1. State 3 methods a business could use to expand...
1. Merge with another business 2. Acquire (takeover) another business 3. They could grow organically
1 of 13
2. State 4 advantages of merging your business with another business...
1. Fever competitors 2. Grow quickly 3. If you merge with your supplier, costs could be reduced 4. You could merge with a business who could sell your product
2 of 13
3. State 3 disadvantages of merging your business with another business...
1. The two different businesses may have different brands e.g. the Body Shop & L'Oreal 2. Loss of jobs due to duplicate roles at the two different businesses 3. Different working practices may make it difficult for staff to work together
3 of 13
4. State 3 stakeholders and explain how the growth of a business can impact them...
1. Suppliers- they could have pressure put on them to reduce their prices as the business grows (OR they could be given bigger orders) 2. Employees- They may lose their jobs (OR they may get promoted) 3. Customers- There will be less choice for them
4 of 13
5. State 4 ways a stakeholder can protect their own interests...
1. Strike 2. Lobby government 3. Boycott product 4. Complain
5 of 13
6. What is meant by growing organically?
This is where a business grows slowly by gradually opening more stores or gradually selling more products. John Lewis has grown organically, for example.
6 of 13
7. State 3 advantages of growing organically...
1. Easy to manage 2. You don't have to try and merge two different hierarchies 3. Don't have to worry about staff not working well together
7 of 13
8. What is meant by a merger?
This is where two businesses merge together.
8 of 13
9. What is meant by an acquisition or takeover?
This is where one business takes over another business.
9 of 13
10. State 4 benefits of growth...
1. Lower unit cost due to economies of scale 2. Can demand a discount from your suppliers 3. You can afford excellent managers who can make your business run efficiently 4. Customers are more aware of a larger business
10 of 13
11. State 4 downsides of growth...
1. Media attention which can be bad 2. Poor communication as there are so many staff 3. Staff not motivated as they feel like just a number in such a large business 4. Business is slow to react so could miss out on good opportunities
11 of 13
12. What are the advantages of growing your business using the franchise method?
•The franchise puts up the money to start the franchise •The franchisee runs the franchise on a day-to-day basis •You can grow the business fast
12 of 13
13. What are the downsides of growing your business using the franchise method?
•One bad franchise affects the reputation of them all •You have to share the profit •Difficult to manage a lot of franchisees
13 of 13
Other cards in this set
Card 2
Front
2. State 4 advantages of merging your business with another business...
Back
1. Fever competitors 2. Grow quickly 3. If you merge with your supplier, costs could be reduced 4. You could merge with a business who could sell your product
Card 3
Front
3. State 3 disadvantages of merging your business with another business...
Back
Card 4
Front
4. State 3 stakeholders and explain how the growth of a business can impact them...
Back
Card 5
Front
5. State 4 ways a stakeholder can protect their own interests...
Comments
No comments have yet been made