2.1 Growing the Business
- 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
- Introducing new products
- 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
- Internal Growth
- 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
- Retained Profit
- 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
- Loan Capital
- Internal
- 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
- Market Conditions
- 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
- Imports
- 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
- Ethics
- 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
- Growth
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