Business Paper 1 Flashcards
Product orientation
A business and marketing strategy that focuses above all else on creating the best possible product.
Market orientation
An approach to marketing that focuses on customer needs
Limitations of market research?
Sample Size
Bias
Market segmentation
Helps businesses to better understand their customers
Purpose of product differentiation
To try to create a USP
Changes in the elements of the design mix to reflect social trends.
- Minimisation
-Re use and recycling
-Ethical sourcing
Extension strategies
Product
Promotion
Flexible workforce
Multi tasking
Part time and temporary
Flexible hours and home working
Outsourcing
Difference between temporary and part time
Part time is less hours than a full time.
Temporary is full hours just for a temporary time.
Matrix Structure
Team members report to multiple leaders.
Autocratic Leadership
Strict
Paternalistic Leadership
Dominant authority figure that acts like a farther
Democratic Leadership
Letting multiple people participate in the decision-making process
Laissez-fair Leadership
Employees can do whatever they want
Business Specialisation
A business being specialised in a specific area.
Structural Change
Major change within the organisation where the capital, information, authority and responsibility flows.
ASEAN
Association of Southeast Asian Nations
NAFTA
North american free trade agreement
Push Factors
-Saturated markets
-Competition
Saturated Markets
When the volume of a product or service in a marketplace has been maximised.
Pull factors
-EOS
-Risk Spreading
Reasons for global mergers or joint ventures
Spreading risk
Entering new markets
Acquiring national brand names
Securing resources
Maintaining global competitiveness
Ethnocentric approach
A business making little or no attempt to adapt their products for the local market
Geocentric approach
Using a combination of an ethnocentric and polycentric approach.
Polycentric approach
An attitude that advocates adapting products, strategies management practices to each individual market or host country.
FDI flows
MNCs often bring substantial Foreign Direct Investment (FDI) into the country, contributing to capital formation and economic growth.
Balance of payments
Summarises all transactions between residents of a nation and non national in a period.
Tax revenues and transfer pricing
MNCs try to minimise taxes. A strategy is called transfer pricing.
The strategy is selling goods to a foreign subsidiary with smaller tax rate. Then the product is sold at market price.
Controlling MNCs Factors
Political influence
Legal control
Pressure group
Offshoring
Relocation of business activities overseas.
Outsourcing
Hiring a third party company to perform services or create goods.
Job Enlargement
Job enlargement involves the addition of extra, similar, tasks to a job.
Value for elastic goods?
PED > 1
Value for inelastic goods?
PED < 1
Formula for quantity of demand formula
% Change of Quantity/ & Change of Price
Formula for income elasticity formula
% Change of Quantity/ % Change of Income
SPICED
Strong Pound = Imports Cheaper & Exports Dearer
YED value for inferior good
YED < 0
YED value for Neccessity good
0 < YED < 1
(Basically 0-1)
YED value for Luxury good
YED > 1
