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What is the formula for labour productivity?

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Labour productivity =

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number of employees in that period

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When is 'reducing fixed costs' likely to be an operational objective for a business?

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When 2 businesses merge because they may have duplicated fixed costs.

When a new business starts up

When a business is about to go bankrupt

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Some businesses find it important that their operational side does not harm the environment- what are 4 ways they can do this?

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increasing recycling

reducing carbon footprint

reducing waste

achieving self-sufficiency in energy use.

reduce the amount of products they make

only use plastic

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What is this describing?

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objectives for each area/functional area of the business that are usually based on the corporate objectives

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What is the formula for punctuality?

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Punctuality = (deliveries on time/

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x

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What is this describing?

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objectives/goals for the whole business that are usually based on the mission statement

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What is this the formula for?

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(capacity output per year/maximum possible output per year) x 100

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Match the key words to their definitions

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Match the text
Objective
Labour intensive
Labour productivity
Unit cost/Average costs (AC)/Average total costs (ATC)

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when labour costs outweigh capital costs of a business. The business spends more on the people than the capital they have invested.
a quantifiable target which helps to co-ordinate activities.
the amount of output that is obtained from each employee.
the cost of producing one unit of output.

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What is this describing?

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Departmental, team or personal objectives

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Choose all the external influences on operational objectives

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Explanation

The other 3 are internal objectives!

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Competitors actions- are you acting more efficiently than them?

Human resources- are your staff well trained?

Finance

The nature of the product- is it mass produced or made to order?

Economic factors- If interest rates are high, costs may increase or sales reduce as customers struggle to pay back bank loans.

Market factors- is the market growing or declining?

Corporate objectives

Political factors

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Match

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Match the text
Ways to achieve high labour productivity
Ways to achieve high labour productivity
Ways to achieve high labour productivity
Ways to achieve high labour productivity
Ways to increase productivity
Ways to increase productivity
Ways to increase productivity
Ways to increase productivity
Ways to increase productivity
Influences on unit cost
Influences on unit cost
Influences on unit cost

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How many units a business can make with its resources
Training to increase output
How easily variable costs can be controlled
Changing the way work is done
How efficient the workforce/machinery is at producing the goods
Ensure your suppliers and raw materials are reliable
Investment in equipment and technology
Ensure you have good methods of production
Ensure that workforce have suitable skills and are motivated
Increasing the number of hours worked
Motivating employees
Ensure that machinery is high quality

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Choose the 4 ways by which quality can be measured

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Customer complaints- allows businesses to see problems they need to assess.

Punctuality- measures how promptly a business delivers its goods. The higher the punctuality %, the higher the customer satisfaction.

Scrap rate- manufacturers track the rejects through the manufacturing process.

Customer satisfaction ratings- qualitative or quantitative surveys can measure if quality has been achieved.

Innovation- Improving productivity through new equipment.

Raising finance- funds need to be available to invest in machinery.

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What is the formula for unit cost?

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Unit cost=

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What is this describing?

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aim for the whole business

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High unit costs enable a business to keep prices low for customers or enjoy higher profit margins.:

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True

False