Brainscape's Knowledge GenomeTM

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


See full index

A-level Business > 9 - Strategic Methods 🏃‍♀️ > Flashcards

9 - Strategic Methods 🏃‍♀️ Flashcards

1
Q

Why do business grow?

A
  • to meet objectives
  • external/internal factors
  • competitive advantage
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Why do businesses retrench?

A
  • increase efficiency
  • turn around poor performance
  • focus on core of business
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

How will retrenchment affect cash flow?

A

Outflows will decrease

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

What are methods of growth?

A
  • mergers/takeovers
  • ventures
  • franchises
  • joint venture
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is a horizontal merger/takeover?

A

2 business at the same stage of production

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

What is a forward vertical merger/takeover?

A

Joining with a business at the next stage of production

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

What is a backward merger/takeover?

A

Joining with a business at an earlier stage of production

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

What is conglomeration?

A

2 unrelated business merge/takeover

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

What is economies of scale?

A

The benefits of increasing output so unit costs decrease

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

What is economies of scope?

A

The benefit of having a wide portfolio of products, so costs are spread across multiple producys, decreasing unit costs

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

What is diseconomies of scale?

A

The unit costs rise as more is produced past the optimum efficiency level as the business begins to work above optimum capacity

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

What is the experience curve?

A

How the costs per unit decrease over time as experience increases

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

What is the technical economies of scale?

A

The benefits when a business spends more on efficient machinery so decrease in average costs

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

Why is technical economies of scale important?

A

Increases competitiveness and efficiency and spreads FC over greater output

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

What is purchasing economies of scale?

A

The benefits when a business negotiates greater discounts for bulk buying

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

Why is purchasing economies of scale important?

A

Increase the buying power of the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is managerial economies of scale?

A

The benefits when a business employs specialist personnel leading to a fall in average costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Why is managerial economies of scale important?

A

Can employ specialists rather than external organisations eg. Accountantss

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Define overtrading?

A

When more money leaves the business than comes into it

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is synergy?

A

2 business combine resources and efforts to create a higher combined value and performance than by themselves

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What are greiner’s model of growth’s phases?

A

Growth through…

Creativity
Direction
Delegation
Coordination + monitoring
Collaboration
Alliances

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Which one of Greiner’s Model of Growth involves inorganic growth?

A

Growth through alliances

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What are the crisis’ in Greiner’s Model of Growth?

A
  • leadership crisis
  • autonomy crisis
  • control crisis
  • red tape crisis
  • growth crisis
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What are the two types of innovation?

A

Product and process

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Why do businesses want to innovate?

A
  • provides competitive advantage
  • customer perception
26
Q

Pros to innovation

A
  • competitive advantage
  • increase efficiency
  • attracts new customers
  • increases market share - high prices
27
Q

Cons to innovation

A
  • costly
  • time consuming
  • legal implications
  • opportunity cost
28
Q

Define kaizen as a way to innovate

A

focus on small and frequent improvements to production process

29
Q

What is intrapreneurship?

A

When employees act in the same way as entrepreneurs do to drive the large company forward

30
Q

What is benchmarking?

A

The process of identifying the best practise within an industry

31
Q

What are 4 methods of innovation?

A
  • kaizen
  • R&D
  • intrapreneurship
  • benchmarking
32
Q

What do patents do?

A

Protects new inventions

33
Q

How do you get a patent?

A

Granted by individual companies where you apply through the IPO

34
Q

Do you have to pay for patents?

A

Yes

35
Q

What does copyright protect?

A

Authors, composers, and artists’ logos computer programs and recordings

36
Q

How long does copyright last?

A

For 70 years after the death of the inventor

37
Q

How does technology help a business?

A
  • boosts revenue
  • reduces costs
38
Q

What are some problems on introducing technology?

A
  • substantial initial investment
  • staff training
  • investment appraisal
  • changes to way business operates
39
Q

What is big data?

A

describes the vast amount of data generated by the technology

40
Q

What is data mining?

A

the process of sifting through the data to try and identify trends and relationships

41
Q

Give an example of operational big data

A
  • suppliers research
  • distribution channels
  • customer perception of quality
42
Q

Give an example of marketing big data

A
  • demographics
  • promotion strategies
  • pricing
43
Q

Give an example of HR big data

A
  • employee statistics
  • social media accounts
44
Q

Give an example of financial big data

A
  • spending habits
  • competitor facts and figures
45
Q

What is Enterprise Resource Planning?

A

software used by businesses to collect, store, manage and interpret data from different business functions

46
Q

Methods of entering international markets

What is licensing?

A

a business gives permission for a third party to sell their goods or services abroad

47
Q

Methods of entering international markets

What are alliances?

A

forming partnerships with one or more businesses

48
Q

Methods of entering international markets

What is direct investment?

A

capital expenditure to establish a physical presence in another country

49
Q

Methods of entering international markets

Which is the most risky method?

A

direct investment

50
Q

What factors influence where a business will locate?

A
  • trade agreements
  • political stability
  • GDP
  • cultural differences
  • competition
  • opportunities
51
Q

Bartlett and Ghoshal’s Strategies

What is cost pressure also known as?

A

global integration

52
Q

Bartlett and Ghoshal’s Strategies

What has high cost pressure and low local responsiveness?

A

global

53
Q

Bartlett and Ghoshal’s Strategies

Name a global business

A

Pfizer = no need to change products based on area

54
Q

Bartlett and Ghoshal’s Strategies

What is a low cost pressure and low local responsiveness?

A

International

55
Q

Bartlett and Ghoshal’s Strategies

What is an example of an international strategy business?

A

eg Netflix

56
Q

Bartlett and Ghoshal’s Strategies

What is a high cost pressure and high local responsiveness business?

A

Transnational

57
Q

Bartlett and Ghoshal’s Strategies

Name a transnational business

A

Starbucks = have to change products to local area

58
Q

Bartlett and Ghoshal’s Strategies

What is a low cost pressure and high local responsiveness?

A

Multi-domestic

59
Q

Bartlett and Ghoshal’s Strategies

Name a multi-domestic business

A

Nestle = need to local business but don’t need to focus on costs

60
Q
A

A-level Business (10 decks)

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