CIE A-level Business Studies revision notes - for May/June 2012

This is a brief revision guide I made to aid my A-level Business Studies revision. I went through each topic from the May/June 2012 Cambridge syllabus and used the CIE Business Studies textbook & other resources from various sources combined to help me with the content. So this is basically a much shorter and simpler version of the big textbook! I really hope you guys would find this a bit useful to your studies. And good luck to all! 

HideShow resource information
  • Created by: Cherrie.T
  • Created on: 06-06-12 14:18
Preview of CIE A-level Business Studies revision notes - for May/June 2012

First 485 words of the document:

1AL.2
Business
Structure
Trading
links
International
trade
has
grown
rapidly
in
the
recent
years
More
countries
trading
together
means
can
be
beneficial:
Improve
their
political
&
social
aspects
and
resolve
differences
between
them
Wider
choices
for
consumers
­
may
lead
to
better
standards
of
living
Countries
may
obtain
any
raw
materials
that
are
not
available
in
their
own
countries
Imports
may
create
competition
for
domestic
firms
and
encourage
them
to
be
more
efficient
Countries
can
specialise
in
the
products
they
are
best
at
making
and
benefit
from
the
economies
of
scale
However,
these
are
the
drawbacks:
Loss
of
output
&
jobs
from
domestic
firms
(cannot
compete
with
imported
goods)
Strategic
industries
(foodstuffs,
electricity,
coal,
etc.)
should
not
be
dependent
on
other
countries
because
if
there
were
a
conflict
between
countries
or
another
factor
leading
to
loss
of
imports
then
the
country
would
lose
the
supply
of
important
goods
New/small
businesses
(infant
industries)
may
not
compete
with
imported
goods
Importers
may
dump
goods
(price
lower
than
cost),
which
is
unfair
Too
much
imports
could
lead
to
a
current
account
deficit
&
depreciation
in
currency
Multinationals
Multinational
business
­
business
organisation
that
has
its
headquarters
in
one
country,
but
with
operating
branches,
factories
and
assembly
plants
in
other
countries
What's
good
about
becoming
a
multinational?
­
Closer
to
main
markets
(lower
transport
costs,
better
information
of
market)
Lower
costs
or
production
(lower
local
wages,
cheaper
rent
and
site
costs,
better
government
grants
and
taxes)
1

Other pages in this set

Page 2

Preview of page 2

Here's a taster:

Avoid
import
restrictions
Access
to
local
natural
resources
Problems
that
multinationals
might
face:
Communication
problems
(language
barriers)
Culture
&
legal
difference
(so
need
to
adapt)
Biggest
type
of
organisation
so
need
to
ensure
that
the
objectives
are
coordinated
between
all
plants
of
the
business
Benefits
to
`host'
countries:
Create
employment
&
training
opportunity
(improved
labour
skills)
Local
firms
may
benefit
from
supplying
materials
to
the
multinationals
May
improve
infrastructure
for
the
country
Encourage
local
firms
to
improve
standards
to
compete
with
bigger
businesses
Increased
government…read more

Page 3

Preview of page 3

Here's a taster:

Arguments
against
privatisation:
The
state
should
take
decisions
about
essential
industries
which
are
based
on
society's
needs
not
just
interest
of
shareholders
(some
unprofitable
companies
may
be
kept
open)
It
is
more
difficult
to
achieve
coordinated
policy
to
benefit
the
whole
country
with
many
privately
run
businesses
Many
strategic
industries
could
operate
as
private
monopolies
if
privatised
and
they
could
exploit
consumers
with
high
prices
Nationalisation
Nationalisation
­
selling
privately
owned
and
controlled
business
organisations
to
the
state
or
public
sector
Arguments
for
nationalisation:
Weaknesses…read more

Page 4

Preview of page 4

Here's a taster:

Merger
­
an
agreement
by
shareholders
and
managers
of
two
businesses
to
bring
both
firm
together
under
a
common
board
of
directors
with
shareholders
in
both
businesses
owning
shares
in
the
newly
merged
business
· Takeover
­
when
a
company
buys
over
50%
of
the
shares
of
another
company
and
becomes
the
controlling
owner
of
it.…read more

Page 5

Preview of page 5

Here's a taster:

Advantages
of
merging/integrating:
Two
firms
may
be
able
to
share
research
facilities
&
ideas
that
will
benefit
both
businesses
(only
if
firms
use
the
same
kind
of
technologies)
Larger
firms
may
benefit
from
economies
of
scale
The
new
business
can
save
on
marketing
&
distribution
costs
using
the
same
outlets
and
sales
teams
Disadvantages
of
merging/integrating:
The
firm
may
become
too
big
and
faces
diseconomies
of
scale
There
may
be
little
mutual
benefit
from
shared
facilities
or
marketing
systems
if
the
firms
have
products
in…read more

Page 6

Preview of page 6

Here's a taster:

Cyclical
­
unemployment
resulting
from
low
demand
for
goods
and
services
in
the
economy
during
a
period
of
slow
economic
growth
or
a
recession
(AD
falls,
firms
produce
less,
less
workers
needed)
Government
needs
to
avoid
substantial
swings
in
the
business
cycle
(stabilise
inflation
&
exchange
rate
so
that
domestic
and
international
demands
do
not
fluctuate
much)
Structural
­
unemployment
caused
by
the
decline
in
important
industries,
leading
to
significant
job
losses
in
one
sector
of
industry
(changes
in
consumer
tastes
­
e.g.…read more

Page 7

Preview of page 7

Here's a taster:

Since
stocks
are
bought
in
advance
and
then
sold
later,
there
is
an
increase
in
profit
due
to
inflation
Drawbacks
of
high
inflation
(5-6%):
· Higher
wage
demands
from
workers
(adds
to
costs)
· Consumers
demand
may
fall
· Government
needs
to
raise
interest
rates
to
reduce
AD
and
try
to
control
the
rising
inflation,
this
would
increase
the
size
of
debt
a
business
has
to
pay
· Cash-flow
problems
may
occur
because
businesses
have
higher
costs
· Inflation
adds
uncertainty
about
the
future
·…read more

Page 8

Preview of page 8

Here's a taster:

Improve
by:
Increase
staff
motivation
More
efficient
&
reliable
capital
equipment
Better
staff
training
Increase
worker
involvement
in
problem
solving
to
speed
up
production
Improve
internal
efficiency
(e.g.
no
waiting
for
supplies
of
materials
to
arrive)
· Absenteeism
rates
­
measures
the
rate
of
workforce
absence
as
a
proportion
of
the
employee
total
Number
of
staff
absent
X
100
Total
number
of
staff
May
be
caused
by
poor
working
conditions
(lead
to
illness,
stress,
loss
of
motivation)
Staff
absenteeism
may
lead
to
poor
customer
services.…read more

Page 9

Preview of page 9

Here's a taster:

Improving
employee
performance
· Regular
performance
appraisal
against
pre-set
targets
­
if
constantly
failing
then
disciplinary
procedures
or
further
training
may
be
needed
· Offering
training
opportunities
to
stretch
and
challenge
every
worker
may
help
to
increase
efficiency
· Quality
circles
­
involve
everyone
in
suggesting
solutions
to
problems
· Team
work
­
give
complete
section
of
work
to
each
team
(improve
motivation)
· Offering
financial
incentives
Management
by
objectives
(MBO)
Dividing
the
organisation's
overall
aim
into
specific
targets
for
each
division,
department
and
individual.…read more

Page 10

Preview of page 10

Here's a taster:

Collective
bargaining
between
trade
unions
and
employers
­
when
unions
and
national
employers
negotiate
wage
levels
and
working
conditions
for
the
whole
industry.
Unions
are
powerful
because
they
may
call
for
strike
actions,
which
bring
the
entire
industry
to
a
halt.…read more

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all resources »