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IB Business and Management Unit 1.7  Growth and Evolution Pages 112-136
1. Focus Questions ,[object Object],[object Object]
2. An Overview ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
3a. Economies & Diseconomies of Scale ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
4. Internal Economies of Scale ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
5. External Economies of Scale ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
6a. Diseconomies of Scale ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
6b. Diseconomies of Scale ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
6c. Diseconomies of Scale ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
7a. Small vs Large Organizations: ,[object Object],[object Object],[object Object],… Stock market valuation … Balance sheet valuation Market value… Capital employed Profit Size of the workforce Total Revenue Market share Can be Measured by:
7b.  Small vs Large Organizations:   ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
7c. Small vs Large Organizations: ,[object Object],Barrier to entry More choice Improved Customer  loyalty Discounts Convenience Image  And reliability Brand Recognition Other benefits of being large
7d. Small vs Large Organizations: ,[object Object],[object Object],Small Market Size Flexibility Personalized services Local  Monopoly Power Government aid Financial risk Cost control Other benefits of being small
7e.  Small vs Large Organizations:   ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
IB Business and Management Unit 1.7  Internal (Organic) Growth / External Growth Pages 119-128
1. Focus Questions ,[object Object],[object Object]
2. Internal Growth  ,[object Object],[object Object],[object Object],[object Object]
3a. External Growth ,[object Object],[object Object],[object Object]
3b. Can Grow in Several Ways  : ,[object Object],… Stock market valuation Training and  development Capital expenditure Credit Payment terms Placements (locations) Better products Advertising And promoting Changing price Can grow in Several ways:
3c. Benefits and Limitations of Organic Growth ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
3d. External Growth ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
4. Joint Ventures : ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],High success rate Exploitation  Of local knowledge Competitive advantage Cheap Entry of  Foreign  markets Spreading of  Costs and risks Synergy Joint Venture Advantages
5a. Strategic Alliances ,[object Object],[object Object],[object Object],[object Object],[object Object],Four Key Stages 1. Feasibility study 2. Partnership Assessment 3. Contract Negotiation 4.  Implementation
5b. Strategic Alliances ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Taken from: http://www.maximizepossibility.com/RMGpictures/Synergy.jpg
6a.  Mergers and Takeovers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Taken from:  http://30gms.com/images/uploads/sharks.jpg
6b.  Mergers and Takeovers 4. Conglomerate M & A (diversification) 3. Lateral Integration (similar operations) 2. Horizontal Integration (same industry) 1b. Backward Vertical Integration (towards supplier) 1a. Forward  Vertical Integration (towards consumer) 1. Vertical Integration (different stages of  production) Four Types Of Integration
6c.  Mergers and Takeovers Diversification Survival Synergy 1+1=3 Economies of Scale Greater Market share The  Advantages of  M & A’s
6d.  Mergers and Takeovers Regulatory Problems Diseconomies of Scale Redundancies Conflict Culture Clash Loss of Control The  Disadvantages of  M & A’s
6e.  Mergers and Takeovers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
6f.  Mergers and Takeovers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
IB Business and Management Unit 1.7  Franchises Pages 128-136
1. Focus Questions ,[object Object],[object Object],[object Object]
2a. Franchises ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
 
 
2b. Franchises ,[object Object],[object Object],[object Object],Greater local  Market  awareness More incentives Receive a  Royalty payment Less worry about The running costs Economies of scale Allows for a National or  International presence Rapid growth Without huge  risks Benefits of Franchising
2c. Franchises ,[object Object],[object Object],[object Object],Large scale Advertising –  Reducing  costs Added services Lower start-up costs Low risk High success Advantages for The franchisee
2d. Franchises ,[object Object],[object Object],[object Object],Not a quick Method of growth Huge risk to  Reputation. Difficult to Control franchisees The pitfalls of franchising
2e. Franchises ,[object Object],[object Object],[object Object],Less flexibility Pay large % To the franchisor. Can be very expensive Disadvantages To franchisees
3a. The Ansoff Matrix ,[object Object],[object Object],[object Object],[object Object]
 
 
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],3b. Advantages / Limitations
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],3c. Advantages / Limitations

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Bm 1.7 Growth And Evolution

  • 1. IB Business and Management Unit 1.7 Growth and Evolution Pages 112-136
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15. IB Business and Management Unit 1.7 Internal (Organic) Growth / External Growth Pages 119-128
  • 16.
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  • 20.
  • 21.
  • 22.
  • 23.
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  • 26. 6b. Mergers and Takeovers 4. Conglomerate M & A (diversification) 3. Lateral Integration (similar operations) 2. Horizontal Integration (same industry) 1b. Backward Vertical Integration (towards supplier) 1a. Forward Vertical Integration (towards consumer) 1. Vertical Integration (different stages of production) Four Types Of Integration
  • 27. 6c. Mergers and Takeovers Diversification Survival Synergy 1+1=3 Economies of Scale Greater Market share The Advantages of M & A’s
  • 28. 6d. Mergers and Takeovers Regulatory Problems Diseconomies of Scale Redundancies Conflict Culture Clash Loss of Control The Disadvantages of M & A’s
  • 29.
  • 30.
  • 31. IB Business and Management Unit 1.7 Franchises Pages 128-136
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  • 33.
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  • 44.