2.1 - Growing The Business

Question 1

What are the methods of business growth?

Answer 1

-Internal growth(organic)
-External growth(inorganic)

Question 2

What are the ways of internal growth?

Answer 2

-New products
-New markets

Question 3

What are the ways of external growth?

Answer 3

-Merger
-Takeover

Question 4

What type of business ownership is suitable for growing businesses?

Answer 4

-Public Limited Company(PLC)

Question 5

What are some sources of finance for growing businesses?

Answer 5

-Internal Source: Retained Profit and Selling Assets
-External Source: Loan Capital and Share Capital

Question 6

Why do business objectives change?

Answer 6

-Legislation=new regualtion may affect the products that the business offer.
-Market conditions=Lots of disposable income and a high demand allows new opportunities for growth for the business.

Question 7

How might business aims and objectives change when the business is performing well?

Answer 7

The business might focus on:
-Growth
-Entering new markets
-Growing workforce

Question 8

How might business aims and objectives change when the business is not performing well?

Answer 8

The business might focus on:
-Survival
-Exiting markets
-Reducing workforce

Question 9

What is the impact of globalisation on businesses?

Answer 9

-imports:competiton from overseas/buying from overseas
-exports:selling to overseas markets
-changing business locations
-multinationals

Question 10

What are some barriers to international trade?

Answer 10

-tarrifs
-block trade

Question 11

How do businesses compete internationally?

Answer 11

-use of internet and e-commerce
-changing their marketing mix to compete internationally

Question 12

What ethical and envrionmental considerations on businesses?

Answer 12

-Ethical: Possible trade-offs between ethics and profit
-Environmental: Possible trade-offs between environment, sustainability and profit
-Potential impact of pressure groups activity on marketing mix