IB Business Flashcards
What Does STEEPLE Stand For
Social and Cultural
Technological
Economics
Ethical
Politics
Legal
Environmental
What Does SWOT Stand For?
Strength, Weakness, Opportunity, and Threats
What two letters in SWOT are internal?
Strength and Weakness
What two letters in SWOT are external?
Opportunity and Threats
What does Strength mean?
Strength are things that a business is doing well
What does Weakness mean?
Weaknesses are things that a business is doing poorly in
What does Opportunity mean?
Opportunity is the potential for growth and an increased profit
What does Threat mean?
Threats are things that hinder the prospects for a business
What does G.E.T.C.A.S.H mean?
Growth
Earnings
Transference
Challenges
Autonomy
Savings
Hobbies
What are benefits for a Franchisor?
Parent company->rapid growth without risking large amounts of money
Flexibility for national or international presence
Franchisor can benefit from economics of scale
Franchise can benefit from growth
Franchisors receive a royalty payment from Franchisee
Franchisees have more incentive to do well
Local Franchisees->awareness of local market
What are Pit falls for Franchisor?
Difficult to control activities of franchisees
High risk to let other people/businesses to use their name
Franchisees who don’t follow procedures or meet expectations might hurt reputation of whole company
Mergers or acquisitions->franchising->organic growth
What are advantages for Franchisee?
Relatively low risk
Lower start-up costs
Best interest of franchisor that franchisee succeeds
Franchisee benefits from large scale advertising from parent company
What are disadvantages for a Franchisee?
$ needed to buy can be expensive and there is no guarantee for return
Must pay significant % of revenues to franchisor
Less flexibility to use own initiatives or new ideas
What risk level is market penetration?
low risk growth strategy
What has existing products and existing materials?
Market Penetration
