mock march Flashcards
1.1 what is orientation in business and what are the two types
Orientation is when the business focuses on that part of the market and that is their primarily focus. It is part of market research
-market orientation (focuses the needs of the customer)
-products orienation (focuses on the charteristics of the product rather than the customer for example quality)
1.1 what is product orientation and pros and cons
Its when a business focuses on a charteristic of a product
tools of product orientation
-product research
-product testing
-product focus
pros
- The product should be good enough to sell itself
-Should stand out from competitiors and be different
cons
-might not meet customer needs
-may move further away from the desired market
-may
1.1 what is market orientation and pros and cons
Market orientation is when the approach of marketing is the customers
tolls of market orientation
-market research
-market testing
-market focus
pros
-valued brand image as its products will become more desireable
-more demand as it meets customer needs
cons
-maybe no USP and in a very competetive market with no seeling point
-no differntiation
1.3 what is distrubution
Distribution refers to goods/services move from the manufacturer to the end customer
1.3 what are the types of distrbution
four stage distribuation channel
-producer
-wholesaler
-retailer
-consumer
e.g coca-cola sells to a wholesaler
three stage distrbution
-producor
-retailer
-consumer
e.g Toshiba sells computors to currys
two stage
-producer
-consumer
e.g Ryan air selling plane tickets
1.3 what has been a big effect on distribution
Changes like the growth of E-commerce
-online distribution has increaseingly more popular as it is more conveinient
e.gAmazon
The shift from product based products to service based products
-companies have spotted trends in the markets that consumers are valueing experiences over matiral possessions this has impacted distrbution as
1.2 what is a private limited company
A private limted company is a company that is owned by 1 or more shareholders who are accountable for the dets of the business.
Share holders are useally family mebers or close friends
Most of the time private limted companies are sole traders or partnerships.
1.2 advantgaes and disadvantges of private limited companies
advantgaes
-shareholders have limited liability
-You can not be bought out (no hostile takeovers)
-more control over business decisons
disadvantges
-limited investment
-disagrements within the small number of shareholders could damage the comapny
4.1 what is FDI and how are they created
what is
-inward FDI
-outward FDI
FDI = forign direct investment
It is investment from foreign firms which often are done through mergers, takeovers, partnerships or joint ventures. They are useally done to enter new markets.
Inward FDI
-occurs when a foreign business invests in the local economy
outward FDI
-occurs when a domestic business expands it’s operations into a foreign country
4.1 benefits and drawbacks to countries of FDI
benefits from FDI
-increased economic growth as there is an inflow of money into the country
-Incrased job oppertunities as business expand their operations means more jobs become availaibe
-access to knowledge and expertise from foreign investors
cons
-environmental concerns
-ethics at risk
-tarrifs and trading risks
4.1 what is a trading bloc
A trading bloc is a group of countries that form an agreement to reduce or eliminate protectionist measures between each other.
Joining a trade bloc is a method of increasing trade liberalisation (reduction of restrictions)
trade blocs allow businessess to enter new markets which can increase sales volume and sales revenue
4.1 pros+cons of trade blocs
pros
-wider markets (able to sell to more cusomers)
-external tariff walls (protects business within the bloc on tax to business outside the trading bloc)
-infrasstructure support (additional suport from the governement)
-free movment of labour (business can source workers from a wider pool)
cons
-incraesed comp (meaning smaller business have fewer resources availble to them to compete
–inexperiance in wider markets
4.1 what is the trading bloc in Asia called
ASEAN - association of southeast Asian nations
-ASEAN is a free trade area and does allow free movemnt of people unlike the EU
4.4 what is an MNC
MNC=multinational company
An MNC is a company that is registard to one country however operates in many
e.g starbucks has it’s headquaters in the US however operates in 80 different countries.
MNC’s will choose locations that benefit them for example cost advantages
4.4 pros/cons on MNC’s on employment
pros
-MNC’s lead to job creation for the local community
-MNC’s may offor more competitive wages than local businesses
-MNC’s may offor bestter working conditions rather than local busiinesses
cons
-MNC’s may exploit workers if empolyment regulation is not enforced
-MNC’s tend to produce is areas of low labur costs
-MNC’s may not craete local jobs as they can relocate workers from their own counry
4.4 MNC’s on local businesses pros/cons
pros
-MNC’s can boost the local economy and create opportunites for local businesses they can do this by
-if the population is benefiting from wages they will spend locally
-joint ventures and partnerships with local businesses
cons
-they reduce the supply of workers through higher wages and better working conditions
4.4 MNC’s affect on local communities pros/cons
pros
-local residents benefit from job opportunites
-MNC’s often improve local infrastructure (roads, electricity)
-MNC’s have to pay taxes to local councils
cons
-May cause damage to the local environment
-may upset the locals as it may damage their culture with modern warehouses etc
2.1 pros/cons of a public limted company
pros
-capital can be raised quicker through the stock exchange
-shared risk among the shareholders
-creater public profile with the comapny being on the stock exhange it increases it’s visability
cons
-increased regulations e.g financial reports
-loss of control selling shares meaning there will be more shareholders who will have a say on how the company is run
-risk of a takeover
