Slides in this set

Slide 1

Preview of page 1

Unit 2 Revision…read more

Slide 2

Preview of page 2

1.The Business Organisation
1.1 Expanding a Business
· Supplies benefit from additional orders and more large opportunities.
· Local Community will have more funds to invest and also recruitment opportunities.
· Government gets higher income tax and low unemployment.
· Employees get job security and receive greater rewards.
· Suppliers may be bullied by bigger firms.
· Business may not invest in community and switch production abroad.
· Government does not benefit if business relocates and expands abroad.
· Communication difficult in big businesses so employees may not feel informed.
· Employees may not feel part of the business and feel they don't count as individual.…read more

Slide 3

Preview of page 3

.....stakeholder conflicts
· Strike ­ employees stop working
· Boycott Product ­ stop buying their products
· Lobby Government ­ get government to force business to change policies
· Complain ­ complain to business. If strong argument stakeholders will succeed.
· Workers ­ trade unions, negotiation.
· Consumers ­ Consumer groups/websites to pressurise, check prices carefully.
· Suppliers ­ Insist on reasonable prices, keep close watch on firms bank account.
· Government ­ Government concerned if monopoly and this can be stopped.…read more

Slide 4

Preview of page 4

.....methods of expansion
Internal/Organic Growth
· Expansion within the business.
· Business sells more products opens more branches.
· Slower type of growth but more manageable.
External/Integration Growth
· Firms join together.
· A merger occurs where two or more firms joint together to form joint business
· A takeover occurs when one firm gains control of another and buys it up.…read more

Slide 5

Preview of page 5

1.2 Legal Structure for the Business
Private Limited Companies (Ltd)
· They do not sell shares to the public.
· They sell shares to family and friends.
Public Limited Companies (PLC)
· It can become a private limited company once it ha a share capital £50,000+.
· Sells shares on the stock market.
· Shares brought by public and financial institutions.
· Floatation occurs when Ltd decides to become a PLC.…read more

Slide 6

Preview of page 6

.....becoming a PLC from a Ltd
· They can sell a large amount of shares and raise a lot of capital.
· They are often in newspapers providing cheap publicity.
· More status and impress customers more than private companies.
· Investors willing to buy shares knowing they can easily sell them later.
· Bad publicity if the PLC makes a mistake the media are more like to cover it.
· A competitor may buy shares and then take control of the company.
· New investors may not agree with original investors.
· PLC regulated. Information has to be new and regular available to public.…read more

Slide 7

Preview of page 7
Preview of page 7

Slide 8

Preview of page 8
Preview of page 8

Slide 9

Preview of page 9
Preview of page 9

Slide 10

Preview of page 10
Preview of page 10




Excellent presentation on the main points required for GCSE. Students can adapt them to increase their involvement eg by creating their own flash cards or quiz sheets.







Similar Business Studies resources:

See all Business Studies resources »