Different business models

Question 1

The role of finance

Answer 1

The role of finance is to provide the business with the resources to purchase raw material; do market research; carry out manufacturing; assess business performance and set goals.

Question 2

Financial objectives (6)

Answer 2

1. Revenue objectives
2. Cost objectives
3. Profit objectives
4. Cash-flow objectives
5. Capital structure objectives
6. Return on investment objectives

Question 3

Key activities and duties in finance (14)

Answer 3

1. Accounting and reporting
2. Strategic financial management
3. Taxation management
4. Record keeping and reports
5. Accounts payable and accounts receivable
6. Payroll
7. Finance controls
8. Financial planning and growth
9. Risk management
10. Capital budgeting
11. Treasury
12. Financing
13. Investor relations
14. Corporate strategy

Question 4

The role of marketing

Answer 4

It serves as the face of your company, coordinating and producing all materials representing the business. It is the Marketing Department’s job to reach out to prospects, customers, investors and/or the community, while creating an overarching image that represents your company in a positive light.

Question 5

Marketing objectives (5)

Answer 5

1. Sales volume
2. Sales value
3. Sales growth
4. Market share
5. Brand loyalty

Question 6

Key activities and duties in marketing (9)

Answer 6

1. Defining and managing your brand
2. Conducting campaign management for marketing initiatives
3. Producing marketing and promotional materials
4. Creating content providing for your website
5. Monitoring and managing social media
6. Producing internal communications
7. Serving as media liaison
8. Customer and market research
9. Overseeing outside vendors and agencies

Question 7

The role of productions and operations

Answer 7

Operations and production management is a field of business concerned with designing, planning, and controlling an organisation’s operations. It includes managing raw materials, human resources, and equipment. There are many different functions of production and operations management. Still, the ultimate goal is to ensure all the products or services are produced and delivered promptly and efficiently.

Question 8

Operational objectives (8)

Answer 8

1. Quality
2. Speed of response
3. Dependability - deliver reliably on time
4. Costs
5. Flexibility - meeting customer needs more precisely
6. Environmental objectives
7. Defect rates
8. Safety targets

Question 9

Key activities and duties in operations (5)

Answer 9

1. Forecasting
2. Capacity planning
3. Location facility
4. Layout
5. Integration of activities

Question 10

The role of HR

Answer 10

An effective resources (HR) management department can help provide organisational structure and the ability to meet business needs by managing your business’s most valuable asset – your employees.

Question 11

HR objectives (6)

Answer 11

1. Employee engagement
2. Talent development
3. Training
4. Diversity
5. Alignment of values
6. Number, skills and location of employees

Question 12

Key activities and duties in HR (7)

Answer 12

1. Recruit candidates
2. Hire the right employees
3. Process payroll
4. Conduct disciplinary actions
5. Update policies
6. Maintain employee records
7. Conduct benefit analysis

Question 13

Manufacturing -

Answer 13

• the processing of raw materials or parts into finished goods through the use of tools, human labor, machinery, and chemical processing

Question 14

Retail -

Answer 14

• any business facility that sells goods directly to the consumer whether for or not-for-profit; resell goods from suppliers

Question 15

Office professional services -

Answer 15

• any business, department, or individual whose core output is a service or expertise rather than a manufactured product

Question 16

Online only -

Answer 16

• a business that operates only via website/other online platform and has no offline outlets

Question 17

Dropshipping -

Answer 17

• when a person, or company, sells goods on their website that they do not keep in stock; that they sell from other shops and then the actual business delivers the goods

Question 18

Remote working -

Answer 18

• the practice of employees doing their jobs from a location other than a central office operated by the employer