Edexcel Business A Level Revision

Global merger - is an agreement between two companies from different countries to join forces permenantly. They will become a MNC and these types of merger are likely to increase the power of the new business. Joint Venture - a separate business entity created by two or more parties acting as a collective tp set up a new business venture, involving shared ownerships, returns and risks. Patents -  a government authority or licence conferring a right or title for a set period, especially the sole right to exclude others from making, using, or selling an invention. Reasons for a global merger or joint venture; Spreading risk Entering new market/trade bloc Acquiring national/international brand name/patents Securing resources/supplies Maintaining/increasing global competitiveness. SPREADING RISK OVER DIFFERENT COUNTRIES/REGIONS By operating in a number of countries, a business reduces the risk associated with one individual country. This is because all countries will ...

Ansoff Matrix - The Ansoff is a famous strategic maketing planning tool that helps a business determine its product and market growth strategy. The matrix identifies four alternative growth strategies to product and market strategy based around whether a business chooses to focus on existing/new products and existing/new markets and the relationship between risk and reward. MARKET PENETRATION   This is a growth strategy where a business aims to sell EXISTING products to EXISTING markets. Key Points: Trying to sell more of an existing product/service to the same target audience LIMITED RISK = limited potential reward also. Getting existing customers to buy more Widen the range of existing products Gain market share from competitors through competitive pricing or advertising Changes to the marketing mix e.g. loyalty scheme to increase repeat customers Extension strategies Evaluating market penetration: Business focuses on markets and products it knows well Can...

Debtors - is a person or business that owes money to a creditor. Unlimited liability should mean that credit is easier to obtain as suppliers have a greater chance of getting their money back if things go wrong. 1) Credit control Policies on how much credit to give and repayment terms and conditions Measures to control doubtful debtors Credit checking 2) Selling off debts to debt factors 3) Cash discounts for prompt payments 4) Improved record keeping - e.g. accurate and timely invoicing. 5) DEBT FACTORING ( the selling of debtors to a third party) This generates cash It guarantees the firm a percentage of money owed to it but will reduce income and profit margin made on sales. COSTS INVOLVED IN FACTORING CAN BE HIGH 6) Credit control Establishing credit limits for new customers, credit checking new and existing customers, setting realistic credit limits, monitoring the age of debts and chasing up and chasing up bad debts, determine appropriate terms and condition...