2023 Flashcards
challenges faced by indigenous businesses
•increased costs/energy costs increasing
•increased competition from tnc/fdi
•shortage of labour
•lack of economies of scale compared to large international retailers
increased costs/energy costs increas
(challenge of indigenous firm)
a rise in energy costs has led to increased expenses and lower profits. businesses have to decide whether or not to increase prices which can have an adverse effect on sales
increased competition from tncs/fdi
(challenge of indigenous firms)
large transnational companies and global firms continue to expand and inturn develop large economies of scales. indigenous firms face the challenge of competing with these large international businesses in price and efficiencies
shortage of labor
(challenge of indigenous firm)
many indigenous firms find it difficult to source employees for both low skilled and high skilled job opportunities
lack of economies of scale compared to large international retailers
(challenge of indigenous firm)
indigenous firms can’t achieve the economies of scale of large international firms due to lower bulk buying of raw materials and products
TQM
total quality management
ISME
irish small and medium enterprise
invisible export
refers to services sold by irish businesses to customers from foreign countries. money enters the irish economy. eg tourist buying something from an irish shop
impact of choosing functional structure
•clear chain of command- clear lines of authority, know who to report to, person in charge of each dep improving coordination, know what’s expected
•spécialisation- employees from similar disciplines i.e all engineers working together brings expertise together. can learn off each other, improve skills, productivity, staff development
sogss act 1980 provisions
•retailer responsible
•illegal shop signs
•guarantees
•unsolicited goods
what’s a guarantee
extra assurance from manufacturer that product wii be replaced or repaired. gives extra protection/greater choice. consumer must know how to claim under guarantee and expiry date
right to cancel
when you buy a product it service online, over the phone, by mail order or on your doorstep. with this type of distance contact, you don’t enter into the contact in person and can’t check the products or service before you buy so u have right to cancel
nationalization
the process by which private companies become owned and controlled by the government
privatization
when a government owned business, operation or property becomes owned by a private, non government party
advantages of privatisation
•cash- pay off national debt/tax cuts/reduce tax
•company now can develop/go into other markets
•company can raise money for future expansion-no longer rely on gov
•offers opportunity for investment for people- eg Eir shareholders made 23% when sold shares
