set 1

Question 1

why is external growth better than internal growth

what is also issue with external growth

Answer 1

1. external growth is much quicker as increases capacity, workforce, technology and assets. also increases market share which will directly increase sales

however problems are
1. tension between staff of merged business as they will try establish their status also takes time for workers to adapt to procedures leads to poor customer service

2. competition and market authority might investigated whether a merger will restrict competition in market if they find it does then they will stop the merger from taking place
3. when business is expanding oversees they consider different laws and languages just because growth strategy might be successful in one country does not mean it will be successful in another.

Question 2

what is innovation?

what is process innovation?

what are benefits of innovation and weakness of innovation?

how does it affect other areas of the business?

Answer 2

comming up with new ideas

putting in new or improved production and delivery methods

benefits
- charge higher prices as first
- good reputation
- can added value

weakness
- costly and time
- wasting resource
- bad reputation if poor innovation

finance - too expensive
operations - might need to buy expensive machinery
human resource - might need more skilled staff

Question 3

how does research and development department make a launch a product

what is 6 steps

Answer 3

1. idea = come up with idea
2. analysis and screening = prototype might be made to see if can be sold at profit
3. development = working on the protype they test it scientifically to make a functional and aesthetic design
4. value analysis = try to make product a good value for money
5. test marketing = selling limited geographical area and get feedback from customers.
6. launch = need enough stock before selling also promotional methods.

Question 4

what are other 3 ways a business can be innovative

Answer 4

1. kaizen = as small changes lead to innovation and also cheap for innovation
   - however might not lead to innovation as workers are not thinking about customer wants and needs
2. intrapreneurs = encourage employees to become intrapreneurs as they tell them to solve a problem by coming up innovative ideas
   advantage- done alongside their job so not wasting time

benchmarking - learning from other businesses
study other business with excellent quality standards and become innovative by adopting their strategies
- can be done internally - through different departments
- can done through different industries such for e.g Tesco introducing click and collect has influenced fast food restaurants

however downside to benchmarking = wont lead to new products as competitors may have protected by patent or copyright
- also what works in one culture might not work in another.

Question 5

what is patent?

what is trademark?

what is copyright?

Answer 5

patent = if you have new invention you can apply for patent from the patent office no one else can copy you unless you give them license

trademark= if you want to protect your business name and slogan you can register it as trademark
- might difficult to trademark some slogans if does not include the company’s name.

copyright = gives protection to written work and music
- it illegal to reproduce other peoples work without their permission.