2.1. - Business Growth

Question 1

Internal growth

Answer 1

Internal growth is growth that helps the business expand by using its own resources like bringing out a new product

Question 2

External growth

Answer 2

Where a business expands by using methods outside the business like buying out a competitor or merging with another business

Question 3

How can a business externally expand

Answer 3

By buying out a competitor or merging with another business

Question 4

How can a business internally expand

Answer 4

By bringing out new products or researching into development

Question 5

Marketing mix

Answer 5

The marketing mix is the price, place, product, and promotion

Question 6

Place

Answer 6

Where a product is sold and how assessable it is

Question 7

Product

Answer 7

What the product is and what it does

Question 8

Price

Answer 8

How much a product is and how affordable it is

Question 9

Promotion

Answer 9

How well people see you product and where they see it

Question 10

Gorilla advertising

Answer 10

Spreading awareness through different methods or strange methods

Question 11

E-Commerce

Answer 11

Selling products through a website

Question 12

M-Commerce

Answer 12

Selling products through a phone

Question 13

Merge

Answer 13

Where two businesses join together to become one business under joint ownership

Question 14

Takeover

Answer 14

Businesses buys another another business.

The manager of the dominant business will be in control

Question 15

Advantages of internal growth

Answer 15

Relatively low risk
Builds on businesses strength
No risk of a clash of culture

Question 16

PLC

Answer 16

A public limited company is owned by the shareholders. They have to produce there documents on how well their doing to show investors how well or bad they are doing

Question 17

Shareholder

Answer 17

A shareholder is a person who invests into a business and buys out a part of a business. A major share holder is someone who owns a larger part of the business and can sack owners and have more power, a minor shareholder has less power but can still make profit on there share

Question 18

Advantages of a PLC

Answer 18

Tend to be large stable companies
Enhanced reputation of the company due to PLC status
Gains exposure due to the stock market

Question 19

Disadvantages of a PLC

Answer 19

Flotation is an expensive process and not guaranteed to be successful
Company is open to takeovers
Financial information is freely available to see

Question 20

Take over debt

Answer 20

If a business is taken over, the businesses debt is also transferred over to who has taken over the business

Question 21

Explain one benefit and one draw back of external growth

Answer 21

A benefit is that you can bring in the taken over business fan base to yours, so you can make more money, a drawback is that you can take on all there debt, so that is another cost to pay

Question 22

Multinational

Answer 22

A business with operations in More than one country

Question 23

Changes in business aims and objectives

Answer 23

A business aims and objectives will change depending on, market conditions, technology, performance, legislation, internal reasons

Question 24

Degree of competition

Answer 24

The number and size of businesses competing in a particular market

Question 25

Market share

Answer 25

The proportion of sales in a market that are taken by one business

Question 26

Culture

Answer 26

The general attitudes, behaviour and benefits of a business and it workforce

Question 27

Retrenchment

Answer 27

When a business downsizes the scale of its operations by reducing the amount of employees or closing less profitable branches

Question 28

Tariff

Answer 28

A tax imposed on imports and exports

Question 29

Protectionist measure

Answer 29

An action taken by a government to reduce the flow of imports into the country

Question 30

Trading bloc

Answer 30

A group of countries that agree to act together to promote trade between themselves