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Business Unit 3 > Growth > Flashcards

Flashcards in Growth Deck (13):
1

Delegate

Passing authority down the hierarchy

2

Diseconomies of scale

Factors that cause average costs to rise as output rises

3

Economies of scale

Factors that cause average costs to fall as output increases

4

Market dominance

A situation where a firm sells a product that achieves a very high market share. The firm can raise prices without losing too many customers

5

Organic growth

Comes from within a business

6

Inorganic growth

Externally via merger or takeover

7

Strategic fit

Buying another business that can provide a real boost to long term growth and profitability

8

Takeover

When one business buys majority ownership in another, thereby gaining full control

9

Annual general meeting

Yearly meeting at which shareholders have the opportunity to question the chairperson and vote on new directors for the board

10

Private equity

Investment groups that buy up businesses in the expectation that they'll be able to sell them for profit

11

Synergy

This occurs when the whole is greater than the sum of the parts. It is often the reason for mergers or takeovers

12

M-commerce

Electronic transactions carried out on the move, such as ordering a delivery by smartphone

13

Average cost

Cost of producing one unit of output, it is calculated by dividing total cost by current output level