business paper 2 revision (building a business) Flashcards
what is meant by organic growth?
internal/organic growth is when a business grows by expanding its own activities(slow method of growth)
what is meant by inorganic growth?
inorganic/external growth usually involves a merger or takeover.(growth from
outside the business)
Define the term pressure group
An organisation that aims to make a government or business change its decision making
what is meant by retrenchment?
to describe when a business decides to significantly cut or scale-back its activities.
what is meant by jargon?
a specific way of communication in a industry
how can a business add value to its product?
by having a unique selling point, to improve product’s desighn aand quality,branding
price skimming
when firms first charge a high price to ensure high quality, then reduce price to become mass market
price penetration
when firm set a low price of product to gain market share and then increase the price
competitive pricing
when a firm charges a similar price to its competitors
loss leader pricing
when the price of a product is below the cost, the business does not make any profit from this product but aims to make profit from other products sold by market share gained.
cost-plus pricing
firm sets a price according to how much profit it wants to make, this is normally done when a firm faces no competition
what are the stages in the sales process?
1.customer interest
2.speed and efficiency or service
3.customer engagement
4.post-sales service
5.customer loyalty
quality control
checking products as they are being made throughout three different stages, raw materials,work in progress, finished goods
quality assurance
checking the quality of the product at every stage of the sales process.d
centralised
where decisions are made by senior management higher up in the organisation structure
