Business p3 Flashcards
(23 cards)
Factors affecting/causing change (8 factors)
Changes in:
1-the size of the business
2- ownership
3- developments of technology
4-market changes
5-consumer taste
6-legislations (law)
7-the workforce
8-the economy
Define organic growth
Where the business grows by increasing the size of a business by increasing its sales, revenue, profits and workforce (internal)
Define inorganic growth
When a business grows by merging with or taking over (acquisition) another business (external)
What are the types of integration
1-backwards vertical
2-horizontal
3-forwards vertical
4-conglomerate
Discuss the impacts on stakeholders of Uber becoming a public limited company (10)
PFK+HIDO+B+LTQx2
p1 and H1 and LTQ
the current owners of Uber- benefit from having more capital to spend from investors funds. For example, this could enable them to invest in tech advancements for driverless cars->competitive advantage/market leader etc
H-becoming a LTD could also negatively effect Ubers cash flow. B - sharehoders will expect dividends which could negatively effect uber in the long term and affect their cash flow, especially since they are already facing high costs from investing in new areas such as bikes and driverless taxis
LTQ- although the investment from shareholders may be beneficial in the ST, it may have a negative effect in the LT
Discuss the impact on stakeholders of Uber becoming a public limited company (10)
P2 and H2 and LTQ
P2- Employees could benefit from improved working and pay conditions. For example, the additional investment from shareholders could enable this to happen. This should lead to better brand reputations, motivation, leading to customer satisfaction and then repeat purchases then loyalty and also less strikes
H- Increasing wages could also negatively affect Ubers cash flow (additional costs)
LTQ- although giving workers fair pay and working conditionals would be beneficial, this depends on whether they have the capital to do so etc
+Employee strikes also has a negative effect on cash flow
+Employees may decide to work for a competitor
Define financial methods of motivation
Financial methods directly involve monetary rewards such as:
-pay increases
-bonus schemes
-piece rate (paid for each item they deliver)
-share ownership
-commission
Define non-financial methods of motivation
concerned with:
-job enrichment
-job enlargement
-job rotation
-empowerment
-flexible working
What is meant by flexible working?
allowing employees to have an element of control over when they work
Financial methods of motivation are more important to a flexible workforce than non-financial methods, Discuss
PFK+HIDO+B+LTQx2 +conclusion
P1 and H1
P1- Agree: workers can choose to work when it suits them, whilst getting a financial reward. For example, many not full time casual work and gain additional income. This results in money being the main motivator for flexible workers.
H1- many artists ect may spend weekends working at art galleries etc, alongside their main source of income. They do it to pursue an interest, rather thn gain a financial reward
Financial methods of motivation are more important to a flexible workforce than non-financial methods. Discuss
P2 and H2
P- Having flexibility is a motivator for many workers. For example, parents. They choose the work because of the freedom rather than the financial motivation. Therefore, must be that non-financial motivators are part of the reason people choose flexible work.
H- some people choose flexible work because they have no other choice. Uber workers are highly unlikely to be motivated by anything other than the financial reward…
Evaluate Ubers growth strategy
P1 and H1
p1- uber have been successful in growing organically through both market and product development. because…
H1- Inorganic may be better by acquiring Deliveroo. Because they will benefit from increased innovation and access to assets which could speed up the development of…
Evaluate Ubers growth strategy
P2 and H2
P- Inorganic growth would help uber to gain competitive advantages. for example, by acquiring deliveroo, they have quick and easy access to more customers and the combination of forces could create a dominant force in the market
H-capital available and whether there would be any risks. B-more expensive + workforce tension etc
Define what is meant by legislation
Legislation concerns employment law, consumer protection, anti discrimination, company law, competition policy, health and safety, data protection, intellectual property and minimum wage
define what is meant by ethical factors
Ethical behaviour is concerned with morally acceptable activities. Ethical behaviour is often associated with minimising negative impacts upon the environment, animals and a variety of stakeholders
Define what is meant by social factors
Social factors include the demographic structure of society and changes in behaviour over time.
Explain the factor that have contributed to the globalisation of technology companies such as apple and Microsoft
PFK x 3
reason one
1-Internet access continues to grow across the world. As this is the case, internet enabled products from Microsoft and Apple such as smartphones have grown in their usage. This has led to the increased popularity of these products.
Explain the factor that have contributed to the globalisation of technology companies such as apple and Microsoft
reason 2
Cost of transportation has decreased due to the increased use of containerisation and improvement of business efficiency. As this is the case, production of electronic products produced in countries with cheaper raw materials can be distributed throughout the world at little cost. For example, Apple and Microsoft are able to produce their hardware in different
countries throughout the world and distribute internationally with limited additional costs of transportation.
Explain the factor that have contributed to the globalisation of technology companies such as apple and Microsoft
reason 3
Changes in consumer tastes/trends. For example, Apple and Microsoft are flexible and allow consumers to download apps specific to their wants and needs. Tech companies such as Apple and microsoft being adaptable for consumer needs such as being able to adjust the text size, language, volume and app appearance etc has led to the…
The impact of multinational companies on the countries in which they operate is always positive discuss (20)
P1 and H1
P1-Multinationals provide employment for the host country therefore improving earning potential which could lead to a higher quality of life.
H1-Foreign multinationals are often accused of exploiting labour in less developed countries. Although businesses are employing local people, they may do so under worse conditions
than in western factories
Define multinational companies
Multinational companies operate in more than one country.
The impact of multinational companies on the countries in which they operate is always positive discuss (20)
p2 and H2
P-Infrastructure development often occurs as multinational businesses move in to new areas. This could bring additional benefits such as improved road, rail and Wi-Fi access to the local
population.
H-Destruction of natural habitats may occur as a result of multinational companies moving in to an area. Rainforest may be flattened as factories and roads develop which leads to deforestation and the reduction of natural habitat for wildlife.
The impact of multinational companies on the countries in which they operate is always positive discuss (20)
P3 and H3
P-Multinationals will need local suppliers as well as businesses to service its workforce. As a result, the local economy may benefit from increased commerce as employees and the multinational trade with local businesses.
H-Workers in less developed countries may be paid at a rate which is lower than a living wage. Many developing countries do not have a fixed minimum wage level. As a result, large multinationals may take advantage of this and offer a low wage to potential employees who may take up the offer due to limited alternative opportunities.
