IGCSE Business Year 10 Block 2 Week 1

Combining different stages of production in a single company.

Merging or acquiring companies at the same stage of production.

A large company formed by combining different unrelated businesses.

Cost advantages resulting from increased scale of production (e.g., lower per-unit costs).

Expansion of a business in terms of sales, market share, or other metrics.

The cessation of a business' operations due to insolvency or other factors.

A document outlining a business's objectives, strategies, and financial forecasts.

A measure of a business's dimensions, such as its revenue, number of employees, or market share.

Business growth achieved through expanding its existing operations and resources, instead of merging with or acquiring other companies.

Business growth achieved by merging with or acquiring other companies.

The situation where a business's average costs increase as it grows larger. Usually due to operational inefficiencies in large firms.

The shared values, beliefs, and norms that shape how a business operates and employees behave.

The goals or targets a business sets for itself. These may include profit maximization or market share gain.

Potential conflicts or difficulties that arise from merging two businesses, including conflicting cultures, objectives, fear of job loss, and management challenges.

Reason why a business might stay small. The owners may not intend to grown the business.

Reasons why a business that wants to grow may fail in its growth

Reasons a business owner might choose NOT to grow their business, often due to personal preference, desire for control, limited risk tolerance, or avoiding additional workload and responsibility.

A business's decision to stay in a local market, possibly stemming from customer preferences or a lack of interest in expanding beyond its current geographic area.

A business's ability to access funding for growth is a crucial factor. Insufficient funding can hinder expansion plans.

Large existing companies that hinder new businesses' ability to compete effectively in a specific market.

Airlines may fail if their revenue is insufficient to cover operational costs, leading to financial losses and ultimately, debt problems.

Too many competitors in a limited market can make it difficult for airlines to continue operating profitably.

Safety issues can harm passenger trust, reduced revenue, and eventually lead to airline failures.

Charging insufficient fares or inability to increase prices due to market competition can cause airlines to fail.

Reasons why a business might stop operating, including poor planning, lack of finance, liquidity problems, poor location, management issues, lack of technology, poor marketing, competition, and economic factors.

Lack of a business plan (financial and marketing) or clear goals that leads to business failure.

Insufficient cash flow to cover business expenses.

Choosing a bad location, especially for businesses needing to be near customers (retail, restaurants, etc.).

Lack of the skills needed to run a business effectively, even with a good idea.

Failing to adapt to technological advancements, which causes difficulties competing in quality, price, and attracting customers.

Failing to effectively identify and meet customer needs through insufficient market research to understand the market.

New businesses often don't have enough funds to seize opportunities. This can hinder growth.

Reasons why a business stops operating, often due to factors like poor financial performance, competition, or economic downturns.

A period of reduced economic activity that reduces consumer spending, impacting business earnings and leading to more failures.

Increasing global competition can make it harder for businesses to compete, especially those struggling with quality or pricing.

Lower consumer spending, often due to things like unemployment or high interest/taxes, can hurt business sales.

Misaki's wedding dress revenue fell below total costs, even with fewer sales, because fixed operating costs remained the same.

Increased competition among wedding dress businesses, providing lower prices that consumers could afford even with decreased income.

If an economic recession continues, further job losses could threaten Misaki's business or lead to closure.

Strategies like selling cheaper dresses, reducing costs (e.g., smaller premises), or waiting for economic improvement help businesses weather tough times.

A business owned and run by one person.

Easy setup, complete control, and all profits go to the owner.

Owner is personally responsible for business debts; funding expansion can be hard; limited business skills might be an issue.

The owner is personally responsible for all business debts.

Obtaining money to grow a business.