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Business > 1.5 And 1.6 > Flashcards

1.5 And 1.6 Flashcards

1
Q

What are some positives of growing internally

A

Keep control
Keep culture

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2
Q

What are some positives of growing externally

A

Quick way to grow
Skills from both businesses

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3
Q

What are some negatives of growing internally

A

Slower
Less known

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4
Q

What are some negatives of growing externally

A

Loss of control
Take on other firms costs

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5
Q

What is a merger

A

Is when 2 or more businesses agree to join together

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6
Q

What is a takeover

A

When a business takes a controlling interest (50%+) in another business

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7
Q

What is organic growth

A

Is the growth internally by increasing sales . Sales can be increased in a number of ways

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8
Q

What can growing organically / internally do

A

Increase output
Increase in market share
Developing new products
Gaining new customers

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9
Q

Name the 4 types of merger / takeover

A

Horizontal
Backwards verticals
Forwards vertical
Diversification

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10
Q

Explain horizontal merging/takeover

A

When 2 businesses join together and are the same type of business

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11
Q

Explain backwards vertical merging/takeover

A

Joining with a supplier

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12
Q

Explain what forwards vertical merging/ takeover is

A

Joining with the shop selling the goods

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13
Q

Explain diversification merging/takeover

A

Joining sign a business with no connection to current business

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14
Q

What is an advantage of horizontal merging /takeover

A

Bulk discounts
Removes competition

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15
Q

What is an advantage of backwards verticals merging / takeover

A

Control over the supply
Reduces cost

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16
Q

What is an advantage of forwards vertical merging / takeover

A

Ensures somewhere to sell

17
Q

What is an advantage of diversification merging / takeover

A

Spreads risk

18
Q

What is a disadvantage of horizontal merging / takeover

A

Loss of control

19
Q

What is a disadvantage of backwards vertical merging/ takeover

A

Loss of control

20
Q

What is a disadvantage of forwards vertical merging/ takeover

A

Loss of control

21
Q

What is a disadvantage of diversification merging / control

A

No understanding of new activity

22
Q

Example of horizontal merging / takeover

A

Kraft or Cadbury

23
Q

Example of backwards vertical merging / takeover

A

Innocent smoothies buying farms

24
Q

Example of forwards vertical merging / takeover

A

A shoe manufacturer taking over schuh

25
Q

Example of diversification merging / takeover

A

Nestle buying a broadband company

26
Q

What are stakeholders

A

Groups or individuals thag have an interest in the business

27
Q

What are internal stakeholders

A

Business owners and people who work in the business

28
Q

What are external stakeholders

A

The local community , suppliers , customers and government

29
Q

What is a stakeholder group

A

Are owners , employees, customers , suppliers , government and local community

30
Q

What do the main stakeholders of a business want

A

Customers - low prices good service , provide product or service

Owners -depends : profit , growth or security

Employees- security , pay , good working conditions

Suppliers - **regular orders that are payed on time **

Government- **pay taxes , create jobs **

Local community -**provide jobs and no pollution **

31
Q

Who are the main stakeholders of a business

A

Customers
Owners
Employees
Suppliers
Government
Local community

32
Q

What’s the effect stake holder have on the business from the owners

A

Focus on profit , may make redundancies , may want to grow

33
Q

What’s the effect stake holder have on the business from the employees

A

Can go on strike , pressure for good pay

34
Q

What’s the effect stake holder have on the business from the customers

A

Cannot survive without customers , price / quality

35
Q

What’s the effect stake holder have on the business from the suppliers

A

Quality of goods , reliability of supplier

36
Q

What’s the effect stake holder have on the business from the government

A

Changing taxations levels (. Income tax / tax on business ) , Grants , law changes , spending

37
Q

What’s the effect stake holder have on the business from the local community

A

Protest regarding environment / impact

Business (4 decks)

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