Podcast
Questions and Answers
Which external factor may cause businesses to switch production locations?
Which external factor may cause businesses to switch production locations?
What may result from new laws affecting certain products?
What may result from new laws affecting certain products?
Which of the following is a potential effect of government trade treaties?
Which of the following is a potential effect of government trade treaties?
During the COVID-19 pandemic lockdowns, what was a common consumer behavior observed?
During the COVID-19 pandemic lockdowns, what was a common consumer behavior observed?
Signup and view all the answers
What aspect of the business environment requires continuous monitoring?
What aspect of the business environment requires continuous monitoring?
Signup and view all the answers
What may affect demand for products in a business's market?
What may affect demand for products in a business's market?
Signup and view all the answers
What critical change could technology bring to the transformation process in businesses?
What critical change could technology bring to the transformation process in businesses?
Signup and view all the answers
Which area may significantly impact businesses in the health sector?
Which area may significantly impact businesses in the health sector?
Signup and view all the answers
What is the primary purpose of business objectives?
What is the primary purpose of business objectives?
Signup and view all the answers
Which factor of production is most affected by the quality of a location?
Which factor of production is most affected by the quality of a location?
Signup and view all the answers
How can the choice of inputs impact a business?
How can the choice of inputs impact a business?
Signup and view all the answers
Why is access to resources critical for some businesses?
Why is access to resources critical for some businesses?
Signup and view all the answers
What is the primary focus of the publication from Berkeley Earth as stated in the content?
What is the primary focus of the publication from Berkeley Earth as stated in the content?
Signup and view all the answers
What recent trend has influenced customer interest in production processes?
What recent trend has influenced customer interest in production processes?
Signup and view all the answers
Which organization released an environmental report in 2019 according to the sources listed?
Which organization released an environmental report in 2019 according to the sources listed?
Signup and view all the answers
Which statement reflects the significance of land in the primary sector?
Which statement reflects the significance of land in the primary sector?
Signup and view all the answers
What aspect of business does the McKinsey & Company document primarily address?
What aspect of business does the McKinsey & Company document primarily address?
Signup and view all the answers
What aspect of land is included beyond geographical location?
What aspect of land is included beyond geographical location?
Signup and view all the answers
What is Hachette UK’s environmental policy regarding the paper used in publishing?
What is Hachette UK’s environmental policy regarding the paper used in publishing?
Signup and view all the answers
Which of the following is NOT a factor of production?
Which of the following is NOT a factor of production?
Signup and view all the answers
In which year was the first edition of the publication by Malcolm Surridge and Andrew Gillespie released?
In which year was the first edition of the publication by Malcolm Surridge and Andrew Gillespie released?
Signup and view all the answers
Which company is linked with the 'Energy with Purpose' initiative as per the sources provided?
Which company is linked with the 'Energy with Purpose' initiative as per the sources provided?
Signup and view all the answers
What does the ISBN number 978 1 3983 0811 4 signify?
What does the ISBN number 978 1 3983 0811 4 signify?
Signup and view all the answers
Which method can be used to find a relocated web page according to the content?
Which method can be used to find a relocated web page according to the content?
Signup and view all the answers
What distinguishes a multinational from an international business?
What distinguishes a multinational from an international business?
Signup and view all the answers
What is a primary reason IKEA uses flat-pack furniture design?
What is a primary reason IKEA uses flat-pack furniture design?
Signup and view all the answers
What advantage do multinationals gain by being closer to their markets?
What advantage do multinationals gain by being closer to their markets?
Signup and view all the answers
How does being a multinational help in overcoming product restrictions in a host country?
How does being a multinational help in overcoming product restrictions in a host country?
Signup and view all the answers
How does IKEA's approach to customer participation contribute to its value chain?
How does IKEA's approach to customer participation contribute to its value chain?
Signup and view all the answers
What is one of the benefits of spreading risk as a multinational?
What is one of the benefits of spreading risk as a multinational?
Signup and view all the answers
In what way does IKEA aim to add value to customers' everyday lives?
In what way does IKEA aim to add value to customers' everyday lives?
Signup and view all the answers
What percentage of new businesses would be expected to survive after five years if 400,000 start up, given the failure rates stated?
What percentage of new businesses would be expected to survive after five years if 400,000 start up, given the failure rates stated?
Signup and view all the answers
What aspect of IKEA's furniture contributes to keeping prices low for customers?
What aspect of IKEA's furniture contributes to keeping prices low for customers?
Signup and view all the answers
Which term best describes the forces that influence IKEA's pricing strategy?
Which term best describes the forces that influence IKEA's pricing strategy?
Signup and view all the answers
What primary risk do multinationals mitigate by diversifying their production bases?
What primary risk do multinationals mitigate by diversifying their production bases?
Signup and view all the answers
What might a government provide to incentivize a multinational to open a production facility in their country?
What might a government provide to incentivize a multinational to open a production facility in their country?
Signup and view all the answers
What role does collaboration play in IKEA’s operational strategy?
What role does collaboration play in IKEA’s operational strategy?
Signup and view all the answers
What is a potential downside for a multinational when expanding internationally?
What is a potential downside for a multinational when expanding internationally?
Signup and view all the answers
How does IKEA distinguish itself in the market according to its brand strategy?
How does IKEA distinguish itself in the market according to its brand strategy?
Signup and view all the answers
What is the primary purpose of business activity?
What is the primary purpose of business activity?
Signup and view all the answers
What is one potential drawback of IKEA’s flat-pack furniture model?
What is one potential drawback of IKEA’s flat-pack furniture model?
Signup and view all the answers
Which characteristic distinctly differentiates multinational businesses from national businesses?
Which characteristic distinctly differentiates multinational businesses from national businesses?
Signup and view all the answers
What role does an entrepreneur primarily play in the economy?
What role does an entrepreneur primarily play in the economy?
Signup and view all the answers
What is one common barrier to entrepreneurship?
What is one common barrier to entrepreneurship?
Signup and view all the answers
Which of the following best describes the transformation process in business?
Which of the following best describes the transformation process in business?
Signup and view all the answers
What is a key limitation of business plans?
What is a key limitation of business plans?
Signup and view all the answers
Which statement accurately reflects the relationship between business risks and uncertainty?
Which statement accurately reflects the relationship between business risks and uncertainty?
Signup and view all the answers
Why is the concept of adding value crucial for businesses?
Why is the concept of adding value crucial for businesses?
Signup and view all the answers
Study Notes
1.1 Enterprise
-
Nature of Business Activity: Businesses transform inputs (factors of production: land, labor, capital, and enterprise) into outputs. This process adds value. Businesses aim to fulfill objectives (e.g., sales, profits) within a timeframe.
-
Types of Businesses: Businesses can be local, national, international, or multinational. Multinational companies have production or office locations in multiple countries.
-
Entrepreneur/Intrapreneur: Entrepreneurs start new businesses. Intrapreneurs innovate within existing organizations. Entrepreneurs are crucial to the economy. Barriers to entrepreneurship exist.
-
Business Risk & Uncertainty: Businesses face risk (potential for loss) and uncertainty (difficulty predicting future events).
-
Business Plans: Business plans outline business strategies, key elements, and limitations.
-
IKEA Value Chain: IKEA adds value through flat-packing furniture to reduce transport costs and lower prices. Collaboration with customers and partners is essential.
-
Factors of Production (Land): Land encompasses location (e.g., retail shops), land quality (e.g., farming), and resource accessibility (e.g., oil drilling). Primary sector businesses are heavily reliant on land.
External Influences
-
Market Forces: Supply and demand influence business decisions, including costs and availability of inputs.
-
Government Involvement: Governments often control essential services or sectors. External factors affect product demand, input costs, and transformation processes. Businesses must monitor external changes, especially industry-specific factors.
Case Study: Lockdown
- COVID-19 Impact: The 2020 pandemic forced business closures and operational adjustments, leading to supply chain disruptions. Panic buying occurred, and there was concern about economic recovery.
Business Failure Rates
- Business Failure Statics: High failure rates are common for new businesses within the first few years. A significant portion of new businesses experience failure.
Business Definitions
- Multinational vs. International: Multinational companies have production bases in multiple countries, diversifying risks. International businesses trade or buy from other locations.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
This quiz covers the fundamentals of enterprise, exploring the nature of business activities and the various types of businesses, including local, national, and multinational firms. It also delves into the roles of entrepreneurs and intrapreneurs, as well as the importance of business planning and value creation, using IKEA as a case study. Test your understanding of business objectives, risks, and strategies.