Thursday, 15 October 2009



https://www.ibid.com.au/ibid/web.nsf/authorslookup/83?opendocument
http://www.ib-source.com/title_info.php?id=4531

Business and Management written by Paul is an excellent Business studies book used for the International Baccalaureate Diploma which includes absolutely all basics on over 700 pages you need to know about business. I love it!
There are a few chapters I was particular interested in and I think it is worth to summarize some of them.
Starting with UNIT 1
Chapter 1.7 Growth and Evolution of unit 1 (BUSINESS ORGANIZATION AND EVIRONMENT) looks at encouraging forces for growth and evolution of different businesses as they pursue to expand the size of their functioning state. Established businesses have many reasons why they aspire to grow. Examples for this are economics of scale, gain a larger market share to gain more market power and simply for survival reasons as they are risks by only focusing on one market and rivals in the industry. These reasons summarized are determined to gain more profit. There are two methods of business growth known as internal (organic) and external (inorganic) growth. Internal Growth means that a business grows internally by using its own resources to raise the scale of its operations and sales revenue and is financed by the profit of the business. This includes also reducing or raising the price, advertising and promoting, improving product and selling in different locations. External growth however occurs through dealing with outside organizations so the growth comes from alliances or takeovers of other businesses. This method is much faster and it is a fast way of reducing competition by simply taking over a rival. Also working with other businesses means sharing practice and good ideas. A big disadvantage of this method is the high costs especially the takeover bids. Last but not least a method of growth called franchise is introduced which is a form of business ownership where a person/ business buys a license to trade using another firm’s name, logo, brand and trademarks. The benefits of franchising are that the parent company experiences rapid growth without having to risk huge amounts if money as the franchisee pays for the outlet itself, allows national and international occurrence and growth of economic of scale. Nevertheless it is expensive for individuals to buy a franchise and they have to pay a significant percentage of their revenues but in the other hand they have lower start-up costs and they benefit from the large scale advertising used by the famous parent company.
Next chapter is following tomorrow :D

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