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Factory

Unit 5 - Operations management

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Chart Increasing

Unit 1 - Introduction To Business Management

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Briefcase

Unit 2 - Human Resource Management

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Money Bag

Unit 3 - Finance & accounts

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Direct Hit

Unit 4 - Marketing

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Bar-Chart

Unit 6 - Assessment

Background

<ul>
	<li>Who: Dan Bowen (the tech whiz!) 🤓</li>
	<li>Business Model: Sole trader selling tablet computers. Everything&#39;s online! 🌍💻</li>
	<li>Business Name: Dan Electro (kinda catchy, right? 😉).</li>
	<li>Location: A fancy city centre location.💼🏢</li>
	<li>Start: 3 years ago with a hefty bank loan. Guess what he used as security? His house! 🏠💰</li>
	<li>Supplier: Some pricey but efficient international peeps. 💴✈️</li>
	<li>Customers: Loyal fanbase who think Dan&#39;s tablets are the bomb! 🌟💥 Some even said they&#39;d pay more!</li>
</ul>

Dan&#39;s biting his nails because

<ul>
	<li>Interest rates might go 📈</li>
	<li>Inflation woes 😰</li>
	<li>The online market&#39;s getting crowded 🌐👫</li>
</ul>

And...gulp... there might be cash flow problems looming. 💸🌀

Variable Costs

<ul>
	<li>Simple Definition: Costs that change depending on how much you produce. More tablets = more costs!</li>
	<li>Real-World Example: Imagine if Dan pays for shipping per tablet. The more tablets he sells, the more he pays for shipping! 📦✈️</li>
</ul>

&nbsp;Advantages of Being a Sole Trader for Dan

<ul>
	<li>Full Control: Dan&#39;s the boss! He doesn&#39;t need to wait for decisions from others. 🎩🕺</li>
	<li>Keep All Profit: He pockets all the profits without sharing. 💰🤑</li>
</ul>

&nbsp;This section is about break-even and calculations. We need specific numbers to crunch. For now

<ul>
	<li>Break-Even Chart: Shows when costs are covered by revenue. After this point, it&#39;s profit time! 📈💵</li>
	<li>Margin of Safety: How much sales can drop before reaching the break-even point.</li>
</ul>

&nbsp;Need numbers for specific calculations. But, always remember

<ul>
	<li>Projected Profit: How much moolah Dan thinks he&#39;ll make in the future. 🌌💰</li>
	<li>Price per Tablet: Dan&#39;s pricing strategy will affect this. Raising it might boost profit but could scare away customers! 📱💲</li>
</ul>

Limitations of Break-even Model

<ul>
	<li>Too Simple?: Just focuses on costs &amp; revenue. Doesn&#39;t consider other factors like market conditions or competition.</li>
	<li>Fixed and Variable: Assumes costs are clearly split into fixed and variable. But what if some costs are a mix? 🤔</li>
</ul>

Strategies to Prevent Cash Flow Issues

<ul>
	<li>Cost-Cutting: Can Dan find a cheaper supplier without compromising on quality?</li>
	<li>Diversification: Maybe Dan can introduce accessories or other tech gadgets? 🎧🔌</li>
	<li>Loyalty Programs: Rewarding those super-fans might encourage more sales! 🏆🛍</li>
</ul>

Remember when Apple introduced the AirPods? They already sold iPhones, but this diversification gave them another revenue stream. And look how popular they&#39;ve become! 🎶🍏

&nbsp;

Hope these notes are electrifying enough for our future business leaders!

&nbsp;

Study well and rock that exam! 🚀📘✨

Master Dan Electro's Business Case: Your Ultimate Guide To Tablet Sales Success

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Higher Level

Business Management HL

Unit 5 - Operations management

Master Dan Electro's Business Case: Your Ultimate Guide To Tablet Sales Success

Table of content

Dan electro - tablet tycoon! 🌐📱

The roadblocks 🚧

Unlock the Full Content!

Unit 5 - Operations management

Master Dan Electro's Business Case: Your Ultimate Guide To Tablet Sales Success

Table of content

Dan electro - tablet tycoon! 🌐📱

The roadblocks 🚧

Unlock the Full Content!