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Business unit 4 revision notes
Understanding mission, aims and objectives
Corporate aims are long term targets that will enable the business to fulfil its mission. It expresses
the ways in which the organisation intends to develop. Focus on the direction of the business, and
provide a framework within which objectives…

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Customers put pressure on business to improve environmental or ethical issues by
boycotting products.
Large organisations having influence on suppliers and/or customers.
Creditors and investors can stop potential products by supplying funds, need assurance of a
good financial return.
Society can put pressure on through the media, relates to environmental…

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Business strategies for recovery, upturn or growth:

Possible business strategies Evaluation
Use existing capacity and increase output to low risk as no additional capital is required
meet expected increase in demand
Expansion of capacity to cope with expected Substantial capital investments needed;
increase in demand uncertain on recovery; if other…

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Interest rates - The higher the rate of inflation, the higher the level of interest rates used to control
it, responsibility of Monetary Policy Committee of the Bank of England.

Cost of borrowing capital for businesses:

Cost of loans and overdraft increases and interest rates rise, add to costs and…

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Product may not suit foreign tastes
Consider sales of overseas assets as these will May be needed in the future
now be worth more in £ terms Potential profit may be lost if £ falls further
Expand operations in UK, as foreign will be Small changes in exchange rates should…

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Emerging Markets - Are nations with social or business activity in the process of rapid growth and
industrialisation. There are 28 emerging markets in the world, China and India being the largest.

Evaluation of strategy for expansion into emerging market economies:

Political uncertainty and instability - Investment projects may be…

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Balance of Payments: the account that records the UK's values of imports of goods and services and
the value of its exports - a deficit exists when import values exceed export values and surplus exists
when export values exceed import values.

Fiscal Policy - use by the government of changes…

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Monetary policy - use of interest rates by the bank of England to keep inflation at a target of 2%.

Impact on business of interest rate changes:-

Increase in interest rates can reduce chances of survival for new businesses.
Rising interest rates reduce customers' discretionary income and demand for less…

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The BoE will lose its independence to the European Central Bank, which sets the Eurozone
interest rates. This means the interest rate set may not be ideal for the UK economy.

Impacts on the UK of further EU expansion:-

Huge new markets without any trade barriers.
Easier mergers and takeovers.…

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Reduced UK strike record and improved relations helped minimise disruption and raised
productivity.
Prevent large scale destruction of countryside, which makes UK attractive to tourists and
businesses willing to invest.
Consumer confidence has encouraged consumers to spend.
All businesses accepting EU laws will create a fair business environment.

Legal Controls…

Comments

Henry Smout

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this is amazing! thanks

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