Growing the business GCSE Business Studies is the first topic in theme two of your course. Watch the lessons and take the online tests we have prepare to help you get good grades.
2.1.1 Business growth
Methods of business growth and their impact:
● internal (organic) growth: new products (innovation, research and development), new markets (through changing the marketing mix or taking advantage of technology and/or expanding overseas)
● external (inorganic) growth: merger, takeover. The types of business ownership for growing businesses:
● public limited company (plc)
Sources of finance for growing and established businesses:
● internal sources: retained profit, selling assets
● external sources: loan capital, share capital, including stock market flotation (public limited companies).
2.1.2 Changes in business aims and objectives
Why business aims and objectives change as businesses evolve:
● in response to: market conditions, technology, performance, legislation, internal reasons.
How business aims and objectives change as businesses evolve:
● focus on survival or growth
● entering or exiting markets
● growing or reducing the workforce
● increasing or decreasing product range.
2.1.3 Business and globalisation
The impact of globalisation on businesses:
● imports: competition from overseas, buying from overseas
● exports: selling to overseas markets
● changing business locations
● multinationals.
Barriers to international trade:
● tariffs
● trade blocs.
How businesses compete internationally:
● the use of the internet and e-commerce
● changing the marketing mix to compete internationally.
2.1.4 Ethics, the environment and business
The impact of ethical and environmental considerations on businesses:
● how ethical considerations influence business activity: possible trade-offs between ethics and profit
● how environmental considerations influence business activity: possible trade-offs between the environment, sustainability and profit
● the potential impact of pressure group activity on the marketing mix.
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