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Business A-level > 4.3+4.4 > Flashcards

4.3+4.4 Flashcards

1
Q

What is glocalisation?

A

The global product and distribution of goods and services which are adapted to reflect and meet local demands.

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2
Q

+ of glocalisation (2)

A
  • can increase sales revenue + profitability
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3
Q
  • of glocalisation
A
  • requires specialist knowledge of local and national markets which can increase costs
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4
Q

ethnocentrism meaning

A

where the companies approach does not adapt to local needs; sticking to the business’ domestic practices

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5
Q

Polycentrism meaning

A

where the companies approach is adapting to local needs

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6
Q

geocentrism meaning

A

a mixture of the ethnocentric and geocentric approach. the business maintains and promotes he global brand name, but tailors to its products to local markets

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7
Q

ethnocentrism + (1)

A
  • costs are reduced (the business is not adapting to meet the needs of overseas markets)
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8
Q

ethnocentrism - (1)

A

can result in marketing activities which do not appeal to the target overseas market

e.g if Macdonalds sold pork in UAE ( Islam is the official religion)

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9
Q

geocentrism + (1)

A

-products are tailored to suit the needs of the local market, so are likely to sell well

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10
Q

geocentrism - (1)

A
  • higher cost of product development
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11
Q

polycentrism + (1)

A
  • can increase market share
  • can increase the exploitation of opportunities
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12
Q

polycentrism - (1)

A
  • business costs are increased as marketing approaches are refined to meet the needs of local + national markets
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13
Q

what are the 4 elements of Ansoff’s matrix ?

A
  • market development
  • market penetration
  • product development
  • diversification
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14
Q

market penetration meaning

A

existing products to existing markets

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15
Q

market development meaning

A

existing products to new market s

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16
Q

diversification meaning

A

new products to new markets

17
Q

product development meaning

A

new products to existing markets

18
Q

+ of diversification (2)

A
  • can spread risk, gives business an alternative if the demand for one product declines
  • opportunity for market share growth
19
Q
  • of diversification
A
  • new products and new markets means that business will have limited expertise in each (increases risk)
20
Q

what are the 4 p’s

A
  • product
  • place
  • price
  • promotion
21
Q

niche market meaning

A

a small and specialised market where businesses target the specific wants and needs of consumers

22
Q

what are the 4 main influences that affect global expansion of a business ?

A
  • cultural differences
  • tastes
  • language barriers
  • unintended meanings
23
Q

how do cultural differences/tastes affect a business considering global expansion ?

A
  • businesses may need to adapt to the cultural differences and tastes of different countries, in order to expand
24
Q

how do language barriers affect global expansion of businesses? (2)

A
  • businesses may not have the skill and expertise within its trade across different languages
  • this may lead to miscommunication/ lack of communication
25
Q

unintended meanings, how does it affect the global expansion of businesses ? (2)

A
  • inappropriate/ inaccurate branding, translations and promotions can affect the expansion of a business
  • a business may need to recognise differences in cultural norms throughout countries it is operated in
26
Q

what is an MNC ?

A

A multinational organisation is a business which has production facilities in more than one country.

27
Q

what are the main variables that affect a businesses decision to enter a country ? (5)

A
  • The political stability
  • Local competition
  • Size of the market
  • Local infrastructure
  • Local Resources
28
Q

what are the main impacts of MNCs on the local economy

A
  • employment
  • competitiveness
  • the community
    -exploitation
29
Q

how does an MNC affect the employment within the local economy

A
  • they can provide employment (reducing unemployment and providing wages to employees)
30
Q

how does an MNC affect the competitveness within the local economy

A
  • they may increase competitveness and reduce the number of local businesses
31
Q

how does an MNC affect the community within the local economy

A
  • they provide goods and services for the local community (depending on the area the community may have not had access to this previously)
32
Q

how does an MNC affect the exploitation within the local economy (3)

A
  • mncs may exploit poor working conditions which may be legal in foreign countries but illegal in the home market

-cheaper labour costs, and lower costs per unit (could may employees work longer hours)

-may prioritise profit using cost-effective and non-renewable resources harming the environment

33
Q

impacts of MNCs on the national economy

A
  • FDI
  • Balance of payments
  • Opportunities
  • Economic growth
    -Tax revenues

Business A-level (20 decks)

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