Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

my business edexel gvse > theme 2 > Flashcards

theme 2 Flashcards

(50 cards)

Start Studying
1
Q

methods of business growth

A

internal(organic)
external (inorganic)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

what is internal growth

A

new products (innovation, research and development)
expanding into new markets (changing marketing mix or expanding overseas or taking advantage of tech

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

what is external growth

A

growth by merging with or taking over another business
merger- two business join together
takeover- one business buys another

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q
A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

types of business ownership for growing businesses

A

public limited company (plc) - sells shares on the stock market therefore raising large amounts of capital

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

sources of finance for growing an established business

A

internal- retained profit, selling assets
external-loan capital, share capital (including stock market flotation)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

stock market flotation (for plcs)

A

when a private company becomes a plc and sells shares on the stock exchange to raise capital

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

as a business grow, their aims and objectives change, influenced by

A

Market conditions
Technology advancements
Business performance
Legislation
Internal factors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

how do business aims and objectives change as a business evolve

A

-focus on survival or growth
● entering or exiting markets
● growing or reducing the workforce
● increasing or decreasing product range.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

impact of globalisation on a business

A

imports- buying cheaper supplies abroad but facing increased foreign competition
exports- selling to international markets, increasing revenue potential
changing business locations- relocate to access lower costs or new markets
multinational business- operate in multiple countries

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

globalisation

A

increasing interconnection of business worldwide

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

barriers to international trade

A

tariffs= taxes on imports to protect domestic businesses
trade blocs- groups of countries that trade freely with each other

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

how businesses compete internationally

A

using internet and e commerce(lower costs, global reach, targeted market, 24/7 access)
adjusting marketing mix (changing pricing, packaging or promotions for different countries)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q
A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

impact of ethical and environmental considerations on business

A

ethical:
treat workers fairly
avoid exploitation
using ethical sourcing like fair trade
trade off between ethical responsibility and profit
environmental
reducing waste + pollution
using sustainable resources
investing in renewable energy
trade off between environments, sustainability and cost saving

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

potential impact of pressure group activity on the marketing mix

A

consumer boycotts
protests and petitions influencing business decisions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

what is the design mix

A

function
aesthetics
cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

product life cycle

A

introduction- high costs, low sales, high marketing costs too
growth- rising sales and profit, competition starts
maturity- sales peak, competitors try take market share
decline- sales drop, products may be discontinued

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

extension strategies to delay decline

A

changing packaging
targeting a new market
adding new features
promotional discounts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

importance of product differentiation

A

allows a company to make its products stand out in a crowded market (usp) over competitors
by highlighting unique features and benefits
it helps attract customers,
build brand loyalty,
and gain a competitive advantage
by providing a reason for consumers to choose their product over others

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

price

Study These Flashcards
A

cost plus pricing= adding a percentage to production cost to calculate a products selling price
competitive pricing- based on what competition charge
penetration pricing- low initial price to attract customers
skimming- high price at launch, then lowering over time
promotional- temporary price reductions to boost sales

22
Q

factors influencing pricing

Study These Flashcards
A

tech
market segment
product life cycle state
competitor pricing

23
Q

promotional strategies

Study These Flashcards
A

advertising
sponsorships
product trials
special offers
branding

24
Q

use of tech in promotion

Study These Flashcards
A

targeted online ads
viral marketing (social media)
e- newsletters and emails

25
place (distribution)
retailers- physical stores e- commerce (online)- selling through sites or apps
26
how each element of the marketing mix can influence other elements
Product affects Price: A high-quality product allows for premium pricing, while a budget product requires competitive pricing. Price affects Promotion: A low price might be promoted using discount-based advertising, while premium pricing requires a focus on exclusivity. Place affects Product: Selling online may require different packaging or features compared to selling in physical stores.
27
using marketing mix to build a competitive advantage
differentiation- set apart business from competitors cost leadership- efficient distribution and pricing starts can help a business offer lower prices than rivals brand loyalty- consistent promotion and customer experiences can help build long term customer trust + repeat sales
28
how an integrated marketing mix influences competitive advantage
consistency- aligning them all creates strong brand message adaptability well integrated mix allows businesses to quickly respond to change in market customer satisfaction- seamless experience across all of the mix = increased customer loyalty and retention
29
purpose of business operations
producing goods providing services
30
production processes
job - one off, custom made products like handmade furniture, high skill but slow and costly batch production- identical groups of products made together , like bread flow production- continuous production of identical products like cars, maximising efficiency but needing high investments
31
Quality in Controlling Costs and Gaining Competitive Advantage
cost control- reduces waste and returns,keeps production costs down efficient- high quality leads to fewer errors, reduces need for costly fixes competitive advantage- consistently delivering high quality products builds customer loyalty and enhances reputation, setting business apart from competitors
32
impact of diff production processes
productivity- Flow is the most efficient, while job takes longer per item. costs- job has high costs due to skilled labour while flow reduces unit costs through automation competitive prices- Efficient processes (batch/flow) allow businesses to charge lower prices, attracting more customers.
33
impacts of technology on production
cost- automation reduces long term costs but high initial investment productivity- tech speeds up production, reducing waste and improving efficiency quality +flexibility- advanced machinery improves product quality and allows for quick adjustments in design
34
managing stock
JUST IN TIME- ordering stock only when needed ( reduces waste but risk of shortage) bar gate stock graphs -used to track stock levels
35
procurement
getting the right supplies from right supplier at right price
36
relationships with suppliers
high quality suppliers ensure good products, fewer defects negotiating good deals + fast delivery helps keep costs down and production efficient strong relationships ensure suppliers meet demand, reducing risk of shortages
37
impact of logistics and supply decisions
costs- efficient supply chains reduce transportation and storage costs, keeping prices competitive reputation-reliable suppliers and smooth logistics help maintain a strong brand image customer satisfaction- fast and accurate deliveries improve customer experience and encourage repeat business.
38
managing quality
quality control- checking products at the end of production quality assurance- checking products through production total quality management- continuous improvement approach
39
40
41
42
sales process
product knowledge- sales staff need to understand product throughly to persuade speed+ efficiency of service-fast and smooth transitions improve satisfaction, repeat business engagement- building rapport and addressing customer needs creates a positive buying experience, customer loyalty feedback response- actively listening and acting on feedback, improves satisfaction post sales service- providing support after sale (returns repairs advice etc) helps maintain loyalty + satisfaction
43
importance of providing good customer service to business
customer loyalty-consistency encourages repeat sales+ long term relationships brand rep- enhances, attracting new customers, positive word of mouth can differentiate a business from competitors, esp in similar markets
44
gross profit
revenue- cost of sales
45
net profit
gross profit- tot costs (expenses)
46
gross profit margin
(gross profit/ revenue) * 100
47
net profit margin
(net profit/ revenue) * 100
48
average rate of return
(average profit per year/ investment) * 100
49
How businesses use financial data:
Graphs and charts – Identify trends Marketing data – Track consumer behavior Financial ratios – Assess profitability
50
Limitations of financial data:
Doesn't account for external factors (e.g., economic changes) Past performance may not predict the future

my business edexel gvse (22 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions