9.1/9.2

Question 1

What is innovation?

Answer 1

when a new idea is brought to fruition and turned into a good or service

Question 2

Pressures of innovation?

Answer 2

PEST-C

Question 3

What is process innovation?

Answer 3

improving how to run the business

Question 4

How to become an innovative organisation?

Answer 4

• Acceptable to fail
• Funding
• Sharing ideas
• Teamwork

Question 5

Types of protecting innovation?

Answer 5

Copyright
Trademark
Patents
Design Rights
Registered Design

Question 6

What is disruptive innovation?

Answer 6

Innovation that creates a new market

Question 7

What is price discrimination?

Answer 7

when firms with monopoly power charge different groups of consumers different prices for the same product.

Question 8

Categories of price discrimination

Answer 8

First Degree
Second Degree
Third Degree

Question 9

What is first degree discrimination?

Answer 9

Maximum possible price for individual consumers

Question 10

What is second degree discrimination?

Answer 10

Maximum price to different groups of consumers

Question 11

What is third degree discrimination?

Answer 11

Firms identify groups of consumers with similar characteristics

Question 12

What are the methods of growth?

Answer 12

Merger
Takeover
Venture
Franchise

Question 13

Advantages of selling a franchise?

Answer 13

Quick growth

Franchisees may be very motivated

Question 14

Disadvantages of selling a franchise?

Answer 14

Do not gain all profits

Lose complete control

Question 15

Advantages of buying a franchise?

Answer 15

Don’t need to think of new ideas

Provided with training

Question 16

Disadvantages of buying a franchise?

Answer 16

Do not have complete independence

Do not gain all profits

Question 17

Types of integration?

Answer 17

Vertical
Horizontal
Conglomerate`

Question 18

Benefits of growth?

Answer 18

Economies of Scale
Economies of Scope
Synergy
Experience Curve

Question 19

Problems of growth?

Answer 19

Diseconomies of scale

Overtrading

Question 20

Greiner growth model phases?

Answer 20

Phase 1: "Growth through creativity"
Leadership Crisis
Phase 2: "Growth through direction"
Autonomy Crisis
Phase 3: "Growth through delegation"
Control Crisis
Phase 4: "Growth through coordination"
Red Tape Crisis
Phase 5: "Growth through collaboration"
Growth Crisis
Phase 6: "Growth through alliances"

Question 21

What is retrenchment?

Answer 21

When a business reduces the scale of its operations

Question 22

Why retrench?

Answer 22

Diseconomies of scale

Changes in market conditions

Question 23

Causes of internationalisation?

Answer 23

Trade agreements
Improvements in transport
Improvements in communication technology

Question 24

Internationalisation opportunities?

Answer 24

Buy from abroad
Sell abroad
Produce abroad

Question 25

Methods of entering international markets?

Answer 25

Exporting Licensing Alliances/Ventures Direct investment

Question 26

What makes a market attractive?

Answer 26

``` Size and growth of market Costs Degree of competition Risk Culture ```

Question 27

Why buy from abroad?

Answer 27

Lower costs Quality Technology Skills/expertise

Question 28

Why re-shore?

Answer 28

Problems maintaining quality Problems with delivery Costs