Mind Maps

Mind maps for Business Studies can be prepared easily to memorize different topics ,depending on your interest and creativity. A mind map is a diagrammatic presentation of a topic and its associated information, with the help of images, words and parts of words etc. Usually people prepare mind maps appearing as veins in human body or roots of a tree.

Simple form, of mind maps have been prepared here, for learning Delegation ,Centralisation and Decentralisation:

Delegation Mind Map

Another mind map of Controlling process is given here:

Controlling Process Mind Map

You can prepare your own mind maps using different colours,symbols and drawing, depending on the nature of topic or your interest.

Here are summary points relating to some difficult topics of Business Studies, which can be made interesting to learn by easily depicting in the form of mind maps :

Channels of Distribution :

Direct Channel

Manufacturer—> Customer

Indirect Channels

One level channel

Manufacturer —> Retailer —> Customer

Two level channel

Manufacturer —> Wholesaler —> Retailer —> Customer

Three level channel

Manufacturer —> Agent —> Wholesaler —> Retailer—>Customer

Factors Determining Choice of Channels of Distribution :

1.Company related factors:

a)Financial strength of the company:

Strong—direct

weak—indirect

b)Degree of control:

required on sale—direct

not required—indirect

2.Market related factors:

a)Size of market:

Large—indirect

small—direct

b)Geographical concentration of potential buyers:

Concentrated—direct

scattered—indirect

c)Size of order(quantity purchased)

small—indirect

large—direct

3.Product related factors:

a)Nature of product:

Industrial product—direct or small

consumer product—indirect.

b)Life of product(whether perishable…)

Durable-indirect

perishable-direct

c)Unit value of product

High—direct

low—small

d)Complexity of product

Technically complex—direct

simple—indirect

4.Competition factors:

a)Competitor:

same channel

opposite channel

5. Environmental factors:

Economic and legal constraints

Factors affecting requirement of Fixed capital

1. Nature of business:

Trading concern—-small,

Manufacturing concern—-large

2. Scale of operation:

Large—-large,

Small—-small

3.Choice of technique:

Capital intensive—-large

Labour intensive—-small

4.Technical up-gradation:

Required—-large

Not required—-small

5.Financial alternatives:

Available—-small

Not available—-large

6.Diversification:

Going for—-large

Not going for—-small

7.Growth prospects:

Higher—-large

Lower—-small

8.Level of collaboration:

Possible—-small

Not possible—-large

Factors affecting the requirement of working capital

1.Nature of business:

Trading concern—-small

Manufacturing concern—-large

Service concern—-small

2.Scale of operation:

Large—-large

Small—-small

3.Business cycle:

Boom—-large

Depression—-small

4.Seasonal Factors:

Peak season—-large

Slack season—-small

5.Production cycle:

Long—-large

Short—-small

6.Credit allowed:

Liberal policy—-large

Strict policy—-small

7.Credit availed:

Liberal policy—-small

Strict policy—-large

8.Availability of raw material:

Easy—-small

Difficult—-large

9.Lead time:

Long period—-large

Short period—-small

Factors affecting Financing Decision

1.Cash flow position of the company

Strong—-Debt

Weak—-Equity

2.Level of fixed operating costs

High—-Equity

Low—-Debt

3.Risk:

Lower business risk—-Debt

High business risk—-Equity

4.Cost of Debt:

High—-Equity

Low—-Debt( Debt can be used up to a level only.)

5.Floatation cost

6.Control considerations:

Threat to control—-Debt(only up to a level)

7.Stock market conditions:

Boom—-Equity

Depression—-Debt

8.Tax rate

9.ROI(Return on Investment)

10.Flexibility

11. Regulatory framework

Factors affecting Dividend decision

1. Amount of earnings:

high earning—-high dividend

low earning—-low dividend

2.Stability of earnings:

stable earnings—-high dividend

unstable earnings—-low dividend.

3.Stability of dividends

4.Growth opportunities:

Good—-small dividend

No opportunities—-large dividend

5.Cash flow position:

Enough cash—-large dividend

Insufficient cash—-small dividend

6.Shareholders’ preference:

regular income, risk bearing.

7.Taxation policy:

High tax rate on dividend—-low dividend and vice-versa

8.Stock market reactions:

Expectation of shareholders affect share prices in the share market

9.Access to capital market:

High access—-high dividend and vice-versa

10.Legal constraints

11.Contractual constraints

Memory Techniques for Business Studies

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