paper 2 wrong exam q Flashcards
(16 cards)
give 2 benefits of growing a business by expanding overseas
- Ability to take advantage of cheap labour/lower costs
- Economies of scale/lower average total costs
- Increased sales
- Larger market size
- Reduces risk if one market declines
give 2 impacts on a business if it grows through research and development
- Ability to get a patent
- Higher costs
- Innovative products
- R&D may not be successful
- Stronger brand name
give 2 reasons why a business may decide to change its objectives
- Change in legislation
- Change in market conditions
- Change in technology
- Change in the performance of the company
- Internal reasons e.g. poor cash-flow
give 2 benefits to a business from increased globalisation
- Access to labour from other countries
- Access to more markets
- Cheaper to import raw materials
- Easier to export goods/services
- Fewer tariffs
- Lower costs
give 2 benefits to a business from becoming a multinational
- Ability to move production to cheaper locations
- Ability to reduce tax bills
- Ability to spread risk across many markets
- Greater access to markets
- Greater economies of scale
give 1 reason why trade blocs may be a barrier to international trade
- May introduce costly legislation
- May introduce quotas
- May introduce tariffs
give 2 impacts on a business if the country that it exports to introduces tariffs
- Lower sales/revenue
- May have to focus on domestic/new markets
- May have to increase efficiency
- May have to lower prices
give 2 potential impacts of pressure group activity on a business
- Boycott of products
- Damage to brand name/media attacks
- Government could introduce new legislation
- Lower sales
- Negative publicity
give 2 ways how a business can differentiate a service
- Change the service to meet precise customer needs
- Exceed customer expectations
- Improve the speed of service
- Make it more customer focused
- Provide after-sales car
give 2 benefits to a business of selling products though a bricks and mortar (high street retailer)
- High street retail may be more convenient to the customer for certain products
- There are some products that consumers like to try before they buy e.g. clothes
- The retail experience may add value
- The retailer may be able to give specialist advice about which product is most suitable to the consumer
- The retailer may be able to promote the product in a more exclusive way
give 2 ways promotion can be used to give a business a competitive advantage
- It can add value
- It can allow a higher price to be charged
- It can allow the product to become more attractive to a wider-range of market segments
- It can encourage consumers to choose a product over a rival product
- It can enhance the branding of the product
- It can prevent the product going into the decline phase of the product life
give 2 benefits to a business of increasing productivity
- Ability to reduce prices/charge competitive prices
- Greater competitive advantage
- Higher profit margins
- Lower unit cost/average total cost of production
give 2 drawbacks to a business of introducing flow production
- Can only be used for mass market products
- Difficult/impossible to change/personalise products
- Employees may be made redundant
- If one part of the production process stops, no product can be produced
- Machinery costs/fixed costs are high
give 2 benefits to a growing business by expanding overseas
- Customers will receive their orders on time
- Just in time (JIT) stock control can be used
- Lower costs
- Raw materials will arrive on time
- The business will have a stronger brand/reputation
give 1 benefit to a business of having a strong relationship with its suppliers
- Improved trade credit terms/longer creditor’s period
- Larger discounts on stock/bulk-buying discounts
- Suppliers may offer faster delivery
- Suppliers may prioritise the business over rivals
give 1 disadvantage to a business of introducing a system of quality assurance
- Employees require training
- Increased training costs
- It can take a long-time to establish
- Provides a competitive advantage
- Requires a change in business culture
- Reduces competition in the market
