Business Questions PDF

# Business Questions 1. Suggest two corporate objectives that a confectionery manufacturer might set. 2. What is the difference between a functional objective and a corporate objective? 3. Why should objectives be SMART? 4. Why might corporate objectives mainly be expressed as financial objectives?...

# Business Questions 1. Suggest two corporate objectives that a confectionery manufacturer might set. 2. What is the difference between a functional objective and a corporate objective? 3. Why should objectives be SMART? 4. Why might corporate objectives mainly be expressed as financial objectives? 5. What is the purpose of a mission statement? 6. State three areas of business activity that corporate objectives might refer to. 7. Describe the connection between corporate strategy and business aims. 8. Why is a long-term decision to move into a new market an example of corporate strategy? 9. What are the four strategies outlined by Ansoff's Matrix? 10. Which of Porter's strategies is focused on achieving the lowest costs of production? 11. Describe the aim of portfolio analysis. 12. How might a business use the BCG Matrix to make strategic decisions? 13. What is the difference between a long-term strategy and a tactic? 14. Describe the effect that the construction of a new factory might have on (a) the financial resources and (b) the physical resources of a furniture manufacturer. 15. Give examples of the impact of strategic decisions on resources. 16. Mention some examples of distinctive capabilities, and explain them. 17. Choose one of the following strategic tools (Ansoff's, Porter, or BCG) and explain it briefly. 18. Give three examples of information that an internal audit might find. 19. Give three examples of information that an external audit might find. 20. Why might SWOT analysis help a business to make decisions? 21. Give three examples of possible uses for SWOT analysis. 22. How might SWOT analysis help to improve the performance of a business? 23. Give two examples of political factors that might affect the food industry. 24. Give two examples of economic factors that might affect the holiday industry. 25. Give two examples of technological factors that might affect the motor industry. 26. Give two examples of environmental factors that might affect the chemical-processing industry. 27. How does PESTLE analysis help a business? 28. What is meant by an uncompetitive market? 29. State two possible effects on a business of a strong new entrant in a market. 30. How might the degree of rivalry in a market affect prices and profits? 31. What action might businesses take to deal with the threat of potential entrants? 32. What is the difference between internal and external economies of scale? 33. What is meant by technical economies of scale? 34. How might a supermarket chain benefit from purchasing economies? 35. What is meant by risk-bearing economies? 36. Give two examples of external economies of scale. 37. What is meant by the minimum efficient scale of the plant? 38. How can a business experience market power over its suppliers? 39. Give an example of inorganic growth. 40. Give three reasons why two businesses might choose to join together. 41. Give two examples of horizontal integration. 42. Give an example of forward vertical integration in the car industry. 43. Give an example of backward vertical integration in the airline industry. 44. Briefly explain how an acquisition is carried out. 45. Give an example of a problem that a business might encounter when integrating two organizations. 46. State one financial reward of a merger or takeover. 47. Why might job losses result from a takeover or merger? 48. Describe one financial risk of a merger or takeover. 49. Outline two disadvantages of inorganic growth. 50. What is the difference between organic and inorganic growth? 51. Why are businesses likely to grow organically in their early stages of development? 52. Outline two methods of growing organically. 53. Why is organic growth likely to be slower than inorganic growth? 54. Why is organic growth less risky than inorganic growth? 55. Suggest two businesses in your locality that have grown organically. 56. How might shareholders in a public limited company feel about organic growth? 57. How might internal communications be affected when a business gets too big? 58. Give two reasons why a business might experience overtrading. 59. Describe one way in which a business might avoid overtrading. 60. Give two examples of internal diseconomies of scale. 61. Give two examples of external diseconomies of scale.