recap struggle 9 Flashcards
(22 cards)
what are the 4 strategic methods involved in unit 9
- change in scale
- innovation
- internalisation
- greater use of digital technology
what is synergy
the concept where the combined effect of a group or system is greater than the sum of its individual parts
what is the economies of scope
the cost advantage that a business experiences when it produces multiple products or services together rather than separately
what does conglomerate mean
where the acquisition has no clear connection to the business buying it
what is retrenchment
to cut down or reduce something to use resources more carefully
what is innovation
it improves or makes significant contribution to something that has already been invented thereby turning the results of invention into a product
what are the 6 advantages of product innovation
- higher prices
- added value
- opportunity to build early customer loyalty
- enhanced reputation as an innovation company
- pr coverage
- increased market share
what are the 5 advantages of process innovation
- reduces costs
- improved quality
- more responsive customer loyalty
- greater flexibility
- higher profits
what are the 5 innovation benefits
- improved productivity and reduced costs
- building a brand
- establishing an advantage over competitors
- higher sales and profits
- builds a strong organisational culture which should attract more talent
what is internal economies of scale
the technology is linked fowards production
what is external economies of scale
the whole indsutry is more efficent
what is overtrading
a business exapns too quickly without having the financial resources to support a quick exapnsion
what is disruptive innovation
innovation that creates nw markets by discovering new groups of consumers
how do you achieve dysruptive innovation
- new tech
- new ways of doing business
- old tech in new ways
what are the 4 types of digital technology
- automation
- data mining
- big data
- e-commerce
what is big data
extremely large data sets that are stored to anaylse existing patterns and trends
what is data minning
anaylsing large databases to generate nw information such as patterns and trends
why is there greater globalisation
- cheaper transport as more links
- new emerging technologys
- communication
- mobility of labour
why is globalisation important for a business
- cheaper labour
- big custonmer base
- larger labour force
what are 4 reasons to entr international markets
- export
- direct investment
- allainces
- licensing
what are factors that afeect atrractivness of internationalisation
- size of market
- polticial and econimcal factors
- cultural, ethical and environemental factors
what occurs when managing international business
- pressures of local redctivness
- pressures of cost reduction
