2.1 Growing the business Flashcards
Innovation
Bringing a new idea to the market.
Inorganic growth
External growth. Growing by buying up other businesses or merging with a business roughly of equal size.
Merger
When 2 businesses of roughly equal size agree to come together to form one big business.
Organic growth
Internal growth. Growth from within the business such as creating and launching new products.
R&D
The scientific research and development needed to come up with successful new products.
Takeover
Obtaining control of another business by buying more than 50% of its share capital.
Flotation
Listing company shares on the stock market allowing anyone to buy the shares. The share price can float up or down.
PLC
Public limited company is a business with at least £50,000 of share capital that can advertise its shares to outsiders by floating its shares on the stock market.
Entering the markets
When a company decides to open up in a market it hasn’t been in before.
Existing markets
Choosing to leave a market probably because it was loss-making and looked set to continue.
Competing internationally
Finding a way to succeed against rivals from overseas.
Free trade
Trade between countries with no barriers such as tariffs.
Globalisation
The increasing tendency for countries to trade with each other and to buy global goods.
Imports
Goods or services bought from overseas.
Tariffs
Taxes charged only on imports.
Trade blocs
A group of countries that have agreed to have free trade within external tariff walls.
Ethical considerations
Thinking about ethics, which may lead to morally valid decisions or may lead to the manipulation of customer attitudes.
Ethics
Weighing up decisions or actions on the basis of morality, not personal gain.
Fair trade
A social movement whose goal is to help producers in developing countries achieve better trading conditions and to promote sustainability.
Trade-offs
How having more of one thing may force you to have less of another such as higher ethical standards means less profit.
Environment
The condition of the natural world that surrounds us which is damaged when there is pollution.
Environmental considerations
Factors relating to ‘green’ issues such as sustainability and pollution.
Sustainability
Whether or not a resource will inevitably run out in the future. A sustainable resource will not run out.
