Bs1 Booklet 3 Revision

Front 1

Geographic Markets

Back 1

•Local Market (GORSEINON MARKET)

•Regional Market (WRU)

•National Market (ASDA)

•International Market (COKE)

Front 2

Pure Monopoly

Back 2

Firm that is the sole supplier to the market

Front 3

Legal Monopoly

Back 3

Has over 25% market share in a particular market

Front 4

Patent

Back 4

Has legal protection over their idea usually lasting around 2 years

Front 5

Natural Monopoly

Back 5

Firm is the only supplier to the market

Front 6

Local Monopoly

Back 6

Firm has over 25% market share in a local market

Front 7

Monopoly Power

Back 7

When you have complete control over prices

Front 8

Monopolist Advantages

Back 8

•No Competitors

•Control Supply

•Specialisation

•Stop new market entries

Front 9

Monopolist Disadvantages

Back 9

•Higher consumer prices

•Higher supplier prices

•Diseconomies of scale

•Lack of incentive

Front 10

Demand

Back 10

Is the amount of a product consumers are willing and able to purchase at any given price

Front 11

Supply

Back 11

The amount of a product which suppliers will offer the market at a given price

Front 12

Demand Increase

Back 12

•Increase in income

•Change in trend

•Advertising

Front 13

Demand Decrease

Back 13

•Change in trend

•Lower price of substitutes

Front 14

Supply Increase

Back 14

•Better Technology

•Weather

Front 15

Supply Decrease

Back 15

•Increase in taxation

•Increase in wages

Front 16

Equilibrium

Back 16

When supply is equal to demand

Front 17

Footloose

Back 17

When a business is not affected by location

Front 18

Why might a company need to make decisions about where they locate?

Back 18

•Initial premises

•Expansion

•Up-to-date

•Cut costs

Front 19

Entrepreneurs locations

Back 19

•Home

•Online

Front 20

International Location

Back 20

•Maximise Economies of scale

•Access to international markets

•Tax advantages

•Freedom from restrictions

•Footloose firms

Front 21

Oligopoly

Back 21

Few firms that dominate one market

Front 22

Non - price competition

Back 22

•Non - price competition

•Loyalty Schemes

•Opening Hours

•Delivery Times

•Promotions

Front 23

Oligopoly barriers to entry

Back 23

•High start up costs

•Legal restrictions

•High cost effective promotion

Front 24

Monopolistic Competition

Back 24

Large number of small firms compete in a market Eg hairdressers

Front 25

Globalisation

Back 25

The move from national and domestic markets to a worldwide enviroment

Front 26

Important Aspects Of Globalisation

Back 26

•Growth of international trade

•Rise in multinational companies

•Locating with efficiency

Front 27

Factors Affecting Globalisation

Back 27

•Technological

•Cost of Transport

•Regulations

•Consumer taste

•Growth of markets

Front 28

Globalisation effects on business

Back 28

•Fierce Competition

•Meeting consumer expectations

•Economies of scale

•Choice of location

Front 29

Multinational Companies

Back 29

Large manufacturing and trading organisations with their headquarters in one country and bases in others

Front 30

Exogenous Shock

Back 30

An unexpected/unforseen event

Front 31

Contingency Planning

Back 31

Helps a business cope with a crisis as best they can

Front 32

Contingency plan contains

Back 32

•Finance - emergency funds

•Production - alternative sources

•Human Resources - rewards

•Management - strong leadership

•Image - Withdraw faulty products