Paper 1 Flashcards
Theme 1 & 4
Limits for PED
elastic >1
Perfectly Inelastic = 0
Inelastic <1
Limits for YED
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)
Name the 5 stages of the product lifecycle
R&D, Introduction, Growth, Maturity, Decline
Name 3 extension strategies
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
Describe PPA
Product Portfolio Analysis
A way to measure products performance and growth potential
BSG Matrix (Explain)
Name the 4 motivation strategies
- Maslow (Hierarchy)
- Taylor (Money)
- Mayo (Feelings(Praise) & Relationships)
- Herzberg (Motivators & Hygiene)
Describe Maslow & Taylor theories giving + and - for each.
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
Describe Mayo & Herzberg theories giving + and - for each
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
Name and describe the 4 Leadership Styles + and - for each
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
What are the 6 protectionism methods?
- 3 Main ones
- 3 Extra ones
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
What are the 5 Assessors of a country as a market?
- Ease of Doing Businesses
(How easy to setup & operate) - Growth In disposable income
- Infrastructure
(Transport, utilities, supply) - Political stability
(wars and relationships) - Exchange Rate
What are the 8 Assessors of a country as a Production location?
- 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
What are 4 reasons for global mergers & Joint Ventures
- Spreading risk
(Less reliance on one market) - Access to new markets
(already established) - Access to intellectual property
- Global competitiveness
(Competitors may also be merging)
Describe & Explain the 3 approaches to global marketing with + and -
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
4 ways to control MNC’s
- Political/legal Influences
(Protectionism) - Social Media
(Show world business actions) - Taxation
Corp tax - Pressure groups
Protesting and sabotage
