Advantages & Disadvanatges

Question 1

Advantages of niche marketing

Answer 1

Premium pricing strategies with less competition

Usp

Question 2

Disadvantages of niche marketing

Answer 2

Lack of economies of scale

Limited opportunity for market growth

Question 3

Advantages for mass markets

Answer 3

Economies of scale
Lower advertising costs
brand awareness

Question 4

Disadvantages of mass marketing

Answer 4

High levels of competition

Lower prices and lower premium products

Question 5

Advantages of market segmentation

Answer 5

Easier to identify and develop new products

Able to charge a premium price

Least probable markets identified

Question 6

Disadvantages of market segmentation

Answer 6

Market size may limit growth

Characteristics change

Question 7

Advantages of soft HRM

Answer 7

Flat organisational chart
Clear communication
Workers feel motivated because they have more say

Question 8

Disadvantages of soft HRM

Answer 8

Internal recruitment can demotivate other workers and lower productivity

Question 9

Advantages of hard HRM

Answer 9

Minimum wage // spending less more profit

Fixed term contracts only employ when needed

External recruitment

Question 10

Disadvantages of hard HRM

Answer 10

Tall structure leads to confusions

External = high spendings

Question 11

Advantages for internal recruitment

Answer 11

Lower recruitment costs
Quicker process
Shorter induction period

Question 12

Disadvantages of internal recruitment

Answer 12

Reduces talent available
Limit the number of applicants
Missed opportunities and new ideas

Question 13

Advantages of external recruitment

Answer 13

Provides new ideas
Increases talent available
Expertise

Question 14

Disadvantages for external recruitment

Answer 14

Upsets internal candidates
Increases recruitment costs
Adapting to business

Question 15

Advantages on the job training

Answer 15

Cost-effective
Specific to businesses needs
Worker produces as they learn
Familiar environment 
Greater confidence

Question 16

Disadvantages of on-the-job training

Answer 16

Quality might be inferior
Disturbance
Accidents
Bad habits

Question 17

Advantages off job training

Answer 17

Specialist trainers
Motivation
Employee can feedback

Question 18

Disadvantages of off the job training

Answer 18

Expensive
Loss of productivity when training
Less confident

Question 19

Advantages of sole trader

Answer 19

Cheap and easy to set up
Profits go to sole trader
Autonomy and decision-making
Financial records remain private
Motivation is high

Question 20

Disadvantages of a sole trader

Answer 20

Unlimited liability
Limited capital for investment
Difficult to cover or an error
Little specialist skills

Question 21

Advantages of partnerships

Answer 21

More scope for specialist skills
Simple and flexible
Financial record remain Private
More capital can be raised a sole trader trader

Question 22

Disadvantages of partnerships

Answer 22

Unlimited liability
Arguments
If partner dies partnership is dissolved

Question 23

Advantages of limited companies

Answer 23

Limited liability
Separate legal entity
Potential to raise more funds to sale of shares

Question 24

Disadvantages of limited limited

Answer 24

Financial Records of publicly available

Investors and suppliers see Limited liability a risk

Question 25

Advantages of franchisor

Answer 25

Growth
Market share
Income

Question 26

Disadvantages of franchisor

Answer 26

Shared profit

Maintaining quality

Question 27

Advantages of franchisee

Answer 27

Low risk
Tried and tested model
Support and advice

Question 28

Disadvantages of a franchisee

Answer 28

Loss of independence
High initial costs
Royalty costs

Question 29

Advantages of trade unions

Answer 29

Two-way communication
Improved motivation
Employees kept informed

Question 30

Disadvantages of trade unions

Answer 30

Opportunity cost of time
Slows down decision-making
Can cause conflict