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external influences Flashcards

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1
Q

market size

A

collective value of goods and services that buyers purchase

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2
Q

market growth

A

percentage change in size of the market (over a period from of time)

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3
Q

competition

A

rivalry between sellers

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4
Q

market

A

any situation where buyers and sellers establish a price

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5
Q

online

A

purchase and deliver physical item

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6
Q

digital

A

purchase and download a digital product

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7
Q

barrier to entry

A

factors that prevent a firm from entering and competing in a specific market

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8
Q

barriers to entry examples

A

large start up costs
inability to gain EOS
Price wars
Legal restrictions

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9
Q

monopoly

A

dominated by one seller (more than 25%)

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10
Q

competitive market

A

large number of sellers

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11
Q

monopoly characteristics

A

low number of firms
high prices
EOS
drive out comp with low prices
high barriers to entry

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12
Q

competitive market characteristics

A

high number of firms
low prices
low barriers to entry

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13
Q

oligopoly

A

dominated by a few firms (top 5 firms account for 60% of market size)

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14
Q

oligopoly characteristics

A

similar products
non price differences
relatively high prices
collusion
relatively high barriers

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15
Q

monopolistic competition

A

many firms each supplying a slightly different product

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16
Q

monopolistic characteristics

A

several firms
relatively low prices
relatively low barriers

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17
Q

barriers to exit

A

factors that prevent a firm from leaving a market

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18
Q

barriers to exit examples

A

selling of capital is hard
high redundancy costs
contracts with suppliers
leases with landlords

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19
Q

market dominance

A

a measure of market share compared to competitors

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20
Q

mergers

A

two companies join to make a new company

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21
Q

acquisition/takeover

A

buying the majority of another company’s shares and talking control

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22
Q

synergy

A

business perform better and are more valuable when together than when independent

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23
Q

external growth benefits

A

new management skills
increased revenue
increased efficiency
EOS

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24
Q

external growth drawbacks

A

DOS
may take on extra debts
redundancies
higher prices
monopolies

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25
organic growth
expansion from within
26
organic growth examples
open new stores launching new products employing more workers increasing production capacity investing in new tech launching existing products into new markets
27
organic growth advantages
cheaper than external/inorganic more controlled maintain current management style financed using profits less disruptive
28
organic growth disadvantages
slower than external can’t compete without external growth market size is not affected if already leader, less growth opportunity
29
what Competition Markets authority do
investigate mergers and acquisitions that could lead to monopolistic characteristics incriminate individuals who commit offences enforce legislation to tackle anti competitive and anti choice practices
30
CMA sanctions
fined up to 10% of global turnover can be sued for anti competitive behaviour individuals can be disqualified individuals can be fined or improved if they do not comply
31
impacts of regulation
encourages competition increased quality wider range of choice lower prices lower barriers to entry
32
STEEPLE
social technological economic ethical political legal environmental
33
gdp
total value of output produced in a year by an economy
34
economic growth
%change in gdp
35
recession
2 quarters of negative growth
36
standard of living
the amount of goods and services an individual is able to buy with their yearly income
37
inflation
general rise in prices
38
Consumer price index
the weighted average of prices from a basket of consumer goods
39
exchange rate
the value of a currency in terms of another
40
Spiced
strong pound imports cheap exports dear
41
WPIDEC
weak pound imports dear exports cheap
42
causes of a strong pound
Hot money foreign investment desire of uk exports
43
interest rates
cost of borrowing and reward of saving
44
unemployment
someone is willing and able to work but are not employed
45
BoT
difference between exports and imports
46
surplus
X>M
47
deficit
X
48
indirect tax
tax on spending, payed to the government by suppliers of goods/services
49
direct tax
tax of income and profits, payed by the bearer to the government
50
subsidy
a payment granted by the government to private firms, households etc to promote a public objective
51
business cycle
observed pattern of increases and decreases in economic growth over time
52
benefits of ethical behaviour
new customers better employees increased sales better reputation positive publicity new investors
53
intellectual property
intangible property that is the result of creativity
54
trademark
trademark can be registered for anything that makes the brand/product it’s own
55
copyright
automatic legal protection against copying for authors, composers, artists etc
56
planning permission
approval to build a new building or to make a big change to an existing one
57
consumer rights act
satisfactory quality as described fit for purpose
58
clean air act
the control of the use of material that causes pollution. Regulates both domestic and industrial emissions
59
climate change act
uk emission reduction targets that legally have to be met
60
demographic
characteristics of human population groups
61
sustainability
preventing the negative impacts from economic systems/production on the earth and its environment
62
EU
economic and political union of most Euro states aimed at reducing trade barriers and harmonising economic policy
63
free trade
agreement between countries to trade without barriers
64
international trade
exchange of goods and services between countries
65
factors considered by businesses when trading internationally
-currency -logistics -language -buying habits -culture -laws
66
globalisation
increased integration and interdependence of national economies
67
trading bloc
a group of countries within a region that have reduced or removed trade barriers between members
68
emerging market
a country experiencing/achieving rapid economic growth
69
factors cons side red by a business when trading internationally
currency logistics language buying habits culture laws
70
free trade advantages
EOS greater variety lower cost lower prices for consumers
71
free trade disadvantages
foreign competition lead to job losses LEDCs may use non renewable more competition from overseas
72
trading bloc advantages
gain access to more demand import resources cheap potential EOS
73
trading bloc disadvantages
may hinder trade outside of bloc competition from other countries may be too much for domestic businesses
74
emerging market characteristics
lower income younger population less infrastructure change is faster
75
emerging markets advantages for businesses
cheaper labour more supply of labour lack of legal constraints (e.g. tobacco) access to higher incomes in new markets
76
multinationals
a business that operates in more than one country
77
multinational advantages
EOS obtained as production increases enter new market lower wages less legislation
78
positive effects of multinationals on host
employment for LEDCs more skills in LEDCs investment in infrastructure leads to utilisation of local resources
79
negative effects of multinationals
low wages low skilled jobs can be unsafe work child labour, miss education local businesses driven out profit go back to domestic country
80
global strategy
a plan of action on a global scale
81
global brand
a brand recognised throughout much of the world
82
challenges of globalisation
increased comp ethical/moral differences costs of expansion diff cultures and customer behaviour communication (time, language) physical difference
83
digital revolution
the shift from analogue and mechanical technology to digital technology

Business Blackwell (2 decks)

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