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Business > Building a Business > Flashcards

Building a Business Flashcards

1
Q

Name the two types of business growth

A

internal (organic) and external (inorganic)

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2
Q

When does internal growth occur?

A

when a business expands by itself

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3
Q

What are some methods of internal growth?

A

entering new markets, bringing out new products, investing in new technology

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4
Q

What are the two approaches to external growth?

A

merger and takeover

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5
Q

What is a merger?

A

where two or more businesses voluntarily agree to join up and work as one

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6
Q

What is a takeover?

A

where one buys another and takes over

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7
Q

What is backward vertical growth?

A

a business joins with one at a previous stage e.g a supplier

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8
Q

What is conglomerate growth?

A

businesses with no common business interests join

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9
Q

What is horizontal growth?

A

businesses at the same stage join

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10
Q

What is forward vertical growth?

A

business joins with one at a later stage e.g a customer

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11
Q

How are public limited companies able to raise caoital?

A

through selling shares on a stock exchange

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12
Q

Give some benefits of being a PLC

A

limited liability, greater public awareness of business, may be able to negotiate better prices with suppliers

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13
Q

Give some drawbacks of being a PLC

A

more complex procedures, less privacy around financial performance, risk of potential takeovers

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14
Q

Give some internal factors that may cause business objectives to change

A

performance, leadership, culture

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15
Q

Give some external factors that may cause business objectives to change

A

competition, legislation, market conditions, technology

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16
Q

What might some targets be for a growing business?

A

expand product range, increase profits, enter new markets, open new stores, increase the workforce

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17
Q

What might some targets be for a struggling business?

A

decrease product range, achieve enough sales to break - even, maintain market share

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18
Q

What is globalisation?

A

where businesses operate internationally and gain a lot of influence or power

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19
Q

Give some benefits of globalisation

A

new market opportunities, access to technology and resources

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20
Q

Give some drawbacks of globalisation

A

threat from foreign competition, challenge of adapting products and services to meet the need of foreign customers

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21
Q

What are some examples of trade barriers?

A

tariffs, quotas, subsidies, trade blocs, non - tariff barriers

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22
Q

What are the reasons for trade barriers?

A

protecting jobs in domestic industries, raising revenue from tariffs, protecting emerging industries

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23
Q

What is glocalisation?

A

businesses often have to adapt their product in order to suit other countries’ cultural differences and legal requirements

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24
Q

What are ethics?

A

the moral principles that guide the behaviours of individuals and businesses

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25
Q

What are pressure groups?

A

organisations that try to make a business change their behaviour or operations

26
Q

How can pressure groups effect businesses?

A

they can cause bad publicity for businesses that act unethically, which can damage a businesses reputation

27
Q

Give examples of ethical behaviour by businesses

A

treating workers and suppliers fairly, ethical sourcing of materials, meeting government requirements and legislation, caring for the environment

28
Q

What are the three aspects of the design mix?

A

function, cost and aethetics

29
Q

What are the stages of the product life cycle?

A

research and development, introduction, growth, maturity, decline

30
Q

What are extension strategies used to do?

A

extend the life cycle of a product

31
Q

What factors influence pricing strategy?

A

competition, market segment, product life cycle, costs, branding, technology

32
Q

Name the methods of promotion

A

advertising, sponsorship, product trials, special offers, public relations

33
Q

What are the benefits of retailing?

A

customers can try products, offers point-of-sale promotions

34
Q

What are the benefits of e-tailing?

A

businesses dont have to rent retail space, customers can buy at any time of the day, businesses can access customers around the world

35
Q

What are the three methods of production?

A

job production, batch production, flow production

36
Q

What are the benefits of technology on business operations?

A

speeds up production, keeps businesses in touch with customers, lowers production costs

37
Q

What are the drawbacks of technology on business operations?

A

can involve high initial cost, requires employees to be trained to use the technology

38
Q

What is Just In TIme (JIT) stock control?

A

a stock management system where stock is delivered only when it is needed by the production system so no stock is kept by the business

39
Q

What are the benefits of holding stock?

A

any unexpected surges in demand can be met, damaged goods can be replaced

40
Q

What are the benefits of holding no stock?

A

save money, less chance of damaged or stolen stock

41
Q

What makes a good supplier?

A

good value for money, flexible deliveries, reliable deliveries, discounts for large orders

42
Q

What are two ways of achieving good quality?

A

quality control and quality assurance

43
Q

What is quality control?

A

when a quality controller examines a product after it has been made

44
Q

What does quality assurance involve?

A

focusing on quality at every stage of the production process

45
Q

What will a business use quantitative data for?

A

to monitor performance of the business, to compare its performance to that of competitors, to set business aims and objectives

46
Q

What are the types of data used to make business decisions?

A

marketing data, financial data, market data

47
Q

What are the limitations of financial data?

A

it is historical, statistics can be manipulated, business performance should not be solely judged on financial performance

48
Q

What does a business with a hierarchal structure have?

A

a long chain of command

49
Q

What are the benefits of a hierarchal structure?

A

makes the business easier to control and provides lots of opportunities for promotion

50
Q

What are the drawbacks of a hierarchal structure?

A

costly and slows down effective communication

51
Q

What does a business with a flat structure have?

A

few levels of management but a wide span of control

52
Q

What is a benefit and a drawback of a flat structure?

A

improve’s businesses flexibility but lines of authority are’nt always clear

53
Q

Who are centralised decisions made by?

A

senior managers

54
Q

How are decentralised decisions made?

A

they are delegated to regional employees at local stores and branches

55
Q

What can poor communication have an impact on>?

A

employee motivation, customer service, number of mistakes made

56
Q

What are the different types of worker?

A

full-time, flexible, permanent contract, temporary contract. freelance contract, part-time

57
Q

What are the stages of the recruitment process?

A

draw up recruitment documents, receive applications, shortlisting, selection, training

58
Q

What documents are used in the recruitment process?

A

application forms, CV, job descriptions, person specificstions

59
Q

What is formal training?

A

employees attend specific training courses to improve their skills

60
Q

What is informal training?

A

employees learn skills ‘on the job’, by developing skills and experience over time or being coached by other employees

61
Q

What are some financial methods of motivation?

A

time-based systems, salaries, results - based systems, fringe benefits

62
Q

What are some non-financial methods of motivation?

A

job enrichment, job rotation, teamworking, employee reward scheme

Business (7 decks)

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