Production

  • Created by: Jordan O
  • Created on: 09-03-18 12:15
What is internal growth?
It is when a business grows by hiring more staff and equipment
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What is external growth?
This is where a business merges or takes over
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What is a merger?
This is when 2 or more companies join together
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What is a acquisition?
This is when a company takes a controlling interest
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Reasons for businesses growing
Profit motive, economies of scale, brings in more customers
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Reasons for businesses staying small
Financial challenges, loss of control, increased staff work
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What is job production?
The production of an item to meet individual customer needs
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Advantages of job production
Cheap/easy to set up , meets specific needs of customers
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Disadvantages of job production
Time consuming, expensive to set up
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What is batch production?
Identical items are produced in groups
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Advantages of batch production
Quicker production, more uniform products/cheap
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Disadvantages of batch production
Keep stock of raw materials, machinery may need rest
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What is flow production?
Items along production line in a continuous process
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Advantages of flow production
Specialisation of workers, consistent quality
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Disadvantages of flow production
High initial costs, mistakes
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Examples of Location factors for businesses
Transport, Labour, Technology, Costs, Competition, Availability of raw materials
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What are multinational companies?
A business that has operations in more than one country
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Advantages of multinational companies
Creates jobs, economies of scale
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Disadvantages of multinational companies
May be low paid, profits not kept in host country
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Other cards in this set

Card 2

Front

What is external growth?

Back

This is where a business merges or takes over

Card 3

Front

What is a merger?

Back

Preview of the front of card 3

Card 4

Front

What is a acquisition?

Back

Preview of the front of card 4

Card 5

Front

Reasons for businesses growing

Back

Preview of the front of card 5
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