semester 1 final: part 2

Question 1

SWOT

Answer 1

strengths, weaknesses, opportunities, and threats. - Advantages: helps develop a better understanding of an business’ position in the market. Disadvantages: SWOT does not guarantee the strategy will be successful, only provides a snapshot of the current situation for an organization

Question 2

Market penetration

Answer 2

existing products, existing market

Question 3

Market development

Answer 3

existing products, new market

Question 4

Product development

Answer 4

new products, existing market

Question 5

Diversification

Answer 5

new products, new market

Question 6

Employees

Answer 6

are internal stakeholders that have a direct impact on the performance of the business they work for based on their work ethic

Question 7

Managers

Answer 7

are internal stakeholders that are hired to oversee certain functions within an business

Question 8

Shareholders

Answer 8

are internal stakeholders that buy shares in the company and therefore, own a part of the business

Question 9

Customers

Answer 9

are external stakeholders that pay for the goods and/or services of the business

Question 10

Suppliers

Answer 10

are external stakeholders that provide the goods for businesses

Question 11

Local community

Answer 11

are external stakeholders that are the general public that have a direct interest in the activities of the business

Question 12

Pressure groups

Answer 12

are external stakeholders that are people who come together for a common cause or concern

Question 13

The government

Answer 13

are external stakeholders that make sure businesses operate in a legal way

Question 14

STEEPLE (aka PESTLE)

Answer 14

Social, technological, economic, ethical, political, legal, environmental. Advantages: enables the business to identify opportunities and threats

Question 15

Economies of scale

Answer 15

enable a business to benefit from lower average costs by increasing the size of its operations

Question 16

Diseconomies of scale

Answer 16

causes the firm’s average costs of production to rise and occurs if the firm grows beyond its ability to operate efficiently

Question 17

Internal (organic) growth

Answer 17

occurs when a business expands without the help of an external partner firm and uses its own resources to do so

Question 18

External (inorganic) growth

Answer 18

occurs when a business needs the help of a partner organization for growth

Question 19

Acquisitions

Answer 19

is external growth that involves 1 company buying a majority stake in another company, leading to a change in ownership

Question 20

Merger

Answer 20

is external growth that involves 2 companies agreeing to form a single company and benefiting from operating on a larger scale

Question 21

Joint ventures

Answer 21

is external growth that involves 2+ businesses agreeing to create a business entity, typically for a set period of time… typically funded by their parent companies

Question 22

Strategic alliances

Answer 22

is external growth where 2+ businesses join together to benefit from external growth

Question 23

Franchising

Answer 23

is external growth that involves the franchisor giving the legal rights to a franchisee to own, buy, and sell goods/services using the franchisor’s brand

Question 24

Internal finance

Answer 24

sources of finance that come from within the organization from its own resources without the help of a third party…. includes personal funds, sales of assets

Question 25

External finance

Answer 25

sources of finance that come from outside the business, usually with the help of a third party provider, includes loan capital, grants, business angels, etc.

Question 26

CUEGIS

Answer 26

Change, culture, ethics, growth, innovation, strategy

Question 27

Change

Answer 27

involves a business accommodating for the external business environment

Question 28

Culture

Answer 28

describes a business’ traditions and the way things are done within the business depending on the region they’re in

Question 29

Innovation

Answer 29

process of improving business through introducing new or adapting existing products/services

Question 30

Strategy

Answer 30

long term decisions that allow business to reach a goal