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Lecture/seminar/reading content notes > Business - Lecture/seminar notes > Flashcards

Business - Lecture/seminar notes Flashcards

(From slides/readings)

1
Q

Reasons for business expansion…

-> Week 6 Seminar <-

A
  • push factors: domestic saturation and fierce domestic competition;
  • pull factors: extending product life cycle, increasing sales and profits

Tamousiuniene & Duksaite (2009) - Their opinion

Push factors - Reasons AGAINST business expansion
Pull factors - Reasons FOR business expansion

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2
Q

Things to consider for business expansion…

-> Week 6 Seminar <-

A
  • Disposable incomes
  • Exchange rates
  • Geographic proximity
  • Skills, labour and cost of production
  • Infrastructure
  • Trade bloc location
  • Government incentives
  • Ease of doing business
  • Natural resources and return on investment
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3
Q

Horizontal mergers and examples…

-> Week 6 Seminar <-

A

-

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4
Q

Examples of horizontal mergers…

A

2012: Facebook and Instagram
- both operated in the same industry (social network)
- Facebook sought to strengthen its position in the social sharing space
- acquisition of Instagram as an opportunity to grow its market share, reduce competition, and gain access to new audiences
2017: The Walt Disney Company and 21st Century Fox
- both companies produced and distributed films and television series
- each company owned 30% stake in Hulu (online streaming)

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5
Q

Issues faced by potential horizontal mergers…

-> Week 6 seminar <-

A
  • Cultural integration difficulties
  • Different management styles
  • Inability to achieve synergies
  • Might create a monopolistic market
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6
Q

Vertical Mergers (Integration)…

-> Week 6 seminar <-

A
  • A verticalmerger is one in which a company on one level of a supply chain buys a company on another.
  • An example is the merger of a firm to another whose inputs include the goods produced by the former.
  • Examples involve -> (Nov 2015) Apple buys Star Wars motion-capture company Faceshift
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7
Q

What are the issues faced in a ‘vertical’ merger?

-> Week 6 seminar <-

A
  • Cost of executing the merger
  • Reduced flexibility
  • Loss of focus
  • Clash of cultures
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8
Q

Conglomerate…

-> Week 6 seminar <-

A
  • A conglomerate is a corporation made up of different, independent businesses.
  • In a conglomerate, one company owns a controlling stake of other smaller companies that conduct business separately.
  • The parent company can cut back the risks from being in a single market by becoming a conglomerate.
    Sometimes conglomerates can become too large to be efficient, at which time they have to divest some of their businesses.
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9
Q

Example of a conglomerate…

-> Week 6 seminar <-

A
  • Berkshire Hathaway Inc
  • One of the largest conglomerates in the world
  • Formed through years of M&A’s
    Industries: utilities, retail goods, transportation, insurance, financial services
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10
Q

Process of M&A…

-> Week 6 seminar <-

A
  1. Developing strategy
  2. Identifying targets
  3. Information exchange
  4. Valuation and synergies
  5. Offer and negotiation
  6. Due diligence
  7. Purchase agreement
  8. Deal closure and integration
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11
Q

A big example of a successful merger…

-> Week 6 seminar <-

A
  • Disney & Pixar
    Benefits for Disney:
  • Better animation and technical things in department
  • Modernise Disney with computer animated characters
    Risks:
  • Very expensive agreement at $7.4bn
  • Could dilute Disney’s earnings.
    Possible conflict of interest between Disney and Apple
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12
Q

Some reasons for mergers & acquisitions…

-> Week 6 seminar <-

A
  • Market considerations
  • Distribution economies
  • Diversification
  • Manufacturing advantages
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13
Q

Define ethics…

Week 8 seminar - MNCs, Business Ethics & 
Corporate Social Responsibility (CSR)

A

Can be defined as an individual’s personal beliefs about whether a decision, behaviour, or action is right or wrong

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14
Q

Define business ethics…

Week 8 seminar - MNCs, Business Ethics & 
Corporate Social Responsibility (CSR)

A

The capacity to consider values in the business decision making process -> and how these values and decisions affect various stakeholders

(Examples involve reliability, trust, relations, behaviour,morality etc)

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15
Q

VW Primary Stakeholders…

Week 8 seminar - MNCs, Business Ethics & 
Corporate Social Responsibility (CSR)

A
  • Customers
  • Employees
  • Dealers
  • Shareholders
  • The environment

(Other stakeholders include courts and governments)

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16
Q

VW emission scandal impact…

(2015)

Week 8 seminar - MNCs, Business Ethics & *Corporate Social Responsibility (CSR)

A
  • VW lost $16.9bn
  • According to the Guardian, sales dropped by 20% in the first 3 mnths
  • According to Forbes, cost of scandal for VW could be up to $34.5bn

(VW addressed scandal late adn perhaps were reluctant to do this)

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17
Q

IKEA, Loreal and ethics…

Week 8 seminar - MNCs, Business Ethics & Corporate Social Responsibility (CSR)

A
  • When IKEA relocated to KSA, they could not advertise with women, which conflicted with their ethics
  • When Loreal wanted to relocate to China, they had to test products with animals, but Loreal were against this -> For testing cosmetics

(Due to KSA law!)

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18
Q

Benefits of business ethics…

Week 8 seminar - MNCs, Business Ethics & *Corporate Social Responsibility (CSR)

A
  • Improves brand reputation and competition
  • Improves adherance to organisation culture
  • Offers protection agaonst pre-empting or defending against lawsuits
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19
Q

MNCs purposes and responsibilities…

Week 8 seminar - MNCs, Business Ethics & Corporate Social Responsibility (CSR)

A
  • Maximising shareholder value v Serving the broader ionterests of society
  • The Economist (2005/2008): “The CSR movement [has] won the battle of ideas… Clearly the CSR has arrived.”
  • The question now is not “Whether” but “How?” (or “How much?”)
    (Smith, 2003)
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20
Q

Corporate Social Responsibility (CSR)…

(What it entails)

Week 8 seminar - MNCs, Business Ethics & Corporate Social Responsibility (CSR)

A
  • ‘The firm’s consideration of, and response to, issues beyond the narrow economic, technical, and legal requirements of the firm.’ (Davis, 1973)
  • ‘Includes the economic, legal, ethical and philanthropic expectations placed on organisations by society at a given point in time.’ (Carroll & Buchholtz, 2009)
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21
Q

CSR: Key Elements…

Week 8 seminar - MNCs, Business Ethics & Corporate Social Responsibility (CSR)

A
  • Businesses responsibilities may go beyond making profit and objectives of the like
  • They have wider responsilbilities like solving societal issues e.g. climate change
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22
Q

For and against CSR views…

Week 8 seminar - MNCs, Business Ethics & Corporate Social Responsibility (CSR)

A

For:
- ‘It’s the right thing to do.’
- Focus on responsibility, obligation, accountability.
- Growing ‘conscious consumer’ & LOHAS (Lifestyles of Health and Sustainability) segments.
- Focus on cost reduction, risk management, opportunity, reputation.
Against:
- Business is an economic activity
- Managers do not have the know-how or the right to decide how to solve social and environmental issues.

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23
Q

Surveillance capitalism…

Week 8 seminar - MNCs, Business Ethics & Corporate Social Responsibility (CSR)

A
  • ‘Surveillance Capitalism [commodification of personal data* for the purpose of making profits] is the manifestation of George Orwell’s prophesied ‘Memory Hole’ combined with the constant surveillance, storage and analysis of our thoughts and actions, with such minute precision, and artificial intelligence algorithmic analysis, that our future thoughts and actions can be predicted, and manipulated, for the concentration of power and wealth of the very few.’ (surveillancecapitalism.com)
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24
Q

How can CSR be summarised…

( Shafiq (2011) )

(Week 8 seminar)

A
  • Obligation to society
  • Stakeholders’ involvement
  • Improving the quality of life
  • Economic development
  • Ethical business practice
  • Law abiding
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25
Q

How do companies respond to social or environmental issues or demands?

(Week 8 seminar)

A
  • Reactive – denial, pass responsibility to others.
  • Defensive – doing the least required, superficial response, subterfuge.
  • Accommodative – doing what is demanded.
  • Proactive – going beyond expectations, anticipating future demand.
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26
Q

What factors drive CSR in today’s market?

Week 8 seminar

A
  • Competitiveness: consumer demands, cost cutting, increased profits, differentiation.
  • Legitimacy: reputation, survival, conformity
  • Ethics: social and ecological responsibility
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27
Q

Areas of Ethical and Social Responsibility Concerns for the MNC (Customers)…

Week 8 seminar

A
  • Product safety
    Should an MNC delete safety features to make a product more affordable for people in a poorer nation? (Health & Safety)
  • Fair price
    Should a sole supplier in a country take advantage of its monopoly?
  • Proper disclosure and information
    Should an MNC assume the cost of translating all its product information into another language?
28
Q

Areas of Ethical and Social Responsibility Concerns for the MNC (Stockholders)

Week 8 seminar

A
  • Fair return on investment
    -> If a product is banned because its unsafe in one country, should it be sold in countries where it is not banned to maintain profit margins?
    -> How much should CEOs be paid? Should shareholders ignore extremely generous severance packages?
  • Fair wages
    -> Should a company pay more than market wages when such wages result in people living in poverty? (What about exploitation of labour?)
  • Safe working conditions
    -> Should a company be responsible for working conditions of its suppliers?
29
Q

Areas of Ethical and Social Responsibility Concerns for the MNC (Employees)…

Week 8 seminar

A
  • Child labour
    Should an MNC use child labour if it is legal in the host country?
  • Discrimination by sex, race, colour, or creed
    Should a company assign a woman to a country where women are expected to remain separate from men in public?
  • Impact on local economies
    Should an MNC use transfer pricing and other internal accounting measures to reduce its actual tax base in a foreign country?
30
Q

Areas of Ethical and Social Responsibility Concerns for the MNC (Host Country)…

Week 8 seminar

A

Following local laws
- Should an MNC follow local laws that violate home-country laws against discrimination?
Impact on local social institutions
- Should an MNC require workers to work on religious holidays?
Environment protection
- Is an MNC obliged to control its hazardous waste to a degree higher than local laws require?
Should MNCs deplete natural resources in countries that are willing to let them do so?

31
Q

What is Marketing?

(Management)

Week 10- Segmentation and Positioning -> Marketing

A
  • A management process requiring planning and analysis -> resource allocation, control + investment in terms of capital, human capital + physical capital.
32
Q

7 Functions of Marketing…

(Management)

Week 10 - Segmentation and Positioning -> Marketing

A
  • Distribution ➔ getting goods to customers.
  • Financing ➔ acquiring money to set up and run a business.
  • Marketing information management ➔ researching customers, trends, and competitors.
  • Pricing ➔ charging for goods and services to make a profit.
    Product/service management ➔ obtaining, developing, maintaining, and improving a product or service.
  • Promotion ➔ informing, persuading, and reminding customers about a product or service.
  • Selling ➔ providing customers with goods and services.-
33
Q

The ‘Marketing Mix’…

(Management)

Week 10 - Segmentation and Positioning -> Marketing

A
  • Place
  • Product
  • Price
  • Promotion

(Different brands prioritise different factors)

They are the factors that will make customers either buy a product or service or not.

34
Q

Marketing Research…

Week 10 - Segmentation and Positioning -> Marketing

A
  • Internal Database
  • Marketing Intelligence
  • Marketing Research
35
Q

Integrated Marketing Communications…

Week 10 - Segmentation and Positioning -> Marketing

A
  • Personal Selling
  • Sales Promotion
  • Advertising
  • Public Relations
  • Direct Marketing
  • Sponsorship
  • Point-of-sale
  • Exhibitions
  • Merchandising
  • Corporate Identity
  • Word of Mouth
36
Q

Competitive Positioning…

Week 10 - Segmentation and Positioning -> Marketing

A
  • In order to implement marketing, the organisation must decide the competitive positioning it wishes to est. in the market in relation to target customer.
  • Competitiveness Analysis is vital to support -> competitive positioning process used by a company.
37
Q

Competitive Marketing Strategies…

Week 10 - Segmentation and Positioning -> Marketing

A
  • Market leader strategy
  • Market challenger strategy
  • Market follower strategy
  • Niche market strategy
38
Q

Market Segmentation Defined…

Week 10 - Segmentation and Positioning -> Marketing

A
  • Market segmentation refers to categorising prospective buyers into particular groupsor segments -> based on common needs -> which respond similarly to a particular marketing action.
  • Market segmentation provides a platform for companies to ‘target’ a number of diverse categories of certain consumers -> who perceive in different measures the full valueof certain products and services.

(Categorises potential customers specifically, usually for needs)

39
Q

Market Segmentation…

(What it is and the aim)

Week 10 - Segmentation and Positioning -> Marketing

A
  • This is an extension of market research which seeks to identify targeted groups of consumers, in order to tailor products andbranding

(Risks can be minimised, and efficiency can be improved)

40
Q

Market segmentation…

(Potential factors)

Week 10 - Segmentation and Positioning -> Marketing

A
  • Measurable
  • Substantial
  • Accessible
  • Differentiated
  • Actionable
41
Q

Factors Influencing Customer Behaviour…

Week 10 - Segmentation and Positioning -> Marketing

A
  • Culture
  • Social Factors – reference groups - such as family
  • Personal Factors – age, lifestyle
  • Psychological Factors - motivation
42
Q

Market Targeting…

Week 10 - Segmentation and Positioning -> Marketing

A
  • Once the company has identified its market segment opportunities, it then must decide how many and which ones to target.
43
Q

Factors that firms may consider for target marketing…

Week 10 - Segmentation and Positioning -> Marketing

A
  • the product-market;
  • its buyers;
  • the firm’s capabilities resources; and,
  • competition.
44
Q

Evaluating Target Markets…

(What a comapny must evaluate for different targets)

Week 10 - Segmentation and Positioning -> Marketing

A
  • The segments’ overall attractiveness;
  • The company’s objectives;
  • The size;
  • Growth of target segment/market;
  • Profitability;
  • Economies of scale; and,
  • Long-term objectives, resources and competences.
45
Q

Market Targeting & Positioning…

Week 10 - Segmentation and Positioning -> Marketing

A
  • Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target audience.
  • Not what you do to the product, but how you position the product in the mind of the potential customer
46
Q

Positioning Options…

Week 10 - Segmentation and Positioning -> Marketing

A
  • By attribute.
  • By benefit.
  • By user or application.
  • Competitor positioning.
  • By product category.
  • By quality or price.
47
Q

Positioning in Perspective…

Week 10 - Segmentation and Positioning -> Marketing

A
  • Positioning is a central part of business strategy.
  • Positioning analysis starts with an understanding of the value proposition for the target segment.
    Value-driven positioning is the objective.
  • Positioning seeks to differentiate the organisation’s offer from the competition.
  • Positioning seeks to create a unique perception in buyers’ minds of the target market segment.
  • Positioning is the unifying dimension of market-driven strategy.
48
Q

Marketing Trends…

Week 10 - Segmentation and Positioning -> Marketing

A
  • Key trends to occupy marketers’ future thinking:
  • Digital marketing.
  • Innovative – technology drivenproducts.
  • Mass customisation.
  • Relationship marketing.
  • Utilising world–class marketing and world–class manufacturing.
49
Q

What is Marketing?

Week 10 - Segmentation and Positioning -> Marketing

A
  • A management process requiring planning and analysis, resource allocation, control and investment in terms of capital, human capital and physical capital.
50
Q

7 Functions of Marketing…

Week 10 - Segmentation and Positioning -> Marketing

A
  • Distribution ➔ getting goods to customers.
  • Financing ➔ acquiring money to set up and run a business.
  • Marketing information management ➔ researching customers, trends, and competitors.
  • Pricing ➔ charging for goods and services to make a profit.
  • Product/service management ➔ obtaining, developing, maintaining, and improving a product or service.
  • Promotion ➔ informing, persuading, and reminding customers about a product or service.
  • Selling ➔ providing customers with goods and services.
51
Q

The ‘Marketing Mix’…

Week 10 - Segmentation and Positioning -> Marketing

A
  • The marketing mix describes the factors that organisations consider when marketing a product or service.
52
Q

Four factors of the ‘marketing mix’…

Week 10 - Segmentation and Positioning -> Marketing

A
  • Product
  • Place
  • Price
  • Promotion
53
Q

Marketing Research…

Competitive PositioningWeek 10 - Segmentation and Positioning -> Marketing

A
  • Internal Database
  • Marketing Intelligence
  • Marketing Research
54
Q

Competitive Positioning…

Week 10 - Segmentation and Positioning -> Marketing

A
  • In order to implement marketing -> organisation must decide the competitive positioning it wishes to est. in market in relation to target customer.
55
Q

Competitive Marketing Strategies…

Week 10 - Segmentation and Positioning -> Marketing

A
  • Market leader strategy
  • Market challenger strategy
  • Market follower strategy
  • Niche market strategy
56
Q

Market Segmentation Defined…

Week 10 - Segmentation and Positioning -> Marketing

A
  • Market segmentation refers to categorising prospective buyers into particular groupsor segments, based on common needs, which respond similarly to a particular marketing action.
  • Market segmentation provides a platform for companies to ‘target’ a no. of diverse categories of particular consumers who perceive in different measures the full valueof certain products and services.
57
Q

Potential aims of market segmentation…

Week 10 - Segmentation and Positioning -> Marketing

A
  • By determining which products have the best chances for gaining a share of a target marketand determining the best way to deliver the products to the market -> clear objective is to minimise any form of risk.
  • In doing so, the company can increase its overall efficiency.
  • This is achieved by focussing limited resources on efforts that produce the best return on investment.
58
Q

How market segmentation should be done…

Week 10 - Segmentation and Positioning -> Marketing

A
  • Measurable
  • Substantial
  • Accessible
  • Differentiated
  • Actionable
59
Q

Factors Influencing Customer Behaviour…

Week 10 - Segmentation and Positioning -> Marketing

A
  • Culture
  • Social Factors – reference groups such as family
  • Personal Factors – age, lifestyle
  • Psychological Factors - motivation
60
Q

Market Targeting…

Week 10 - Segmentation and Positioning -> Marketing

A
  • The marketing targeting decision identifies people or organisations in a product-market toward which a firm directs its positioning strategy, guided by an understanding of:
  • the product-market;
  • its buyers;
  • the firm’s capabilities resources; and,
  • competition.

(Once the company has identified its market segment opportunities, it then must decide how many and which ones to target).

61
Q

Evaluating Target Markets…

(What a company must look at)

Week 10 - Segmentation and Positioning -> Marketing

A
  • The segments’ overall attractiveness;
    – The company’s objectives;
  • The size;
  • Growth of target segment/market;
  • Profitability;
  • Economies of scale; and,
    Long-term objectives, resources and competences.
62
Q

Market Targeting & Positioning…

Week 10 - Segmentation and Positioning -> Marketing

A
  • The core dimensions of a market-driven strategy focus on deciding which buyers to target and how to position the firm’s products.
  • Effective targeting and positioning strategies are essential if an organisation wants to gain and sustain superior performance.
63
Q

Positioning definition and other things…

Week 10 - Segmentation and Positioning -> Marketing

A
  • Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target audience.
  • Positioning is not what you do to the product, it is what you do to the mind of the prospective customer; in other words, you position the product in the mind of the customer.
64
Q

How Positioning Works…

Week 10 - Segmentation and Positioning -> Marketing

A

Objective:
- Match the organisation’s distinctive capabilities with the customer value requirements for the market target (How do we want to be perceived by targeted buyers?)
Desired result:
- Gain a relevant, distinct, and enduring position by the targeted buyers that they consider important.
Actions by the organisation:
- Design and implement the positioning strategy (marketing programme) for the market target.

65
Q

Positioning in Perspective…

Week 10 - Segmentation and Positioning -> Marketing

A
  • Positioning is a central part of business strategy.
  • Positioning analysis starts with understanding of the value proposition for the target segment.
  • Value-driven positioning is the objective.
  • Positioning seeks to differentiate organisation’s offer from the competition.
  • Positioning seeks to create a unique perception in buyers’ minds of target market segment.
  • Positioning is the unifying dimension of market-driven strategy.
66
Q

Marketing Trends…

Week 10 - Segmentation and Positioning -> Marketing

A

Key trends to occupy marketers’ future thinking:
- Digital marketing.
- Innovative – technology drivenproducts.
- Mass customisation.
- Relationship marketing.
- Utilising world–class marketing and world–class manufacturing.

Lecture/seminar/reading content notes (11 decks)

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