Advantages & Disadvanatges Flashcards
Advantages of niche marketing
Premium pricing strategies with less competition
Usp
Disadvantages of niche marketing
Lack of economies of scale
Limited opportunity for market growth
Advantages for mass markets
Economies of scale
Lower advertising costs
brand awareness
Disadvantages of mass marketing
High levels of competition
Lower prices and lower premium products
Advantages of market segmentation
Easier to identify and develop new products
Able to charge a premium price
Least probable markets identified
Disadvantages of market segmentation
Market size may limit growth
Characteristics change
Advantages of soft HRM
Flat organisational chart
Clear communication
Workers feel motivated because they have more say
Disadvantages of soft HRM
Internal recruitment can demotivate other workers and lower productivity
Advantages of hard HRM
Minimum wage // spending less more profit
Fixed term contracts only employ when needed
External recruitment
Disadvantages of hard HRM
Tall structure leads to confusions
External = high spendings
Advantages for internal recruitment
Lower recruitment costs
Quicker process
Shorter induction period
Disadvantages of internal recruitment
Reduces talent available
Limit the number of applicants
Missed opportunities and new ideas
Advantages of external recruitment
Provides new ideas
Increases talent available
Expertise
Disadvantages for external recruitment
Upsets internal candidates
Increases recruitment costs
Adapting to business
Advantages on the job training
Cost-effective Specific to businesses needs Worker produces as they learn Familiar environment Greater confidence
Disadvantages of on-the-job training
Quality might be inferior
Disturbance
Accidents
Bad habits
Advantages off job training
Specialist trainers
Motivation
Employee can feedback
Disadvantages of off the job training
Expensive
Loss of productivity when training
Less confident
Advantages of sole trader
Cheap and easy to set up Profits go to sole trader Autonomy and decision-making Financial records remain private Motivation is high
Disadvantages of a sole trader
Unlimited liability
Limited capital for investment
Difficult to cover or an error
Little specialist skills
Advantages of partnerships
More scope for specialist skills
Simple and flexible
Financial record remain Private
More capital can be raised a sole trader trader
Disadvantages of partnerships
Unlimited liability
Arguments
If partner dies partnership is dissolved
Advantages of limited companies
Limited liability
Separate legal entity
Potential to raise more funds to sale of shares
Disadvantages of limited limited
Financial Records of publicly available
Investors and suppliers see Limited liability a risk
Advantages of franchisor
Growth
Market share
Income
Disadvantages of franchisor
Shared profit
Maintaining quality
Advantages of franchisee
Low risk
Tried and tested model
Support and advice
Disadvantages of a franchisee
Loss of independence
High initial costs
Royalty costs
Advantages of trade unions
Two-way communication
Improved motivation
Employees kept informed
Disadvantages of trade unions
Opportunity cost of time
Slows down decision-making
Can cause conflict
