A-level Business₇₁₃₂

The reasons why businesses grow or retrench

Types of growth to include organic and external

The difference between organic and external growth

How to manage issues caused by growth and retrenchment

Issues with growth should include:

• economies of scale (including technical, purchasing and managerial)
• economies of scope
• diseconomies of scale
• synergy
• overtrading.

The impact of growth or retrenchment on the functional areas of the business

Assessing methods and types of growth

Methods of growth to include mergers, takeovers, ventures, franchising

Types of growth to include vertical (backward and forward), horizontal and conglomerate integration

The pressures for innovation

Types of innovation should include product and process innovation.

The value of innovation

The ways of becoming  an innovative organisation

Ways of becoming innovative include:

• Kaizen
• research and development
• intrapreneurship
• benchmarking.

How to protect innovation and intellectual property

Ways of protecting intellectual property include patents and copyrights.

The impact of an innovation strategy on the functional areas of the business

Reasons for targeting, operating in and trading with international markets

Methods of entering international markets include:

• export
• licensing
• alliances
• direct investment.

Factors influencing the attractiveness of international markets

Reasons for producing more and sourcing more resources abroad

Decisions regarding producing overseas include off-shoring and re-shoring.

Ways of entering international markets and value of different methods

Targeting overseas markets may include being a multinational.

Influences on buying, selling and producing abroad

Managing international business

• pressures for local responsiveness
• pressures for cost reduction.

The pressures to adopt digital technology

Digital technology should include automation, e-commerce, big data and data mining.

The value of digital technology