BOOK
Edexcel AS/A level Business 5th edition Student Book
Dave Hall | Carlo Raffo | Dave Gray | Alain Anderton | Rob Jones
(2016)
Additional Information
Book Details
Abstract
Edexcel AS/A level Business Student Book
Table of Contents
| Section Title | Page | Action | Price |
|---|---|---|---|
| Cover | Cover | ||
| Contents | iii | ||
| About this book | iv | ||
| Introduction AS/A Level Business | viii | ||
| Theme 1: Marketing and people | 1 | ||
| Chapter 1: The market | 1 | ||
| Markets and marketing | 1 | ||
| The characteristics of mass markets and niche markets | 1 | ||
| Market size | 2 | ||
| Market share | 2 | ||
| Brands | 2 | ||
| Dynamic markets | 3 | ||
| Online retailing | 3 | ||
| How markets change | 4 | ||
| Innovation and market growth | 4 | ||
| Adapting to change | 5 | ||
| How competition affects the market | 5 | ||
| The difference between risk and uncertainty | 6 | ||
| Case study: Hybrid and electric cars | 7 | ||
| Chapter 2: Market research | 8 | ||
| Product and market orientation | 8 | ||
| Market research | 10 | ||
| Primary research | 10 | ||
| Methods of primary research | 10 | ||
| Secondary research | 11 | ||
| Quantitative and qualitative research | 12 | ||
| Limitations of market research | 12 | ||
| Use of ICT to support market research | 12 | ||
| Databases | 13 | ||
| Market segmentation | 15 | ||
| Geographic and demographic segmentation | 15 | ||
| Psychographic segmentation | 15 | ||
| Behavioural segmentation | 16 | ||
| Benefits of market segmentation | 16 | ||
| Case study: Market research on 'Click and collect' orders | 17 | ||
| Chapter 3: Market positioning | 18 | ||
| Market positioning | 18 | ||
| Market mapping | 18 | ||
| Competitive advantage of a product or service | 19 | ||
| The purpose of product differentiation | 20 | ||
| Adding value to products and services | 20 | ||
| Case study: Best Western Hotels | 22 | ||
| Chapter 4: Demand | 23 | ||
| Demand | 23 | ||
| Factors leading to a change in demand | 24 | ||
| Case study: Barchester Healthcare ltd | 26 | ||
| Chapter 5: Supply | 27 | ||
| Supply | 27 | ||
| Factors leading to a change in supply | 28 | ||
| Case study: The Supply of New Houses in the UK | 30 | ||
| Chapter 6: Markets | 31 | ||
| The interaction of supply and demand | 31 | ||
| Changes in demand | 32 | ||
| Changes in supply | 32 | ||
| Changes in supply and demand together | 33 | ||
| Disequilibrium in the market | 33 | ||
| Case study: The market for ready mixed concrete | 34 | ||
| Chapter 7: Price elasticity of demand | 35 | ||
| What is price elasticity of demand? | 35 | ||
| Price inelastic demand | 35 | ||
| Price elastic demand | 35 | ||
| Calculation of price elasticity of demand | 35 | ||
| Interpretation of numerical values of price elasticity of demand | 36 | ||
| The factors influencing price elasticity of demand | 36 | ||
| Price elasticity of demand and pricing | 37 | ||
| Price elasticity of demand and total revenue | 37 | ||
| THOMPSON ENGINEERING LTD | 39 | ||
| Case study: Thompson Engineering ltd | 39 | ||
| Chapter 8: Income elasticity of demand | 40 | ||
| What is income elasticity of demand? | 40 | ||
| Calculation of income elasticity of demand | 40 | ||
| Interpretation of the numerical values of income elasticity of demand | 40 | ||
| The factors influencing income elasticity of demand | 41 | ||
| The significance of income elasticity of demand to businesses | 41 | ||
| Case study: Freshbake ltd | 42 | ||
| Chapter 9: Product/service design | 44 | ||
| Product/service design | 44 | ||
| Design mix | 44 | ||
| The design mix and social trends | 46 | ||
| Benefits of adapting product designs to changes in social trends | 47 | ||
| Case study: Stanley modular | 48 | ||
| Chapter 10: Branding and promotion | 49 | ||
| What is promotion? | 49 | ||
| Above-the-line promotion | 49 | ||
| Below-the-line promotion | 51 | ||
| Choosing methods of promotion | 52 | ||
| Types of branding | 52 | ||
| The benefits of strong branding | 52 | ||
| Ways to build a brand | 53 | ||
| Changes in branding and promotion to reflect social trends | 54 | ||
| Case study: Premier INN | 56 | ||
| Chapter 11: Pricing strategies | 57 | ||
| Pricing strategies | 57 | ||
| Cost plus pricing | 57 | ||
| Price skimming | 58 | ||
| Penetration pricing | 58 | ||
| Predatory pricing | 58 | ||
| Psychological pricing | 59 | ||
| Factors that determine the most appropriate pricing strategy for a particular situation | 59 | ||
| Changes in pricing to reflect social trends | 60 | ||
| Case study: Adobe | 61 | ||
| Chapter 12: Distribution | 63 | ||
| Distribution | 63 | ||
| Distribution channels | 63 | ||
| Direct selling | 64 | ||
| Retailing | 64 | ||
| Wholesaling | 65 | ||
| Agents or brokers | 65 | ||
| Choosing the appropriate distribution channel | 65 | ||
| Changes in distribution to reflect social trends | 66 | ||
| Case study: Unilever | 68 | ||
| Chapter 13: Marketing strategy | 69 | ||
| The product life cycle | 69 | ||
| Extension strategies | 70 | ||
| Boston Matrix and the product portfolio | 71 | ||
| Marketing strategies | 73 | ||
| Strategies for business-to-business (B2B) and business-to-consumer (B2C) markets | 74 | ||
| Developing customer loyalty | 75 | ||
| Case study: Water Fusion | 76 | ||
| Chapter 14: Approaches to staffing | 77 | ||
| Approaches to staffing | 77 | ||
| Flexible workforce | 78 | ||
| The advantages and disadvantages of a flexible workforce | 79 | ||
| Distinction between dismissal and redundancy | 80 | ||
| Employer/employee relationships | 81 | ||
| Case study: Blackbird power tools ltd | 83 | ||
| Chapter 15: Recruitment, selection and training | 84 | ||
| Recruitment | 84 | ||
| Stages in the recruitment and selection process | 84 | ||
| Job description | 85 | ||
| Person specification | 85 | ||
| Internal and external recruitment | 86 | ||
| Costs of recruitment, selection and training | 87 | ||
| Training | 88 | ||
| Induction training | 88 | ||
| On-the-job training | 89 | ||
| Off-the-job training | 89 | ||
| Benefits of training | 89 | ||
| Case study: Amy’s wardrobe | 91 | ||
| Chapter 16: Organisational design | 92 | ||
| Organisational structures | 92 | ||
| Hierarchy | 92 | ||
| Employee roles in the organisational hierarchy | 93 | ||
| Chain of command | 94 | ||
| Span of control | 94 | ||
| Authority and responsibility | 94 | ||
| Centralisation and decentralisation | 95 | ||
| Types of organisational structure | 95 | ||
| Implications of different organisational structures | 96 | ||
| Case study: Morrisons | 98 | ||
| Chapter 17: Motivation in theory and practice | 99 | ||
| The importance of motivation | 99 | ||
| Taylor’s theory of scientific management | 99 | ||
| Mayo’s theory of human relations | 100 | ||
| Maslow’s hierarchy of needs | 101 | ||
| Herzberg’s two-factor theory | 101 | ||
| Financial incentives to improve staff performance | 103 | ||
| Non-financial techniques to improve staff performance | 104 | ||
| Case study: Peninsula business services | 107 | ||
| Chapter 18: Leadership | 109 | ||
| The distinction between management and leadership | 109 | ||
| The characteristics of leaders | 109 | ||
| Leadership styles | 110 | ||
| Case study: Islip travel | 113 | ||
| Chapter 19: Role of an entrepreneur | 114 | ||
| Creating and setting up a business | 114 | ||
| Running and expanding/developing a business | 116 | ||
| Intrapreneurship | 117 | ||
| Barriers to entrepreneurship | 117 | ||
| Anticipating risk and uncertainty in the business environment | 119 | ||
| Case study: Piotr Santos | 120 | ||
| Chapter 20: Entrepreneurial motives and characteristics | 121 | ||
| Characteristics of entrepreneurs | 121 | ||
| Skills required by entrepreneurs | 122 | ||
| Reasons why people set up businesses | 123 | ||
| Case study: Picaloulou | 125 | ||
| Chapter 21: Business objectives | 126 | ||
| Business objectives | 126 | ||
| Survival | 126 | ||
| Profit maximisation | 127 | ||
| Other objectives | 127 | ||
| Case study: The hawkshead relish company | 129 | ||
| Chapter 22: Forms of business 1 | 130 | ||
| Sole traders | 130 | ||
| Partnerships | 130 | ||
| Limited partnerships | 131 | ||
| Limited companies | 131 | ||
| Private limited companies | 132 | ||
| Franchising | 132 | ||
| Social enterprises | 134 | ||
| Lifestyle businesses | 134 | ||
| Online businesses | 134 | ||
| Case study: Khan academy | 135 | ||
| Chapter 23: Forms of business 2 | 137 | ||
| The growth of businesses | 137 | ||
| Public limited companies | 137 | ||
| Stock market flotation | 138 | ||
| Advantages of public limited companies | 138 | ||
| Disadvantages of public limited companies | 139 | ||
| Case study: Alexis Parker | 140 | ||
| Chapter 24: Business choices | 141 | ||
| Opportunity cost | 141 | ||
| Non-monetary opportunity cost | 141 | ||
| Business choices and trade-offs | 142 | ||
| Weighing up trade-offs | 143 | ||
| Case study: Benson farms ltd | 144 | ||
| Chapter 25: Moving from entrepreneur to leader | 145 | ||
| Moving from entrepreneur to leader | 145 | ||
| The difficulties in developing from an entrepreneur to a leader | 146 | ||
| Overcoming diffi culties | 147 | ||
| Case study: Bill Gates | 148 | ||
| Theme 2: Managing business activities | 149 | ||
| Chapter 26: Internal finance | 149 | ||
| The need for finance | 149 | ||
| Owner’s capital | 149 | ||
| Retained profit | 150 | ||
| Sale of assets | 150 | ||
| Advantages and disadvantages of internal finance | 150 | ||
| Case study: Cromwell and Jones | 151 | ||
| Chapter 27: External finance | 153 | ||
| External finance | 153 | ||
| Sources of finance | 153 | ||
| Methods of finance | 154 | ||
| Case study: Prince hospitality | 157 | ||
| Chapter 28: Liability | 158 | ||
| Limited liability and unlimited liability businesses | 158 | ||
| Implications of unlimited liability | 158 | ||
| Implications of limited liability | 159 | ||
| Choosing appropriate finance | 159 | ||
| Finance appropriate for unlimited liability businesses | 160 | ||
| Finance appropriate for limited liability businesses | 160 | ||
| Case study: Ilga Skuja and Mothercare Plc | 162 | ||
| Chapter 29: Planning | 163 | ||
| The relevance of a business plan | 163 | ||
| The contents of a business plan | 163 | ||
| Cash-flow forecasts | 164 | ||
| Interpreting cash-flow forecasts | 164 | ||
| Changes in cash-flow variables | 166 | ||
| The use of cash-flow forecasts | 167 | ||
| The limitations of cash-flow forecasts | 167 | ||
| Case study: Charlton plastics ltd | 168 | ||
| Chapter 30: Sales forecasting | 170 | ||
| Purpose of sales forecasts | 170 | ||
| The benefits of sales forecasting | 171 | ||
| Factors affecting sales forecasting | 171 | ||
| The difficulties of sales forecasting | 174 | ||
| Case study: Rolls-Royce | 175 | ||
| Chapter 31: Sales, revenue and costs | 176 | ||
| Sales volume | 176 | ||
| Sales revenue | 176 | ||
| Business costs | 177 | ||
| Fixed costs | 177 | ||
| Variable costs | 178 | ||
| Total cost | 178 | ||
| Average cost or unit cost | 179 | ||
| Profit and loss | 179 | ||
| Case study: Razia Malik | 180 | ||
| Chapter 32: Break-even | 181 | ||
| Contribution | 181 | ||
| Contribution per unit and total contribution | 181 | ||
| Break-even point | 182 | ||
| Calculating break-even using contribution | 182 | ||
| Break-even chart | 182 | ||
| Margin of safety | 183 | ||
| Using break-even analysis | 183 | ||
| Limitations of break-even analysis | 183 | ||
| Case study: Gowda chanda ltd | 184 | ||
| Chapter 33: Budgets | 185 | ||
| Purpose of budgets | 185 | ||
| Types of budget | 185 | ||
| Using budgets | 187 | ||
| Types of variance | 187 | ||
| Using variances for decision making | 188 | ||
| Diffi culties of budgeting | 189 | ||
| Case study: buyamotorjon.com | 190 | ||
| Chapter 34: Profit | 191 | ||
| Profit | 191 | ||
| Statement of comprehensive income (profit and loss account) | 192 | ||
| Measuring profitability | 192 | ||
| Ways to improve profi tability | 194 | ||
| Distinction between cash and profit | 194 | ||
| Case study: Salwell | 195 | ||
| Chapter 35: Liquidity | 196 | ||
| Statement of financial position balance sheet) | 196 | ||
| The presentation of the statement of financial position (balance sheet) | 197 | ||
| Measuring liquidity | 197 | ||
| What is working capital? | 198 | ||
| Managing working capital | 199 | ||
| The importance of cash | 199 | ||
| Ways to improve liquidity | 199 | ||
| Case study: Falcon toys plc | 201 | ||
| Chapter 36: Business failure | 203 | ||
| Business failure in the UK | 203 | ||
| Internal causes of business failure | 203 | ||
| External causes of business failure | 205 | ||
| Financial and non-fi nancial causes of business failure | 206 | ||
| Case study: Jacksons of reading | 207 | ||
| Chapter 37: Production, productivity and efficiency | 208 | ||
| What is production? | 208 | ||
| Job production | 208 | ||
| Batch production | 209 | ||
| Flow production | 209 | ||
| Productivity | 210 | ||
| Factors influencing productivity | 210 | ||
| Productivity and competitiveness | 211 | ||
| Efficiency | 211 | ||
| Factors influencing efficiency | 211 | ||
| Distinction between labour and capital intensive production | 212 | ||
| Case study: Jaguar Land Rover | 214 | ||
| Chapter 38: Capacity utilisation | 215 | ||
| Capacity utilisation | 215 | ||
| Measuring capacity utilisation | 215 | ||
| Implications of under-utilisation | 215 | ||
| Implications of over-utilisation | 216 | ||
| Ways of improving capacity utilisation | 216 | ||
| Case study: Enfield shipping ltd | 218 | ||
| Chapter 39: Stock control | 219 | ||
| What is stock? | 219 | ||
| Stock control | 219 | ||
| Interpretation of a stock control diagram | 220 | ||
| Buffer stocks | 220 | ||
| Implications of poor stock control | 221 | ||
| Just-in-time (JIT) management of stock | 221 | ||
| Waste minimisation | 222 | ||
| Competitive advantage from lean production | 222 | ||
| Case study: Toyota | 224 | ||
| Chapter 40: Quality management | 225 | ||
| What is quality? | 225 | ||
| Quality control | 225 | ||
| Quality assurance | 226 | ||
| Quality circles | 226 | ||
| Total quality management (TQM) | 227 | ||
| Competitive advantage from quality management | 230 | ||
| Case study: The Powarth group | 231 | ||
| Chapter 41: Economic influences | 232 | ||
| External influences | 232 | ||
| Inflation | 232 | ||
| How is inflation measured? | 233 | ||
| How does inflation affect businesses? | 233 | ||
| Deflation | 234 | ||
| Exchange rates | 234 | ||
| The impact of an appreciation in the exchange rate on imports and exports | 234 | ||
| The impact of a depreciation in the exchange rate on imports and exports | 234 | ||
| How are businesses affected by exchange rates? | 235 | ||
| Interest rates | 235 | ||
| Effect of interest rates on costs | 235 | ||
| Effect of interest rates on investment | 235 | ||
| Effect of interest rates on demand | 236 | ||
| Taxation | 237 | ||
| The eff ect on businesses of changes in taxation | 237 | ||
| Government expenditure | 237 | ||
| The effect of changes in government expenditure on businesses | 238 | ||
| The business cycle | 238 | ||
| The impact of the business cycle on business | 238 | ||
| The effect of economic uncertainty on the business environment | 239 | ||
| Case study: UpFLY | 241 | ||
| Chapter 42: Legislation | 242 | ||
| The need for legislation in business | 242 | ||
| Consumer protection | 242 | ||
| How does consumer legislation affect businesses? | 242 | ||
| Employee protection | 243 | ||
| How does employment legislation affect businesses? | 243 | ||
| Environmental protection | 244 | ||
| How does environmental legislation affect businesses? | 245 | ||
| Competition policy | 246 | ||
| How does competition policy affect businesses? | 247 | ||
| Health and safety | 247 | ||
| How does health and safety legislation affect businesses? | 248 | ||
| Case study: Padwell electronics Plc | 249 | ||
| Chapter 43: The competitive environment | 250 | ||
| The competitive environment | 250 | ||
| Determinants of competitiveness | 250 | ||
| Impact on businesses of a competitive environment | 251 | ||
| Competition and market size | 252 | ||
| Operating in large markets | 253 | ||
| Operating in small markets | 253 | ||
| Case study: Mobile gaming market | 254 | ||
| AS Level: Preparing for your exams | 255 | ||
| Theme 3: Business decisions and strategy | 269 | ||
| Chapter 44: Corporate objectives | 269 | ||
| Business aims | 269 | ||
| Mission statements | 269 | ||
| Development of corporate objectives | 270 | ||
| Departmental and functional objectives | 270 | ||
| The objectives hierarchy | 270 | ||
| The difference between small and large firms | 270 | ||
| Critical appraisal of mission statements and corporate aims | 271 | ||
| Case study: LEGO® Corporate Objectives | 273 | ||
| Chapter 45: Theories of corporate strategy | 274 | ||
| Business strategy | 274 | ||
| Development of corporate strategy | 274 | ||
| Ansoff’s Matrix | 274 | ||
| Porter’s Strategic Matrix | 275 | ||
| Achieving competitive advantage through distinctive capabilities | 276 | ||
| Aim of portfolio analysis | 277 | ||
| Strategies and tactics | 278 | ||
| Case study: Business tactics: ties.com, zara, jcb and ikea | 278 | ||
| Chapter 46: SWOT analysis | 281 | ||
| Gathering information to help develop a strategy | 281 | ||
| What is SWOT analysis? | 282 | ||
| An example of a SWOT analysis | 282 | ||
| Case study: BHP Billiton | 283 | ||
| Chapter 47: Impact of external influences | 285 | ||
| PESTLE analysis | 285 | ||
| The structure of markets | 286 | ||
| The changing competitive environment | 287 | ||
| The impact on businesses of a changing competitive environment | 287 | ||
| Porter’s Five Forces | 288 | ||
| Case study: The housing market | 290 | ||
| Chapter 48: Growth | 292 | ||
| Growth | 292 | ||
| Economies of scale | 292 | ||
| Internal economies of scale | 293 | ||
| External economies of scale | 293 | ||
| Increased market power | 294 | ||
| Increased market share and brand recognition | 295 | ||
| Increased profitability | 295 | ||
| Problems arising from growth | 295 | ||
| Diseconomies of scale | 295 | ||
| Internal communication | 296 | ||
| Overtrading | 296 | ||
| Case study: Anesco | 297 | ||
| Chapter 49: Mergers and takeovers | 298 | ||
| Reasons for mergers and takeovers | 298 | ||
| Distinction between mergers and takeovers | 298 | ||
| Horizontal and vertical integration | 300 | ||
| Financial risks and rewards | 301 | ||
| Problems of rapid growth | 301 | ||
| Case study: Dixons Carphone | 303 | ||
| Chapter 50: Organic growth | 304 | ||
| Distinction between inorganic and organic growth | 304 | ||
| Methods of growing organically | 304 | ||
| Advantages of organic growth | 305 | ||
| Disadvantages of organic growth | 306 | ||
| Case study: The car finance company | 307 | ||
| Chapter 51: Reasons for staying small | 308 | ||
| Reasons for staying small | 308 | ||
| Product differentiation and USPs | 309 | ||
| Flexibility in responding to customer needs | 309 | ||
| Customer service | 309 | ||
| E-commerce | 310 | ||
| Case study: Enclothed | 312 | ||
| Chapter 52: Quantitative sales forecasting | 313 | ||
| Calculating time series data | 313 | ||
| Identifying the trend | 313 | ||
| Predicting the line of best fit from the trend | 315 | ||
| Variations from the trend | 316 | ||
| Seasonal variations | 316 | ||
| The limitations of quantitative sales forecasts | 316 | ||
| Causal modelling and line of best fit | 317 | ||
| Qualitative forecasting | 318 | ||
| Case study: Prosper-i | 319 | ||
| Chapter 53: Investment appraisal | 321 | ||
| Investment appraisal | 321 | ||
| Simple payback | 321 | ||
| Advantages of the payback method | 322 | ||
| Average (Accounting) Rate of Return (ARR) | 322 | ||
| Advantages of the ARR method | 323 | ||
| Discounted cash flow (net present value or NPV) | 323 | ||
| Advantages of the discounted cash-flow method | 325 | ||
| Limitations of these techniques | 325 | ||
| Case study: FLORIpori ltd | 327 | ||
| Chapter 54: Decision trees | 328 | ||
| Making decisions | 328 | ||
| What are decision trees? | 328 | ||
| Features of decision trees | 328 | ||
| Calculating expected monetary values (EMV) | 329 | ||
| Theme 4: Global business | 401 | ||
| Chapter 66: Growing economies | 401 | ||
| Growth rate of the UK economy compared to emerging economies | 401 | ||
| Growing economic power of Asian, African and other countries | 402 | ||
| Implications of economic growth for individuals and businesses | 403 | ||
| Indicators of growth | 404 | ||
| Case study: Assessing future UK growth | 406 | ||
| Chapter 67: International trade and business growth | 407 | ||
| Exports and imports | 407 | ||
| The link between business specialisation and competitive advantage | 408 | ||
| Foreign direct investment (FDI) and link to business growth | 409 | ||
| Case study: AngelBerry | 412 | ||
| Chapter 68: Factors contributing to increased globalisation | 413 | ||
| What is globalisation? | 413 | ||
| Factors contributing to globalisation | 414 | ||
| Reduction of international trade barriers/trade liberalisation | 414 | ||
| Political change | 414 | ||
| Reduced cost of transport and communication | 415 | ||
| Increased significance of global (transnational) companies | 415 | ||
| Increased investment flows | 416 | ||
| Migration | 417 | ||
| Growth of the global labour force | 417 | ||
| Structural change | 417 | ||
| Case study: Nestlé | 419 | ||
| Chapter 69: Protectionism | 420 | ||
| Protectionism | 420 | ||
| Tariffs | 420 | ||
| Import quotas | 421 | ||
| Problems with trade barriers | 421 | ||
| Government legislation | 422 | ||
| Subsidies | 422 | ||
| Case study: US tariffs on foreign steel producers | 423 | ||
| Chapter 70: Trading blocs | 424 | ||
| The expansion of trading blocs | 424 | ||
| The European Union and the single market | 427 | ||
| ASEAN free trade agreement | 427 | ||
| NAFTA | 427 | ||
| Factors to consider in trading blocs | 428 | ||
| Impacts on businesses of trading blocs | 428 | ||
| Case study: Toyota’s european expansion | 430 | ||
| Chapter 71: Conditions that prompt trade | 431 | ||
| Conditions that prompt trade | 431 | ||
| Push factors | 432 | ||
| Pull factors | 433 | ||
| Possibility of off-shoring and outsourcing | 433 | ||
| Extending the product life cycle by selling in multiple markets | 434 | ||
| Case study: Zara | 435 | ||
| Chapter 72: Assessment of a country as a market | 436 | ||
| Factors to consider | 436 | ||
| Levels and growth of disposable income | 436 | ||
| Ease of doing business | 437 | ||
| Infrastructure | 438 | ||
| Political stability | 438 | ||
| Exchange rate | 439 | ||
| Case study: Brazil | 441 | ||
| Chapter 73: Assessment of a country as a production location | 442 | ||
| Locating production | 442 | ||
| Costs of production | 442 | ||
| Skills and availability of labour | 443 | ||
| Infrastructure | 444 | ||
| Location in a trade bloc | 444 | ||
| Government incentives | 444 | ||
| Ease of doing business | 444 | ||
| Political stability | 445 | ||
| Natural resources | 445 | ||
| Likely return on investment | 446 | ||
| Quantitative methods | 446 | ||
| Case study: New Wing Footwear | 447 | ||
| Chapter 74: Reasons for global mergers or joint ventures | 448 | ||
| Reasons why businesses join together | 448 | ||
| Spreading risk over different countries or regions | 449 | ||
| Entering new markets and trade blocs | 449 | ||
| Acquiring national and international brand names or patents | 449 | ||
| Gaining access to intellectual property | 450 | ||
| Securing resources or supplies | 450 | ||
| Maintaining or increasing global competitiveness | 450 | ||
| Case study: Cement and Cemex | 452 | ||
| Chapter 75: Global competitiveness | 453 | ||
| Achieving global competitiveness | 453 | ||
| Effect of exchange rate fluctuations on business | 453 | ||
| The significance of changes in the exchange rate on business | 454 | ||
| Fixed contracts | 454 | ||
| Economic risk | 454 | ||
| Competitive advantage | 454 | ||
| Skill shortages and their impact on international competitiveness | 455 | ||
| Case study: The Global Grocery Market | 457 | ||
| Chapter 76: Marketing | 459 | ||
| Global marketing strategy | 459 | ||
| Global localisation (glocalisation) | 459 | ||
| Different marketing approaches | 460 | ||
| Adapting and applying the marketing mix and Ansoff’s Matrix to global markets | 461 | ||
| Ansoff’s Matrix | 461 | ||
| Case study: The global market | 463 | ||
| Chapter 77: Niche markets | 464 | ||
| Global niche markets | 464 | ||
| Features of global niche markets | 464 | ||
| Cultural diversity | 465 | ||
| Application and adaptation of the marketing mix to suit global niches | 465 | ||
| Case study: Global niches | 467 | ||
| Chapter 78: Cultural/social factors | 468 | ||
| Cultural and social factors affecting global marketing | 468 | ||
| Cultural differences | 469 | ||
| Language | 469 | ||
| Unintended meanings | 470 | ||
| Differing tastes | 470 | ||
| Inappropriate branding and promotion | 471 | ||
| Case study: Bridging the cultural gap | 472 | ||
| Chapter 79: The impact of MNCs | 473 | ||
| Impact of MNCs on the local economy | 473 | ||
| Impact of MNCs on the national economy | 475 | ||
| Case study: GlaxoSmithKline (GSK) | 478 | ||
| Chapter 80: Ethics | 479 | ||
| Ethics | 479 | ||
| Stakeholder conflicts | 479 | ||
| Pay and working conditions | 480 | ||
| Environmental considerations | 481 | ||
| Supply chain considerations | 482 | ||
| Marketing considerations | 482 | ||
| Case study: Tiptree Textiles | 484 | ||
| Chapter 81: Controlling MNCs | 485 | ||
| Control of MNCs | 485 | ||
| Political influence | 486 | ||
| Legal control | 487 | ||
| Taxation policy | 487 | ||
| Pressure groups | 488 | ||
| Social media | 489 | ||
| Case study: Controlling tax avoidance | 490 | ||
| A Level: Preparing for your exams | 491 | ||
| Index | 524 | ||
| Acknowledgements | 534 |