GCSE Business Studies

This resource is from the old specification (A*-C)

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  • Business Studies
    • Unit 1
    • Unit 2
      • Expanding a Business
        • Methods
          • Internal (organic) growth
            • The business grows by hiring more staff and equipment to increase its output
          • External growth
            • When the business merges or takes over another organisation
              • Combining two firms increases the scale of operation
          • Franchising
            • Where a business leases its idea to franchises
              • New branches can open internationally e.g. McDonalds
        • Reasons
          • Increase the sales of the business
            • increased profits
              • profits will not increase if the business has to lower its prices
          • Increase the market share
            • if sales grow faster than total market sales then share price will increase- retailers are more prepared to stock the businesses products
          • Economies of scale
            • Reducing the costs of producing each product and therefore being able to buy large quantities of material with bulk discounts
              • Difficult to manage large businesses and could increase cost of making each product
          • Feeling more secure as a business
            • Customers trust large businesses to a higher extent compared to smaller businesses
              • Large businesses can make losses and be forced out of business
      • Legal structure
        • private limited companies (ltd)
          • cannot publically advertise its shares for sale
          • often owned by family members
          • possible to put restrictions on who buys the shares
        • public limited companies (plc)
          • adv.
            • shares can go to the general public so more possible investors
            • more money earned by selling shares and the money can be used to finance the companies expansion
            • more media coverage because of more shareholders. more interest - cheap publicity
            • more status than ltd's. This can impress customers.
            • investors are willing to buy shares as they can be sold easily
          • disadv.
            • media coverage can cover a story on a mistake and this can make the company  look bad
            • a competitor my buy shares from the business and then take it over
            • more regulated than a ltd (more laws). information can be given away to competitors or the media
            • when an ltd becomes a plc there can be clashes between old and new owners
        • holding company
          • holds shares in other companies and therefore controls what they do
        • subsidiary company
          • a business that is owned by another
      • Changing the aims and objectives
        • reasons
          • because you have achieved them and now need to set new ones
          • some of the original ones were not realistic
          • the business has grown so the objectives will be different to when they started
        • possible new objectives
          • growth
            • organic
            • external
            • high market share
          • innovation
          • diversification
          • going international
            • more customers
            • offers a  growing market
            • allows further growth when growing in the UK becomes problematic
            • may reduce risks  from being in one country
        • ethical and environmental considerations
          • is child labour involved in production?
          • are suppliers paid fairly and on time?
          • does the company recycle?
          • do they conserve energy?
          • how do they control emissions?
      • Location
      • Marketing Mix
        • Product
        • Price
        • Promotion
        • Place
      • Finance for large businesses
      • Profit and loss accounts and Balance sheets
      • Organisation structures
      • Recruitment of staff
      • Production methods
      • Challenges of growth
      • Maintaining quality assurance

Comments

CHEESECAKE

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Hey, I hope this would be useful for anyone revising for their GCSEs this year! (2017)

Good Luck!

aria200702

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wow

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