Business 2.1 Flashcards
2 methods of growth
Internal (organic)
External (inorganic)
Examples of organic growth
New products
New markets
Examples of inorganic growth
Takeovers
Mergers
Advantages of a PLC
Able to raise capital through shares
Limited liability
More public awarness
More reliable
Disadvantages of a PLC
Financial accounts published
Risk being taken over
More scrutiny
Shareholder have more influence
Advantages of an MNC (multinational)
Wider target market
Cheap labour
Spreads risks
Disadvantage of an MNC (multinational)
Cultural and language barrier
Can damage reputation
What acronym is needed to measure aims and objectives
S
M
A
R
T
Why do aims and objectives change
Market conditions
Technology
Performance
Legislation
Internal reasons
How aims and objectives change and business evolves
Focus on survival or growth
Growing or reducing workforce
Entering or exiting markets
Increasing or decreasing product range
Impact of globalisation
Imports
Buying from overses
Exports
Changing buisness location
Barriers to international trade
Tariffs
Trade blocs
Export subsidy (financial assistance from the goverment)
Quotas (limit on imports)
Effects of being ethical
Loss of profit
Increase in reputation
