Unit 3

Question 1

BUSINESS GROWTH

How

Answer 1

Organic growth
Horizontal integration
Forward/backward vertical integration
Conglomerate integration

Question 2

BUSINESS GROWTH

Constraints

Answer 2

Size of the market 
Access to finance 
Owner objectives 
Regulation 
Marketing barriers
Diseconomies of scale

Question 3

GOVERNMENT INTERVENTION

To control monopolies

Answer 3

Price regulation

Profit regulation

Quality standards

Performance targets

Question 4

GOVERNMENT INTERVENTION

To promote competition

Answer 4

Deregulation

Promotion of small business

Competitive tendering for gov contracts

Privatisation

Question 5

GOVERNMENT INTERVENTION

Protect suppliers and employees

Answer 5

Nationalisation

Restrict monopsony power of firms

Question 6

NON - PRICING STRATEGIES

To increase a firms market share

Answer 6

Investment in new tech to develop new products

Improvement in Quality

Advertising

Promotion through other means e.g. Get backing from regulators

Question 7

PRICING STRATEGIES

To increase a firms market share

Answer 7

Limit pricing

Predator pricing

Sales maximisation

Buy - one - get - one - free

Revenue maximisation