs of the business and recruit and manage accordingly ( hiring, moving and firing) KEY FEATURES TO SOFT AND HARD HRM SOFT HRM Strategic focus on longer-term workforce planning Strong and regular two way communication Competi...