unit 9 - how to pursue strategies

Question 1

Organic Growth

Answer 1

occurs when a business expands its own product portfolio or its number of retail stores

Question 2

External Growth

Answer 2

when a business expands by purchasing or taking over other businesses

Question 3

Impact Of Growth

Answer 3

increases demands, increases motivation, increases market share, increases need for secure capital

Question 4

Retenchment

Answer 4

when a business reduces the scale of a specific business area of element within the business operation

Question 5

Impacts Of Retrenchment

Answer 5

allows for re-focus, redundancy and redeployment considered, can offer economies of scale, refocusing marketing campaigns on changes

Question 6

Technical Economies Of Scale

Answer 6

occur when a business is able to adopt advanced technological approaches to production as a result of their size and scale

Question 7

Purchasing Economies Of Scale

Answer 7

occurs when a business is able to take advantages of bulk ordering discounts

Question 8

Managerial Economies Of Scale

Answer 8

occurs when a business is large enough to be able to introduce specialist staff for each of its functions

Question 9

Economies Of Scope

Answer 9

occurs when a business is able to spread its costs over several markets or products

Question 10

Diseconomies Of Scale

Answer 10

business grows too large causing its average costs per unit to rise instead of fall

Question 11

Experience Curve

Answer 11

suggest that businesses with better knowledge can inform a better decision which offers a cost advantages

Question 12

Synergies

Answer 12

occur when two or more businesses combine and are worth greater than the individual sum of each

Question 13

Overtrading

Answer 13

occurs when a business experiences liquidity problems associated with the cost of growth

Question 14

Innovation

Answer 14

the development of a new idea

Question 15

Pressures For Innovation

Answer 15

social change, competition

Question 16

Product Innovation

Answer 16

involves the development of a new product which will be offered for sales

Question 17

Process Innovation

Answer 17

improving the process of manufacturing to add value, improve efficiency or reduce costs

Question 18

Advantages Of Innovation

Answer 18

improve product portfolio, improve processes, develop usp

Question 19

Ways To Become Innovative

Answer 19

kaizen, intrepreneurship, benchmarking, r&d

Question 20

Kaizen

Answer 20

consist of continuous improvements being made so over time it evolves and develops

Question 21

Intrapreneurship

Answer 21

individuals contributing their entrepreneurship characteristics to their employer instead of pursuing them on their own

Question 22

Benchmarking

Answer 22

process of identifying an area of expertise within the industry and using this as a foundation to improve business own processes

Question 23

Research & Development

Answer 23

process of researching new approaches and products and developing these to satisfy customer needs

Question 24

Advantages Of Internationalisation

Answer 24

international markets for larger markets and reduces risk in falling demand in home country

Question 25

Exporting

Answer 25

allows a business to access international markets by selling products abroad

Question 26

Licensing

Answer 26

allows a business to access international markets by providing overseas businesses with a license to sell and produce products in that country

Question 27

Alliances

Answer 27

working in a partnership to share risk and access international markets

Question 28

Direct Investment

Answer 28

investing in facilities abroad

Question 29

Attractiveness of Internationalisation

Answer 29

size of local market, political stability, local competitors

Question 30

Off-Shoring

Answer 30

a business moving part of its production process to an oversees manufactures

Question 31

Re-Shoring

Answer 31

a business bringing its production process back into the original country

Question 32

Multinational Organisations

Answer 32

a business which has production facilities in more than one country

Question 33

International Differences

Answer 33

culture, legal, market demands

Question 34

Data Mining

Answer 34

gather data and using this to look for trends and patterns

Question 35

Big Data

Answer 35

allows a business to collect and combine data from many different sources

Question 36

Enterprise Resource Planning (ERP)

Answer 36

allows a business to use central software to control many different activities of a the business

Question 37

Advantages Of Using Digital Technology

Answer 37

access to new opportunities, access to data

Question 38

Horizontal Intergration

Answer 38

when one business joins another at the same stage of the production process

Question 39

Forward Vertical Integration

Answer 39

when one business joins another in different stages of the production process, further down the supply chain

Question 40

Backward Vertical Integration

Answer 40

when one business joins another in different stages of the production process, further up the supply chain

Question 41

Conglomerate Integration

Answer 41

when one business joins with another in a different industry