Understanding Business Concepts and Strategies

High Hourly Wage Rate

High hourly wage rate: Workers are paid according to the amount of hours they work. A "high" hourly wage means being paid a significant amount of money per hour.

Piece Rate Element

Piece Rate Element:

• Employees: The amount they earn is directly associated with their effort, encouraging them to produce more efficiently. However, it may not be convenient for workers who prioritize quality over quantity.
• Employer: More production potentially leads to increased profits. However, workers who rush might compromise quality.

Responsibility and Motivation

Responsibility motivates workers: Giving employees responsibility can create a sense of importance, making them feel appreciated and valuable. However, some workers may find responsibility stressful.

Laissez-Faire Management

Laissez-faire: This is a management style where, after explaining the business's objectives to the employees, the leader lets them make their own decisions and apply their own working methods. Communication can be difficult in this style, and the leader has a limited role.

Training's Impact on Business

Training helps a business: Training provides employees with new skills, knowledge, and methods, leading to increased efficiency.

Price Elasticity

Price elastic: If there is a significant price change, demand decreases. If there is a small price change, demand increases. Answer: No, he will likely lose customers if the price change is significant.

Marketing Budget

Marketing budget: A financial plan for the marketing of a product or product range. It specifies how much money is available for marketing activities. It's useful as a plan to assess aims and prevents overspending.

Brand Name

Brand Name: A distinct name given to a product that distinguishes it from others. It differentiates your service and gives the product a special relevance in the market. A brand name should be easy to remember and be accompanied by a strong, attractive image. Branded products are often associated with high quality, building customer confidence.

Niche Market

Niche Market: A small, specialized segment of a much larger market.

Advantages of Wholesalers

Advantages of wholesalers:

• Businesses that don't want large amounts of product can benefit.
• Wholesalers can facilitate contact with foreign countries.
• They reduce the cost of transactions and transport.

Currency Appreciation and Profitability

If the currency in the home country appreciates, how does it affect profitability? It becomes cheaper to import. This can lead to an increase in profit as the company can afford to offer lower prices.

Public Limited Companies

Public Limited Companies:

Advantages:

• Limited liability
• Separate legal unit
• Ability to raise very large sums of capital
• High status

Disadvantages:

• Legal formalities
• Potential to grow too large and become difficult to control
• Many regulations

Technology and Cost Reduction

Technology cuts costs: Technology leads to greater efficiency (less chance of mistakes) and reduces the need for wages.