Edexcel Business A Level Revision

Competitive advantage -  A sustainable advantage over the competitors in the long term, gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher price. Specialisation - When a business concentrates on a product or task and in many cases means producing only a small number of products. Specialisation is particularly important when competing in international markets as it can create a competitive advantage for the business and act as a barrier to stop others from entering the market. Specialisation increases output as economic units become more effective and efficient in what they produce due to: Greater understanding of the requirements of production Each economic unit can specialise in what they are best at Efficient use of time as there is no switching between tasks Technical economies of scale such as capital equipment is used to produce goods and services The increased output can...

Cell production - A form of flow production whereby the production line is split into a series of self contained cells which teams in these cells work together to create one unit of output. Each cell takes responsibility for the production of complete units of output. MASLOW AND HERZBERG ALERT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! The members of the cell work as a team to achieve goals and ensure quality standards are met. Cell production often leads to increased productivity due to: Increased motivation (team spirit and added responsibility) Specialisation ( the process of concentrating on and becoming expert in a particular subject or skill)   CELL PRODUCTION ADVANTAGES DISADVANTAGES Increases quality, teamwork and motivation Depends on staff being well trained or experts in their role

Partnership -  (Unincorporated) where two or more people share the costs, risks and responsibilities or being in a business together. The partners between them own all of the businesses assets and owe all business liabilities, therefore have unlimited liability. The legal partnership agreement sets out how the partnership is run, covering areas such as; How profits are to be shared What the partners have to invest into the business How decisions are taken What happens if the partner dies or wishes to leave You can also have "sleeping partners" who invest, BUT do not manage the business. ADVANTAGES Business benefits from the expertise and efforts of more than one owner. Partners can provide specialist skills Greater potential to raise finance - partners each provide investment Risks, costs and responsibilities shared Financial records remain private DISADVANTAGES Full personal liability - "unlimited liability" A poor decision by one partner dam...

Scientific Management - A motivational theory developed by Frederick Taylor to try and increase the productivity in businesses, specifically factories.   ADVANTAGES OF SCIENTIFIC MANAGEMENT Avoids inaccuracy in production of products Better planning and decision making Enhances teamwork - cooperation between managers and workers Maximises productivity Improved democracy in the workplace Increased opportunities for workers to acquire further training DISADVANTAGES OF SCIENTIFIC MANAGEMENT Not suitable for big firms, only small organisations Managerial decisions may involve severe stress for managers due to need for complete control over the work place Feelings of pressure among employees mainly influenced by piece rate as if they don't make enough of their product, they wont get enough money to live on. May demotivate employees due to repetition of task with no flexibility In order to meet productivity requirements, quality may suffer...