Factors of production Business failure Entrepreneurial skills Key challenges Creating value Jobs Land Limited working capital Identify opportunities Competition Consumer goods Economic Economic growth Labour Poor management Determination Securing finance Consumer services Environmental Exports Capital Inaccurate records Risk-taking Location Capital goods Social Drive innovation Enterprise External environment Innovation Poor planning Leadership Cambridge International AS and A Level Business Triple bottom line Business and economy Unit 1 – Mind maps Social enterprise Chapter 1: Enterprise © Cambridge University Press 2014 Cambridge International AS and A Level Business Enterprise Unit 1 – Mind maps 1 Unincorporated Other forms Joint ventures Partnership Benefits/ weaknesses Primary Incorporated Sole trader Public limited companies Private limited companies Legal formalities Benefits and weaknesses Holding companies Unlimited liability Articles of association Limited liability Cooperatives Limited finance Memorandumof association Finance Franchises Privacy Disclosure Simplicity Takeover threat Secondary Tertiary Public sector Public corporation Cambridge International AS and A Level Business Classification Private sector Chapter 2: Business Structure © Cambridge University Press 2014 Cambridge International AS and A Level Business Business structure Unit 1 – Mind maps 2 Reasons for growth Importance of small business Family business Measuring size Small business Advantages Disadvantages Number of employees Market share Jobs Reliability Power Innovation Informality Control Owner responsibility Sales turnover Greater profit Competition Continuity Adaptable Higher costs Capital employed Reduced risk of takeover B2B supply Personal service Limited finance Market share Economies of scale Market capitalisation Cambridge International AS and A Level Business Internal growth Chapter 3: Size of business © Cambridge University Press 2014 Cambridge International AS and A Level Business Size of business Unit 1 – Mind maps 3 Cambridge International AS and A Level Business Chapter 4: Business objectives Business objectives Mission statement MBO Conflicting objectives Influences Corporate objectives Guide business Clear targets Short-term v long-term Corporate culture Profit maximisation Motivational Motivational Growth v profit Public/private Satisficing Core aims Link to corporate objectives Stakeholder conflicts Age of business Growth Business size and legal form Market share Time-consuming Survival Corporate social responsibility Revenue maximisation © Cambridge University Press 2014 Cambridge International AS and A Level Business Unit 1 – Mind maps 4 Cambridge International AS and A Level Business Chapter 5: Stakeholders in a business Stakeholders in a business Stakeholder influence Responsibilities of business Conflicts Stakeholder concept Impact of business decisions Shareholder concept Changing business objectives Business stakeholders CSR Benefits Interests of society Beyond legal obligations Ethical behaviour Government Sales Employees Labour turnover Lenders Managers Suppliers Local community Owners/ shareholders Customers © Cambridge University Press 2014 Cambridge International AS and A Level Business Unit 1 – Mind maps 5 Impact Growth of multinationals Privatisation Drivers Advantages Disadvantages Multinational disadvantages Benefits of economy Benefits to firm Jobs WTO Reduce bureaucracy Loss of scale economies Resource exploitation Competition Access market Competition Trading bloc Profit motive Monopoly exploitation Pollution Investment Economies of scale Finance of government Essential industry control Labour exploitation Employment Access resources Market forces Accountability Technology transfer Lower costs Trade balance Unit 1 – Mind maps Access capital markets Avoid import restrictions Cambridge International AS and A Level Business Free trade and globalisation Chapter 6: Business structure © Cambridge University Press 2014 Cambridge International AS and A Level Business Business structure 6 External growth Problems of rapid growth Financial cost Horizontal Cash flow problems Economies of scale Managerial Power over supplies Loss of control Rationalisation Market share Unit 1 – Mind maps Reduce competition Merger Takeover Control over suppliers Prevent competition accessing supplies Vertical Secure outlets Control over markets Eliminate competition products Conglomerate Absorb profits Spread risk Cambridge International AS and A Level Business Joint venture Chapter 7: Size of business © Cambridge University Press 2014 Cambridge International AS and A Level Business Business size 7 CSR Social and demographic Political and legal Technology Information technology Consumer rights and behaviour Employment rights Social audits Role of women Environmental audits Ageing population Management Monopolies Health & safety Ethical considerations Patterns of employment Costs Restrictive practices Minimum wage Internet/Intranet CAD/CAM Limitations Labour relations Reliability Data protection Location Competition Trade unions Cambridge International AS and A Level Business Pressure groups Chapter 8: External influences on business activity © Cambridge University Press 2014 Cambridge International AS and A Level Business External influences Unit 1 – Mind maps 8 Boom Exchange rates Unemployment Cyclical Structural Frictional Impact International competitiveness Recovery Recruitment Depreciation Recession Prices Appreciation Slump Wages Demand Inflation/ deflation Measurement CPI Causes Economic growth Impact Cost push Wage rises Demand pull Uncertainty Consumer demand Measurement GDP Impact Increased demand Improved living standards Causes Quantity and quality of economic resources Technology Government policy Cambridge International AS and A Level Business Business cycle Unit 1 – Mind maps Chapter 9: External economic influences on business behaviour © Cambridge University Press 2014 Cambridge International AS and A Level Business External economic influences 9 Economic objectives Tackling market failure Fiscal policy Government expenditure Floating Exchange rate stability Subsidies Fixed Income distribution Taxation Boost AD Reduce AD Cost of borrowing Low & stable inflation Regulation Cut taxes Increase taxes Exchange rate effect Low unemployment Training Increased government spending Reduced government spending Economic growth Budget deficit/surplus Business competitiveness Monetary policy Taxation Expansionary Contractionary Money supply Interest rates Low income tax Low corporation tax Labour market flexibility Cambridge International AS and A Level Business Exchange rate policy Unit 1 – Mind maps Chapter 9: External economic influences on business behaviour © Cambridge University Press 2014 Cambridge International AS and A Level Business External economic influencesgovernments 10
