Upgrade to remove ads
Only $2.99/month

AQA A Level Business - Unit 9

Terms in this set (43)

Retrenchment
When businesses see the need and benefit of becoming smaller.
Internal growth
An expansion from within a business by expanding the range of products and/or markets.
External growth
Where a company expands through mergers or acquisitions.
Horizontal Integration
When two businesses in the same industry at the same stage of production become one.
Vertical Integration
The merging with or acquiring of a business in the same industry but at different stages of production.
Backward Vertical Integration
When a business buys its supplier.
Forward Vertical Integration
When a manufacturing business buys retail shops where its products can be sold allowing for direct access to the retail market.
Diversification/Conglomerate Integration
When a business buys another business in an unrelated industry.
Synergy
The value added by two integrated businesses is far higher than the value contributed by each, whole individual business.
Economies of scope
The cost advantages that result from firms providing a variety of products rather than specialising in the production or delivery of a single product.
Experience curve
The idea that the more experienced a firm is at making a product, the better, faster they become at making that product thus reducing costs.
Diseconomies of scale
When a business grows too large, it may suffer disadvantages that lead to lower efficiency and higher unit costs of production.
Economies of scale
When a unit cost falls as the scale of operation increases.
Overtrading
Overtrading is when a business grows too quickly without organising sufficient long term funds to support the expansion.
Innovation
The successful exploitation of new ideas.
Product Innovation
The creation and launch of a product or service that is new, or a significant change to an earlier good or service.
Process Innovation
The creation of a new way of making, providing, or delivering a particular good or service.
Kaizen (continuous improvement)
A policy of implementing small changes at a time to achieve innovation, better quality/efficiency usually suggested by employees..
Intrapreneurship
Acting like an entrepreneur within a large organisation.
Benchmarking
When a business tries to match the approach and success of a particular process that is used by another organisation.
Research and development (R&D)
The department that undergoes a process that includes discovering new products or manufacturing process and ensure that these products/processes are suited to the needs of the market.
Intellectual property
Invisible assets that arise from human knowledge and ideas. (e.g. songs, software applications)
Patent
An official document granting the holder the right to be the only user or a producer of a newly invented product or process for a specified period.
Copyright
Legal protection against copying for authors, composers and artists.
Trademark
Signs, logos, symbols, words (could include slogans etc) displayed on a company's products or on its advertising which distinguish its brands from those of its competitors.
International markets
The markets outside the borders of a company's country of origin.
Offshoring
When companies outsource business activities abroad.
Reshoring
The transfer of business activities back to the company's country of origin.
Export
Good or services produced in one country are sold in another country.
Licensing
An arrangement whereby one company gives another company permission to use its brand for a fee.
Alliances
Agreements between two or more companies to combine their expertise and resources in order to undertake a mutually beneficial project.
Direct investment
An investment in a business made by another in a different country in order to acquire a 'controlling interest' in the business.
Multinational
A business that operates in several countries but is headquartered in one country.
Bartlett and Ghoshal's international strategy
Involves taking products first produced for the domestic market and then selling them internationally with only minimal local customisation.
Bartlett and Ghoshal's multi-domestic strategy
Focuses on increasing profitability by customising a firm's products so that they provide a good match to tastes and preferences in different international markets.
Bartlett and Ghoshal's global strategy
Focuses on increasing profitability from benefiting from cost reduction that comes from economies of scale, experience curve effects and location economies.
Barlett and Ghoshal's transnational strategy
Tries simultaneously to achieve lower costs through location economies, economies of scale and experience curve effects and to differentiate products across different international markets.
Internationalisation
The tendency of companies to operate across national borders.
Digital Technology
Electronic technology which uses binary numbers to store, generate and process data.
E-commerce
The buying and selling of goods and services and the transmission of funds or data, using the internet.
Big data
Large pools of data that can be captured, communicated, aggregated, stored and analysed.
Data mining
The process whereby a business transforms raw data into useful information, to support the various activities of the business.
Enterprise resourcing planning (ERP)
A business's use of its information system so that it can automate and integrate its core business processes.
THIS SET IS OFTEN IN FOLDERS WITH...