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4422771
Business Studies - AQA - GCSE - Business Expansion
Descrição
GCSE Business studies Mapa Mental sobre Business Studies - AQA - GCSE - Business Expansion, criado por Josh Anderson em 03-02-2016.
Sem etiquetas
business studies
gcse
expansion
unit 2
business studies
gcse
Mapa Mental por
Josh Anderson
, atualizado more than 1 year ago
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Criado por
Josh Anderson
quase 9 anos atrás
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Resumo de Recurso
Business Studies - AQA - GCSE - Business Expansion
Internal Growth
Advantages
More manageable
Disadvantages
Slower
External Growth
Merger
When two businesses join together
Takeover
When a (usually larger) business buys out a (usually smaller) business
Disadvantages
Less manageable
Costs
Advantages
Quicker
Already set up
Reasons for Expansion
Market Share
New Market
Profits
Difficulties when Expanding
Costs and Risks
Personal Services
Increased Workload
Control
Integration
Backwards integration
When a business buys a previous stage of the production process e.g. Food factory ---> Farm
Forwards integration
When a business buys a previous stage of the production process e.g. Food factory ---> Retail
Conglomerate integration (Diversification)
When a business expands into a different production process e.g. Food retail ---> Travel
Advantages
Share ideas/experience/resources/skills/status
Spreads risk
More opportunity to make a profit
Guarantees quality for other areas (Backwards and Forwards integration)
Widens target market
Removes cost of third parties - Only pay what is needed (Backwards and forwards integration)
Increase market share
Allows economies of scale - Buying larger quantities for a lower unit price.
Disadvantages
Possible conflicting ideas/lack of control
Possible lack of expertise
Unemployment - Redundancies
Increased workload
Short term expenses
Diseconomies of scale - Paying workers that aren't working efficiently
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