Paper 1 Flashcards

Theme 1 & 4

1
Q

Limits for PED

A

elastic >1
Perfectly Inelastic = 0
Inelastic <1

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2
Q

Limits for YED

A

Elastic >1

Inelastic <1

No Impact on demand =0

(Normal Good -> Increased Income = Increased Demand) >0 (Positive)

(Inferior Good -> Increased Income = Decreased Demand) <0 (Negative)

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3
Q

Name the 5 stages of the product lifecycle

A

R&D, Introduction, Growth, Maturity, Decline

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4
Q

Name 3 extension strategies

A

Product Line Extension - Introducing similar products with new benefits

Brand Extension - Introducing new products in unrelated categories

Market Extension - Expanding to new markets / customer segments

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5
Q

Describe PPA

A

Product Portfolio Analysis
A way to measure products performance and growth potential

BSG Matrix (Explain)

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6
Q

Name the 4 motivation strategies

A
  • Maslow (Hierarchy)
  • Taylor (Money)
  • Mayo (Feelings(Praise) & Relationships)
  • Herzberg (Motivators & Hygiene)
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7
Q

Describe Maslow & Taylor theories giving + and - for each.

A

Maslow:
Lower needs must be achieved before others
+ Clear direction
- No way to measure if level attained

Taylor
Money is the only motivator - Piece Rate
+ Productivity Increase
- Employee turnover low

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8
Q

Describe Mayo & Herzberg theories giving + and - for each

A

Mayo
Feelings (Praise) & relationships are the biggest motivator
+ Improved Moral and retention
- Lacks scientific base & Employees distracted

Herzberg
Motivators (Praise & feelings) and Hygiene (salary & conditions) are only motivators
+Increase loyalty & satisfaction
- Assumes all employees have the same needs

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9
Q

Name and describe the 4 Leadership Styles + and - for each

A

Autocratic
Leader makes all decisions - no input
+ Fast decision making
- retention & satisfaction

Democratic
Multiple people involved with decision making
+ Creativity & Innovation
- Time consuming & leader overwhelmed

Laissez-Faire
Team members make their own decisions
+ High moral and retention
- Lack of Direction

Paternalistic
Leader treats employees like family but makes all decisions
+ Trust and collaboration
- Condescending & same as Autocratic

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10
Q

What are the 6 protectionism methods?
- 3 Main ones
- 3 Extra ones

A

Quotas
- Physical limit on NO. goods imported

Tarrifs
- Tax on imports

Subsidies
- Gov grants given to domestic businesses

State Procurement
- Favouring domestic suppliers

Soft Loans
- Generous loan to domestic businesses to compete in foreign markets

Technical barriers
- Rules and Regulations

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11
Q

What are the 5 Assessors of a country as a market?

A
  • Ease of Doing Businesses
    (How easy to setup & operate)
  • Growth In disposable income
  • Infrastructure
    (Transport, utilities, supply)
  • Political stability
    (wars and relationships)
  • Exchange Rate
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12
Q

What are the 8 Assessors of a country as a Production location?

A
  • Cost of production
  • Skills and labour availability
  • Position in trading bloc
  • Government incentives (Subsidies & low tax)
  • Ease Of doing business
  • Infrastructure
  • Political stability
  • Natural resources
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13
Q

What are 4 reasons for global mergers & Joint Ventures

A
  • Spreading risk
    (Less reliance on one market)
  • Access to new markets
    (already established)
  • Access to intellectual property
  • Global competitiveness
    (Competitors may also be merging)
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14
Q

Describe & Explain the 3 approaches to global marketing with + and -

A

Ethnocentric
-> No change in the Marketing Mix
-> No attempt to adapt to global market
+ EOS
- Risk being offensive and insensitive

Geocentric (glocalised)
->Adapting some aspects to suit market
+ Can adapt whilst maintaining brand
- Expensive

Polycentric
-> Changing every aspect to suit market
+ Access to most markets
- Less unified business & risk of inconsistent brand

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15
Q

4 ways to control MNC’s

A
  • Political/legal Influences
    (Protectionism)
  • Social Media
    (Show world business actions)
  • Taxation
    Corp tax
  • Pressure groups
    Protesting and sabotage
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16
Q

3 Impacts of MNC on local area

A
  • Job creation
    (Growth in income and demand for local businesses)
  • Local businesses
    (local businesses part of supply chain)
  • Infrastructure
    (Sufficient transport might not be in place and MNC has to install)
17
Q

3 Impacts of MNC on nation

A
  • FDI Flows
    (Huge investment into country), reduction in national debt, increased tax
  • Balance of payments
    (FDI inflows & exports for MNC’s are 2 incomes for country)
  • Transfer pricing
    MNC selling its products in countries with lower tax levels - no tax in producing country