IB Business and Management Repaso PDF

**[Human Resources]** Definition: The area in charge of administrating the worker\'s performance and motivation inside the company. **[Organizational Structure]** CEO Chief Executive Officer (HEAD OF ALL) HRHuman Resources CMO Chief Marketing Officer CFO Chief Financial Officer COO Chief Oper...

**[Human Resources]** Definition: The area in charge of administrating the worker\'s performance and motivation inside the company. **[Organizational Structure]** CEO Chief Executive Officer (HEAD OF ALL) HRHuman Resources CMO Chief Marketing Officer CFO Chief Financial Officer COO Chief Operation Officer **[Motivational Theory]** 1. Maslow Pyramid (HIGHEST TO LOWEST) Need to satisfy the lower level to continue to the next one Self-Actualization I work because I know it's right Esteem I want to have more so people can still congratulate me Love and belonging I work because I have family to support Safety Needs I work because I want a safe home Basic NeedsI work because I need food, water and clothes 2. Herzberg Motivational Theory **hygiene factors** prevent dissatisfaction, and **motivators** create satisfaction. To have a happy and motivated workforce, both need to be managed well. 3. Taylor's Motivational Theories Money is the only motivation needed **[Marketing]** Segmentation Separate your customers by preference Types of Segmentation - Demographic (Age, Gender, Religion, Ethnic and Family) - Geographic Divide the mark by the weather/country/region - Psychographic Segmentation by social and economic status KEY CONCEPTS: Target Market Consumer group you target Mass Market Promote a product that all people would buy by equal Niche Market Specific Market, for example Insuline (target to diabetic persons) Unique Selling Point What makes your product different from others. Types of Differentiation Product DifferentiationPhysical Differentiation like performance Service Differentiation Service quality like delivery time Price Differentiation Different prices for the same product Example of Price Differentiation N+S+F= 15 Dollars Alone: N: 5 / S:7 / F:6 **[Sales Forecasting]** This refers to predicting future sales but depends on the season and trends Marketing Mix: 4p's Place: Where are you selling the product Product: What are you selling Price: What is the price of the product Promotion Where are you promoting the product **[Market Research]** Primary Market Research: 1to1 Consumer Supervisor talk (Focus Groups) Secondary Market Research: Reading from an article (newspaper), there is where you get the data **[BCG MATRIX]** **Stars**: High market growth and high market share. - These are successful products in growing markets. They generate a lot of revenue but may require significant investment to maintain their position. Over time, they can become Cash Cows. **Cash Cows**: Low market growth but high market share. - These are established, profitable products that don't need much investment. They generate consistent cash flow, which can be used to fund other parts of the business. **Question Marks** (or Problem Children): High market growth but low market share. - These are new or struggling products in a growing market. They need investment to improve their position. The business must decide whether to invest heavily to turn them into Stars or discontinue them. **Dogs**: Low market growth and low market share. - These are products that aren't growing and don't generate much profit. Businesses often decide to phase these out as they tie up resources with little return. **[Ansoff Matrix: ]** **Market Penetration (TOP LEFT)**: Sell more of what you already have to current customers. **Product Development(TOP RIGHT)** : Make new products for your existing customers. **Market Development(LOW LEFT)**: Find new customers for your existing products. **Diversification(LOW RIGHT)**: Try something completely new with new products and new markets. **[FINANCE]** **Statement of Profit and Loss** Structure: \+ Sales Revenue -COGS -Gross Profit -Expenses -Depreciation =EBIT(Earning Before Interes and Taxes) -Interest =EBT (Earning Before Taxes) -Taxes =Net Profit -Dividens =Retained Profit Definitions: - Assets: All where you can produce cash - Liability: Is debt, it is divide it by Current (short term) and Non-Current (long term) - Equity: Capital and Reserves of the cash of the company **BALANCE SHEET** [Non Current Assests ] -Property,Plant and equipment \- Accumulated Depreciation [Current Assests:] -Cash -Debtors -Stock [Current Liabilities ] -Bank Overdraft -Creditors -Long Term loans [Non current liabilities] -Borrowing long term [Equity:] Share Capital Retained Earnings FOR A SUCCESFUL BALANCE SHEET NET ASSETS = NET LIABILITIES+ EQUITY [Net Present Value] *Formula* **[RATIOS:]** Stock Turnover RatiosTime to sell and restock you inventory Debtor daysAmount of days the debtor would pay you Creditors Days Amount of time I need to pay another person Gearing Ratio To what extend the capital its financed by the loan Liquidity Ratios In how much time you can pay your short term debt with your current assests. Acid Test (quick ratio) Same as liquidity ratio but you take out the doubt of the stock ROCE Profitability by capital **[Depreciation]** Definition: Value reduced by time or usage to an Asset Formula: [\$\\frac{Original\\ cost - residual\\ value}{\\text{expected\\ useful\\ life\\ of\\ asset}}\$]{.math.inline} **[CASH FLOW]** - Money that flows in and out of a business over a givren period of time. Formulas: Closing Balance: = Net Cash Flow + Opening Balance Net Cash Flow: Cash flow INFLOW + Cash outflows **[OPERATIONS:]** Know the cost of production Key concepts:\ \ Job Production Create a product customized for the customer Batch Production Create products by groups (100 green and 100 red) Mass Production Create a product that is the same for everyone Outsourcing Employing another business as a 3rd party Off shoring Contract people overseas Insourcing Contract people from your area Just in Time (JIT) Extra stock when you have extra demand Just in Case (JIC) Save RAW materials when you have extra demand **[COST:]** Fixed CostSame payments for the time period Variable Cost Different payments for the time period Price The amount of money you would charge for the product to the customer Contribution: Formula: Price- Variable Cost Formulas: Margin of Safety= Output- Break even quantity Break Even quantity: [\$\\frac{\\text{Fixed\\ Cost}}{Contribution\\ (per\\ unit)}\$]{.math.inline}