Business Growth and Globalisation

• what are organic methods of growth?


  keep on selling

  keep reinvesting profit
• is organic internal or external growth? 


  internal
• is inorganic internal or external growth?


  external
• what are inorganic methods of growth?


  -mergers

  -takeovers
• what does organic business growth mainly come about from?


  -increasing existing production capacity through investment

  -launching of new products

  -finding new markets

  -growing a customer base through marketing
• what is a merger?


  this is where two businesses agree to become integrated to form one business under joint ownership
• internal growth can be achieved through:


  -opening new stores

  -developing new products / product innovation

  -investment in research and development

  -changing marketing mix

  -moving online

  -expansion overseas
• what does ”listed” mean?


  on the stock market. a Public Limited Company, ANYONE can but shared in your company.
• what are some examples of tangible value?

  -physical assets

  -machinery

  -stock

  -factories

  -factories
• what are some examples of intagible values?

  -reputation

  -customer loyalty

  -employee skills

  -networks
• what is a globalised business?


  a multinational cooperation that has global reach and increasing power.
• in order of globalisation…


  …governments have decreased tariffs and regulations on international trades
• what does globalisation mean?


  it describes the growing independence of the world’s economies, cultures, and populations, brought about by cross-boarder trade in goods and services, technology and flows of investment, people and information.
• What are some good aspects of globalisation?


  -lower transport costs

  -wider consumer choice

  -more information sharing

  -lower prices

  -bigger market for products

  -lower trade barriers
• What are some bad aspects of globalisation?

  -wider consumer choice

  -same culture worldwide

  -more waste

  -climate change effects

  -more competition

  -less self sufficiency
• What is a multinational company?

  A company that operates in multiple countries.
• What are some advantages to a multinational company?

  -global brand recognition

  -lower production cost

  -economies of scale
• What are some disadvantages to a multinational company?

  -communication challenges

  -political unrest can disrupt the supply chain

  -differences in culture
• What is an economy of scale?

  Cost advantages that enterprises obtain due to size, output, or scale of operation.
• What is protectionism?

  Trade policy that restricts imports in order to protect domestic industries.
• What is recession?

  when a country’s GDP is falling
• what are some features of the EU?

  -free trade between members

  -shared policy for non-members

  -free movement of people

  -free movement of capital (money)