IGCSE, A Level Business Student Forum

kn:Increasing market share means gaining a larger percentage of total sales in the market compared to competitors.
app:forexample a smartphone company may aim to attract more customers from rival brands through promotions or better features increasing its share of total sales.
an:this can improve ...

kn:a capital gain is the profit an investor makes when they sell shares for more than they originally paid.
app:forexample if an investor buys a share for $10 and later sells it for $15 the $5 difference is the capital gain.
an:This shows that investors can earn income not only from dividends but ...

kn:a poor environmental record can harm a company’s public image and investor confidence.
app:Forexample if a company is fined for pollution or waste dumping customers may boycott its products and investors may view it as a risky or unethical business.
an:this can reduce demand for its shares and ...

kn:a business may choose not to maximise profits in the short term to focus on other important objectives.
app:forexample a new clothing brand might keep prices low to attract customers and build brand loyalty instead of charging high prices for immediate profit.
an:this helps the business grow its ...

kn:using cheaper ingredients can reduce costs and increase profit margins but it also carries significant risks.
app:forexample if a restaurant switches to lower quality ingredients customers may notice a drop in taste and freshness leading to negative reviews and fewer repeat customers.
an:this ...

kn:business objectives often depend on the size and stage of the business.
app:forexample a new small grocery store might focus on survival and building a loyal customer base while a large supermarket chain like Al-Fatah or Tesco aims for profit maximisation and market expansion.
an:this shows that ...

kn:an economic recession reduces consumer income and demand for new houses.
app:forexample during a recession fewer people can afford to buy homes so a house building company may experience lower sales and profits.
an:this could lead the business to change its objective from growth to survival ...

kn:when a new competitor enters the market it can reduce the sales and market share of existing businesses.
app:forexample if a new fast food chain opens near an established burger shop the shop may lose many of its regular customers and see profits fall.
an:as a result the business may shift its ...

kn:a business may focus on survival when it faces difficult conditions or threats to its existence.
app:forexample a small restaurant might make survival its main objective during an economic recession when customers have less money to spend.
an:in this situation the business aims to cut costs and ...

kn:setting clear objectives helps motivate employees by giving them a sense of purpose and direction.
app:forexample if a sales team is given a target to increase sales by 15% in three months they know exactly what they are working towards.this can encourage teamwork and effort to achieve the goal ...

kn:clear objectives give a business direction and help it stay focused on its goals.
app:forexample a new takeaway restaurant may set an objective to achieve 200 regular customers within six months.this guides decisions on marketing and menu design to attract and retain customers.
an:this helps the ...

kn:a charitys main objective is to help others or support a cause while a car manufacturer’s objective is usually to make a profit.
app:forexample a charity like Edhi Foundation aims to provide free healthcare and shelter whereas Toyota focuses on selling cars and earning revenue.
an:This shows that ...

kn:a business needs to set objectives to give direction and purpose to its activities.
app:forexample if a business sets a goal to increase sales by 20% employees know what they are working towards and can plan accordingly.
an:this helps the business stay focused on priorities and measure its ...

kn:a business might choose internal growth because it avoids cultural clashes that often occur in mergers or takeovers.
app:forexample when two businesses combine their employees may have different working styles or values which can lead to conflict and inefficiency.
an:by growing internally the ...

kn:a business can use the internet to grow internally by selling its products online through e-commerce.
app:For example by creating a website the business can sell directly to customers across the country or even internationally.
an:this helps the business reach a wider market and increase its ...