Partial 3 Flashcards Preview

Business And Management > Partial 3 > Flashcards

Flashcards in Partial 3 Deck (21)
Loading flashcards...
1
Q

Backward vertical integration

A

It occurs when a business amalgamates with a firm operating in an earlier stage of production.

2
Q

Conglomerates

A

They are businesses that provide a diversified range of products and operate in an array of different industries.

3
Q

Diseconomies of scale

A

They are the cost disadvantages of growth. Unit costs are likely to eventually rise as a firm grow due to a lack of control, coordination and communication.

4
Q

Diversification

A

It is a high risk growth strategy that involves a business selling new products in new markets.

5
Q

Economies of scale

A

It refers to lower average costs of production as a firm operates on a larger scale due to gains in productive efficiency.

6
Q

External growth

A

It occurs when a business grows by collaborating with, buying up or merging with another firm.

7
Q

Forward vertical integration

A

It is a growth strategy that occurs with the amalgamation of a firm operating at a later stage in the production process.

8
Q

Franchise

A

It refers to an agreement between a franchisor selling its rights to franchisees to allow them to sell products under its name in return for a fee and regular royalty payments.

9
Q

Globalization

A

It is the growing integration and interdependence of the world’s economies, causing consumers around the globe to have increasingly similar habits and tastes.

10
Q

Horizontal integration

A

It is an external growth strategy that occurs when a business amalgamates with a firm operating in the same stage of production.

11
Q

Internal growth

A

It occurs when a business grows using its own capabilities and resources to increase the scale of its operations and sales revenue.

12
Q

Joint venture

A

It is a growth strategy that combines the contributions and responsibilities of two different organizations in a shared project by forming a separate legal enterprise.

13
Q

Lateral integration

A

Refers to M&A between firms that have similar operations but do not directly compete with each other.

14
Q

Merger

A

It is a form of external growth whereby two or more firms agree to form a new organization, thereby losing their original identities.

15
Q

Multinational company

A

It is an organization that operates in two or more countries, with its head office usually based in the home country.

16
Q

Optimal level of output

A

It is the most efficient scale of operation for a business which occurs at the level of output where average costs of production are minimized.

17
Q

Decision trees

A

They are a quantitative organization planning tool that calculate the probable values of different options, helping managers to minimize the risks in dexision-making.

18
Q

Force field analysis

A

It deals with the forces for and against change.

19
Q

Fishbone diagram

A

It is an organization planning tool based on identifying and dealing with the root causes of a problem or issue facing a business.

20
Q

Gantt charts

A

They are a visual representation of all the tasks in a particular project plotted against the timescale. As a planning and scheduling too, it allows project managers to monitor progress.

21
Q

Organization planning tools

A

They are the various methods that business use to aid their decision-making.