Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business Paper 2 > Theme 3 > Flashcards

Theme 3 Flashcards

1
Q

Name the four stages of ansoff matrix

A

Market penetration, product development, market development, diversification

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is market penetration?

A

Existing product in Existing market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is product development?

A

New products in existing market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is market development?

A

New market with existing product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is diversification?

A

New market and new product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

How can a business use market penetration?

A

Low price
Use promotion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is a drawback of market penetration?

A

Limit growth and low eos

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is the benefit of product development?

A

Increase loyalty and become price inelastic

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is the drawback of product development?

A

High R+D costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is the advantage if market development?

A

Spread risk
Purchasing eos

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is the disadvantage if market development?

A

Market research to find best country and understand their needs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is the benefit of diversification?

A

New opportunities which can lead to high levels of growth and eos

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is the disadvantage of diversification?

A

R+D and market research costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What does swot stand for?

A

Strengths, weaknesses, opportunities, threats

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is the structure for swot analysis?

A

Para 1- pick one of swot and do line of analysis
Para 2- pick another swot and say why might be bad
Conclusion say disadvantage could be advantage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are porters five forces?

A

Threat of new entrants
Threat of substitutes
Rivalry among competitors
Bargaining power of suppliers
Bargaining power of buyers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is threat of new entrants?

A

How high barriers of entry in the market are. If high low competition.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is the impact of threat of substitutes?

A

If high more competition and more price elastic

19
Q

How can suppliers have a higher Bargaining power

A

When there is less in market

20
Q

What is Bargaining power of buyers?

A

More choice negotiate lower prices

21
Q

What is external economies of scale?

A

Reduction in costs in industry businesses can use. Caused by labour or outsourcing

22
Q

How can Labour lead to external eos?

A

Industry grows so more workers attracted. More people go to education e.g. uni courses for job. More skills in Industry More skilled workers. More productive spread fixed costs over more units

23
Q

How can suppliers lead to external eos?

A

More suppliers
More choice of suppliers
More buyer power
Negotiate lower prices
Lower cost of sales
Lower sp
Increase demand
Spread fc over more units

24
Q

What are problems with growing

A

Diseconomies of scale
Overtrading

25
Q

How can internal diseconomies of scale occur?

A

Employee productivity low
Multiple suppliers can negotiate purchasing eos

26
Q

What causes external diseconomies of scale?

A

Overcrowding
Firms compete for resources increasing costs

27
Q

What is overtrading?

A

Grows too quickly so run out of cash. Low liquidity

28
Q

What is organic growth?

A

Growing from within the business

29
Q

What are external economies of scale?

A

Mergers, takeovers, and joint venture

30
Q

What is a takeover?

A

One business buying a majority share in another

31
Q

What is a merger?

A

Two businesses join together to dilute shares

32
Q

What is a joint venture?

A

Two businesses work together on a project

33
Q

What is the benefit of decision trees?

A

Find option that will return the highest profit. Reinvest into expansion and achieve eos

34
Q

What is the drawback of decision trees?

A

Don’t account pestle factors so may have less profits

35
Q

What are the two business decision methods?

A

Subjective and evidence based

36
Q

What is an advantage of subjective decision making?

A

Quick decision making

37
Q

What is transformational leadership?

A

When there’s a change in leadership

38
Q

What is a benefit of transformational leadership?

A

New ideas into business

39
Q

What is a drawback of transformational leadership?

A

Not match business culture/ culture class so lower productivity

40
Q

What is scenario planning?

A

Plan for impact of potential threats

41
Q

How do you set out a scenario planning question?

A

Identify threat
Identify how business reduces impact
Say how planning lowered impact on reputation
Impact of strong reputation

42
Q

What is business continuity?

A

How to restore business back to normal after a setback

43
Q

What is succession planning?

A

Thinking of person to replace leader after leader leaves

Business Paper 2 (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions