IGCSE, A Level Business Student Forum

[kn] a price war is when 2 businesses continuously reduce prices to attract customers.
[app] for example, coke and pepsi keep reducing prices to attract more customers.
[an] this is risky as the 2 businesses could result in lower profits, damaged brand image and long term instability.

[kn] capital gain is the profit made when you sell shares for more than you paid for them.
[app] for example, an investor buys shares for $200 and sells them for $300, the $100 is the capital gain.
[an] this increases the investors personal wealth, increases investment in the stock market and ...

[kn] A business could have survivals as its objective when its a new business or a start up.
[app] for instance, a new clothing manufacturer has survival as its objective because its new in the market.
[an] this can lead to the business keeping its costs low, attempt to attract customers and aim for ...

[kn] the business could be criticized, and be seen irresponsible.
[app] for example, an oil company could be criticized for oil spilling or wastages.
[an] this can lead to the oil company forced to pay fines, reduce sales and profits, and a bad reputation or brand image.

[kn] the new competitor may take a few of your customers, forcing you to change your objective to survival.
[app] for instance, anew clothing manufacturer enters the markets with their innovative ideas and marketing stealing your customer base.
[an] this will lead to reduced sales, need to innovate ...

[kn] consumers have low income and demands for houses fall.
[app] for example, Barratt Developments might have less houses being sold during a recession.
[an] this will lead to lower revenue, less investments and falling share prices.

[kn] a private sector business can offer affordable products.
[app] for example, a clothing manufacturer could offer low cost products for consumers looking for affordable clothes.
[an] the business can have s strong consumer base, increased sales and can achieve economies of scale.

[kn] different business sizes could have different objectives in mind.
[app] for example, a small grocery store's objective could be survival whereas carrefour's objective could be growth.
[an] a small grocery store has a loyal customer base, building brand image and survival, on the other hand ...

[kn] a business might not aim to maximise its profits for a short period of time as it might want something long term such as growth.
[app] for instance, a clothing manufacturer might spend money on opening new outlets.
[an] this can lead to growth, more products being sold all over and long term ...

[kn] A social enterprise aims to make a positive social impact whereas a plc focuses on generating profit for its shareholders.
[app] for instance, toms Shoes, for every pair of shoes sold they donate a pair, on the other hand, unilever, producing goods to generate profit.
[an] toms shoes will lead ...

[kn] apple could improve their marketing on packaging.
[app] for example, their marketing could be different and innovative and their packaging too.
[an] this can improve brand image, retain customers which can result in a larger market share.

[kn] their market share would increase.
[app] for example, coke takes over pepsi, both their market shares would increase or merge.
[an+] this will reduce competition, reduce cost of production which will lead to profit maximization.

[kn] the business has already achieved their objective.
[app] for example, coke has dominance over the market share, changing the objective to profit maximization could have more benefits.
[an] it can increase revenue, increase consumer base and reduce cost of production.

[kn] business objectives can change due to change in competition level.
[app] for instance, redbull might change their objective as they had high competition before and low competition currently.
[an] this can bring fresh and new ideas, leading to boost in sales, resulting in a larger market share.

[kn] both businesses have different objectives in mind.
[app] for instance, a charity business's objective is to raise funds to help out others whereas a car manufacturers objective could be to earn profit.
[an] A charity focuses on social impact, using donations to support its mission and to ...