This a complete overview of my Microsoft Onenote file that I formatted into a PDF. These summaries were the last things that I used before the exams and they helped me greatly. I have graphed on here as well, as I personally couldn't remember any graphs without being able to visualise them. Documen...
1.1 Meeting customer needs
1.1.1 The market
1.1.2 Market research
1.2 Market 1.2.2 Supply
1.2.3 Markets
1.3 Marketing mix and strategy
1.3.4 Distribution
1.5 Entrepreneurs and leaders
1.5.2 Entrepreneurial motives and characteristics 1.5.4 Forms of business
4.1 Globalisation
4.1.2 International trade and business growth
4.1.3 Factors contributing to increased globalisation
4.1.5 Trading blocs
4.2 Global markets and business expansion
1. 4.2.5 Global competitiveness
4.4 Global industries and companies (multinational corporations)
4.4.1 The impact of MNCs
Theme 1
1.1 Meeting consumer needs 1.2 market
1.1.1 The Market
Mass markets Dynamic markets
Advantages: A market in which firms have to be willing to constantly
• More customers potentially change in order to survive
• Higher levels of production allow for a greater exploitation of economies of scale
• Advertising can be more general as the product appeals to more
Examples:
Online
Doing this faster than rivals is a competitive advantage "first mover advantage" 1.2.2 Supply/1.2.3 Markets &
THINK ABOUT PESTLE Equilibrium
Niche markets Market change Example
Political Brexit
Advantages: Economic Great recession 2008 What is the difference between risk &
• Likely to have higher profit margins uncertainty ?
• Limited resources is less of a barrier to entry Social The rise of convenience
shopping online
Supply & Demand Diagrams
• Higher prices due to specific customer needs
Technological Apps and the internet A risk is a calculated decision in which someone
Self-driving car decides to do something knowing the outcome if it
Legal
legislation does not succeed
Environmental Efficiency changes for
the car industry and a Uncertainty is when the future is unknown, S
S Price
mandated switch to and therefor an active decision cannot be Price
electric by 2030 made on it.
How does competition affect the market
• Cost competitiveness S1
• Innovation
P1 P1
Basically just the things than can affect supply
• Changes in the cost of production
P2
P2 • New technology
• Indirect taxes
• Subsidies
D D • External shocks
D1
Q2 Q1 Q1 Q2 Quantity
Quantity
Quantity
S1
S
S Price
Price
1.1.2 Market Research P2
P2
P1
P1
Quantitative VS Qualitative data D1
Product & market orientation D
D
Numbers are easier to understand
Q2 Q1 Quantity
Q1 Q2 Quantity
Quantity
Product orientated business will worry more about the insufficiencies of their product more than how to Numbers to not necessarily explain why
meet the demands of the market
• They can then focus on their strengths to do things customers didn’t know they wanted
Disadvantage
• Potential for the product to fall behind as they aren't listening to the demands of the market
For some businesses, the internet can never be adopted as a
distribution method for things like hairdressing
Why can Market Research
Primary market research - when the research is carried out by the firm that wants to use it and is doing
so for the first time.
be complete bullocks 1.3 Distribution
Secondary research has already been used for another purpose and was gathered by someone else
The Sample size can be too small
Securing a retailer as a small business is hard!!!!
Advantages/disadvantages of primary Advantages/disadvantages of secondary research Bias Impact of intermediaries:
research Disadvantages:
Advantages • Free
• Usually on a large scale Traditional • This is things like the rise in costs likely as profit will have to be made at
Advantages • Can be specific to the business every point in the chain
• Data is up to date Disadvantages • Information could be old • Likely to slow things down, meaning the product will be more price
• Not specific to the business inelastic for example leading to lower revenue
Disadvantages • Expensive in time & money
• Risk of bias from questionnaire Consumer
• Could need to be compared to secondary data to be Examples: Market Segmentation Producer Wholesaler
Wholesaler Retailer Advantages:
• Internet • However, they also act as a marketing tool essentially, as the store will
understood
• Gov statistics show off your products if you go to a retailer
• Sales figures • It likely gives you a chance to build relationships with people in
Examples: different sectors meaning that inorganic growth could be possible
Allows a business to target more specific groups in order to meet those needs more
• Surveys
closely Direct to retailer
• Retailer research Impact of e-commerce
• Discussions
• This could decide the design of the product
• Higher prices as consumers will be in a niche market due to more specific Advantages:
needs Producer Retailer Consumer • Things like the reduction of the need for the physical store
• Easier to advertise to people if you know what they want & who they are • Reduced start up costs needed as a result of fixed costs being
lower
Disadvantages:
Producer is the retailer - likely online • Making things harder for a new brand if they have to start from 0
as they will have no web traffic
• Ecommerce is increasing competition, as websites can be
accessed all over the world, meaning people are not limited by
Producer
Producer + Consumer their domestic producers
retailer
retailer
motives and
Theme 4
Financial skills Persuasion
Characteristics
Determination Communication skills
characteristics Understanding of the market
Problem solving skills
Passion
Resilience
Business Page 1 Business Page 2 Business Page 3
motives and
Theme 4
Financial skills Persuasion
Characteristics
Determination Communication skills
characteristics Understanding of the market
Problem solving skills
Passion
Resilience
Inclined to risk
4.1 Globalisation
Motivation for setting up a business:
4.2 Global Markets & Business Expa
Reason Explanation
Profit maximising Making as much money as possible in the shortest period of time
4.1.2 International Trade & Business growth LINK TO PORTER's
Independence They have no need to take orders from bosses
Home-working Means that the job can be flexible around familial relations and obligations
Ethics An entrepreneur can set up a business in an attempt to improve the world
Trade allows for specialisation of each countries producers/supply chain etc
• Increase in efficiency 4.1.3 Factors Leading to Increased Globalisation
• Economies of scale Tariffs
• Are being reduced globally
Only are used for 2 reasons:
4.2.5 Global Competitiveness
Imports and Exports are crucial to do this i) To protect a dying industry
ii) To protect an infant industry
Trade Liberalisation - reduction of trade Reduction in
in the
the cost
cost of
of transport
transport
barriers: • Development of more efficient engines
• Tech meaning big boats and trains
1.5.4 Forms of Business
• Tarrifs tax on imports
Link to comparative advantage Advantages:
• Quotas - limit on amount of product in • Protect jobs of domestic workers Benefits of global competitiveness
country • Indirectly protect other businesses that rely on these
FDI - Foreign Direct Investment Competitive advantage is also needed • Regulations • Government revenue increases
• Can dominate domestic markets
• Ease of entry into foreign markets due to global brand recognition
Disadvantages:
TNC's • Prices rise - demand redices
Franchise Is a business method where an individual acquires a licence that allows them to open a branch with Outwards FDI is when a British business buys abroad assets • Global
Global companies operate in many markets • Help inefficient firms
Sole Trader - This is when one person owns and runs the business at the the name of the large business. • Link to offshoring Politics
• However
However does ruin the local competition of
where
where they operate
same time. • Outsourcing • BREXIT
Franchisor - The person that originally owns the company and it's trademark rights. • China's free trade acceptance
• They
They boost international trade by moving
resources
resources
Competitive advantages through
This is something like a plumber or electrician. Franchisee - Person who buys the license to operate under another businesses name.
Inwards investment is when a business buys assets in Britain • National
National markets become more uniform as the
differentiation
Royalty - A segment of overall income paid to the franchisor. same
same products are sold everywhere Examples of product
Government Legislation I) Design
Advantages
One person makes all of the decisions meaning they should be made faster Advantages of franchising Exchange rates - SPICED II) Unique functions
III) Engineering
One person keeps all of the profits Lower risks for the franchisee as they don’t have to build reputation for their brand due to using the name of another Examples:
Migration IV) Performance
Can provide a more personal service as customers interact with the boss
Makes it easy to change to the customers demands if one is drastically different where a
brand.
They don’t have to advertise as they are part of the international advertising of the large company
4.1.5 Trading blocs • EU - European Union
• ASEAN - Association of South East Asian Nations
• Many people move for economic reasons Competitive advantages through cost
larger business would struggle. They can learn from the experience of the franchisor and are likely to be trained by them. • NAFTA - North American Free Trade Agreement
• Tend to be higher skilled Growth of the global labour force Domestic subsidies:
Easy to set up and hours are far more flexible.
• Leads to higher economic growth
• Offshoring production
production toto benefit
benefit from
from cheaper
cheaperlabour
labour
Advantages:
competitiveness
• Meanwhile
Meanwhile recruiting
recruiting abroad
abroad may
mayprevent
preventthe
theneed
needfor
for
• Subsidies encourage demand
Disadvantages of franchising Trading blocs allow for the homogenisation of laws for all members offshoring
• Positively effect the balance of trade
Disadvantages You have to share a proportion of your profits, making you less independent in your own decision making and more
Long working hours if you are fully devoted reliant on others. Disadvantages:
No cover for absence if the owner is ill However it could also damage the reputation of the larger brand if they franchise to an inexperienced person, making • Artificially inflate profit margins - could prevent inefficieny drive
The business resiles on the skills of one person them more likely to make a mistake. Quotas: from business
Difficult to raise money to expand Cannot sell the business without the Franchisors permission. Countries in a bloc have increased bargaining power as a result of collectivisation • Gov spending will need to increase
The owner is personally responsible for the debts of the business and could loose The Franchisee will never own the business outright. Advantages: Impact of skill shortages on competitiveness
everything if the business goes bankrupt (unlimited liability) • Domestic firms face less competition
The owner has to do everything from finances to cleaning • Preventing unemployment reduces gov spending
Advantages:
• Free movement of goods create a huge potential single market Disadvantages: Disadvantages:
• External tariffs insulate the business inside the external competition • Competition increases due to freer trade - destroys monopolies • No extra tax revenue
• Infrastructure can develop alongside trade • Single market means homogenisation of rules • Push up domestic prices
• Potential for reduced exporting to dynamic & developing markets like China
Partnerships - a business owned by 2-20 people
• Advantages become larger if there is free movement of labour Outsourcing/Offshoring Link to recruitment and selection
Likely to need higher wages
This is a business like an estate agent or a solicitors
Private Limited Company (LTD) If there is a national skills shortage, outsourcing
Advantages: is necessary
Advantages Problems can be shared
Share holders are not personally responsible for the debts of the business and therefore The responsibility for the businesses is shared between the owners
wouldn’t loose everything if it were to go bankrupt. More skills and ideas are brought into the business
Better image and status for the business The business is going to receive more funding from the variety of different investors
Easier to borrow money from the bank Partners can specialise in different things making the business better in many unique fields
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller stephencox1. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $5.16. You're not tied to anything after your purchase.
