Business Studies
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  • Edexcel GCSE
    • Theme 1: Investigating small business >
      • Topic 1.1 Enterprise and entrepreneurship >
        • 1.1.1 The dynamic nature of business
        • 1.1.2 Risk and reward
        • 1.1.3 The role of business enterprise
      • Topic 1.2 Spotting a business opportunity >
        • 1.2.1 Customer needs
        • 1.2.2 Market research
        • 1.2.3 Market segmentation
        • 1.2.4 The competitive environment
      • Topic 1.3 Putting a business idea into practice >
        • 1.3.1 Business aims and objectives
        • 1.3.2 Business revenues, costs and profits
        • 1.3.3 Cash and cash-flow
        • 1.3.4 Sources of business finance
      • Topic 1.4 Making the business effective >
        • 1.4.1 The options for start-up and small businesses
        • 1.4.2 Business location
        • 1.4.3 The marketing mix
        • 1.4.4 Business plans
      • Topic 1.5 Understanding external influences on business >
        • 1.5.1 Business stakeholders
        • 1.5.2 Technology and business
        • 1.5.3 Legislation and business
        • 1.5.4 The economy and business
        • 1.5.5 External influences
    • Theme 2: Growing the business >
      • Topic 2.1 Growing the business >
        • 2.1.1 Business growth
        • 2.1.2 Changes in business aims and objectives
        • 2.1.3 Business and globalisation
        • 2.1.4 Ethics, the environment and business
      • Topic 2.2 Making marketing decisions >
        • 2.2.1 Product
        • 2.2.2 Price
        • 2.2.3 Promotion
        • 2.2.4 Place
        • 2.2.5 Using the marketing mix to make business decisions
      • Topic 2.3 Making operational decisions >
        • 2.3.1 Business operations
        • 2.3.2 Working with suppliers
        • 2.3.3 Managing quality
        • 2.3.4 The sales process
      • Topic 2.4 Making financial decisions >
        • 2.4.1 Business calculations
        • 2.4.2 Understanding business performance
      • Topic 2.5 Making human resource decisions >
        • 2.5.1 Organisational structures
        • 2.5.2 Effective recruitment
        • 2.5.3 Effective training and development
        • 2.5.4 Motivation
    • Revision >
      • Theme 1 >
        • Flash cards
        • MCQ
      • Theme 2 >
        • Flash Cards
  • A level Business Studies
    • Theme 3: Decisions and Strategy >
      • 3.1 Business objectives and strategy >
        • 3.1.1 - Objectives & Strategy
        • 3.1.2 - Theories of Corporate Stratergy
        • 3.1.3 - SWOT analysis
        • 3.1.4 - Impact of external influences
      • 3.2 Business growth >
        • 3.2.1 - Growth
        • 3.2.2 - Mergers & Takeovers
        • 3.2.3 - Organic Growth
        • 3.2.4 - Reasons for staying small
      • 3.3 Decision-making techniques >
        • 3.3.1 - Sales forecasting
        • 3.3.2 - Investment appraisal
        • 3.3.3 - Decision trees
        • 3.3.4 - Critical path analysis
      • 3.4 Influences on business decisions >
        • 3.4.1 Corporate influences
        • 3.4.2 Corporate culture
        • 3.4.3 Shareholders versus
        • 3.4.4 Business ethics
      • 3.5 Assessing competitiveness >
        • 3.5.1 Interpretation of financial statements
        • 3.5.2 Ratio analysis
        • 3.5.3 Human resources
      • 3.6 Managing change >
        • 3.6.1 Causes and effects
        • 3.6.2 Managing Change
        • 3.6.3 Scenario planning
    • Theme 4: Global business >
      • 4.1 Globalisation >
        • 4.1.1 Growing economies
        • 4.1.2 International trade and business growth
        • 4.1.3 Factors contributing to increased globalisation
        • 4.1.4 Protectionism
        • 4.1.5 Trading blocs
      • 4.2 Global markets and business expansion >
        • 4.2.1 Conditions that prompt trade
        • 4.2.2 Assessment of a country as a market
        • 4.2.3 Assessment of a country as a production location
        • 4.2.4 Reasons for global mergers or joint ventures
        • 4.2.5 Global competitiveness
      • 4.3 Global marketing >
        • 4.3.1 Marketing
        • 4.3.2 Niche markets
        • 4.3.3 Cultural/social factors
      • 4.4 Global industries and companies >
        • 4.4.1 The impact of MNCs
        • 4.4.2 Ethics
        • 4.4.3 Controlling MNCs
    • Pre-release >
      • 2017 Fitness Industry
    • Class list >
      • 13R
      • 13 Q
  • Btec
    • Level 3 >
      • Unit 3: Personal & Business Finance >
        • A: Personal Finance >
          • A1 Functions & role of money
          • A2 Different ways to pay
          • A3 Current accounts
          • A4 Managing personal finance
        • B: Explore the personal finance sector >
          • B1 Features of financial institutions
          • B2 Communicating with customers
          • B3 Consumer protection for personal finance
          • B4 Information guidance & advice
        • C: Understanding the purpose of accounting >
          • C1 Purpose of accounting
          • C2 Types of income
          • C3 Types of expendicture
        • D: Sources of finance >
          • D1 Internal
          • D2 External
        • E: Break-even & Cash flow >
          • E1 Cash flow forecasts
          • E2: Costs & Break-even
        • F: Statement of accounts >
          • F1 Statement of comprehensive income
          • F2 Statement of financial position
          • F3 Measuring porfitability
          • F4 Measuring liquidity
          • F5 Measuring efficiency
          • F6 Limitations of ratios
      • Unit 6: Principals of management >
        • A Functions of management >
          • A1 Definitions management & Leadership
          • A2 Functions of management & leadership
          • A3 Business Culture
        • B Management & Leadership: Styles & Skills >
          • B1 & B2 Management & Leaderships styles
        • C Managing Human Resources >
          • C1 Human Resources
          • C2 Human Resource Planning
        • D Factors influencing management, motivation and performance of the workforce >
          • D1 Motivation in the workplace
          • D2 Techniques to meet skills requirements
          • D3 Training and development
          • D4 Performance appraisal
        • E Impact of change >
          • E1 Managing change
        • F Quality management >
          • F1 Quality standards
          • F2 Developing a quality culture
          • F3 The techniques and tools of quality management
          • F4 The importance and benefits of quality management
      • Unit 7: Business Decission Making >
        • A: Business plans >
          • A1 Business ideas
          • A2 Purpose and structure of the business
        • B: Decision making in business >
          • B1 Sources for data collection
          • B2 The use of business models to aid decision making
          • B3 Techniques to analyse data effectively for business purposes
          • B4 Appropriate formats for decision making in a business context
          • B5 Software-generated information for decision making in an organisation
        • C: Use of research to justify the marketing >
          • C1 Types of research
          • C2 Competitor analysis
          • C3 Trends
          • C4 Marketing plan
        • D: Efficient operational management of the business >
          • D1 Legislation
          • D2 Quality issues
        • E: Understand the importance of managing resources >
          • E1 Human resources
          • E2 Physical resources
          • E3 Financial resources
        • F: Creation and interpretation of financial forecasts >
          • F1 Creation and analysis of a sales forecast
          • F2 Create and interpret a cash flow forecast
          • F3 Creation and interpretation of a break-even chart
          • F4 Creation and interpretation of an income statement
          • F5 Creation and interpretation of a statement of financial position
        • G: Viability of a business >
          • G1 Ratio analysis
          • G2 Threats and ‘what if’ scenarios
          • G3 Contingency plan
        • H: Demonstrate business skills/IT skills >
          • H1 Business skills
          • H2 Use IT skills to create appropriate documentation
  • Tutor
    • Social Media
    • Healthy body & mind
    • Maths problems >
      • Cheryl's Birthday
    • Geopolitical
    • Future labour markets
    • Growth Mind Set
    • Environment
    • Revision skills
ILO:

Candidates should understand the benefits and risks to a business of expanding and be aware of methods of expansion used by large businesses, for example: mergers and takeovers, organic growth and franchising.

Candidates should consider the ways in which the growth of a business can impact on its stakeholders. Candidates need to consider the ways in which stakeholders might react to protect their own interests.

Benefits and Risks of expansion 

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Telegraph
How does McDonalds benefit from its size?
10 Amazing Facts About McDonalds
Share price
What other types of economies of scale can you see?
Supersize me - american children being interrogated
Our food Your questions What are McDonald’s fries made of

Economies of scale - Increase in output = Reduced average cost

  • Purchasing
  • Financial
  • Capital
  • Specilisation of workforce 
  • Marketing 
Try to explain why the above might lower your average cost?

Risks of becoming to big: Dis-economies of scale

What potential risks are attached to a company getting bigger?
How might the size of the company affect the workers and influence economies of scale?

External growth: Mergers & Acquisitions   

What is the difference between a merger and a takeover?
Kraft paid £11.9 billion pounds for Cadbury's. Why?
What dis-advantages are there of this method of expansion?
Key terms - Vertical v Horizontal integration 
eBay to split off PayPal online payment business
List of mergers and acquisitions by Apple
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Advantages of integration

·    Sharing ideas, experience, resources and skills
·    Having more power and status in the market
·    Horizontal integration can lead to economies of scale
·    Vertical integration can ensure a firm keeps control of its supplies or distribution, which         can improve reliability and quality and reduce costs
·   
Conglomerate integration can spread risks – a fall in demand in one market and be                offset by growth in another

Disadvantages of integration

- The initial purchase can be expensive, especially if it's a hostile takeover.

·  Diseconomies of scale are the problems involved with controlling, communicating and motivating staff in a bigger business

· 
Culture clashes can occur because firms are used to doing things in different ways. This can lead to arguments and inefficiency

Merger

Consider the merger below. How will it benefit the company and is this is any different to an acquisition?
Does it still have risks attached?

Formerly Everything Everywhere, the company was responsible for both mobile network operators Orange and T-Mobile.

With 28 million customers in the country, EE made the steps in 2010 to merge the two businesses. This resulted in their high-street shops merging into one property, cutting operating costs whilst still maintaining city centre presence. Combined with a swanky advertising campaign featuring actor Kevin Bacon, EE's revenues jumped 10% to almost £6.5bn in 2013. A very good move indeed.

2016 update - The success of merging into EE has meant the brand and business has been bought by BT (British Telecom) in an astonishing £12.5 billion deal, which will see the firm own 35% of the UK's mobile market.

http://blog.katapult.co.uk/5-successful-examples-of-high-street-brand-mergers-in-the-uk

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Internal (Organic) Growth

Internal growth is when a business is expanding internally/naturally/within the business 
 
What 4P's can a business change to do this?

It will not include a takeover/merger or franchising.

Internal growth tends to be slower than external growth but may be more manageable because of this.
organic_growth.doc
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Playstation 3 (PS3) Full Commercial - Baby
First 10 PlayStation games - Europe/PAL  
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Lego CEO Knudstorp on Performance, Growth Outlook
Questions:

What examples are there of Lego's growth strategy?

What are the adv of this method?

What are the dis of this method?

Try to use only key terms in your answer.

Franchises

franchises_worksheet.docx
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Sandwich group Subway has overtaken McDonald's as the world's largest restaurant chain, the company has said.

Subway had 33,749 sites across the globe at the end of last year, compared with 32,737 for McDonald's.

In recent years, US-based Subway has made a major push into international markets with its successful franchised business model, which emphasises small, low-cost outlets.

http://www.bbc.co.uk/news/business-12673441

Cost to set up a Subway franchise

via chartsbin.com
franchises_fill_in_the_blanks.doc
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franchising_theory.doc
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Growth and Stakeholders

Questions:

What stakeholders would there be for Starbucks?

What stakeholders would be against its growth?


Why is it important that a business takes account of all stakeholders?

Rank what stakeholders you think are most important?

How can a business resolved stakeholder conflict?
Starbucks, Google and Amazon grilled over UK tax avoidance (BBC News coverage)

stakeholders_research.docx
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growth_and_stakeholders.doc
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how_can_stakeholders_protect_their_interests.doc
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