Paper 2

Created by

Ben Ryland

Cards (129)

2.1.1 Internal growth 
Where a business grows by selling more products, launching new products or opening more stores.
2.1.1 External growth 
Where a business grows by taking over or merging with another business.
2.1.1 Market share
The percentage of total market sales belonging to one business.
2.1.1 Brand awareness 
The number of potential consumers who know about a business / product.
2.1.1 Product portfolio
The range of products a business has available for sale.
2.1.1 Research and development
The scientific research and technical development needed to come up with new ideas
2.1.1 Merger
Where two businesses decide to combine to make one new business.
2.1.1 Takeover
Where one business buys more than 50% of the share capital of a business
2.1.2 Aim
An aim is the long term goal for an organisation
2.1.2 Objective
An objective is the medium/short term goal that a business sets
2.1.2 SMART
Specific, Measurable, Achievable, Relevant, Timed
2.1.2 Redundancy
Where an employee is released as their job is no longer required.
2.1.2 Dismissal
Where an employee is released due to misconduct
2.1.3 Globalisation
Where different countries trade with each other to buy and sell global goods and services.
2.1.3 Imports
Buying in materials or goods from overseas
2.1.3 Exports
Selling goods or materials to overseas
2.1.3 Exchange rates
The value of one currency in relation to another
2.1.3 MEDCs 
More economically developed countries
2.1.3 LEDCs 
Less economically developed countries
2.1.3 Tariffs 
A tax on imports
2.1.3 Quotas 
A limit on imports
2.1.3 Protectionism 
Where a country imposes barriers to restrict international trade
2.1.3 Trade liberalisation 
Where a country removes barriers to have free trade
2.1.3 Trading bloc
A formal agreement between countries to work together on trade
2.1.4 Opportunity cost 
What is sacrificed when a decision is made
2.1.4 Trade off
Where the more you have of one thing, the less you have of another
2.1.4 Ethics 
What is "morally right" - The right thing to do.
2.1.4 Sustainability 
Whether something will run out in the future. If it is sustainable, it won't.
2.1.4 Pressure groups
kAn independent organisation that aims to influence decisions made by businesses or governments
2.2.1 Marketing
Understanding and communicating with customers so that they will buy from you
2.2.1 The marketing mix
Product, price, promotion and place of the product and key decisions the marketing team must make
2.2.1 The design mix
A model that helps a business decide on the priorities when designing a new product
2.2.1 Product life cycle
The stages a product goes through from its launch to its removal from the market
2.2.1 Extension strategy
Any action a business does to prevent a product entering the decline stage of the product life cycle
2.2.2 Price
The amount of money given in payment for a good or service
2.2.2 Mass market
The largest part of the market where products are sold to wide audiences and are similar
2.2.2 Niche market
The smaller part of the market where products are sold to specific people
2.2.2 Price skimming
A pricing strategy for new, innovative products that involves a high starting price that declines over time
2.2.2 Profit margins
What percentage of a products selling price is made as profit / percentage of a business' revenue is made as profit
2.2.3 Promotional strategy
The plan for how to communicate effectively with customers so that they are aware of products / services