Business Growth

Success:

• Increasing profit
• Increasing market share
• Attracting new customers
• Expansion

Failures:

• Loss of profit
• Poor cash flow
• Frequent discount offers
• Staff redundancies

Positives:

• Increase profits
• Benefit from economies of scale
• Increased publicity
• Larger share of market - help sales
• Eliminate competitors

Negatives:

• Possible poor communication
• Lack of motivation for employees
• Difficulties of coordination

External:

• Franchising
• Takeover - one business buys many shares and gains alot of control
• Merger/Amalgamation - two small businesses join to form one large one
• Horizontal Integration - two businesses on same level and industry
• Verticle Integration - different levels and same industry
• Lateral Integration - two related businesses (weren't direct competition before)
• Conglomerate - two unrelated businesses joing together

Internal:

• Business will plough back its profits
• Develop new markets for its products
• Develope new products

Benefits:

• Savings for both businesses
• Less duplication
• Increased economies of scale
• Increased market share and sales

Drawbacks:

• Staff redundancies
• Customers have less choice

• Lack of finance - needed to buy premises and machinery
• Level of competition - bigger companies may take away trade
• Consumer tastes / preferences
• Lack of business acumen / entrepreneurial ability - need to have well trained staff
• Lack of communication - need to have knowledge of market

• Domination of market - monopoly companies may charge highly
• Out of town location
• Loss of jobs in rural areas
• Small firms may have to close dowm

• Independant public body
• Helps to ensure healthy competition in the UK - benefits companies, customers, and economy.
• Investigates and addresses issues of concern in mergers where monopoly is a possible outcome, where competition may be prevented, and when regulated sectors may not be operating effectively.

• Show bank - secure a loan
• Show shareholders - to ensure they stay as shareholders
• Show potential investors
• Ensure proper planning - no costs left out / mistakes made
• Monitorerformance against forecast - results vs predictions
• To keep track of spending - avoid unexpected costs

• Introduction - business name and address, idea description, product benefits.
• Objectives - mission statement, strengths, legal status, how it has been funded.
• Resource Plan - people involved, premises, working capital required, equipment.
• Marketing and Marketing Mix - details of customers, competitors, pricing, place (distribution).
• Production Plan - production process, health and safety
• Financial Plan - break even analysis, cash flow forecast, trading and profit and loss accounts.
• Appendices -  legal documents, market research materials.

Advantages:

• Wider global market - better known, more customers, increased sales
• Advertising costs are low - cheaper to advertise on the internet
• Business is always open - opportunities of sales at all times, increasing sales
• No need for show rooms/premises - major cost saving

Disadvantages:

• Wider global market - more competition, market reasearch must happen
• Packing and distribution - very expensive
• Not suitable for all types of customer e.g. elderly - could decrease sales

Advantages:

• Shop at time convenient to them - good for busy people
• Wider choice of goods
• Get detailed information - know exactly what they're getting
• Immediate transactions
• Repeat orders are easier - details are stored

Disadvantages:

• Security issues - card details etc.
• Must have internet access - may be cut off from certain products
• Not suitable for all items - perishable foods or larges products
• Returns can be difficult
• Loss of personal touch - no salesperson to ask about small details etc.

Advantages:

• Larger market - increased sales and profits
• Benefit from economies of scale
• Increased variety of goods
• Political reasons

Disadvantages:

• Increased competition
• Distribution issues
• Documentation issues
• Language difficulties - could result in poor communication
• Cultural differences

Product:

• Changes - legal requirements, technical issues, consumer tastes

Place:

• Available to target market
• Transport / delivery of product

Price:

• Set appropriate to local market
• Take into account exchange rate

Promotion:

• Changes - Language and cultural differences