2.1 Growing the Business

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  • Created by: pinkbeer
  • Created on: 23-09-19 16:06
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  • Growing the Business
    • Growth
      • Internal Growth
        • Introducing new products
          • Research and develpoment
          • Innovation- quite high risk
          • Research new products using E-commerce
        • Entering new markets
          • Selling existing products but to a different group of people
          • Expanding overseas
      • External Growth
        • Expamds by joining another business
        • Mergers
          • 2 or more business join to operate as a combined business
        • Takeover
          • When a business completely takeovers another
          • One business will no longer exsist
    • Sources of Finance
      • Internal
        • Retained Profit
          • Kept in the business and is used to fund future activities
        • Selling Assets
          • GIves an immeadiat lump sum but business losses assets
      • External
        • Loan Capital
          • Bank loan-money has to be paid over a period of time
        • Share Capital
          • Investors buy part of the business in return for a share of the profit
          • Profit given back as dividends increasing value of shares
    • Aims and Objectives
      • Market Conditions
        • Will need to change when businesses enter and leave the market
      • Technology
        • Change depending on new technology that is available and that they can impliment
      • Performance
        • Change objectives based on profit they have made and how the business is running
      • Legislation
        • Will have to change for new pieces of legislation that need to be put in place
      • Internal Reasons
        • May change due to high ranked employees change
    • Globalisation
      • Imports
        • Creates competition for local businesses
        • Stock wider range of products
        • Reduces costs
      • Exports
        • Wider target market
      • Businesses Location
        • Able to pick the best country for cheap labour and best markets they can enter
    • Tariff
      • Tax imposed on imports
      • Increases demand for local goods
    • Trade Bloc
      • Group of countries who promote trade between themselves
      • Decreases price of imports
      • Causes countries oustside of Bloc to increase their tariff
    • Internet
      • Communicate with existing and potential customers
      • Build brand loyalty
      • Trades 24/7
    • Ethical and Environmental Conditions
      • Ethics
        • Treating workers, customers and suppliers fairly
        • Ethical sourcing of materials and caring for the community
        • Meeting government requirements
      • Enviromental
        • Air, water, noise and light pollution
        • Non-renewable resources, waste disposal and unnecessary packaging
        • Long term damage and carbon footprint
        • Can carry out green audit
    • Pressure Group
      • Boycott, social media, viral marketing, public protests, online petitions and lobbying
    • Trade Offs
      • Sometimes behaving ethically decreases the businesses profits
      • Business may have to increase costs to reduce thier impact on the enviroment

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