Eduqas A-Level Business in a changing world overview quiz quiz

Organic growth expands the firm's own operations; external growth combines with other firms through mergers or takeovers

Organic growth happens through mergers and takeovers, while external growth means expanding the firm's own operations internally

External growth is always cheaper and far lower-risk than slowly building the firm up from within over many years

They are identical terms, since both simply describe a business getting larger over time without any meaningful distinction

Market penetration

Diversification

Market development

Product development

100,000

200,000

300,000

400,000

Only the firm's internal finances and nothing about its wider environment

Only the external environment, ignoring any internal factors within the firm

Internal Strengths and Weaknesses and external Opportunities and Threats

The firm's organisational structure and chain of command in detail

Its loan repayments fall, freeing up cash for investment

It is completely unaffected because gearing does not matter

Its sales automatically increase as consumers borrow more

Its financing costs rise, reducing profit and cash flow

The export becomes dearer for US buyers (240 to 280 dollars), so it is less competitive

The export becomes cheaper for US buyers (240 to 200 dollars), so it is more competitive abroad

Nothing changes, because the firm still charges the same price of 200 pounds at home

The firm's own production costs fall sharply, allowing it to cut the export price

Profitability, Expenses, Suppliers, Targets

Production, Employees, Stock, Timing

Political, Economic, Social, Technological

Planning, Efficiency, Strategy, Tactics

Maximising shareholder profit only, with no regard for any wider social or environmental consequences

Obeying only the minimum legal requirements and ignoring everything else not demanded by law

A type of business tax charged by the government on company profits

Acting in the interests of all stakeholders and society, beyond legal duty

A firm with operations in more than one country

A firm that only trades online across several different countries

A firm owned and run by the national government of one country

A firm that sells a very large range of products

85 pounds

100 pounds

105 pounds

120 pounds

They always fully understand and welcome change, so resistance never actually arises in practice

Because organisational change is always bad for employees and never brings them any benefit

Fear of the unknown, job insecurity, or lack of understanding and involvement

Because employment law actively encourages workers to resist any change managers propose

To eliminate all risk completely so that the firm can never face any disruption or crisis at all

To increase the firm's profit directly by raising prices and cutting back on its operating costs

To avoid paying tax by setting money aside in a reserve account before profits are declared

To prepare for possible crises so the firm can respond quickly and maintain business continuity