Productivity

This is efficiency, that is how well the business is using all it’s resources.
The relationship between the amount of human and other resources used in the production
process and the amount of output that is produced.

Productivity formula
Output (goods or services produced)
input (workers, machinery, money, raw materials)

Example: a business produce 100 chairs in a particular week, and there were 10 employees.
Therefore: Labour productivity would be 100/10 = 10 chairs per employee

Productivity level must be high if the business is to be profitable. When productivity is low, the
business will make little or no profit, therefore high productivity is very important to businesses.

Main benefits of High Productivity

It reduces the cost of each product made
It helps to make the business competitive which may lead to increase sales and profits
Higher productivity in a business will allow its products to compete more effectively in foreign
markets, which should increase the country’s export.

Topic: Marketing

Sub topic: Functions of Consumer Organisation

Consumerism
This is concerned with the education of consumers so that they can be aware of their rights and
responsibility.

In our Jamaican economy various organisations are set up to facilitate or undertake the role of
ensuring that consumers are protected. The consumer organisation agencies in Jamaica are:

1) Consumer Affairs Commission (CAC)

2) Bureau of Standards
3) Ombudsman

Consumer Affairs Commission

❖ Program of the CAC is structured around the 8 basic rights and responsibilities of
consumer:
➢ The right to be protected against hazard of product and processes.
➢ The right to facts needed to make and inform choice
➢ The right to choose between a variety between goods and services.
➢ The right to be heard in the making and execution of government policies
 ➢ the right to live in an healthy and sustainable environment
➢ The right to fair settlements of just claim/ the right to redress
➢ The right to acquire the skill and knowledge to be an informed and responsible
consumers

Sub topic: Role of Consumer Organisations in the Caribbean

1. Trinidad & Tobago Housewives association and Community Group that seeks to protect
its members (private non-profit)
a. Resists unfair price increases
b. Resists unfair trading practices of sellers
c. Lobby for government to initiate consumer protection laws
d. Voice the concerns of the consumers

2. Greenpeace International (private non-profit international )

a. Resists degradation of the environment

3. Transparency International
a. Ensures government operate failry in the reward of tenders and the overall
spending of state funds

4. Parliament and Judicial Arms (govt)

a. Make laws relating to the environment, road safety and health of the populations
(eg road safety act and the environment protection acts)

5. Bureau of Standard
● Sets minimum standards to which producers of goods must abide (e.g proper
labelling description and safely requirements)
● Verification of products to ensure that standards are maintained (e.g goods are
taken off shelves to be tested)
● To ensure that measurement of apparatives are properly calibrated
● Educate the public about standards and any unsuitable items on the market (eg.
giving the public information about unsafe Christmas lights)
● Issuing warnings to producers who are not adhering to standards.

6. Ombudsman
● Any officer appointed by parliament/government
● Person is given the role of representing the public by investigating and
addressing complaints of violation of right and maladministration
● Makes recommendations to correct wrong doing of state agencies to members of
the public

7. Ministry of Consumer Affairs

● Ensure that the laws to protect the consumers are followed.
 Sub Topic: Role of Consumer Services
1. Ensuring conformity to customer requirements;
2. Adherence to copyrights,
3. Maintain effective communication,
4. coordinating flow of goods, services and information.

Sub Topic: Forms of Consumer Services

1. warranty;
2. after-sales service e.g repair service/maintenance, online tutorials showing how the
product is used, provide helpline to deal with any issues, sending customers coupons for
their next purchase.
3. Feedback through telephone call, a text or e-mail, or an online questionnaire
4. online chat is a method of communication, whereby a customer communicates with an
organisation online, having a written conversation with them in real-time.
5. toll free numbers/call centres;
6. suggestion box; and,
7. surveys.

Sub Topic: Intellectual Property Rights

•https://www.youtube.com/watch?v=KOhLiDKDmdE
•https://www.youtube.com/watch?v=X-jeZU1erPY

•Refers to the legal and exclusive ownership claims to certain inventions or piece of
work.
•They protect the inventor or creator by preventing others from replicating their ideas.

•Main types of IPR:

•Patents
•Copyright
● Trademarks
● Industrial design
Patent
•The legal right to be the sole producer or user of a newly invented process or product
for a finite period of time.
•This is normally granted to individuals or organizations for an invention that is likely to
be commercially profitable in the long term.
•Patent holders are entitled to sell the technology or invention to another business.

Copyright
•Provide legal protection for artists and authors by preventing others from using or
copying their published work without permission.
•This is normally granted for a finite period or time.
•Work protected by copyright often carry the symbol ©
This is popular in music, film, drama, art, photography, software and publishing
industries

Trademark
•This is a sign, name or logo that represents a business or a product belonging to that
business.
•Trademarks that have been registered can, but not necessarily, carry the ® symbol
next to the mark. However, its illegal to use this symbol if a trademark has not been
registered.

Industrial Design
is a process of design applied to products that are to be manufactured through techniques
of mass production.

Topic: Logistics and Supply

Chain Management
Logistic Management

This is the part of supply chain management that plans, implements and control the
efficient, effective, forward and reverse flow and storage of goods, services, and related
information between the point of origin and the point of consumption in order to meet
customer requirements.
What is the supply chain?
The management of the flow of goods and services. It involves the movement and storage of
raw materials of work in progress, inventory and of finished goods from the point of origin to the
point of consumption.

Activities involved in the supply chain management

1. Transformation of natural resources

2. Movement and storage of raw materials
3. Processing of raw materials and components into finished goods
4. Storage of work-in-progress and finished goods
5. Delivering the finished product from the point of origin to the point of destination

The components of logistics

Forward Logistics
Forward logistics consists of a flow of operations designed to move a product forwards
along a supply chain, from the supplier of raw materials to the end consumer.

Supplier - manufacturer-distributor-wholesaler-retailer-consumer

Reverse logistics
Operations related to the reuse of products and materials. It involves planning,
implementing and controlling the cost-effective flow of raw materials, inventories and finished
goods from the point at which they are consumed to the point from which they originated.
Reverse logistics consists of all operations involved in returning goods from the end consumer
backwards down the supply chain.

Reasons for a reverse flow include:

The return of goods that are not required
The return of damaged items
The return of items or parts of items to enable recycling.

If goods are not wanted or not used by the consumer, the manufacturer or retailer may want to
resell or refurbish the goods, or reclaim some of the parts.

Storage of goods

At each stage in the supply chain, goods, parts and raw materials will need to be stored. One
element of logistics planning therefore involves planning what type of storage facilities are
required, where they will be located, and how goods/parts will be moved in and out of stores.
Home Work: research Just-in-time

Other supply chain services

Logistics also involves coordinating and organising other services. For example it will usually be
necessary to insure goods, particularly while they are in transit, as well as while they are in
storage.
There are a number of flows involved in a supply chain that need to be managed by logistics.

● Product flow: the movement of goods and services from suppliers to customers, or
customers back to suppliers.
● Financial flow: the organisation of payment and payment terms.
● Information flow: the organisation of information about orders and the status of delivery
(such as whether goods are on their way and when they arrive).
● Risk flow: including the insurance of risks while goods are in store or in transit.

Home Work: Describe the links in the chain of distribution

Distinguish between multimodal and intermodal transport

Mode of transport: is the means by which goods are moved from point A to point B. The mode
of transport will include:
● A vehicle
● Transport infrastructure eg a particular railway line (or network)
● Operations involved in making the journey, eg. booking space on a freight train, getting
cargo to the train, loading and offloading.

Multimodal is using various modes of transport but with one transport bill of lading.

Intermodal is defined as the movement of cargo from origin to destination by several modes of
transport, where each of these modes have a different transport carrier, each with its own
independent contract.

What are the various forms/types of transportation?

Modes of transport are suitable for different goods. These modes are air, rail, road, marine,
pipeline and digital delivery.
Air
Advantages: it is the fastest means of transport for passengers and goods
Useful for long distances and saves time
Free from physical barriers such as river, mountains etc
Avoids the need for several handlers (transport companies) as a flight can go directly from point
A to point B.
Relatively inexpensive for transporting expensive items such as jewellery, cosmetics and high
priced garments.
Relatively inexpensive for sending small light items, such as cellphones, watches and jewellery.

Disadvantages
High cost - a costly service as its operational cost are high. The cost of sending bulkier items will
be high.
More risk - prone to accidents as a small mistake can be very dangerous for passengers.
Hijacking of planes is highly possible
Weather conditions can cause technical difficulties as it can interfere with air traffic control
directives
Relies heavily on other forms of transport such as road transport to take goods to their
destination.

Rail transport
This is one of the most important, commonly used and cost effective mode of transportation
industrial countries( highly developed)
Not very important in the Caribbean because it is very expensive and so the government got rid
of it.

Pros.
Comfortable and easy for passenger travel
Faster than road transport over long distances
Less labour intensive
More economical in fuel than road transport

Cons.
Limited to where it can go
Equipment and maintenance costs are very high
Lacks flexibility - it routes and timing cannot be adjusted to individual requirements
Unsuitable for short distances and small load

Road Transport
This is the most important form of transport. It includes motorcycle, motor vehicle.

Advantages
Very flexible, can go anywhere and can carry almost any type of load
Quicker for shorter distances than other modes of transport
Reaches places other transportation cannot reach
Not tied to a regular timetable

Cons
Causes pollution (carbon monoxide, exhaust)
Traffic congestion and accidents
Slower than rail transport over long distances
Cost of running vehicles lead to increase cost to consumer in high prices
Some roads are unsuitable for some vehicles

Marine Transport
Refers to transportation by water. Some of these are:
1. Cargo liners: sometimes carry few passengers
Main purpose is to deliver cargo
Operate on a fixed route to a regular timetable
2. Tramp ship: have no timetable or set route
Carry any type of cargo to any part of the world. The vessels are chartered through a
charter party agreement.
3. Passenger Liner/Cruise ship: built primarily for passenger travel particularly when
cruising
They keep a fixed route regular timetable. High freight cost limit use to high cargo value.

Advantages
Sea is a free resource so sea transport per tonne is cheaper than road, rail and air transport
There is access to all countries with a sea coast
The heaviest and bulkiest goods can be transported by sea
Huge size of ship allows for economies of scale in operation.

Disadvantages
● Transport routes are limited by location of seaports - trans-shipment by road or rail is
then needed, using another form of transport.
● It is a slow method of transportation so not suitable for rapid delivery
● Shipping schedules may be infrequent

Pipeline Transport
Allows the transportation of commodities without using vehicle e.g gas, oil and water can be
carried on a fixed route.

Advantages
● Convenient for transporting oil, water, gas
● Cheaper for consumers

Disadvantages
● Broken lines lead to leakage and waste of resources
● Costly to build pipelines
● inflexibility - pipelines are not easily moved

Digital Delivery
Also known as Internet Marketing, digital distribution, online distribution.
This is the delivery or distribution of digital media content such as e-books,audio, video,software
and video games.

Advantages
● Can reach targeted customers more effectively
● It delivers immediate results
● Cost effective
● Can reach a wider audience
● Can be personalised

Disadvantages
● It’s campaign can be copied
● Can be drowned by too much online ads/clutter
● It is not appropriate for transferring physical goods

Sub Topic: links in the chain of distribution

(See marketing mix place)

Sub Topic: Transport documents and the role of transport in marketing

Travel documents are often needed because of government control over imports or because of
the extra complications associated with international transport. Some of the documents are:

1. Import and Export Licenses

When a government wants to restrict or control the imports of certain products perhaps
to limit competition of local business then an import license gives permission to the
importer to bring a certain quantity of the product into the country.
The license clearly indicates the quantity to be imported and the name of the importing
and the exporting country. Export license is a similar document issued by the
government of the exporting country giving permission for the export of certain products
in certain quantity.
2. Bill lading
A document used to acknowledge receipts of a shipment of goods. The document
represents the title to the goods (ownership of them) it also indicates the particular
vessel on which the goods have been placed, their intended destination details of the
goods who they are being sent to and the carriage term of the shipping company.

3. Airways Bill
Similar to a bill of lading but is used in air transport. It states the description and
destination of the good. It does not give the title to the goods and a copy that does not
have to be given to the exporter.

Role of transport in marketing

Transport is very important in marketing. It’s role is to fast-track sourcing of commodities, ensure
security of supply and cost reduction. This can be further explained as:
● It brings the goods from the producer to the final consumer
● Carries raw materials from where they are found and food from where it is grown to the
factory
● It helps manufacturing firms minimize their inventory holding and this keeps cost down
● It minimizes factory shut down time
● It helps reduce expenses and thus make goods and services more competitive on
international market
● Increases employment
● Makes a variety of goods available to consumers

Home work
Explain the impact of logistics and supply chain operations on the competitiveness of
business

Advantages of Supply Chain Operations

1. Better Quality of Life

Because of globalization countries are able to access goods and services from any part of the
world

2. Wealth Creation
Being innovative and provide jobs that create wealth

3. New and innovative job opportunities including entrepreneurship eg.

telemarketing.

Disadvantages of the supply chain operations

1. Globalisation
Local practices of goods and services have to compete with goods and services
produced regionally and internationally.

2. Counterfeiting
Countries make fake products of original brand eg Nike
Causes original brand to lose value

3. Product complexity

4. Rapid product obsolescence

5. Regulatory complexity
 Putting measures in place so that suppliers don't take advantage of consumers by the
amount of imported knock-off goods.

6. Management Blunders

7. Changing market conditions

8. Natural disasters
● Political instability

Explain the impact of logistics and supply chain operations on the competitiveness of
business

1. Logistics improve competitiveness

2. Create competitive advantage: that is each country or each business within an economy
would focus their attention/resources on the particular good/service that cost the least to
produce and generate the highest profit.
3. A comparative cost advantage is an economic term that refers to an economy’s ability to
produce goods and services at a lower opportunity cost (the cost that is given up for the
choice that is made) than that of trade partners. Example: outsourcing through second
party, third party and fourth party.
Research: outsourcing

Problems that are likely to be encountered in distribution

1. Inadequate facilities for temporary storage eg. warehouse space

2. Poor communication with the distribution network
3. Industrial unrest
4. Misdirection of goods because of improper labelling of goods
5. Delayed shipment in ports (perhaps due to bad weather/unprocessed documents
6. Spoilage
7. Relation between the availability of airport, harbour and docking facilities and the
efficient distribution of goods
8. Lack of proper security measures

Measures to mitigate problems in distribution

1. Proper planning and implementation of plans can solve the problem of inadequate
storage facilities.
2. Communication networks among the parties should be implemented to reduce poor
communication within distribution.
3. Implementation of good industrial practices may solve industrial problems
4. Educate users of distribution services how they should go about labelling goods for
shipment to avoid misdirection of goods.
 5. Leaflet and brochures outlining procedures procedures and laws should be made
available for importers and exporters of goods. This will reduce or eliminate lack of
understanding of custom authority regulations on imports and exports of goods.
6. Budget on the operations of an efficient port system should be prepared and submitted
to government and authorities for adequate funding.
7. Business can take out an insurance policy

The impact of information technology on logistics and supply chain operations

GPS -
GIS

A Geographic Information System (GIS) is a computer system that analyzes and

displays geographically referenced information. It uses data that is attached to a unique
location. …

Portnet
This is a system that uses advanced IT to support shipping and port authorities via the internet.
The system :
● Enables importers and exporters to buy space on cargo ships
● Enables shipping lines to advertise and sell cargo space
● Provides information about the movement of goods
● Provides information about the location and availability of containers, so they can be
hired or used for transporting goods around the globe
● Provides a single portal bringing together shipping lines, freight hauliers, freight
forwarders and government officials.

Global logistic provider: is a large, multinational company set up for the purpose of managing
distribution networks across the globe. Example: DHL, FedEx, Amazon Logistics,

Telemarketing and E-commerce

Telemarketing refers to selling goods over the telephone.

E-commerce refers to buying and selling goods electronically using the internet.

Logistics Hubs
This is a location that acts as a centre for a range of activities relating to transport, logistics and
goods distribution, both for national and international purposes.
Business Finance

Topic: The relationship between financial institutions and regulatory bodies

Central Banks – Ways in which a Central Bank may regulate commercial banks:

1. Changing the minimum reserve requirement: the central bank has the authority to
increase/decrease the amount of savings that commercial banks are required to have
with them. If the central bank desires the commercial bank to increase lending they will
reduce the reserve requirement so the central bank will have more money to lend.
Otherwise, if the central bank wants to decrease lending they will increase the reserve
so the commercial bank will have less money to lend.

2. Variation in the liquid asset ratio: this means the central bank will stipulate how much
cash the commercial bank will be allowed to keep in circulation for loans and other
trading purposes.

3. Vary or adjust the bank rate (monetary policy): the central bank will stipulate the rate of
interest that the commercial banks should charge customers for loans as well as the
payment of interest to customers for deposit.