Summary
Business (EdExcel) - Theme 3 summary mind map - ALEVEL
- Module
- Theme 3
- Institution
- PEARSON (PEARSON)
Condensed notes of theme 3 business alevel (Edexcel) - mind map summary for the whole topic
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3.1.1 - Corporate objectives : 3.1.2 - Theories of corporate strategy:THEME 3.4
Aims the overall long-term goal of a business EXSISTING PRODUCT NEW PRODUCT
Most to least RISKY:
market penetration product development
1) Diversification
EXSISTING
MARKET
actions to further gain
amending or upgrading
Objectives long term targets that will help achieve
market share in an
2) Market development
THEME 3.1
an existing product for the
existing market
the aim same market
3) Product development 3.4.1 - Corporate infleu
4) Market penetration Corporate influences:
market development diversification
Strategy medium-long term plans to help reach Something that influences
MARKET
doing something totally
objectives
NEW
taking an existing
product to a new market
new. A new product for a decison making or objecti
new market
Tactics day-to-day actions as part of the strategy
COMEPETETIVE ADVANTAGE
3.1.4 - Impact of external influences Business thinking:
LOW COST HIGH DIFFERENTIATION Short term: PLC and proft
3.1.3 SWOT analysis Low cost Differentiation Long term: Focus on grow
Poters five forces:
MASS
Targeting the mass Targeting the mass P - Political sustainale growth
S - Strengths market with a low cost market with a
1) Threat of new entrants
TARGETED MARKET
stratergy differentiation stratergy E - Economic
W - Weaknesses 2) Supplier bargaining power Decision making:
Focused low cost Focused Differentiation S - Social
O - Oppourtunities 3) Rivalry amongst competitors Evidence based: Based on
Targeting the niche T - Technological
NICHE
Targeting the niche
T - Threats market with a low cost market with a
4) Buyer barganing power data
stratergy differentiation stratergy L - Legal
E - Enviromental 5) Threat of subsitutes Subjective: Based on feeli
(‘hunch’)
Mr Bennett
THEME 3
3.2.1 - Growth
Objectives of growth:
3.2.2 - mergers and
takeoevers: THEME 3.2
Economies of scale - Unit cost Merger = Two business joinging
SUMMARY
decrease as output increases together to form one new
Market power - Gaining more compnay
3.2.3 - Organic growth:
influence in the market Organic growth = Growth that is through
Market share and brand - Gaining Takeover = One business
purchasing another the business own expansion
more % of the market
Theme 3.1 - business objectives and straterg
Profitability - Higher profit Inorganic growth = Growth through merger
margins Vertical intergration = A merger Theme 3.2 - business growth
or takeover involving businesses or takeover
Problems with growth: at different stages of the supply Theme 3.3- making business decsions
Diseconomies of scale - when unit chain 3.2.4 - Reasons for staying small: Theme 3.4 - influences and business decison
costs increase due to vast The benefits of staying small:
expansion Horizontal intergration= A Reduced risk of overtrading Theme 3.5 - assessing competitvness
Internal communication - can merger or takeover involving Product differentiation and USP
businesses at the same stage of Theme 3.6 - managing change
become more difficult with more Flexiblity in responding to customer
staff the supply chain needs
Overtrading - overspending in Customer service
search of growth
3.3.1 - Quantitive sales forecasting 3.3.2- Investment appraisal
Correlation - The relationship between two variables Quantitative methods of assessing
Extrapolation - making predictions based around trend whether investments are good
decisions
Moving averages - smoothing out fluctuations in data
Payback period:
THEME 3.3
Sales
How long it takes an investment
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