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Business Blackwell > external influences > Flashcards

external influences Flashcards

1
Q

market size

A

collective value of goods and services that buyers purchase

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2
Q

market growth

A

percentage change in size of the market (over a period from of time)

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3
Q

competition

A

rivalry between sellers

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4
Q

market

A

any situation where buyers and sellers establish a price

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5
Q

online

A

purchase and deliver physical item

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6
Q

digital

A

purchase and download a digital product

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7
Q

barrier to entry

A

factors that prevent a firm from entering and competing in a specific market

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8
Q

barriers to entry examples

A

large start up costs
inability to gain EOS
Price wars
Legal restrictions

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9
Q

monopoly

A

dominated by one seller (more than 25%)

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10
Q

competitive market

A

large number of sellers

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11
Q

monopoly characteristics

A

low number of firms
high prices
EOS
drive out comp with low prices
high barriers to entry

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12
Q

competitive market characteristics

A

high number of firms
low prices
low barriers to entry

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13
Q

oligopoly

A

dominated by a few firms (top 5 firms account for 60% of market size)

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14
Q

oligopoly characteristics

A

similar products
non price differences
relatively high prices
collusion
relatively high barriers

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15
Q

monopolistic competition

A

many firms each supplying a slightly different product

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16
Q

monopolistic characteristics

A

several firms
relatively low prices
relatively low barriers

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17
Q

barriers to exit

A

factors that prevent a firm from leaving a market

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18
Q

barriers to exit examples

A

selling of capital is hard
high redundancy costs
contracts with suppliers
leases with landlords

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19
Q

market dominance

A

a measure of market share compared to competitors

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20
Q

mergers

A

two companies join to make a new company

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21
Q

acquisition/takeover

A

buying the majority of another company’s shares and talking control

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22
Q

synergy

A

business perform better and are more valuable when together than when independent

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23
Q

external growth benefits

A

new management skills
increased revenue
increased efficiency
EOS

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24
Q

external growth drawbacks

A

DOS
may take on extra debts
redundancies
higher prices
monopolies

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25
Q

organic growth

A

expansion from within

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26
Q

organic growth examples

A

open new stores
launching new products
employing more workers
increasing production capacity
investing in new tech
launching existing products into new markets

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27
Q

organic growth advantages

A

cheaper than external/inorganic
more controlled
maintain current management style
financed using profits
less disruptive

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28
Q

organic growth disadvantages

A

slower than external
can’t compete without external growth
market size is not affected
if already leader, less growth opportunity

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29
Q

what Competition Markets authority do

A

investigate mergers and acquisitions that could lead to monopolistic characteristics

incriminate individuals who commit offences

enforce legislation to tackle anti competitive and anti choice practices

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30
Q

CMA sanctions

A

fined up to 10% of global turnover

can be sued for anti competitive behaviour

individuals can be disqualified

individuals can be fined or improved if they do not comply

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31
Q

impacts of regulation

A

encourages competition
increased quality
wider range of choice
lower prices
lower barriers to entry

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32
Q

STEEPLE

A

social
technological
economic
ethical
political
legal
environmental

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33
Q

gdp

A

total value of output produced in a year by an economy

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34
Q

economic growth

A

%change in gdp

35
Q

recession

A

2 quarters of negative growth

36
Q

standard of living

A

the amount of goods and services an individual is able to buy with their yearly income

37
Q

inflation

A

general rise in prices

38
Q

Consumer price index

A

the weighted average of prices from a basket of consumer goods

39
Q

exchange rate

A

the value of a currency in terms of another

40
Q

Spiced

A

strong pound imports cheap exports dear

41
Q

WPIDEC

A

weak pound imports dear exports cheap

42
Q

causes of a strong pound

A

Hot money
foreign investment
desire of uk exports

43
Q

interest rates

A

cost of borrowing and reward of saving

44
Q

unemployment

A

someone is willing and able to work but are not employed

45
Q

BoT

A

difference between exports and imports

46
Q

surplus

A

X>M

47
Q

deficit

A

X<M

48
Q

indirect tax

A

tax on spending, payed to the government by suppliers of goods/services

49
Q

direct tax

A

tax of income and profits, payed by the bearer to the government

50
Q

subsidy

A

a payment granted by the government to private firms, households etc to promote a public objective

51
Q

business cycle

A

observed pattern of increases and decreases in economic growth over time

52
Q

benefits of ethical behaviour

A

new customers
better employees
increased sales
better reputation
positive publicity
new investors

53
Q

intellectual property

A

intangible property that is the result of creativity

54
Q

trademark

A

trademark can be registered for anything that makes the brand/product it’s own

55
Q

copyright

A

automatic legal protection against copying for authors, composers, artists etc

56
Q

planning permission

A

approval to build a new building or to make a big change to an existing one

57
Q

consumer rights act

A

satisfactory quality
as described
fit for purpose

58
Q

clean air act

A

the control of the use of material that causes pollution. Regulates both domestic and industrial emissions

59
Q

climate change act

A

uk emission reduction targets that legally have to be met

60
Q

demographic

A

characteristics of human population groups

61
Q

sustainability

A

preventing the negative impacts from economic systems/production on the earth and its environment

62
Q

EU

A

economic and political union of most Euro states aimed at reducing trade barriers and harmonising economic policy

63
Q

free trade

A

agreement between countries to trade without barriers

64
Q

international trade

A

exchange of goods and services between countries

65
Q

factors considered by businesses when trading internationally

A

-currency
-logistics
-language
-buying habits
-culture
-laws

66
Q

globalisation

A

increased integration and interdependence of national economies

67
Q

trading bloc

A

a group of countries within a region that have reduced or removed trade barriers between members

68
Q

emerging market

A

a country experiencing/achieving rapid economic growth

69
Q

factors cons side red by a business when trading internationally

A

currency
logistics
language
buying habits
culture
laws

70
Q

free trade advantages

A

EOS
greater variety
lower cost
lower prices for consumers

71
Q

free trade disadvantages

A

foreign competition lead to job losses
LEDCs may use non renewable
more competition from overseas

72
Q

trading bloc advantages

A

gain access to more demand
import resources cheap
potential EOS

73
Q

trading bloc disadvantages

A

may hinder trade outside of bloc

competition from other countries may be too much for domestic businesses

74
Q

emerging market characteristics

A

lower income
younger population
less infrastructure
change is faster

75
Q

emerging markets advantages for businesses

A

cheaper labour
more supply of labour
lack of legal constraints (e.g. tobacco)
access to higher incomes in new markets

76
Q

multinationals

A

a business that operates in more than one country

77
Q

multinational advantages

A

EOS obtained as production increases
enter new market
lower wages
less legislation

78
Q

positive effects of multinationals on host

A

employment for LEDCs
more skills in LEDCs
investment in infrastructure
leads to utilisation of local resources

79
Q

negative effects of multinationals

A

low wages
low skilled jobs
can be unsafe work
child labour, miss education
local businesses driven out
profit go back to domestic country

80
Q

global strategy

A

a plan of action on a global scale

81
Q

global brand

A

a brand recognised throughout much of the world

82
Q

challenges of globalisation

A

increased comp
ethical/moral differences
costs of expansion
diff cultures and customer behaviour
communication (time, language)
physical difference

83
Q

digital revolution

A

the shift from analogue and mechanical technology to digital technology

Business Blackwell (2 decks)

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