Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Unit 1: Introduction to Business Management (BM IB) > 1.5 Growth and evolution > Flashcards

1.5 Growth and evolution Flashcards

1
Q

PEST

A

Political, economic, social and technological

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

PESTLE

A

Political, economic, social, technological, legal and ecological

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

STEEPLE

A

Sociocultural, technological, economic, environmental, political, legal and ethical

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Economies of scale

A

Produce more with less. Decrease in per unit production costs as output or activity increases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Diseconomies of scale

A

Produce more with more. Increase in per unit production costs as output or activity increases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Reasons for business to grow

A

Economies of scale
Survival
Higher status
Market leadership
Increased market share

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Reasons for business to stay small

A

Greater focus
Greater prestige
Greater motivation
Competitive advantage
Less competition

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Decision tree

A

Business tool that helps choose the best decision.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Internal growth (organic growth)

A

When a business grows by relying on its own resources and capabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

External growth

A

When a business expands with the aid of other resources

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Horizontal integration

A

When two businesses being integrated are not in the same industry but in the same line of business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Merger and acquisitions and takeovers

A

When two companies that are “equal” become one

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Vertical integration

A

When one business integrates with another at a different stage in the supply chain

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Backwards vertical integration

A

Moving towards earlier stages, producing to manufacturing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Forward vertical integration

A

Moving towards later stages, manufacturing to producing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Conglomeration

A

Company expands by merging/acquiring another company operating in a different industry

17
Q

Advantages of conglomeration

A
  • diversification of risks
  • increased market power
  • access to new markets
18
Q

Disadvantages of conglomeration

A
  • complex to manage w lack of focus
  • potential for reduced efficiency
  • risk of overproduction / unrelated industries
19
Q

Joint venture

A

organization created owned and operated by two or more other entities, distinct from the entities that created it

20
Q

Advantages of joint venture

A
  • two firms enjoy greater sales
  • neither entity loses its legal existence
  • bring different areas of expertise
21
Q

Disadvantages of joint venture

A
  • possible disagreements
  • profit sharing
  • limited lifespan/uncertain future
22
Q

Strategic alliances

A

Two or more businesses cooperate legally to improve the value of both parties, no organization is created, both remain independent

23
Q

Advantages of strategic alliance

A
  • more fluid than joint ventures
  • lower committment
  • cost effective
  • less legal operations
24
Q

Disadvantages of strategic alliance

A
  • potential for weaker collab
  • unclear legal protections
  • disagreements / conflicts
    advantages could also be disadvantages
25
Q

Franchises

A

Distributing products or services, selling the rights to use the brand and its products to a franchisee

26
Q

Franchisee

A

They buy the right to offer the concept and sell the product or service

27
Q

Franchisor

A

Developer of the business concept

28
Q

Advantages to franchisee

A
  • deals with an already existing and well known product
  • established format for selling
  • reduced set-up costs
  • secure supply of stock
  • is provided with help from franchisor
29
Q

Disadvantages to the franchisee

A
  • unlimited liabilty for the franchise
  • pays royalties to franchisor
  • no control over what they sell
  • no control over supplies
30
Q

Advantages to franchisor

A
  • quick access to wider markets
  • use of local knowledge and expertise
  • doesnt assume risks and liabilities of running the franchise
  • gains more profit
  • makes all of the global decisions
31
Q

Disadvantages to the franchisor

A
  • loses some control in the day-to-day running of the business
  • business image could be affected if a franchise fails

Unit 1: Introduction to Business Management (BM IB) (6 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions