Outside business examples for 25 markers

Question 1

Examples for financial and non financial methods?

Answer 1

• Non financial- Google’s 20% rule where employees have 20% of their time to work on their own projects. Rolls Royce offer apprenticeships and different ways for internal job growth. Lloyds bank allows those to work from home. Cadbury has worker villages with workers and families able to work in comfortable environment.
• Financial- John Lewis uses profit sharing with employees. Tesco uses performance reviews for an increase in pay.

Question 2

What are examples of market penetration and diversification?

Answer 2

• MP- Tesco using loyalty cards in order to retain customers and repeat purchases. Coca Cola’s strong brand image uses advertising which attracts customers. Sky uses bundle deals.
• D- Virgin is involved with various markets such as media, airline and bank. Samsung moving to fridges. Dyson moving to hair styling tools.

Question 3

Examples of businesses struggling or prospering with supplier power and competitive rivalry

Answer 3

• British steel- Seen an increase in raw material costs which has led to increase prices and been undercut by foreign steel such as Japan. 15% Us tariff.
• Thomas Cook- Could not compete in prices or convenience overtook by Booking.com.
• BlackBerry- Had huge reliance on suppliers for tech parts which led to depleting profit margins.
• Aldi- Its low price and high quality has seen there market share sore.
• Apple- Its strong brand image and high prices has kept it from being vulnerable to high supplier power. Very innovative.

Question 4

Examples for Porter’s generic strategies?

Answer 4

• Differentiation- Apple’s premium products, process and experience has led to them keeping prices high.
• Cost leadership- Aldi’s cost leadership led to significant growth in MS.
• Focus- Ryanair aims for super low airline prices to target those on a budget.

Question 5

Examples for franchising and organic and inorganic growth?

Answer 5

• McDonalds low risk franchise strategy through partners which leads to expansion and wider customer base.
• Organic- Netflix expanding through to international markets, able to adapt against competitors such as Blockbusters loss.
• Inorganic- Facebook acquiring WhatsApp and Instagram which has used horizontal integration to expand rapidly.

Question 6

Examples of Trumps Tariffs on UK?

Answer 6

• Led to now 10% tariff on UK cars up to 100,000. The UK car industry was its biggest export to the US, value of 9bn.
• 25% tariff on steel and aluminium has been scrapped.
• UK scrapped 20% tariff on US beef.

Question 7

Example of Mergers?

Answer 7

• Tesco takeover of Booker Group.
• Asda and Sainsburys possible merge.
• EE merger with BT

Question 8

Examples of confidence and worry in UK business?

Answer 8

• 2008 crisis led to loss of foreign investment in banks.
• The boom after 2020 in Lockdown “Eat out to help out” led to recovering the economy and encouraging foreign investment.

Question 9

Examples of high capacity utilisation?

Answer 9

• EasyJet increased its capacity of its planes by 6.7% from 2008.

Question 10

Examples of using frontal and backwards integration?

Answer 10

• McDonalds uses backwards integration by its own farms which helps them control quality.
• Nike’s shift away from retailers such as JD while now making its own stores to reduce cost of sales.

Question 11

Examples of good and bad mission statements?

Answer 11

• Starbucks commitment to human connection and environment. Similar with Nike.
• Sony and Hersey’s bland mission statement stops this.

Question 12

Examples of businesses breaking employee regulations?

Answer 12

• John Lewis and Pret have been charged with poor conditions and pay.