Business

Question 1

What is the characteristics mature stage of the business lifecycle?

Answer 1

The maturity stage is characterized by stability and steady cash flow. A mature business has control over its customer base, which has established a solid market share

Question 2

What is market saturation, and why is it a challenge in the mature stage?

Answer 2

Market saturation occurs when a business has captured a significant portion of its target market, making it harder to find new customers or expand.

Question 3

What is the domestic market?

Answer 3

The domestic market refers to the supply and demand for goods and services within a particular country.

Question 4

What is the international market?

Answer 4

Refers to the exchange of goods, services, and capital across national borders. It involves transactions between businesses and consumers in different countries.

Question 5

What are the goals and objectives of the mature stage?

Answer 5

• avoid entering a state of decline
• increase its share of the existing market
• acquire sales and customers

Question 6

What is vertical growth?

Answer 6

adaption of business products and services to increase revenue from existing market

Question 7

What is horizontal growth?

Answer 7

The adaption of business products and services to increase revenue from a new market

Question 8

What are the motives for expansion?

Answer 8

• Access to a broader market
• competitive advantage
• reduce risk of decline
• offer foreign distributor

Question 9

What is the definition of a mode of entry?

Answer 9

planned strategy to establish the deliver of its goods or services into the new markets

Question 10

what are the types of modes of entry?

Answer 10

imports and exports
licensing
international agent and distributor
overseas manufacturing
sales subsidiaries
e commerce, online platforms, department stores and retailers

Question 11

What is a international distributor & agent?

Answer 11

A local partner which is a international distributor

Question 11

What is sales subsidiaries?

Answer 11

a business that is owned and controlled by a larger company is called a subsidiary
- sells products of ownership through subsidiaries

Question 12

How can businesses expand through e-commerce?

Answer 12

They can expand using e-commerce to reach new markets and new online platforms

Question 13

What are the two elements of risk management?

Answer 13

• the probability of implications from the activity
• actual consequences

Question 14

What is the definition of Risk Management?

Answer 14

the risk of a businesses actions and decisions in order to minimise, control or eliminate the impact of unacceptable risks

Question 15

What are some implications of not upholding good risk management?

Answer 15

-disruptions to supplies and operations
- loss of customer confidence and employees
- Business failure
- natural disasters
- changes in tax, public opinion and government

Question 16

What is contingency planning?

Answer 16

• a prepared course of action designed to help a business respond effectively to a future event of circumstance that may or may not happen

Question 17

What is the definition of Motivational Theories’?

Answer 17

• helps business to understand behaviours and respond accordingly to meet needs of their staff

Question 18

What does the motivational theories do?

Answer 18

• promotes internal motivation and staff wellbeing which increases staff retention

Question 19

What are some reasons for motivational theories?

Answer 19

increase morale
increase satisfaction
increase productivity
open communication
reduced absenteeism

Question 20

What is “employer of choice”

Answer 20

• is a desirable place to work
• recruitment & retention strategy to offer attractive incentives

Question 21

Why do businesses like to implement “employer of choice”?

Answer 21

to retain employers
“best employers” is published and if in it is is used as a marketing tool

Question 22

How does a business make “employer of choice”?

Answer 22

status comes from:
- flexibility
- progression & benefits
- working conditions

Question 23

What is a diverse and inclusive workforce?

Answer 23

Diverse: various of different forms

Inclusive: a workplace that is accepting and welcoming to all new staff & people

Question 24

What are financial controls in expansion?

Answer 24

business’s strategies and processes to manage finance and the risks associated with meeting goals and objectives.
- help manage the risks of fluctuations international factors such as exchange rates

Question 25

What are some financing strategies and what do they mean?

Answer 25

Strat one: private equity is the investment of money into private companies not listed on a public exchange. The money comes primarily from institutional investors. Private equity is usually used for global expansion, as it is used for mature companies and increasing growth.

Strat 2: Money in the capital market. In the capital market, buyers and sellers engage in trading financial securities like bonds and stocks. This gives them a return and increase the capital avaiable to them.

Strat 3: When a privately owned business decides to go public, it sells shares that were formally privately held to new investors for the first time. This offers larger capital injection, and that is often used for covering growing expenses or research and development.

Strat 4: Dividend. A dividend is a portion of a public company’s profits distributed to shareholders. This is a challenging strat but used to attract investors.

Strat 5: Government incentives: Funding is available and designed to foster growth and increase Australian exports and global business. It reduces the financial burden, but it is only short-term and comes with strict guidelines.

Question 26

How can you evaluate is a financing strategy is sucessful?

Answer 26

Triple bottom line: profit, planet, and people. This can attract further investment and growth.

Or

Cost-benefit analysis is used as an evaluation tool to decide on the best course of action during expansion. It helps to understand whether the project is financially feasible.

Question 27

What are human resource strategies?

Answer 27

• Employer of choice:
• Diverse workforce
• Fostering intrapreneurship
• leadership and management

Question 28

What are expansion strategies (list them)

Answer 28

• Innovation for expansion
• research and development
• emerging tech