International A Level Business Student Book 1 PDF

PEARSON EDEXCEL INTERNATIONAL AS/A LEVEL BUSINESS E PL Student Book 1 Rob Jones M SA Published by Pearson Education Limited, 80 Strand, London, WC2R 0RL. 31, AtomicSparkle/Vetta 91, Westend61 112, DarioEgidi 131, AFP Contribut...

PEARSON EDEXCEL INTERNATIONAL AS/A LEVEL BUSINESS E PL Student Book 1 Rob Jones M SA Published by Pearson Education Limited, 80 Strand, London, WC2R 0RL. 31, AtomicSparkle/Vetta 91, Westend61 112, DarioEgidi 131, AFP Contributor/Contributor www.pearsonglobalschools.com 195, Jose A. Bernat Bacete 199, Sjo 215, Amir Mukhtar/Moment Unreleased 228, Jasper Copies of official specifications for all Edexcel qualifications may be found on the website: Juinen 249, Peeterv/iStock 283, iStock/360 288, Xavierarnau/E+ 30, @by Feldman_1/ https://qualifications.pearson.com Moment 56, Sarah Franklin/Moment 97, Suranto Riadi/EyeEm 140, Lars Ruecker/Moment 165, Malorny/Moment 205, Alexander Spatari/Moment 240, aaaaimages/Moment 263, Text © Pearson Education Limited 2018 Howard Kingsnorth/Stone 294; PhotoDisc: Brofsky Studio Inc 277; Rex Features: Nicholas Designed by Pearson Education Limited 2018 Bailey 161; Shutterstock: LightField Studios 18, Sorbis 27, Beros919 38, Iurii 40, Yuliya Typeset by Pearson CSC Yesina 42, Lenakov 47, Bea Rue 50, WithGod 51, CandyBox Images 66, Bogdanhoda 67, Edited by Jeremy Toynbee and Sarah Wright ImagineStock 71, Tom Burlison 76, REDPIXEL.PL 79, nd3000 82, Abir Abdullah 84, Tumarkin Original illustrations © Pearson Education Limited 2018 Igor – ITPS 85, Dmitry Kalinovsky 103, tsyhun 108, ProStockStudio 117, Shutterstock Cover design by Pearson Education Limited 2018 120, Monkey Business Images 122, Matt Trommer 128, Dragon Images 144, Stock-Asso Picture research by Aptara Inc. 145, wavebreakmedia 150, g-stockstudio 153, Marina Shanti 154, Ayman alakhras 162, Mila Cover photo/illustration © Getty Images/David McLain Supinskaya Glashchenko 168, xiao yu 170, Monkey Business Images 172, Eviled 176, Jaroslav Inside front cover photo: Shutterstock, Dmitry Lobanov Pachy sr 180, Mavo 182, Yulia Grigoryeva 187, Fascinadora 188, Stuart Jenner 192, Sergey kolesnikov 193, Iakov Filimonov 207, Coronado 212, Adrin Shamsudin 213, Wkst 218, Africa The rights of Rob Jones to be identified as author of this work have been asserted by him in Studio 232, Syda Productions 241, Maridav 245, science photo 247, Ricantimages 248, ESB accordance with the Copyright, Designs and Patents Act 1988. 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OECD; p. 252 From Adapted from Peter Koven, First Quantum The authors and publisher would like to thank the following individuals and organisations for their Minerals has overcome worst of liquidity problems, executives say; p. 203 Extract from www. kind permission to reproduce copyright material. support-finance.co.uk. Used with permission; Pages 76, 79 from www.statista.com; p. 23 From strategictoolkits; p. 23 Extract from http://strategictoolkits.com/strategic-concepts/ Photographs perceptual-map/; p. 32 Extract from Sustrans.org.uk. Used with permission; p. 138 www. telegraph.co.uk; p. 6 Based on Australia’s online grocery market set to double, The Daily (Key: b-bottom; c-centre; l-left; r-right; t-top) Telegraph; p. 40 Adapted from New tracer technology brings cost savings to unconventional well stimulation, Brent Crude Oil performance and An Economic Perfect Storm Is Causing 123RF.com: Fiphoto 137, 123RF 148, Yoanna Boyadzhieva 174, Jens Brüggemann 200, Oil Prices to Drop to New Lows; p. 171 From TRADING ECONOMICS; pages 295, 296, odessa4 239; Alamy Stock Photo: Philip Game vii, 6, Matthew Richardson 20b, Clive Horton 307 www.trad ngeconomics.com; p. 285 Extract from Toyota (GB) PLC. Reproduced w.th 29, Travelib pakistan 46, Kathy deWitt 52t, Xinhua 55, Richard Cummins/Destinations/Design permission from Toyota (GB) PLC; p. 71 www.volkswagen.co.uk; p. 87 Extract from uSwitch. Pics Inc 57, Simon Turner 73b, Radharc Images 73c, Ashley Cooper 75, Alberto Grosescu 80, com. Used with permission; p. 130 Extract from xperthr. Used with permission; p. 49 From Danita Delimont 89, BJ Warnick/Newscom 110, Aurora Photos 160, Jorge Pérez 166, Best View Adapted from What German households pay for power. p. 1 Adapted from The World Bank, Stock 177, Rafael Ben-Ari 183, Oxana Oleynichenko 198, Rob Crandall 203, HD SIGNATURE China’s domestic travel boom brings rush of start-up airlines, jet orders and Ranking of CO., LTD 220, Christopher Kimmel/Aurora Photos 222, JG Photography 252, Cynthia Farmer China’s Busiest Airports in 2015; p. 3 Graph from The World Bank, Used with permission; 258, Richard Milnes 262, Ka Wing Yu 295, Monty Rakusen 308, Katharine Rose 311, Markus Mainka 319, Germany 322, Taina Sohlman 327; AP Images: DANTE PIAGGIO 226; Corbis: Every effort has been made to trace the copyright holders and we apologies in advance Reuters 271; Fotolia: yolfran 52b, Michael Jung 115, xy 126, Darren Baker 139, Picture-Factory for any unintentional omissions. We would be pleased to insert the appropriate 157, doble.d 264b; Getty Images: Nihat Sinan Erul vi, 2, Bloomberg vii, 4, 19, 22, iStock/360 acknowledgement in any subsequent edition of this publication. CONTENTS iii COURSE STRUCTURE IV ABOUT THIS BOOK VI ASSESSMENT OVERVIEW VIII UNIT 1: MARKETING AND PEOPLE 2 E UNIT 2: MANAGING BUSINESS ACTIVITIES 165 GLOSSARY 325 INDEX PL 333 M SA iv COURSE STRUCTURE UNIT 1: MARKETING AND PEOPLE MEETING MARKETING MIX ENTREPRENEURS CUSTOMER NEEDS2 AND STRATEGY56 AND LEADERS140 E 1. THE MARKET  3 9. MARKETING OBJECTIVES 19. ROLE OF AN AND STRATEGY 57 ENTREPRENEUR141 2. MARKET RESEARCH  11 10. PRODUCT/SERVICE 20. ENTREPRENEURIAL 3. MARKET POSITIONING  20 DESIGN68 MOTIVES AND CHARACTERISTICS149 PL 11. PROMOTION AND BRANDING  74 21. BUSINESS OBJECTIVES 155 12. PRICING STRATEGIES 83 22. BUSINESS CHOICES 160 13. DISTRIBUTION  89 THE MARKET30 MANAGING PEOPLE  95 M 4. DEMAND  31 14. APPROACHES TO STAFFING96 5. SUPPLY 36 15. RECRUITMENT, 6. MARKETS 41 SA SELECTION AND 7. PRICE ELASTICITY OF TRAINING  104 DEMAND (PED) 46 16. ORGANISATIONAL 8. INCOME ELASTICITY OF DESIGN113 DEMAND (YED) 52 17. MOTIVATION IN THEORY AND PRACTICE  121 18. LEADERSHIP  132  COURSE STRUCTURE v UNIT 2: MANAGING BUSINESS ACTIVITIES PLANNING A MANAGING EXTERNAL BUSINESS AND FINANCE240 INFLUENCES294 E RAISING FINANCE165 23. PLANNING 166 34. PROFIT 241 41. ECONOMIC INFLUENCES 295 24. INTERNAL FINANCE 172 35. LIQUIDITY 248 42. LEGISLATION  308 PL 25. EXTERNAL FINANCE 177 26. FORMS OF BUSINESS  184 27. FORMS OF BUSINESS: PLCs193 28. LIABILITY 199 36. BUSINESS FAILURE 256 43. THE COMPETITIVE ENVIRONMENT319 M FINANCIAL RESOURCE GLOSSARY  325 PLANNING205 MANAGEMENT263 INDEX  333 29. SALES, REVENUE 37. PRODUCTION, SA AND COSTS  206 PRODUCTIVITY AND EFFICIENCY264 30. SALES FORECASTING 213 38. CAPACITY UTILISATION 274 31. BREAK-EVEN 221 39. INVENTORY CONTROL 279 32. CASH FLOW 226 40. QUALITY MANAGEMENT 286 33. BUDGETS 233 vi ABOUT THIS BOOK ABOUT THIS BOOK This book is written for students following the Pearson listing the key learning objectives and includes a getting Edexcel International Advanced Level (IAL) Business started activity to introduce the concepts. There is a mix of specification. It covers the first year of the International A learning points and activities throughout including global level qualification as well as the full International AS level. case studies to show a range of businesses within real-life contexts. Checkpoint questions at the end of each chapter The book has been carefully structured to match the help assess understanding of the key learning objectives. order of topics in the specification although teaching and E learning can take place in any order, both in the classroom The content for Unit 1 is applicable for Paper 1 and in any independent learning. This book is organised (Marketing and people) and the content for Unit 2 is into two units (Unit 1: Marketing and people and applicable for Paper 2 (Managing business activities). Unit 2: Managing business activities), each with Knowing how to apply learning to both of these papers will five topic areas. be critical for exam success. There are exam-style questions at the end of each chapter to provide opportunity for exam Each topic area is divided into chapters to break the content practice. Answers are provided in the online teaching MEETING CUSTOMER PL down into manageable chunks. Each chapter begins by Topic openers Introduce each of the key topics in the specification. Learning objectives Each chapter starts with a list of key assessment objectives. SPECIFICATION 1.3.1 1 THE MARKET LEARNING OBJECTIVES resource pack. By the end of this chapter you should be able to understand: ◼ the characteristics of mass and niche markets (size, 1 THE MARKET MATHS TIP Specification reference The specification reference is given at the start of each chapter and in the running header. It is common in business to express changes in UNIT 1 1.3.1 3 M market share, brands) numerical values such as sales, market size, prices or NEEDS ◼ the impact of dynamic markets, including the effect of costs in terms of a percentage. The formula required is online retailing given by: ◼ how markets adapt to change (growth and innovation) ◼ the effect of competition Difference between the two numbers = ––––––––––––––––––––––––––––––– × 100 ◼ the difference between risk and uncertainty. Original number For example, if the sales of a business increase from GETTING STARTED 8,000 units to 8,500 units over a period of time, the This section looks at how businesses attempt to meet the needs of customers. It explores the Goods and services are sold in markets. However, percentage change is given by: nature of markets, competition in markets and how businesses react to changes in market over time the size and characteristics of markets are 8,500 – 8,000 500 = ––––––––––––– × 100 = ––––––– × 100 conditions. It also investigates the ways businesses research markets, including primary and likely to change. For example, the market for domestic 8,000 8,000 secondary research, different sampling methods and how the research data is used. Finally, the air travel in China has grown significantly between 1980 and 2016. Figure 1 shows that the number = 6.25 per cent ways in which businesses position their products in different markets, split markets into different of passengers flying between Chinese airports rose segments and differentiate their products from those of rivals are also addressed. from just 2.568 million in 1980 to 487,960 million in MARKETS AND MARKETING 2016. This rapid growth has been fuelled by growing Businesses make money by selling their goods and incomes, increased business traffic, lower airline services in markets. Historically, markets were places fares and deregulation in the industry. The number where buyers and sellers would meet to exchange of airports is also growing, providing access to an goods. However, today it is possible to trade goods and increasing number of potential passengers. In 2015, services without buyers and sellers meeting up. For there were over 200 civil airports in China. example, trading can be done over the telephone, using SA Competition in the market is growing intensely. For newspapers, through mail order or on the Internet. Some example, ten new airlines have arrived in the market examples of markets are given below. since 2013. The three largest airlines in 2015 were Consumer goods markets – where products such as China Southern Airlines, China Eastern Airlines and Air food, cosmetics and magazines are sold. China. Three new airlines, Air Guilin, Hongtu Airlines Markets for services – these can include services and Jiangxi Air, began operations in 2016. for individuals, such as hairdressing, or business 600 services, such as auditing. 487.960 The housing market – where people buy, sell and let 500 property. Passengers (million) 436.183 400 Commodity markets – where raw materials, such as 300 266.293 oil, copper, wheat and coffee, are traded. Financial markets – where currencies and financial 136.721 200 products are traded. 100 47.564 61.891 Key subject 7.300 16.596 Marketing involves a range of activities that help a business terms are 2.568 0 1980 1985 1990 1995 2000 2005 2010 2015 2016 sell its products. However, marketing is not just about ▲ Figure 1 Domestic air travel in China, 1985–2016 Year selling, it involves: identifying the needs and wants of consumers colour Calculate the percentage growth in the size of the designing products that meet these needs understanding the threat posed by competitors coded market for domestic air travel in China between 1980 and 2016. What factors have contributed to the growth telling customers about products charging the right price within the in the market? How is competition in the market becoming more intense? What role might the Internet persuading customers to buy products main text. making products available in convenient locations. play in this market? M01_Business_SB_39170.indd 2 4/28/18 3:19 PM M01_Business_SB_39170.indd 3 4/28/18 3:19 PM Getting started An activity to introduce the key concepts in each chapter. Questions are designed to stimulate discussion and use of prior knowledge. These can be tackled as individuals, pairs, groups or the whole class. ABOUT THIS BOOK vii Skills Relevant exam questions have been Activity assigned key skills, allowing for a strong Thinking bigger Each chapter includes activities to focus on particular academic qualities. These sections provide opportunity to embed understanding through case These transferable skills are highly valued explore an aspect of business in more studies and questions. in further study and the workplace. detail to deepen understanding. 4 1 THE MARKET SPECIFICATION 1.3.1 6 1 THE MARKET SPECIFICATION 1.3.1 According to the Chartered Institute of Marketing, ‘Marketing is the management process responsible ACTIVITY 1 SKILLS CRITICAL THINKING ACTIVITY 2 SKILLS REASONING THINKING BIGGER for identifying, anticipating and satisfying customer CASE STUDY: US DRYBAR CASE STUDY: ONLINE GROCERY SHOPPING A development in online retailing is the increasing requirements profitably’. popularity of comparison websites. These sites provide The market for hair salons in the USA, as in most In many countries, online grocery retailing has not shoppers with search engines that can filter and compare THE CHARACTERISTICS OF MASS MARKETS countries, is very competitive. However, one business, quite taken off in the same way that other forms of products based on price, features and other criteria. Most Drybar, has flourished by serving a niche market. online retailing have. However, reports suggest that AND NICHE MARKETS Drybar specialises in the provision of affordable, online grocery sales in Australia, for example, may rise comparison shopping sites compare prices from many different retailers, but do not sell products themselves. Some businesses sell their products in a mass market. from AUD 2600 million in 2015 to AUD 5800 million high-quality ‘blowouts’. This is when a client’s hair is They also tend to specialise in particular product groups. This is when a business sells the same products to all by 2020. A recent survey showed that 39 per cent of washed and blow-dried into style without being cut or For example, trivago.com is used to compare hotel consumers and markets them in the same way. Fast- E coloured. Drybar was set up by Alli Webb, who felt she Australian shoppers may use online grocery shopping prices, skyscanner.com compares the prices of flights, moving consumer goods, such as crisps, breakfast in the near future. The potential increase may be due was paying too much for blowouts in traditional salons. moneysupermarket.com compares financial products and cereals, computer software and soft drinks, are sold in to busier lifestyles and the further integration of mobile Drybar is set up like a bar where clients can relax, uswitch.com compares energy prices. mass markets. The number of customers in these markets technology into our daily lives. People are increasingly watch a film and get a blowout. However, some of these sites have been criticised is huge – possibly billions if products are sold globally. becoming ‘on-the-go’ consumers. The business now has over 70 salons in the for not giving the best deals. For example, it was This means that businesses can produce large quantities One growing trend in online shopping is the use USA and Canada and its own product lines which reported in 2014 that consumers were missing out on at a lower unit cost by exploiting economies of scale. This of click & collect services, where customers buy are also sold in stores such as Sephora, Nordstrom, the best energy deals. This was because comparison might result in higher sales and higher profits. However, goods online and then collect them from a store Ulta and Bloomingdale’s. Drybar interacts with its sites filter out the tariffs that do not pay commission. there is often a lot of competition in mass markets and that is convenient for them. As well as launching clients using social media. It listens to their stories, The Big Deal website was set up in 2013 to help therefore businesses may spend a lot of money on online grocery services in more stores, click & collect provides information and responds to every single consumers reduce their energy bills. They reported marketing. For example, in 2016 Coca-Cola®’s advertising services are likely to increase. Supermarkets have tweet, Facebook® post and Yelp review which helps to that the cheapest energy deals were not presented budget was around US$4000 million. used collect in-store, lockers and drive-thru services improve the overall Drybar experience. To encourage to customers by the five major price comparison A niche market is a small market segment – a in connection with click & collect. One Australian customer loyalty, Drybar offers a service called Barfly websites. Instead, the sites provide an option to segment that has sometimes gone ‘untouched’ by larger supermarket chain, Coles, is extending online retailing membership. This entitles each member to: users to click ‘yes’ if they want to see tariffs they can businesses. Niche marketing is the complete opposite of into a further 13 stores in the next year. It also plans two blowouts per month and a free birthday blowout switch to ‘today’ or ‘now’. Any deals that do not earn mass marketing. It involves selling to a small customer to add another 50 click & collect locations in addition a 10 per cent discount on all Drybar products the comparison site commission from the energy group, sometimes with specific needs. Small firms can to its 100 plus existing points. Woolworths, the other the opportunity to keep unused blowouts to use at a companies are filtered out from the search findings. often survive by supplying niche markets. They may main supermarket chain in Australia, currently offers later date also avoid competition. It is a lot easier to focus on the click & collect at about a quarter of its supermarkets, It is easier to gather personal information from a US$5 discount off any extra blowouts above the needs of the customer in a niche market. Also, if there however, it also plans for more locations, including PL allocated two per month customers so that they can be targeted with other is no competition it may also be possible to charge further drive-thru services. products and offers in the future. flexible membership – it can be suspended or premium prices. An example of a business that targets In 2016, the Australian transport minister announced Selling costs, such as sales staff, rent and other cancelled at anytime. niche markets is Zumiez, which sells products related to a new grocery collection trial for train customers. store overheads can be avoided. The savings might surfing, skateboarding and snowboarding. However, if a The aim of the scheme was to save people time after be enormous and allow online retailers to charge business successfully exploits a niche market it still may their commute home. Sydney Trains is partnering lower prices. attract competition. Niche markets, by their nature, are with Woolworths on a 12-month trial on the scheme, Marketing costs will also be lower. It is much very small and unable to support many competing firms. launching at Bondi Junction station. If successful, the cheaper, for example, to send a marketing message As a result, if a large business decides to enter a niche scheme may be extended across the network. by email to 1000 customers than it is to send 1000 market they may find it easy to overrun a smaller rival. newsletters by post. Also, businesses that rely on a single niche market may 1. Explain why online grocery retailing is likely to grow in the future. Online retailers can reach more customers. A single be vulnerable because they are not spreading their risk. If store in a high street can only attract a limited number they lose a grip in their chosen market, they may collapse 2. Assess the benefits and drawbacks to supermarkets of online retailing. of customers. However, a website advertising a because they do not have other products or markets as a 15,000-item product range can have a global reach. back-up. An online retailer is open 24/7. There are not many stores that can match this level of service. EXAM HINT Online retailing provides greater flexibility. An online In examinations it is helpful to give examples when 1. Using this case as an example, explain what is store can be updated instantly and as frequently as explaining the meaning of business terms and concepts. meant by a niche market. is necessary. For example, it is possible to promote Relevant examples support your answer and show that 2. Explain one possible disadvantage to a business a ‘deal of the day’ on the home page, without the you understand the meaning of the term or concept. It like Drybar of targeting a niche market. need for expensive printed display material. is also important to use information in the case material in the question to support your answer. This approach MARKET SIZE HOW MARKETS CHANGE will show your skills in ‘application’ in your answer. The size of a market can be estimated or calculated by The size of markets: The size of some markets can the total sales of all businesses in the market. Market size remain quite stable over a period of time. For example, is usually estimated in a number of ways. M01_Business_SB_39170.indd 4 4/28/18 3:19 PM M01_Business_SB_39170.indd 6 5/4/18 9:50 PM Exam practice Exam hint Exam-style questions are found at the end of Tips give each chapter. They are tailored to the Pearson practical advice Edexcel specification to allow for practice and M and guidance Checkpoint Questions to check development of exam writing technique. They also for exam allow for practice responding to the command preparation. understanding of the key learning points in each chapter. words used in the exams. These are NOT exam-style questions. SPECIFICATION 1.3.1 1 THE MARKET 9 10 1 THE MARKET SPECIFICATION 1.3.1 THE DIFFERENCE BETWEEN RISK AND CHECKPOINT UNCERTAINTY 1. What is the difference between a mass market and a EXAM PRACTICE One of the challenges when running a business is niche market? dealing with risk and uncertainty. Although both risk and uncertainty are likely to pose threats to a business, they 2. What is a key advantage of selling in a mass market? GLOBAL EV MARKET Although EVs only have a very small market share at the moment, the sector is developing rapidly. One are not the same. 3. State two disadvantages of selling in a niche market. ANALYSIS, INTERPRETATION, of the barriers to growth is the uncertainty about Risk: Owners take risks when running a business. SKILLS REASONING 4. How is market share calculated? supporting infrastructure – stations that provide SA This means they take actions where the outcomes are Growing concerns about the environment, and facilities for recharging batteries. However, locations unknown. More specifically, they commit resources that 5. State three advantages of giving products brand names. agreements by many countries in the world to cut for charging have increased at least tenfold and could be lost. Initially, they take a risk when setting up a 6. State two advantages to customers of online retailing. carbon emissions, have helped to encourage sales of the number of available grid-charged models has business. This is because they invest their own money to 7. What is meant by a dynamic market? electric vehicles (EVs) and hybrids. A hybrid vehicle increased from 70 to 130 since 2013. Also, the cost of get the business ‘up and running’ and there is a chance is one that uses two or more power sources. These batteries has fallen by 50 per cent in recent years and that the business will not succeed. If the worst happens 8. How might the nature of a market change over time? vehicles are now beginning to grab market share from renewable sources are now roughly the same cost as and the business collapses it is possible that all the 9. State three reasons why a market might grow. traditional petrol and diesel models. fossil fuels in electricity generation. money invested by the owner is lost. 10. Describe two ways a business might adapt to changes Many governments around the world have also In many countries it is reckoned that a very large in markets. EV share introduced financial incentives to encourage the 1100 proportion of new businesses, perhaps as much as 1000 purchase of EVs. 1.22% 90 per cent, do not survive beyond 5 years. Annual PEV sales (000s) 900 Even when businesses are established, they may SUBJECT VOCABULARY 800 0.86% continue to take risks. This is because they often 700 brand name a name, term, sign, symbol, design or any other 600 spend money on ventures that may not provide positive 0.62% (a) Define market share. (2 marks) feature that allows consumers to identify the goods and 500 results. For example, they may invest in a new product, services of a business and to differentiate them from those of 0.38% (b) Explain one reason why the global car market is 400 which subsequently fails in the market. If the product is competitors. 300 0.25% likely to grow in the next 5 years. (4 marks) 0.17% withdrawn, most of the money spent on development and Subject vocabulary credit crunch a time when borrowing money becomes difficult because banks reduce the amount they lend and charge high 200 0.01% 0.07% (c) Discuss how a car manufacturer might adapt to launch will be lost. 100 changes in the market. (8 marks) In 2014 Amazon, the online retailer, launched a interest rates. 2010 2011 2012 2013 2014 2015 2016 2017 An alphabetical list of Est’d e-commerce the use of electronic systems to sell goods and Year (d) Assess the factors that might affect the growth mobile phone called the Amazon Fire Phone. It failed in services. ▲ Figure 3 Global sales of EVs, 2010 and 2017 of the EV market in the future. (10 marks) the market and the price was reduced very quickly from EV a motor vehicle that can be recharged from an external all the subject terms in US$199 to just US$0.99. It was reported that Amazon lost US$170 million as a result. source of electricity, such as wall sockets, and the electricity stored in the rechargeable battery packs drives or contributes Figure 3 shows that global sales of EVs in 2016 was 774,000 units. This was 42 per cent higher than each chapter with clear Uncertainty: The markets in which businesses to drive the wheels. A PEV is an plug-in electric vehicle. for 2015. Sales of EVs grew 20 times faster than liquidation the act of closing a company by selling the things operate are often subject to external influences. This the overall vehicle market, however, this was only that belong to it, in order to pay its debts. means that events that are completely beyond the control definitions for EAL learners. market a set of arrangements that allows buyers and sellers 0.86 per cent of the total market for vehicles. By the of businesses can have an impact in the market, which to communicate and trade in a particular range of goods and end of 2016, the number of EVs on the road passed can have financial consequences. For example: services. 2 million. Of these 61 per cent were pure EVs and Please note: A collated a new competitor might enter the market with a superior product marketing a management process involved in identifying, anticipating and satisfying consumer requirements profitably. 39 per cent were hybrids. As Figure 4 shows, China is currently the most important market. It also plays a glossary is available on the market share the proportion of total sales in a particular consumer tastes might change as a result of a new leading role in the manufacturing of EVs. market for which one or more businesses or brands are social trend responsible. It is expressed as a percentage and can be ActiveBook. 2016 Jan–Dec the government might introduce a new policy or calculated by value or volume. EV sales and percentage growth 2015 Jan–Dec piece of legislation mass market a very large market in which products with mass 0 50 100 150 200 250 300 350 400 some new technology might be invented appeal are targeted. 000s niche market a smaller market, usually within a large market or there may be a natural disaster, such as a flood China 351