case study Flashcards
what benefits does the European give us?
- common movement
- harmonising standards
- social chapter
what is common movement?
free movement of people, goods and services
what is harmonising standards?
pass high quality standards, based in all European countries
what is social chapter?
common laws on employment law and consumer law
what impact on GG toys does free movement of people have?
sales people can move all round Europe selling goods
what impact on GG toys does free movement of labour have?
get staff from all over EU
what impact on GG toys does free movement of goods around EU have?
cheaper/ better quality goods from other places in the EU
what impact on GG toys does being able to pass quality standards in the UK have?
pass quality checks in all EU countries
what impact on GG toys does importing in raw materials from Europe have?
guaranteed high quality everywhere
what does SPICED stand for?
strong pound imports cheap exports dear
to what extend will a rise in interest rates badly effect GG toys?
- wont effect GG toys
- cheaper to import raw materials
- value of pound dropped
- costs fall
- however raw materials only a small %
what are the benefits of buying from local suppliers?
- local
- quick delivery
- good quality
- English language
- ethical
what are the benefits of buying from global suppliers/
- cheaper
- variety
- good quality (ICT)
what are benefits of Toms toys setting up a website?
- promotion
- aware of business
- more customers
- take orders
- deliver large amount of people
- expand business
what are problems Toms Toys might get with setting up a website?
- cant interact
- cant physically see product
- not want to order online
- could crash
- entire business is down
what is the definition of a competitive market?
several businesses exist in the one market. this is lots of competition
what are the native impacts on GG Toys if they move to China?
- bad reputation
- people wont supply/work for you
- hard to get staff
- staff aren’t willing to work for low wage
- unmotivated staff
what technology can be used in production?
Robots
what is the benefits of using robots?
speed
quality
accurate
what are the problems with using robots?
expensive
not always reliable
what is retained profit?
profit left over from last year
what is the benefits of using retained profit to purchase a warehouse?
- available all the time
- no interest to pay
what are disadvantages of using retained profit to purchase a warehouse?
- shareholders wont be happy
- no dividend
- miss out on interest