what is a correlation?
identifying a relationship between 2 variables
positive correlation
when an increase in one variable results in an increase in the other variable
negative correlation
when an increase in one variable results in a decrease in the other variable
zero correlation
a relationship between two variables cannot be determined
what is used to show correlation?
scatter graphs
what do scatter graphs allow businesses to do?
extrapolate data
extrapolation
using past data trends to predict future performance
what are moving averages?
they show whether a trend is significant by smoothing out fluctuations of data
three period moving averages
allow businesses to use three sets of data to calculate an average for future predictions
why might qualitative judgements sometimes outweigh quantitative judgements of forecasting?
provides a more detailed insight
-customers can share how they truly feel about product, business etc and preferences can be monitored
disadvantages of quantitative techniques
-changes in external environmental can impact the business’ future performance
-changes in internal environment can impact the business’ future performance
-quantitative sales forecasting is time-consuming and complex
-may be over-optimistic especially if business leader is new or bias
what changes in external environmental can impact quantitative techniques
PESTLE
political
environmental
social
technological
legal
economic
what changes in internal environmental can impact quantitative techniques
culture
leadership
financial performance
advantages of using quantitative techniques
requires little training to carry out methods
good for stable products e.g. in maturity stage of life cycle
-
1.1.1 The Market40
-
1.1.2 Market research/ Segmentation/ Product and Market orientation45
-
1.1.3 Market Positioning22
-
1.2.1 Demand17
-
1.2.2 Supply10
-
1.2.3 The market10
-
1.2.4 Price elasticity of demand12
-
1.2.5 Income elasticity of demand11
-
1.3.1 Product or Service Design15
-
1.3.2 Branding and Promotion45
-
1.3.3 Pricing Strategies16
-
1.3.4 Distribution27
-
1.3.5 Product life cycle and Portfolio35
-
1.4.1 Approaches to Staffing37
-
1.4.2 Recruitment, Selection and Training35
-
1.4.3 Organisational Design31
-
1.4.4 Motivation in Theory37
-
1.4.5 Leadership15
-
1.5.1/ 1.5.2 Role of an Entrepreneur, Motives and Characteristics35
-
1.5.4 Forms of Business28
-
1.5.5 Business Choices10
-
1.5.6 Moving from Entrepreneur to Leader12
-
2.1.1 /2.1.2 Sources of finance18
-
2.1.3 Liability and Finance5
-
2.1.4 Planning and Cash Flow15
-
2.2.1 Sales forecasting13
-
2.2.2 Sales, Revenue and Costs15
-
2.2.3 Breakeven8
-
2.2.4 Budgets20
-
2.3.1 Profitability21
-
2.3.2 Liquidity32
-
2.3.3 Business Failure17
-
2.4.1 Production, productivity and efficiency36
-
2.4.2 Capacity Utilisation8
-
2.4.3 Stock Management30
-
2.4.4 Quality16
-
3.1.1 Corporate Objectives22
-
3.1.2 Theories of Corporate Strategy30
-
3.1.3 SWOT analysis8
-
3.1.4 Impact of external influences26
-
3.2.1 Growth23
-
3.2.2 Mergers and Takeovers/ External Growth26
-
3.2.3 Organic Growth5
-
3.2.4 Reasons for staying small8
-
3.3.1 Quantitative sales forecasting14
-
3.3.2 Investment appraisal19
-
3.3.3 Decision trees21
-
3.3.4 Critical Path Analysis16
-
3.4.1 Corporate Influences19
-
3.4.2 Corporate Culture29
-
3.4.3 Shareholders versus stakeholders26
-
3.4.4 Business Ethics24
-
3.5.1 Interpretation of financial statements- UNFINISHED20
-
3.5.2 Ratio Analysis35
-
3.5.3 Human Resource Performance27
-
3.6.1 Causes and Effects of Change45
-
3.6.2 Key Factors in Change27
-
3.6.3 Scenario Planning18
-
4.1.1 Growing Economies24
-
4.1.2 International trade and business growth27
-
4.1.3 Factors contributing to increased globalisation0
-
4.1.4 Protectionism15
-
4.1.5 Trading blocs24
-
4.2.1 Conditions that prompt trade24
-
4.2.2 Assessment of a country as a market14
-
4.2.3 Assessment of a country as a production location12
-
4.2.4 Reasons for Global Mergers and Joint Ventures16
-
4.2.5 Global Competitiveness18
-
4.3.1 Marketing24
-
4.3.2 Niche markets14
-
4.3.3 Cultural/ social factors8
-
4.4.1 Impact of MNCs21
-
4.4.2 Ethics14
-
4.4.3 Controlling MNCs26
