9.1/9.2 Flashcards
What is innovation?
when a new idea is brought to fruition and turned into a good or service
Pressures of innovation?
PEST-C
What is process innovation?
improving how to run the business
How to become an innovative organisation?
- Acceptable to fail
- Funding
- Sharing ideas
- Teamwork
Types of protecting innovation?
Copyright Trademark Patents Design Rights Registered Design
What is disruptive innovation?
Innovation that creates a new market
What is price discrimination?
when firms with monopoly power charge different groups of consumers different prices for the same product.
Categories of price discrimination
First Degree
Second Degree
Third Degree
What is first degree discrimination?
Maximum possible price for individual consumers
What is second degree discrimination?
Maximum price to different groups of consumers
What is third degree discrimination?
Firms identify groups of consumers with similar characteristics
What are the methods of growth?
Merger
Takeover
Venture
Franchise
Advantages of selling a franchise?
Quick growth
Franchisees may be very motivated
Disadvantages of selling a franchise?
Do not gain all profits
Lose complete control
Advantages of buying a franchise?
Don’t need to think of new ideas
Provided with training