1. Business Organisation
Growing a Business
Business Organisation

2. Benefits of expanding a business

3. Risks of business expansion

4. How do businesses expand?
Vertical forward
Diversification
Horizontal integration
Vertical backwards

5. Q1. Explain the difference between a merger and takeover.
_______________________________________________________________________________________________________________________________________________________

6. Q2. Explain the difference between organic and inorganic growth
_______________________________________________________________________________________________________________________________________________________

7. Q. Identify two ways of organic and inorganic growth

8. Disadvantages of inorganic growth

9. Conflict between stakeholders of business growth
Possible benefits
Possible drawbacks
Workers
Customers
Suppliers

10. Defending your interests
Customer…
Employee…

11. Legal ownership Advantages Disadvantages Private limited company (Ltd)
Public Limited Company (PLC)

12. Aims of a growing business
Objectives
Aims of a small business will be to survive followed by making a profit.
Aims of a growing business

13. Ethical & environmental
Why do large businesses include these in their decision making?

14. Location minimising costs and increasing revenues
Q. Explain two risks of operating overseas.

15. Human Resources/People in Business
Growing a Business
Human Resources/People in Business

16. Key terms
Organisational structure
Hierarchy
Span of control

17. There is no right or wrong structure!!!
Flat structure -
Wide span of control
Tall structure –
Narrow span of control
There is no right or wrong structure!!!

18. Centralised V’s Decentralised
Benefits
Challenges
Centralised
Decentralised

19. Recruitment and selection process
Needs analysis
Job description
Person specification
Advertise the post
Short list
Interview
Appoint

20. Induction process
What could be included in an induction process for new employees at McDonalds?

21. Training
Advantages
Disadvantages
On-the-job
Off-the job

22. Appraisal
What are they for?
Why use them?

23. Motivational methods
Q. State and explain two forms of monetary motivation. (4)
Q. State and explain two forms of non monetary motivation. (4)

24. Leadership
Q. State and explain what is meant by autocratic leadership. (2)
Q. State and explain what is meant by democratic leadership. (2)

25. Growing a Business
Production Revision

26. Efficiency is: Producing output with no/little wastage
Increasing output using the same resources
How can efficiency be increased?
What impact might your method(s) have on employees?

27. Explain what is meant by lean production
A production approach that aims to use fewer resources by using them more efficiently
Kaizen
JIT
Lean design
Cell production
Kaizen – involves employees and make improvements – kaizen groups
Lean design – designers working on different parts, using CAD – get to market quicker – higher prices – profit
Cell production – job split into complete units, done by teams, training, problem solving and decision making, not as repetitive

28. Advantages & Disadvantages of growth
Economies of scale - lower average unit cost
Diseconomies of scale – communication, motivation, coordination

29. Explain two quality issues that a growing business may face
Lack of consistency
Outsourcing
Poorly motivated employees

30. Explain the difference between quality assurance and TQM
Sets agreed quality standards
Involves all employees
Responsibility of all – ensure and monitor
No separate quality department
Training

31. Growing a Business
Finance Revision

32. Advantages and disadvantages of sources of finance
Retained profits
Loan or mortgage
Selling unwanted assets
Share issue

33. Lowe’s Weddings is considering purchasing a new premises
Lowe’s Weddings is considering purchasing a new premises. They are unsure whether to use retained profit or obtain a mortgage. Advise Lowe’s Weddings which option they should choose. Justify your view. (9)

34. Explain how the following are useful to stakeholders
Profit & Loss
Shareholders
Employees
Bank
Balance sheet

35. What do the following say about the business?
Gross profit margin
Net profit margin
_____________________________
Current ratio
Acid test ratio

36. Growing a Business
Marketing Revision

37. The product life cycle Development Introduction Growth Maturity
Decline
Explain how demand will be affected in the maturity stage
Explain how a business could extend the life of their product

38. Explain two factors that could influence pricing decisions
The degree of competition
The nature of the market – luxury, inferior, innovative, mass market, niche market
Costs of production

39. Explain two factors that will influence the selection of the promotional mix
Costs and affordability
Nature of the product – sold to businesses or end customers? Mass or niche market product?
Nature of the market – local or national?
Activities of competitors

40. Explain which channel of distribution the following products could be distributed by
Books TV
Insurance
Designer clothing

41. This session is NOT instead of your own revision and does not replace all the hard work that you have put in for 2 years. Here are the areas that have not been covered:
Production
Difference between division of labour and specialisation
Advantages of TQM
External economies of scale
Finance
Components of the P&L and balance sheet
Marketing
How and why businesses broaden their product portfolio
Pricing methods
Promotional methods
Channels of distribution