understanding business Flashcards
1
Q
types of growth
A
- organic
- inorganic:
- horizontal integration
- vertical growth
- conglomerate growth
2
Q
organic growth
A
- no loss of control
- new staff bring in ideas
- can target different markets
- takes a long time
3
Q
horizontal integration
A
- economies of scale
- common knowledge
- not spreading its risk
- variety of products reduces
4
Q
vertical growth
A
- standardise paperwork
- spreads risk
- no economies of scale
- firm lacks skills
5
Q
ways to achieve growth
A
- product development
- advertising,
- increasing staffing.
5
Q
conglomerate growth
A
- spread the risk
- attract wide range of customers
- spreads itself too thin
- unable to bulk buy
6
Q
types of structure
A
- tall
- flat
- matriz
7
Q
tall
A
- decision making is shared
- promotion is a clear option
- communication is slow
- doesn’t respond to change
8
Q
flat
A
- decisions made quickly
- workers have responsibility
- lot of pressure on manager
- lack of promotional opportunities
9
Q
centralised
A
- economies of scale
- quality of decisions good
10
Q
decentralised
A
- senior management less stressed
- respond quickly to changes
11
Q
types of decisions
A
- strategic
- tactical
- operational
