Strategy Flashcards
What are the 8 strategies
Outsourcing Joint ventures Partnerships Agencies Subsidiary Franchising License if
What is a subsidiary company
A parent company that owns 50% of holdings of another company
They may follow that countries rules
What are the benefits and cons of owning subsidiaries
Limit risks
Goods and controls are already there
The business bought has staff n items
Cons
Business maybe hostile of takeover
What is joint-venture
Two business coming together by contractual agreement
Benefits and cons of joint-venture
Benefits
Growth without taking out loans increase capacity
win win performance
Negatives
Communicating problem
Dispute
Different business culture
What’s a partnership
Two businesses join together for long term
Multiple projects focused
Joint profits and liabilities
Share resources
What an agency
Helps expand internationally but can charge from 2.5 to 15%
Benefits and cons of agencies
Benefits Giving information and contacts Uses office stuff to promote sales  Con Additional cost and no guarantee
What is licensing
A company letting another company uses it’s product and manufacturing to produce in that country
Covers copyright and patents and can be exclusive
Benefits and cons of licensing
Benefits
Support
Low investment
Access to market
Cons
Lower income
Damaged reputation
subcontractor Con and benefits
Benefits
Useful
Low investment
Self-employed
Cons 
Expensive long-term
Not as loyal
Less motivation
What is outsourcing
Using another business to carry out some tasks such as running accounts payrolls ETC
Benefits and disadvantages of outsourcing
Benefits Keeps business focused Less risks Flexible access to specialist
Cons
Reliance poor
Hidden cost
Quality of information
