IGCSE, A Level Business Student Forum

KN: Business objectives change due to a change in the leader of the business.
APP: For instance, when new CEOs take over, they often change they objectives for example from profit maximisation too growth.
AN: Due to this the business will be able to increase their customer base due to which their ...

KN: Because further growth in order to increase sales can be costly.
APP: For instance, a multi national fast food chain like McDonald's will be wasting finance if it keeps opening up new branches. It would be more efficient if they increased profits through introducing deals or adding new products ...

KN: A business's market share increases due to control over the rival company as their sales and revenue and monitored by them.
APP: For instance, if car manufacturer A take over Car Manufacturer B then their sales would double so their market share would increase.
AN: As they will be earning a ...

KN: Apple could improve their marketing to increase their market share.
APP: For example, they could translate their ads into different languages or make their ads creative by symbolising a cartoon character or a famous celebrity.
AN: This attracts a lot of customers, which improves brand image ...

KN: They can solve this problem through arranging an overdraft from the bank.
APP: for instance, a book shop can take a short term loan from the bank to open an online website or to keep the stores running till the customers pay.
AN: Due to this the business will be able to survive until the ...

KN: Overtrading is when a business exhausts it's financial resources too much by expanding too quickly.
APP: For instance a school opens up too many branches at once due to which most of its capital is spent there and don't have enough finance left to cover daily expanses.
AN: So when a competitor ...

KN: A business can decrease communication problems after growth through using technology and establishing online systems.
APP: For example, company group chats, emails systems, etc.
AN: Die to this the managers can reach more employees in lesser time and a single message can be delivered to ...

KN: The business will face financial and cashflow problem by expanding.
APP: For example, if a stationary shop opens another branch, they may not have enough finance to support it or keep it running for a longer time period.
AN: Due to this, they will either have to reduce the quantity of the ...

KN: Horizontal integration can lead to disconomies of scale as it can become difficult to manage two businesses instead of one.
APP: For instance, if two toy factories merge, then it would create a cultural clash among the managers and employees.
AN: This could create communication problems as the ...

KN: Conglomerate integration is when a business merges or takes over another business from a completely different market and a stage of production. This is also known as diversification.
APP: For instance, a car manufacturer takes over or merges with a restaurant.
AN: Due to this, hd will be able ...

KN: Vertical forward integration is when a business merges or takes over another business in the same industry but at the later/next stage of production whereas vertical backward integration is when a business merges or takes over another business in the same industry but at the previous stage of ...

KN: Through vertical backward integration, a car manufacturer can buy it's supplier, giving him more control over the raw materials.
APP: For example, a car manufacturer can take over the tyre supplier and improve their quality or offer a wider variety of tyres in their cars.
AN: Due to this, the ...

KN: Horizontal integration is when a business takes over or merges with another business in the same industry at the same stage of production.
APP: For instance, toy factory A takes over or merges with or takes over toy factory B in order to expand externally.
AN: Due to this, toy factory A will ...

KN: Businesses may choose to expand internally so they can avoid the cultural clash by expanding externally.
APP: For instance, Factory A and Factory B both have their own ways of production. One may prefer to manufacture furniture though labour, the other may not.
AN: So if they merge, there may ...

KN: They can use the internet to grow internally through launching an online website of the business due to which they would be able to sell products nationally or internationally.
APP: For instance, brands like Amazon make millions of sales online everyday worldwide.
AN: Due to this they are able ...