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href="../22093/glossary-break-even-analysis.html" title="Glossary: Break-even analysis">Glossary: Break-even analysis</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21747/34-final-accounts.html" title="3.4 Final accounts">3.4 Final accounts</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../31367/glossary-final-accounts.html" title="Glossary: Final accounts">Glossary: Final accounts</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21748/35-profitability-and-liquidity-ratio-analysis.html" title="3.5 Profitability and liquidity ratio analysis">3.5 Profitability and liquidity ratio analysis</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../25111/glossary-profitability-and-liquidity-ratio-analysis.html" title="Glossary: Profitability and liquidity ratio analysis">Glossary: Profitability and liquidity ratio analysis</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21749/36-efficiency-ratio-analysis-hl-only.html" title="3.6 Efficiency ratio analysis (HL only)">3.6 Efficiency ratio analysis (HL only)</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../25114/glossary-efficiency-ratios.html" title="Glossary: Efficiency ratios">Glossary: Efficiency ratios</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21750/37-cash-flow.html" title="3.7 Cash flow">3.7 Cash flow</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../25118/cash-flow-forecasts.html" title="Cash flow forecasts">Cash flow forecasts</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../31376/glossary-cash-flow.html" title="Glossary: Cash flow">Glossary: Cash flow</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21751/38-investment-appraisal.html" title="3.8 Investment appraisal">3.8 Investment appraisal</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../31377/glossary-investment-appraisal-.html" title="Glossary: Investment appraisal ">Glossary: Investment appraisal </a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21752/39-budgets-hl-only.html" title="3.9 Budgets (HL only)">3.9 Budgets (HL only)</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../31378/39-budgets-hl-only-glossary.html" title="3.9 Budgets (HL Only) Glossary">3.9 Budgets (HL Only) Glossary</a></li></ul></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../21684/unit-4.html" title="Unit 4">Unit 4</a></li><ul class="level-2 "><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21767/41-the-role-of-marketing.html" title="4.1 The role of marketing">4.1 The role of marketing</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../25618/glossary-the-role-of-marketing.html" title="Glossary: The role of marketing">Glossary: The role of marketing</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21768/42-marketing-planning.html" title="4.2 Marketing planning">4.2 Marketing planning</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../28328/glossary-marketing-planning.html" title="Glossary: Marketing planning">Glossary: Marketing planning</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21769/43-sales-forecasting-hl-only.html" title="4.3 Sales forecasting (HL only)">4.3 Sales forecasting (HL only)</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../25713/glossary-sales-forecasting.html" title="Glossary: Sales forecasting">Glossary: Sales forecasting</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21713/44-market-research.html" title="4.4 Market research">4.4 Market research</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../25208/glossary-market-research.html" title="Glossary: Market research">Glossary: Market research</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21770/45-the-four-ps.html" title="4.5 The four Ps">4.5 The four Ps</a></li><ul class="level-3 "><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="Product">Product</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../22627/glossary-product.html" title="Glossary: Product">Glossary: Product</a></li></ul><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../22525/price.html" title="Price">Price</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../22548/glossary-price.html" title="Glossary: Price">Glossary: Price</a></li></ul><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../22567/promotion.html" title="Promotion">Promotion</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../22704/45-promotion-glossary.html" title="4.5 Promotion - Glossary">4.5 Promotion - Glossary</a></li></ul><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../22745/place.html" title="Place">Place</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../23813/45-place-glossary.html" title="4.5 Place - Glossary">4.5 Place - Glossary</a></li></ul></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21774/46-the-extended-marketing-mix-7-ps-hl.html" title="4.6 The extended marketing mix (7 Ps) (HL)">4.6 The extended marketing mix (7 Ps) (HL)</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../23814/glossary-the-extended-marketing-mix-hl.html" title="Glossary: The extended marketing mix (HL)">Glossary: The extended marketing mix (HL)</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21772/47-international-marketing-hl-only.html" title="4.7 International marketing (HL only)">4.7 International marketing (HL only)</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../23815/glossary-international-marketing-hl.html" title="Glossary: International Marketing (HL)">Glossary: International Marketing (HL)</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21773/48-e-commerce.html" title="4.8 E-commerce">4.8 E-commerce</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../23797/glossary-e-commerce.html" title="Glossary: E-commerce">Glossary: E-commerce</a></li></ul></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../21688/unit-5.html" title="Unit 5">Unit 5</a></li><ul class="level-2 "><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21937/51-the-role-of-operations-management.html" title="5.1 The role of operations management">5.1 The role of operations management</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../24843/glossary.html" title="Glossary">Glossary</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21938/52-production-methods.html" title="5.2 Production methods">5.2 Production methods</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../24848/glossary.html" title="Glossary">Glossary</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21939/53-lean-production-quality-management-hl.html" title="5.3 Lean production & quality management (HL)">5.3 Lean production & quality management (HL)</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../24839/glossary-lean-production-and-quality-management.html" title="Glossary: Lean Production and quality management">Glossary: Lean Production and quality management</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21700/54-location.html" title="5.4 Location">5.4 Location</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../24959/glossary.html" title="Glossary">Glossary</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21695/55-production-planning-hl.html" title="5.5 Production planning (HL)">5.5 Production planning (HL)</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../25032/glossary-production-planning.html" title="Glossary: Production planning">Glossary: Production planning</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../33222/56-research-development-hl.html" title="5.6 Research & development (HL)">5.6 Research & development (HL)</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../34014/glossary-research-development.html" title="Glossary: Research & Development">Glossary: Research & Development</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21941/57-crisis-management-contingency-planning-hl.html" title="5.7 Crisis management & contingency planning (HL)">5.7 Crisis management & contingency planning (HL)</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../25042/glossary.html" title="Glossary">Glossary</a></li></ul></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../25115/cuegis.html" title="CUEGIS">CUEGIS</a></li><ul class="level-2 "><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="The 6 CUEGIS concepts">The 6 CUEGIS concepts</a></li><ul class="level-3 "><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="Ethics">Ethics</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../21954/mcdonalds-supersize-me.html" title="McDonald's - Supersize Me">McDonald's - Supersize Me</a></li></ul></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="The CUEGIS essay">The CUEGIS essay</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../22876/planning-your-cuegis-essay.html" title="Planning your CUEGIS essay">Planning your CUEGIS essay</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../33806/paper-2-section-c-questions.html" title="Paper 2 Section C Questions">Paper 2 Section C Questions</a></li></ul></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../33959/the-ia.html" title="The IA">The IA</a></li><ul class="level-2 "><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="HL IA">HL IA</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../22190/35-sample-research-questions-for-the-hl-ia.html" title="35 sample research questions for the HL IA">35 sample research questions for the HL IA</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../22200/hl-ia-student-checklist.html" title="HL IA - Student Checklist">HL IA - Student Checklist</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../33508/ia-hl-poster.html" title="IA HL Poster">IA HL Poster</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="SL IA">SL IA</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../22146/sl-ia-20-sample-titles.html" title="SL IA - 20 Sample Titles">SL IA - 20 Sample Titles</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../38181/faq-about-the-sl-ia.html" title="FAQ about the SL IA">FAQ about the SL IA</a></li></ul></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../22114/exams.html" title="Exams">Exams</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../22115/command-terms.html" title="Command Terms">Command Terms</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../36599/glossary-of-key-terms.html" title="Glossary of key terms">Glossary of key terms</a></li><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../38059/flashcards-revision.html" title="Flashcards - Revision">Flashcards - Revision</a></li><ul class="level-3 "><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../38060/flashcards-revision-unit-1.html" title="Flashcards - Revision (Unit 1)">Flashcards - Revision (Unit 1)</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38056/unit-11-revision-flashcards.html" title="Unit 1.1 Revision Flashcards">Unit 1.1 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38061/unit-12-revision-flashcards.html" title="Unit 1.2 Revision Flashcards">Unit 1.2 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38067/unit-13-revision-flashcards.html" title="Unit 1.3 Revision Flashcards">Unit 1.3 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38092/unit-14-revision-flashcards.html" title="Unit 1.4 Revision Flashcards">Unit 1.4 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38096/unit-15-revision-flashcards.html" title="Unit 1.5 Revision Flashcards">Unit 1.5 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38102/unit-16-revision-flashcards.html" title="Unit 1.6 Revision Flashcards">Unit 1.6 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38103/unit-17-revision-flashcards.html" title="Unit 1.7 Revision Flashcards">Unit 1.7 Revision Flashcards</a></li></ul><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../38114/flashcards-revision-unit-2.html" title="Flashcards - Revision (Unit 2)">Flashcards - Revision (Unit 2)</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38121/unit-21-revision-flashcards.html" title="Unit 2.1 Revision Flashcards">Unit 2.1 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38125/unit-22-revision-flashcards.html" title="Unit 2.2 Revision Flashcards">Unit 2.2 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38126/unit-23-revision-flashcards.html" title="Unit 2.3 Revision Flashcards">Unit 2.3 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38144/unit-24-revision-flashcards.html" title="Unit 2.4 Revision Flashcards">Unit 2.4 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38146/unit-25-revision-flashcards.html" title="Unit 2.5 Revision Flashcards">Unit 2.5 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38147/unit-26-revision-flashcards-hl-only.html" title="Unit 2.6 Revision Flashcards (HL only)">Unit 2.6 Revision Flashcards (HL only)</a></li></ul><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../38149/flashcards-revision-unit-3.html" title="Flashcards - Revision (Unit 3)">Flashcards - Revision (Unit 3)</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38153/unit-31-revision-flashcards.html" title="Unit 3.1 Revision Flashcards">Unit 3.1 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38154/unit-32-revision-flashcards.html" title="Unit 3.2 Revision Flashcards">Unit 3.2 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38182/unit-33-revision-flashcards.html" title="Unit 3.3 Revision Flashcards">Unit 3.3 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38183/unit-34-revision-flashcards.html" title="Unit 3.4 Revision Flashcards">Unit 3.4 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38191/unit-35-revision-flashcards.html" title="Unit 3.5 Revision Flashcards">Unit 3.5 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38192/unit-36-revision-flashcards-hl.html" title="Unit 3.6 Revision Flashcards (HL)">Unit 3.6 Revision Flashcards (HL)</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38193/unit-37-revision-flashcards.html" title="Unit 3.7 Revision Flashcards">Unit 3.7 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38194/unit-38-revision-flashcards.html" title="Unit 3.8 Revision Flashcards">Unit 3.8 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38195/unit-39-revision-flashcards.html" title="Unit 3.9 Revision Flashcards">Unit 3.9 Revision Flashcards</a></li></ul><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../38196/flashcards-revision-unit-4.html" title="Flashcards - Revision (Unit 4)">Flashcards - Revision (Unit 4)</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38198/unit-41-revision-flashcards.html" title="Unit 4.1 Revision Flashcards">Unit 4.1 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38203/unit-42-revision-flashcards.html" title="Unit 4.2 Revision Flashcards">Unit 4.2 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38217/unit-43-revision-flashcards.html" title="Unit 4.3 Revision Flashcards">Unit 4.3 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38218/unit-44-revision-flashcards.html" title="Unit 4.4 Revision Flashcards">Unit 4.4 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38219/unit-45a-product-revision-flashcards.html" title="Unit 4.5a Product Revision Flashcards">Unit 4.5a Product Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38220/unit-45b-price-revision-flashcards.html" title="Unit 4.5b Price Revision Flashcards">Unit 4.5b Price Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38221/unit-45c-promotion-revision-flashcards.html" title="Unit 4.5c Promotion Revision Flashcards">Unit 4.5c Promotion Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38222/unit-45d-promotion-revision-flashcards.html" title="Unit 4.5d Promotion Revision Flashcards">Unit 4.5d Promotion Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38223/unit-46-revision-flashcards-hl.html" title="Unit 4.6 Revision Flashcards (HL)">Unit 4.6 Revision Flashcards (HL)</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38224/unit-47-revision-flashcards-hl.html" title="Unit 4.7 Revision Flashcards (HL)">Unit 4.7 Revision Flashcards (HL)</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38225/unit-48-e-commerce-flashcards.html" title="Unit 4.8 E-commerce Flashcards">Unit 4.8 E-commerce Flashcards</a></li></ul><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../38232/flashcards-revision-unit-5.html" title="Flashcards - Revision (Unit 5)">Flashcards - Revision (Unit 5)</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38233/unit-51-revision-flashcards.html" title="Unit 5.1 Revision Flashcards">Unit 5.1 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38234/unit-52-revision-flashcards.html" title="Unit 5.2 Revision Flashcards">Unit 5.2 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38235/unit-53-revision-flashcards-hl.html" title="Unit 5.3 Revision Flashcards (HL)">Unit 5.3 Revision Flashcards (HL)</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38236/unit-54-revision-flashcards.html" title="Unit 5.4 Revision Flashcards">Unit 5.4 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38237/unit-55-revision-flashcards-hl.html" title="Unit 5.5 Revision Flashcards (HL)">Unit 5.5 Revision Flashcards (HL)</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38238/unit-56-revision-flashcards-hl.html" title="Unit 5.6 Revision Flashcards (HL)">Unit 5.6 Revision Flashcards (HL)</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38239/unit-57-revision-flashcards-hl.html" title="Unit 5.7 Revision Flashcards (HL)">Unit 5.7 Revision Flashcards (HL)</a></li></ul></ul><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../33830/formulae-quiz.html" title="Formulae Quiz">Formulae Quiz</a></li><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="Paper 1 Pre-release case study">Paper 1 Pre-release case study</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../44969/n22-case-study-ele-plc.html" title="N22 Case Study (ELE PLC)">N22 Case Study (ELE PLC)</a></li><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="M22 (Peacewick Uni)">M22 (Peacewick Uni)</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../44106/additional-exam-questions-paper-1.html" title="Additional exam questions (Paper 1)">Additional exam questions (Paper 1)</a></li></ul><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../32840/may-2020-p-s-trawlers.html" title="May 2020 (P&S Trawlers)">May 2020 (P&S Trawlers)</a></li><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="M23 Paper 1">M23 Paper 1</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../47825/paper-1-svt-study-guide-shirin-karimi.html" title="Paper 1 SVT Study Guide (Shirin Karimi)">Paper 1 SVT Study Guide (Shirin Karimi)</a></li></ul></ul><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../26095/exam-study-tips-resources.html" title="Exam & Study tips (resources)">Exam & Study tips (resources)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../31342/revision-exams-top-tips.html" title="Revision & Exams - Top tips">Revision & Exams - Top tips</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../47460/top-tips-for-m23-exams.html" title="Top Tips for M23 Exams">Top Tips for M23 Exams</a></li></ul></ul><li class="ancestor parent std-toplevel" style="padding-left: 4px"><i class="expander fa fa-caret-right fa-rotate-90"></i><a class="" href="../43522/unit-1-intro-to-bm.html" title="Unit 1 - Intro to BM">Unit 1 - Intro to BM</a></li><ul class="level-1 expanded"><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44034/11-what-is-a-business.html" title="1.1 What is a business?">1.1 What is a business?</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399695.html" title="The nature of business">The nature of business</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399694.html" title="Primary, secondary, tertiary, & quaternary sectors">Primary, secondary, tertiary, & quaternary sectors</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399693.html" title="Entrepreneurship">Entrepreneurship</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399692.html" title="Challenges & opportunities for starting a business">Challenges & opportunities for starting a business</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399691.html" title="1.1 True or False Quiz">1.1 True or False Quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399690.html" title="1.1 Revision Flashcards">1.1 Revision Flashcards</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399689.html" title="1.1 Glossary of key terms">1.1 Glossary of key terms</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399681.html" title="1.2 Types of business entities">1.2 Types of business entities</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399688.html" title="Public & private sectors">Public & private sectors</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399687.html" title="Types of for-profit organizations">Types of for-profit organizations</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399686.html" title="For-profit social enterprises">For-profit social enterprises</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399685.html" title="Non-profit social enterprises">Non-profit social enterprises</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399684.html" title="True or False quiz">True or False quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399683.html" title="1.2 Revision Flashcards">1.2 Revision Flashcards</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399682.html" title="1.2 Glossary of key terms">1.2 Glossary of key terms</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44041/13-business-objectives.html" title="1.3 Business objectives">1.3 Business objectives</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399679.html" title="Vision and mission statements">Vision and mission statements</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399680.html" title="Common business objectives">Common business objectives</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399678.html" title="Strategic & tactical objectives">Strategic & tactical objectives</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399677.html" title="Corporate social responsibility">Corporate social responsibility</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399676.html" title="1.3 Revision Flashcards">1.3 Revision Flashcards</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399674.html" title="True or False quiz">True or False quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399675.html" title="1.3 Glossary of Key terms">1.3 Glossary of Key terms</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44044/14-stakeholders.html" title="1.4 Stakeholders">1.4 Stakeholders</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399673.html" title="The interests of stakeholders">The interests of stakeholders</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399672.html" title="Conflict between stakeholders">Conflict between stakeholders</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399670.html" title="Unit 1.4 Revision Flashcards">Unit 1.4 Revision Flashcards</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399669.html" title="1.4 True or False">1.4 True or False</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399671.html" title="1.4 Glossary of Key terms">1.4 Glossary of Key terms</a></li></ul><li class="ancestor parent" style="padding-left: 14px"><i class="expander fa fa-caret-right fa-rotate-90"></i><a class="" href="../44045/15-growth-and-evolution.html" title="1.5 Growth and evolution">1.5 Growth and evolution</a></li><ul class="level-2 expanded"><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44212/economies-diseconomies-of-scale.html" title="Economies & diseconomies of scale">Economies & diseconomies of scale</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44214/internal-and-external-growth.html" title="Internal and external growth">Internal and external growth</a></li><li class="current" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="external-growth-methods.html" title="External growth methods">External growth methods</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44219/reasons-to-grow-or-stay-small.html" title="Reasons to grow or stay small">Reasons to grow or stay small</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45586/unit-15revision-flashcards.html" title="Unit 1.5 Revision Flashcards">Unit 1.5 Revision Flashcards</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45450/true-or-false-quiz.html" title="True or False quiz">True or False quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../43673/15-glossary-of-key-terms.html" title="1.5 Glossary of key terms">1.5 Glossary of key terms</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44046/16-multinational-companies.html" title="1.6 Multinational companies">1.6 Multinational companies</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44236/the-impact-of-mncs-on-host-countries-ao3.html" title="The impact of MNCs on host countries (AO3)">The impact of MNCs on host countries (AO3)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44240/video-documentaries-mncs.html" title="Video documentaries - MNCs">Video documentaries - MNCs</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45587/16-glossary-of-key-terms.html" title="1.6 Glossary of key terms">1.6 Glossary of key terms</a></li></ul></ul><li class=" parent std-toplevel" style="padding-left: 4px"><i class="expander fa fa-caret-right "></i><a class="" href="../43530/unit-2-hrm.html" title="Unit 2 - HRM">Unit 2 - HRM</a></li><ul class="level-1 "><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44253/21-introduction-to-hrm.html" title="2.1 Introduction to HRM">2.1 Introduction to HRM</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44256/role-of-hrm.html" title="Role of HRM">Role of HRM</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44257/factors-that-influence-hr-planning.html" title="Factors that influence HR planning">Factors that influence HR planning</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44282/reasons-for-resistance-to-change.html" title="Reasons for resistance to change">Reasons for resistance to change</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44283/hr-strategies-for-reducing-the-impact-of-change-resistance-to-ch.html" title="HR strategies for reducing the impact of change & resistance to change">HR strategies for reducing the impact of change & resistance to change</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45458/21-true-or-false-quiz.html" title="2.1 True or False quiz">2.1 True or False quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../43677/21-glossary-of-key-terms.html" title="2.1 Glossary of key terms">2.1 Glossary of key terms</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../43875/22-organizational-structure.html" title="2.2 Organizational structure">2.2 Organizational structure</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44296/terminology-for-understanding-organizational-structures.html" title="Terminology for understanding organizational structures">Terminology for understanding organizational structures</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44310/types-of-organization-charts.html" title="Types of organization charts">Types of organization charts</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44323/appropriateness-of-organizational-structures-and-external-factor.html" title="Appropriateness of organizational structures and external factors">Appropriateness of organizational structures and external factors</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44316/changes-in-organizational-structures-hl.html" title="Changes in organizational structures (HL)">Changes in organizational structures (HL)</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44338/23-leadership-and-management.html" title="2.3 Leadership and management">2.3 Leadership and management</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44343/scientific-intuitive-management-hl.html" title="Scientific & intuitive management (HL)">Scientific & intuitive management (HL)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44339/management-and-leadership.html" title="Management and leadership">Management and leadership</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44340/leadership-styles.html" title="Leadership styles">Leadership styles</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45462/23-true-or-false-quiz.html" title="2.3 True or False Quiz">2.3 True or False Quiz</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../43829/24-motivation-and-demotivation.html" title="2.4 Motivation and demotivation">2.4 Motivation and demotivation</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44349/motivation-theories-sl-hl.html" title="Motivation theories (SL & HL)">Motivation theories (SL & HL)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44353/motivation-theories-hl.html" title="Motivation theories (HL)">Motivation theories (HL)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44354/labour-turnover-hl.html" title="Labour turnover (HL)">Labour turnover (HL)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44361/types-of-appraisal-hl.html" title="Types of appraisal (HL)">Types of appraisal (HL)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44383/methods-of-recruitment-hl.html" title="Methods of recruitment (HL)">Methods of recruitment (HL)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44382/internal-external-recruitment-hl.html" title="Internal & external recruitment (HL)">Internal & external recruitment (HL)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44363/types-of-financial-rewards.html" title="Types of financial rewards">Types of financial rewards</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44370/types-of-non-financial-rewards.html" title="Types of non-financial rewards">Types of non-financial rewards</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44371/types-of-training.html" title="Types of training">Types of training</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44390/25-organizational-corporate-culture-hl.html" title="2.5 Organizational (corporate) culture (HL)">2.5 Organizational (corporate) culture (HL)</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44392/organizational-culture-hl.html" title="Organizational culture (HL)">Organizational culture (HL)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44393/types-of-organizational-culture-hl.html" title="Types of organizational culture (HL)">Types of organizational culture (HL)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44394/cultural-clashes-hl.html" title="Cultural clashes (HL)">Cultural clashes (HL)</a></li></ul><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44247/26-communication.html" title="2.6 Communication">2.6 Communication</a></li></ul><li class=" parent std-toplevel" style="padding-left: 4px"><i class="expander fa fa-caret-right "></i><a class="" href="../43545/unit-3-finance.html" title="Unit 3 - Finance">Unit 3 - Finance</a></li><ul class="level-1 "><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44435/31-introduction-to-finance.html" title="3.1 Introduction to finance">3.1 Introduction to finance</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44431/31-introduction-to-finance-role-of-finance.html" title="3.1 Introduction to finance - role of finance">3.1 Introduction to finance - role of finance</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45634/31-glossary-of-key-term.html" title="3.1 Glossary of key term">3.1 Glossary of key term</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44436/32-sources-of-finance.html" title="3.2 Sources of finance">3.2 Sources of finance</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44437/internal-sources-of-finance.html" title="Internal sources of finance">Internal sources of finance</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44450/external-sources-of-finance.html" title="External sources of finance">External sources of finance</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44479/appropriateness-of-sources-of-finance.html" title="Appropriateness of sources of finance">Appropriateness of sources of finance</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45483/32-true-or-false-quiz.html" title="3.2 True or False Quiz">3.2 True or False Quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../43688/32-glossary-of-key-terms.html" title="3.2 Glossary of key terms">3.2 Glossary of key terms</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44486/33-costs-and-revenues.html" title="3.3 Costs and revenues">3.3 Costs and revenues</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44487/types-of-costs.html" title="Types of costs">Types of costs</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44491/total-revenue-revenue-streams.html" title="Total revenue & revenue streams">Total revenue & revenue streams</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45484/33-true-or-false-quiz.html" title="3.3 True or false quiz">3.3 True or false quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45657/33-glossary-of-key-terms.html" title="3.3 Glossary of key terms">3.3 Glossary of key terms</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44492/34-final-accounts.html" title="3.4 Final accounts">3.4 Final accounts</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44527/the-purpose-of-accounts-to-different-stakeholders.html" title="The purpose of accounts to different stakeholders">The purpose of accounts to different stakeholders</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44577/profit-loss-account.html" title="Profit & loss account">Profit & loss account</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44579/balance-sheets.html" title="Balance sheets">Balance sheets</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44560/types-of-intangible-assets.html" title="Types of intangible assets">Types of intangible assets</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44585/depreciation-hl.html" title="Depreciation (HL)">Depreciation (HL)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45919/34-true-or-false-quiz.html" title="3.4 True or False Quiz">3.4 True or False Quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45658/34-glossary-of-key-terms.html" title="3.4 Glossary of key terms">3.4 Glossary of key terms</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44593/35-profitability-liquidity-ratio-analysis.html" title="3.5 Profitability & liquidity ratio analysis">3.5 Profitability & liquidity ratio analysis</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44595/profitability-ratios.html" title="Profitability ratios">Profitability ratios</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44626/liquidity-ratios.html" title="Liquidity ratios">Liquidity ratios</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45486/35-true-or-false-quiz.html" title="3.5 True or False Quiz">3.5 True or False Quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45661/35-glossary-of-key-terms.html" title="3.5 Glossary of key terms">3.5 Glossary of key terms</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44627/36-efficiency-ratio-analysis-hl-only.html" title="3.6 Efficiency ratio analysis (HL only)">3.6 Efficiency ratio analysis (HL only)</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44805/efficiency-ratios-hl.html" title="Efficiency ratios (HL)">Efficiency ratios (HL)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44633/insolvency-versus-bankruptcy.html" title="Insolvency versus bankruptcy">Insolvency versus bankruptcy</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45488/36-true-or-false-quiz.html" title="3.6 True or False Quiz">3.6 True or False Quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45662/36-glossary-of-key-terms.html" title="3.6 Glossary of key terms">3.6 Glossary of key terms</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44493/37-cash-flow.html" title="3.7 Cash flow">3.7 Cash flow</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44502/the-difference-between-profit-cash-flow.html" title="The difference between profit & cash flow">The difference between profit & cash flow</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44506/working-capital.html" title="Working capital">Working capital</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44557/liquidity-position.html" title="Liquidity position">Liquidity position</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44558/cash-flow-forecasts.html" title="Cash flow forecasts">Cash flow forecasts</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44507/relationship-between-investment-profit-cash-flow.html" title="Relationship between investment, profit & cash flow">Relationship between investment, profit & cash flow</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44509/strategies-for-dealing-with-cash-flow-problems.html" title="Strategies for dealing with cash flow problems">Strategies for dealing with cash flow problems</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45493/37-true-or-false.html" title="3.7 True or False">3.7 True or False</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../43687/37-glossary-of-key-terms.html" title="3.7 Glossary of key terms">3.7 Glossary of key terms</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44515/38-investment-appraisal.html" title="3.8 Investment appraisal">3.8 Investment appraisal</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44516/payback-period-average-rate-of-return.html" title="Payback period & Average rate of return">Payback period & Average rate of return</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44519/net-present-value-npv-hl.html" title="Net present value (NPV) (HL)">Net present value (NPV) (HL)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45494/38-true-or-false-quiz.html" title="3.8 True or False Quiz">3.8 True or False Quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../43693/38-glossary-of-key-terms.html" title="3.8 Glossary of key terms">3.8 Glossary of key terms</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44564/39-budgets-hl.html" title="3.9 Budgets (HL)">3.9 Budgets (HL)</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44565/the-difference-between-cost-profit-centres.html" title="The difference between cost & profit centres">The difference between cost & profit centres</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44568/the-roles-of-cost-profit-centres.html" title="The roles of cost & profit centres">The roles of cost & profit centres</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44576/constructing-budgets.html" title="Constructing budgets">Constructing budgets</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44569/variances.html" title="Variances">Variances</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44571/the-importance-of-budgets-variances.html" title="The importance of budgets & variances">The importance of budgets & variances</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45495/39-true-or-false-quiz.html" title="3.9 True or False Quiz">3.9 True or False Quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../43694/39-glossary-of-key-terms.html" title="3.9 Glossary of key terms">3.9 Glossary of key terms</a></li></ul></ul><li class=" parent std-toplevel" style="padding-left: 4px"><i class="expander fa fa-caret-right "></i><a class="" href="../43547/unit-4-marketing.html" title="Unit 4 - Marketing">Unit 4 - Marketing</a></li><ul class="level-1 "><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44637/41-introduction-to-marketing.html" title="4.1 Introduction to marketing">4.1 Introduction to marketing</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44638/market-orientation-vs-product-orientation.html" title="Market orientation vs Product orientation">Market orientation vs Product orientation</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44639/market-share.html" title="Market share">Market share</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44641/market-growth.html" title="Market growth">Market growth</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44642/importance-of-market-share-market-leadership-hl.html" title="Importance of market share & market leadership (HL)">Importance of market share & market leadership (HL)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../43695/41-glossary-of-key-terms.html" title="4.1 Glossary of key terms">4.1 Glossary of key terms</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../43823/42-marketing-planning.html" title="4.2 Marketing planning">4.2 Marketing planning</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44645/the-role-of-marketing-planning.html" title="The role of marketing planning">The role of marketing planning</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44654/segmentation-targeting-and-positioning.html" title="Segmentation, targeting, and positioning">Segmentation, targeting, and positioning</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44646/difference-between-niche-mass-market.html" title="Difference between niche & mass market">Difference between niche & mass market</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../43821/the-importance-of-having-a-usp.html" title="The importance of having a USP">The importance of having a USP</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44655/how-organizations-differentiate-themselves.html" title="How organizations differentiate themselves">How organizations differentiate themselves</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../43834/42-vocab-quiz.html" title="4.2 Vocab Quiz">4.2 Vocab Quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45528/42-true-or-false-quiz.html" title="4.2 True or False Quiz">4.2 True or False Quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../43696/42-glossary-of-key-terms.html" title="4.2 Glossary of key terms">4.2 Glossary of key terms</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44660/43-sales-forecasting-hl.html" title="4.3 Sales forecasting (HL)">4.3 Sales forecasting (HL)</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44669/benefits-limitations-of-sales-forecasting.html" title="Benefits & limitations of sales forecasting">Benefits & limitations of sales forecasting</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45530/43-true-or-false-quiz.html" title="4.3 True or False Quiz">4.3 True or False Quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../43711/43-glossary-of-key-terms.html" title="4.3 Glossary of key terms">4.3 Glossary of key terms</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44679/44-market-research.html" title="4.4 Market research">4.4 Market research</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44680/why-how-organizations-carry-out-market-research.html" title="Why & how organizations carry out market research">Why & how organizations carry out market research</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44692/methodstechniques-of-primary-market-research.html" title="Methods/techniques of primary market research">Methods/techniques of primary market research</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44693/methodstechniques-of-secondary-market-research.html" title="Methods/techniques of secondary market research">Methods/techniques of secondary market research</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44694/qualitative-quantitative-research.html" title="Qualitative & quantitative research">Qualitative & quantitative research</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44695/methods-of-sampling.html" title="Methods of sampling">Methods of sampling</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45531/44-true-or-false-quiz.html" title="4.4 True or False Quiz">4.4 True or False Quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../43712/44-glossary-of-key-terms.html" title="4.4 Glossary of key terms">4.4 Glossary of key terms</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44720/45-the-seven-ps-of-the-marketing-mix.html" title="4.5 The seven Ps of the marketing mix">4.5 The seven Ps of the marketing mix</a></li><ul class="level-2 "><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44740/451-product.html" title="4.5.1 Product">4.5.1 Product</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../44741/the-product-life-cycle.html" title="The product life cycle">The product life cycle</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../44745/extension-strategies.html" title="Extension strategies">Extension strategies</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../44981/relationship-between-the-plc-investment-profit-cash-flow.html" title="Relationship between the PLC, investment, profit & cash flow">Relationship between the PLC, investment, profit & cash flow</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../44748/aspects-of-branding.html" title="Aspects of branding">Aspects of branding</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../44757/the-importance-of-branding.html" title="The importance of branding">The importance of branding</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../45766/starterplenary-activity-anagrams-quiz-brands.html" title="Starter/Plenary activity - Anagrams Quiz (Brands)">Starter/Plenary activity - Anagrams Quiz (Brands)</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../45957/starterplenary-activity-whats-in-a-brand-name.html" title="Starter/Plenary activity - What's in a (brand) name?">Starter/Plenary activity - What's in a (brand) name?</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../43713/45-glossary-of-key-terms-product.html" title="4.5 Glossary of key terms (Product)">4.5 Glossary of key terms (Product)</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../42547/452-price.html" title="4.5.2 Price">4.5.2 Price</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../43719/45-key-terms-price.html" title="4.5 Key Terms (Price)">4.5 Key Terms (Price)</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44782/453-promotion.html" title="4.5.3 Promotion">4.5.3 Promotion</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../44783/above-the-line-promotion.html" title="Above the line promotion">Above the line promotion</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../44795/below-the-line-promotion.html" title="Below the line promotion">Below the line promotion</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../44797/through-the-line-promotion.html" title="Through the line promotion">Through the line promotion</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../44801/social-media-marketing.html" title="Social media marketing">Social media marketing</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../43721/45-glossary-of-key-terms.html" title="4.5 Glossary of key terms">4.5 Glossary of key terms</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44803/454-place.html" title="4.5.4 Place">4.5.4 Place</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../44804/the-importance-of-different-distribution-channels.html" title="The importance of different distribution channels">The importance of different distribution channels</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../43722/45-glossary-of-key-terms.html" title="4.5 Glossary of key terms">4.5 Glossary of key terms</a></li></ul><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44758/455-people.html" title="4.5.5 People">4.5.5 People</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44773/456-processes.html" title="4.5.6 Processes">4.5.6 Processes</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44774/457-physical-evidence.html" title="4.5.7 Physical evidence">4.5.7 Physical evidence</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44982/appropriate-marketing-mixes.html" title="Appropriate marketing mixes">Appropriate marketing mixes</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44697/46-international-marketing-hl.html" title="4.6 International marketing (HL)">4.6 International marketing (HL)</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44698/opportunities-threats-posed-by-entry-into-international-markets.html" title="Opportunities & threats posed by entry into international markets">Opportunities & threats posed by entry into international markets</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45537/46-true-or-false-quiz.html" title="4.6 True or False Quiz">4.6 True or False Quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45736/46-glossary-of-key-terms.html" title="4.6 Glossary of key terms">4.6 Glossary of key terms</a></li></ul></ul><li class=" parent std-toplevel" style="padding-left: 4px"><i class="expander fa fa-caret-right "></i><a class="" href="../43565/unit-5-operations-mgt.html" title="Unit 5 - Operations Mgt">Unit 5 - Operations Mgt</a></li><ul class="level-1 "><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44817/51-introduction-to-operations-management.html" title="5.1 Introduction to operations management">5.1 Introduction to operations management</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44818/the-role-of-operations-management.html" title="The role of operations management">The role of operations management</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44812/52-operations-methods.html" title="5.2 Operations methods">5.2 Operations methods</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44815/operations-methods.html" title="Operations methods">Operations methods</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44861/53-lean-production-quality-management-hl.html" title="5.3 Lean production & quality management (HL)">5.3 Lean production & quality management (HL)</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44864/features-of-lean-production.html" title="Features of lean production">Features of lean production</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44872/methods-of-lean-production.html" title="Methods of lean production">Methods of lean production</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44874/cradle-to-cradle-design-manufacturing.html" title="Cradle to cradle design & manufacturing">Cradle to cradle design & manufacturing</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44875/quality-control-quality-assurance.html" title="Quality control & quality assurance">Quality control & quality assurance</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44876/methods-of-managing-quality.html" title="Methods of managing quality">Methods of managing quality</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44877/the-impact-of-lean-production-tqm.html" title="The impact of lean production & TQM">The impact of lean production & TQM</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44878/national-international-quality-standards.html" title="National & international quality standards">National & international quality standards</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44840/55-break-even-analysis.html" title="5.5 Break-even analysis">5.5 Break-even analysis</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44843/contribution.html" title="Contribution">Contribution</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44848/aspects-of-break-even-analysis.html" title="Aspects of break-even analysis">Aspects of break-even analysis</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44851/changes-in-price-and-costs.html" title="Changes in price and costs">Changes in price and costs</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44852/limitations-of-break-even-analysis.html" title="Limitations of break-even analysis">Limitations of break-even analysis</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44890/56-production-planning-hl.html" title="5.6 Production planning (HL)">5.6 Production planning (HL)</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44902/the-local-global-supply-chain-process.html" title="The local & global supply chain process">The local & global supply chain process</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44922/the-difference-between-jit-jic.html" title="The difference between JIT & JIC">The difference between JIT & JIC</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44931/stock-control-charts.html" title="Stock control charts">Stock control charts</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44970/capacity-utilization-rate.html" title="Capacity utilization rate">Capacity utilization rate</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45125/defect-rate.html" title="Defect rate">Defect rate</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../43832/productivity.html" title="Productivity">Productivity</a></li><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45187/cost-to-buy-cost-to-make.html" title="Cost to buy & Cost to make">Cost to buy & Cost to make</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../46353/sinterklaas-putting-ctb-vs-ctm-into-practice.html" title="Sinterklaas - Putting CTB vs CTM into practice">Sinterklaas - Putting CTB vs CTM into practice</a></li></ul></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../45242/57-crisis-management-contingency-planning-hl.html" title="5.7 Crisis management & contingency planning (HL)">5.7 Crisis management & contingency planning (HL)</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45243/difference-between-crisis-management-contingency-planning.html" title="Difference between crisis management & contingency planning">Difference between crisis management & contingency planning</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45268/impact-of-contingency-planning.html" title="Impact of contingency planning">Impact of contingency planning</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45260/factors-that-affect-effective-crisis-management.html" title="Factors that affect effective crisis management">Factors that affect effective crisis management</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45554/57-true-or-false-quiz.html" title="5.7 True or False Quiz">5.7 True or False Quiz</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../45669/59-management-information-systems-hl.html" title="5.9 Management Information Systems (HL)">5.9 Management Information Systems (HL)</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../42633/data-analytics.html" title="Data analytics">Data analytics</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45861/database.html" title="Database">Database</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44966/cybersecurity-and-cybercrime.html" title="Cybersecurity and cybercrime">Cybersecurity and cybercrime</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45859/critical-infrastructures.html" title="Critical infrastructures">Critical infrastructures</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../46175/virtual-reality.html" title="Virtual reality">Virtual reality</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45862/the-internet-of-things.html" title="The internet of things">The internet of things</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45858/artificial-intelligence.html" title="Artificial intelligence">Artificial intelligence</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../42634/big-data.html" title="Big data">Big data</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../43392/customer-loyalty-programmes.html" title="Customer loyalty programmes">Customer loyalty programmes</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../43395/digital-taylorism.html" title="Digital Taylorism">Digital Taylorism</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45671/data-mining.html" title="Data mining">Data mining</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45856/benefits-risks-ethical-implications-of-mis.html" title="Benefits, risks, & ethical implications of MIS">Benefits, risks, & ethical implications of MIS</a></li></ul></ul><li class=" parent std-toplevel" style="padding-left: 4px"><i class="expander fa fa-caret-right "></i><a class="" href="../42640/bmt-.html" title="BMT ">BMT </a></li><ul class="level-1 "><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399696.html" title="BMT 1 - SWOT analysis">BMT 1 - SWOT analysis</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399697.html" title="BMT 2 - Ansoff matrix">BMT 2 - Ansoff matrix</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44027/bmt-3-steeple-analysis.html" title="BMT 3 - STEEPLE analysis">BMT 3 - STEEPLE analysis</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../42577/bmt-4-boston-consulting-group-matrix.html" title="BMT 4 - Boston Consulting Group matrix">BMT 4 - Boston Consulting Group matrix</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../42956/bmt-5-business-plans.html" title="BMT 5 - Business plans">BMT 5 - Business plans</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../43606/bmt-6-decision-trees.html" title="BMT 6 - Decision trees">BMT 6 - Decision trees</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../42362/bmt-7-descriptive-statistics.html" title="BMT 7 - Descriptive statistics">BMT 7 - Descriptive statistics</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../42226/bmt-8-circular-business-models.html" title="BMT 8 - Circular Business Models">BMT 8 - Circular Business Models</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../43605/bmt-9-gantt-chart-hl-only.html" title="BMT 9 - Gantt chart (HL only)">BMT 9 - Gantt chart (HL only)</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../42214/bmt-10-porters-generic-strategies-hl-only.html" title="BMT 10 - Porter's generic strategies (HL only)">BMT 10 - Porter's generic strategies (HL only)</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../42216/bmt-11-hofstedes-cultural-dimensions-hl-only.html" title="BMT 11 - Hofstede's cultural dimensions (HL only)">BMT 11 - Hofstede's cultural dimensions (HL only)</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399698.html" title="BMT 12 - Force field analysis (HL only)">BMT 12 - Force field analysis (HL only)</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../42375/bmt-13-critical-path-analysis-hl-only.html" title="BMT 13 - Critical path analysis (HL only)">BMT 13 - Critical path analysis (HL only)</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../42344/bmt-14-contribution-hl-only-.html" title="BMT 14 - Contribution (HL only) ">BMT 14 - Contribution (HL only) </a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../42311/bmt-15-simple-linear-regression-hl-only.html" title="BMT 15 - Simple linear regression (HL only)">BMT 15 - Simple linear regression (HL only)</a></li></ul><li class=" parent std-toplevel" style="padding-left: 4px"><i class="expander fa fa-caret-right "></i><a class="" href="../42758/concepts.html" title="Concepts">Concepts</a></li><ul class="level-1 "><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../43633/creativity.html" title="Creativity">Creativity</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../43631/ethics.html" title="Ethics">Ethics</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../43435/sustainability.html" title="Sustainability">Sustainability</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../43668/change.html" title="Change">Change</a></li></ul><li class=" parent std-toplevel" style="padding-left: 4px"><i class="expander fa fa-caret-right "></i><a class="" href="../42836/ia-.html" title="IA ">IA </a></li><ul class="level-1 "><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44415/formulating-suitable-ia-questions.html" title="Formulating suitable IA questions">Formulating suitable IA questions</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../47685/supporting-documents-for-the-ia.html" title="Supporting documents for the IA">Supporting documents for the IA</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../47840/top-tips-for-the-ia-primary-research.html" title="Top tips for the IA – Primary research">Top tips for the IA – Primary research</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44047/50-sample-ia-research-questions.html" title="50+ Sample IA research questions">50+ Sample IA research questions</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../46719/recommended-format-for-the-ia.html" title="Recommended format for the IA">Recommended format for the IA</a></li></ul><li class=" parent std-toplevel" style="padding-left: 4px"><i class="expander fa fa-caret-right "></i><a class="" href="../43603/exams.html" title="Exams">Exams</a></li><ul class="level-1 "><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44091/paper-1.html" title="Paper 1">Paper 1</a></li><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="Paper 2">Paper 2</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../46637/01-ikea.html" title="01 - IKEA">01 - IKEA</a></li></ul><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../45839/quantitative-techniques.html" title="Quantitative techniques">Quantitative techniques</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../46025/abbreviations-quiz.html" title="Abbreviations Quiz">Abbreviations Quiz</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../43740/command-terms.html" title="Command terms">Command terms</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../45612/glossary-of-key-terms.html" title="Glossary of key terms">Glossary of key terms</a></li></ul><li class=" parent std-toplevel" style="padding-left: 4px"><i class="expander fa fa-caret-right "></i><a class="" href="../33955/the-core.html" title="The Core">The Core</a></li><ul class="level-1 "><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../34902/cas-bm.html" title="CAS & BM">CAS & BM</a></li><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../21665/the-ee.html" title="The EE">The EE</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21934/the-bm-extended-essay.html" title="The BM Extended Essay">The BM Extended Essay</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../32857/ee-planning-form.html" title="EE Planning form">EE Planning form</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../37390/managing-the-ee-process.html" title="Managing the EE process">Managing the EE process</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../37496/top-10-tips-for-the-bm-ee.html" title="Top 10 tips for the BM EE">Top 10 tips for the BM EE</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21930/70-top-bm-ee-research-questions.html" title="70 top BM EE Research Questions">70 top BM EE Research Questions</a></li><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../22196/tools-techniques-theories-for-the-ee.html" title="Tools, techniques & theories for the EE">Tools, techniques & theories for the EE</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../44048/the-triple-bottom-line.html" title="The triple bottom line">The triple bottom line</a></li></ul><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21836/understanding-the-assessment-criteria.html" title="Understanding the assessment criteria">Understanding the assessment criteria</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../37960/reflections-and-engagement-in-the-ee.html" title="Reflections and engagement in the EE">Reflections and engagement in the EE</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../41874/the-mandatory-reflection-sessions.html" title="The mandatory reflection sessions">The mandatory reflection sessions</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../37659/top-10-tips-for-completing-the-rppf.html" title="Top 10 Tips for completing the RPPF">Top 10 Tips for completing the RPPF</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21945/academic-integrity-the-ee.html" title="Academic Integrity & the EE">Academic Integrity & the EE</a></li><li class="" style="padding-left: 28px"><i 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<div id="main-column" class="span9"> <article id="external-growth-methods" style="margin-top: 16px;">
<h1 class="section-title">External growth methods</h1>
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<div class="panel panel-purple"><div class="panel-heading"><a class="expander pull-right" href="#"><span class="fa fa-plus"></span></a><div><p><span style="font-family:arial,helvetica,sans-serif;">External growth methods (AO3)</span></p></div></div><div class="panel-body"><div><p><span style="font-family:arial,helvetica,sans-serif;"><strong><img alt="" height="163" src="../../../ib/businessmanagement/images/growth-and-evolution.jpg" width="312"></strong></span></p><p><span style="color:#696969;"><em>"We can't become what we need to be by remaining what we are."</em><br>- Oprah Winfrey (b. 1954), American television producer, author, and philanthropist</span></p><p><span style="font-family:arial,helvetica,sans-serif;"> <a href="../44214/internal-and-external-growth.html" title="New syllabus 2022 » Unit 1 - Introduction to Business Management » 1.5 Growth and evolution » Internal and external growth">External growth</a> (or inorganic growth) refers to the expansion and evolution of a business by using third party resources and organizations rather than relying on internal sources and activities. The five methods of external growth (inorganic growth) specified in the syllabus are:</span></p><ul class="branded"><li><span style="font-family:arial,helvetica,sans-serif;">Mergers and acquisitions (M&As)</span></li><li><span style="font-family:arial,helvetica,sans-serif;">Takeovers</span></li><li><span style="font-family:arial,helvetica,sans-serif;">Joint ventures</span></li><li><span style="font-family:arial,helvetica,sans-serif;">Strategic alliances, and</span></li><li><span style="font-family:arial,helvetica,sans-serif;">Franchising.</span></li></ul></div></div><div class="panel-footer"><div></div></div></div><div class="panel panel-purple panel-expandable"><div class="panel-heading"><a class="expander pull-right" href="#"><span class="fa fa-plus"></span></a><div><p><span style="font-family:arial,helvetica,sans-serif;">Mergers and acquisitions (M&As) (AO3)</span></p></div></div><div class="panel-body"><p><img alt="" height="193" src="../../../ib/businessmanagement/images/1-intro-to-business/merger.png" width="220"></p><p><span style="font-family:arial,helvetica,sans-serif;">An <strong>acquisition</strong> involves one company buying a controlling interest (majority stake) in another company with the agreement of the directors and shareholders of the target company. This means the buyer purchases enough shares in the target company to own more shares than any other shareholder, leading to a legal change of ownership. For example, in 2017 e-commerce giant Amazon bought Whole Foods, the American organic-food grocer for $13.7 billion. In September 2022, Adobe Systems Inc. spent $20 billion on its largest acquisition ever of <span style="font-family:arial,helvetica,sans-serif;">Figma Inc., a collaborative </span>design software maker founded in 2016<span style="font-family:arial,helvetica,sans-serif;">.</span></span><span style="font-family:arial,helvetica,sans-serif;"></span></p><p><span style="font-family:arial,helvetica,sans-serif;">A <strong>merger</strong> is similar to an acquisition but the two or more companies agree to form a single, larger company thereby benefiting from operating on a bigger scale. The original business entities in the merger agreement cease to operate in their former legal structure.</span></p><p><span style="font-family:arial,helvetica,sans-serif;">When a merger or acquisition occurs between two or more companies operating within the same industry (i.e. they are competitors), this is called a <strong>horizontal M&A</strong>. An example was the acquisition of The Body Shop by L’Oreal (the world’s largest cosmetics and beauty firm) back in 2006. Other examples of horizontal integration include:</span></p><ol class="branded"><li><p><span style="font-family:arial,helvetica,sans-serif;">Volkswagen buying Škoda (1994), Bentley (1998), Lamborghini (1998), Bugatti (1998), and Porsche (2012)</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">The merger of Exxon and Mobil (1999), to form the world's largest commercial energy company</span> <span style="font-family:arial,helvetica,sans-serif;">ExxonMobil</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Tata Motors <span style="font-family:arial,helvetica,sans-serif;">purchasing </span>Jaguar Land Rover from Ford (2008)</span></p></li><li><p>Geely Holding Group purchasing Volvo Cars (2010).</p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">The merger of US Airways and American Airlines, which created the world’s largest airline (2013)</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Facebook buying Instagram (2012) and WhatsApp (2014)</span></p></li><li><p>Google's acquisition of Android (2005), YouTube (2006), Motorola Mobility (2011) and Fitbit (2021).</p></li></ol><div class="yellowBg"><h5><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;"><span class="snippet-fa fa fa-lightbulb-o fa-lg" style="color: rgb(61, 30, 128);"> </span> Top tip!</span></span></h5><p>It is not necessary for a firm to acquire the entirety of another company. The the process of taking over another firm’s brands rather than the entire company is known as <strong>brand acquisition</strong>.</p></div><p><span style="font-family:arial,helvetica,sans-serif;">When an acquisition occurs between two or more companies operating in different stages of the production process, this is called a <strong>vertical M&A</strong>. If the purchaser buys a company closer to the consumer in the chain of production, this is known as a <strong>forward vertical M&A</strong>. A typical example is a manufacturer buying a retailer, such as a car manufacturer buying car showrooms (retailers that sell cars directly to private customers).</span></p><p><span style="font-family:arial,helvetica,sans-serif;">If the purchaser buys a company further away from the consumer in the chain of production, this is known as a <strong>backwards vertical M&A</strong>. An example is IKEA buying Baltic Forests in <span style="font-family:arial,helvetica,sans-serif;">Romania back</span> in November 2015 so as to control its supply of timber.</span></p><p><span style="font-family:arial,helvetica,sans-serif;"><img alt="" height="208" src="../../../ib/businessmanagement/images/chain-of-production.jpg" width="196"></span></p><p><span style="color:#696969;"><span style="font-family:arial,helvetica,sans-serif;"><em>The categorisation of M&As depends on the industries in question</em></span></span></p><p><span style="font-family:arial,helvetica,sans-serif;">A fourth category of M&A exists, when two businesses in unrelated industries engage in a merger or takeover. This type of integration is known as a <strong>conglomerate M&A </strong>(or <strong>diversification</strong>, under the <a href="../../task/399697.html" title="New syllabus 2022 » Business Management Toolkit (BMT) » BMT 2 - Ansoff matrix">BMT 2 - Ansoff matrix</a> model). For example, Berkshire Hathaway is one of the world’s largest multinational conglomerates, with operations in an array of industries, such as: property (real estate), insurance, diamonds, food processing, toys, confectionery, home furnishing, newspaper publishing, computing, clothing, aerospace, and airlines (it is the largest shareholder in United Airlines and Delta Air Lines). Another example is the Virgin Group, a global conglomerate with over 400 strategic business units from Virgin Atlantic or Virgin Wines. A conglomerate M&A is the riskiest method of external growth.</span></p><div class="yellowBg"><h5><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;"><span class="snippet-fa fa fa-file-text-o fa-lg" style="color: rgb(103, 7, 124);"> </span> Case Study 1 - Examples of M&As</span></span></h5><p><span style="font-family:arial,helvetica,sans-serif;">Some of the world’s largest companies were formed as the result of M&As of two or more large organizations. For example, Facebook acquired Instagram by paying $1 billion to buy the social media platform back in April 2012. This was, perhaps, a bargain as Facebook also bought WhatsApp in February 2014 for a staggering $19 billion and Oculus VR one month later for $2 billion.</span></p><p><span style="font-family:arial,helvetica,sans-serif;">It is common for the companies integrate through M&As to retain the names of the original businesses. Examples include:</span></p><div class="row-fluid"><div class="span6 col-left"><div><ul class="branded"><li>AOL and Time Warner</li><li><span style="font-family:arial,helvetica,sans-serif;">Air France KLM</span></li><li><span style="font-family:arial,helvetica,sans-serif;"> Bank of America Merrill Lynch</span></li><li><span style="font-family:arial,helvetica,sans-serif;">ExxonMobil</span></li><li>Fiat Chrysler</li><li><span style="font-family:arial,helvetica,sans-serif;">Glaxo SmithKline</span></li></ul></div></div><div class="span6"><div><ul class="branded"><li><span style="font-family:arial,helvetica,sans-serif;">JP Morgan Chase</span></li><li><span style="font-family:arial,helvetica,sans-serif;">Kraft Heinz</span></li><li><span style="font-family:arial,helvetica,sans-serif;">Lloyds TSB</span></li><li><span style="font-family:arial,helvetica,sans-serif;">Marks & Spencer</span></li><li>Peugeot Citroën</li><li><span style="font-family:arial,helvetica,sans-serif;">Royal Dutch Shell</span></li></ul></div></div></div></div><div class="yellowBg"><h5><span style="color:#FF0000;"><span style="font-family:arial,helvetica,sans-serif;"><span class="snippet-fa fa fa-file-text-o fa-lg" style="color: rgb(103, 7, 124);"> </span> Case Study 2 - LVMH</span></span></h5><p><img alt="" height="131" src="../../../ib/businessmanagement/images/diamond-ring.jpg" width="250"></p><p>Moët Hennessy Louis Vuitton (LVMH) is a diversified French multinational corporation that specializes in the luxury goods industry. The company is headquartered in Paris, France. In 2020, LVMH bought American jeweller Tiffany & Co for $16.2 billion. This is the largest luxury brand acquisition in history, which adds Tiffany & Co. to LVMH’s huge product range including brands such as:</p><div class="row-fluid"><div class="span6 col-left"><div><ul class="branded"><li>Bulgari</li><li>Christian Dior</li><li>Fendi</li><li>Givenchy</li><li>Kenzo</li></ul></div></div><div class="span6"><div><ul class="branded"><li>Louis Vuitton</li><li>Marc Jacobs</li><li>Moët & Chandon</li><li>Sephora</li><li>TAG Heuer</li></ul></div></div></div></div><div class="yellowBg"><h5><span style="color:#FF0000;"><span style="font-family:arial,helvetica,sans-serif;"><span class="snippet-fa fa fa-file-text-o fa-lg" style="color: rgb(103, 7, 124);"> </span> Case Study 3 - British Steel</span></span></h5><p><strong><img alt="" src="../../../ib/businessmanagement/images/steel.jpg" style="width: 300px; height: 203px;"></strong></p><p>British Steel faced huge challenges during the 2010s due to the declining demand for steel in Europe, intense competition from both India and China, and the company’s high level of debts. In December 2019, a deal was agreed with China’s Jingye Group to acquire British Steel for around £50m ($65m), which effectively saved approximately 4,000 jobs. Jingye Group announced it would invest £1.2bn ($1.56bn) over the next decade to upgrade British Steel's plants and machinery in Scunthorpe, North England. British Steel is the largest employer in Scunthorpe.</p></div></div><div class="panel-footer"><div></div></div></div><div class="panel panel-purple panel-expandable"><div class="panel-heading"><a class="expander pull-right" href="#"><span class="fa fa-plus"></span></a><div><p><span style="font-family:arial,helvetica,sans-serif;">Takeovers (AO3)</span></p></div></div><div class="panel-body"><p><img alt="" height="220" src="../../../ib/businessmanagement/images/1-intro-to-business/takeover.png" width="220"></p><p>Like mergers, a <strong>takeover </strong>involves a company purchasing a controlling interest (majority stake) in another company. However, Unlike mergers and acquisitions (M&As), <span style="font-family:arial,helvetica,sans-serif;"><strong>takeovers </strong>are almost always hostile in nature as they occur against the wishes of the owners of the target company. <span style="font-family:arial,helvetica,sans-serif;">For example, in November 2022, Elon Musk took over Twitter, having bought the social media company for $44 billion. Musk, CEO of Tesla and SpaceX, immediately fired Twitter's CEO (Parag Agrawal) and <span style="font-family:arial,helvetica,sans-serif;">chief legal officer (</span>Vijaya Gadde). Within days, Musk also announced that around half of Twitter's labour force would be losing their jobs due to the need for cost savings as well as recouping some of the costs of the takeover.</span></span></p><div class="yellowBg"><h5><span style="font-family:arial,helvetica,sans-serif;"><span class="snippet-fa fa fa-exclamation-triangle fa-lg" style="color: rgb(202, 72, 26);"> </span><span style="color:#FF0000;"> Common mistake</span></span></h5><p>Students often comment that a takeover occurs when a business buys 51% or more of the shares in another company. Technically, the purchasing company takes a controlling interest in the target company once it owns the majority of the shares, which can be less than 50% so long as it is the majority shareholder. Of course, purchasing 50% plus 1 share would guarantee overall control, but it is not always necessary to do this.</p></div><p>Mergers and acquisitions (M&As) share similar advantages and disadvantages as takeovers. These are outlined below.</p><h5><span style="font-family:arial,helvetica,sans-serif;"><span class="snippet-fa fa fa-check-circle-o fa-lg" style="color: rgb(61, 30, 128);"> </span> Advantages of M&As and takeovers</span></h5><ul class="branded"><li><p><span style="font-family:arial,helvetica,sans-serif;">These are relatively quick growth methods, especially if the organization wishes to enter new markets (with new/existing products in new/existing markets). They are all faster methods of expansion than internal growth and evolution.</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Growth through M&A enables the newly formed company to benefit from greater economies of scale. For example, backward vertical integration enables the firm to gain from having direct access to its supplier, thereby cutting average costs of production (third party suppliers charge higher prices as they need to earn a greater profit margin).</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">M&As enable the larger organization to spread its fixed costs and risks, and to share its resources and expertise. This can improve the larger company’s chances of success.</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">The cost savings and synergies created by a merger or acquisition enables the organization to earn greater profits, gain market power, and increase its market share. Customers also benefit from the possibility of lower prices arising from the cost savings and synergies. This helps to enhance the company's competitiveness.</span></p></li><li><p>M&As provide opportunities for businesses to diversify, which enables them to enter new markets as well as to spread risks. For example, Coca-Cola's acquisition of Costa Coffee in 2018 allowed the soft drinks company to diversify into the mainstream coffee retail market during a time when there has been growing perception that its signature soft drinks are unhealthy.</p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">A takeover can be friendly, rather than hostile, if the target company wishes to sell its controlling stake in the business to the buyer. This is usually because the target company is experiencing liquidity problems.</span></p></li></ul><p><span style="font-family:arial,helvetica,sans-serif;"><img alt="" height="132" src="../../../ib/businessmanagement/images/lower-prices.jpg" width="227"> </span></p><p><span style="color:#696969;"><span style="font-family:arial,helvetica,sans-serif;"><em>Customers can benefit from lower prices following a M&A</em></span></span></p><hr class="hidden"><p><span style="color:#696969;"><span style="font-family:arial,helvetica,sans-serif;"></span></span></p><div><h5><span style="font-family:arial,helvetica,sans-serif;"><span class="snippet-fa fa fa-times-circle-o fa-lg" style="color: rgb(103, 7, 124);"> </span> Disadvantages of M&As and takeovers</span></h5><ul class="branded"><li><p><span style="font-family:arial,helvetica,sans-serif;">M&As are typically very expensive. For a company to buy out a rival firm is often unaffordable. Even for businesses that can afford M&As, the amount of money involved can be huge. For example, in 2014, Facebook bought WhatsApp for a staggering $19.3bn.</span></p></li><li><p>There is potential loss of management control of the company, especially in the case of a hostile takeover of the business. M&As often cause redundancies of senior managers. For instance, there is no need to have two separate marketing or finance directors from the integrated companies.</p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">M&As are unsettling for many stakeholders. There is likely to be resistance of change from the workforce and trade union members, especially if an acquisition results in mass-scale job losses due to purchasing company’s desire to cut costs.</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">The newly formed company can be too large to manage efficiently, i.e. it may experience diseconomies of scale. This can happen due to several reasons, such as a lack of effective cost control, culture clashes, resistance to change, and a loss of focus on core business operations (in the case of vertical M&As or a diversification strategy).</span></p></li><li><p>There are likely to be challenges faced by employees who may need to adapt to new working practices, company policies, and management styles.</p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">M&As do not always work, especially in the case of organizational culture clashes. Contrasting and conflicting management styles and organizational structures, for example, can cause major issues for creating a newly merged or acquired organization, especially if the core values of the companies are changed. It is a high-risk growth strategy, especially if the company pursues a diversification growth strategy.</span></p></li><li><p>As the firm becomes larger through an M&A, there could be a deterioration in customers loyalty due to less of a personalised / individualised service due to growth of the company.</p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Unlike strategic alliances and joint ventures as methods of external growth, M&As cannot be easily reversed if the new business venture goes wrong. Due to a combination of the above reasons,</span> and according to research published in <em>Harvard Business Review</em>, about 80% of M&As result in failure (in terms of not being able to achieve the objectives of M&A). H<span style="font-family:arial,helvetica,sans-serif;">ence, it tends to be a riskier external growth strategy than strategic alliances and joint ventures.</span></p></li></ul><div class="yellowBg"><h5><span style="color:#FF0000;"><span style="font-family:arial,helvetica,sans-serif;"><span class="snippet-fa fa fa-briefcase fa-lg" style="color: rgb(103, 7, 124);"> </span> Business Management Toolkit</span></span></h5><p>Examine how knowledge of the Ansoff matrix can help managers making decisions about mergers, acquisitions, and takeovers.</p><p>You might find it useful to refer to <a href="../../task/399697.html" title="New syllabus 2022 » Business Management Toolkit (BMT) » BMT 2 - Ansoff matrix">BMT 2 - Ansoff matrix</a> prior to answering the above task.</p></div></div></div><div class="panel-footer"><div></div></div></div><div class="panel panel-purple panel-expandable"><div class="panel-heading"><a class="expander pull-right" href="#"><span class="fa fa-plus"></span></a><div><p><span style="font-family:arial,helvetica,sans-serif;">Joint ventures (AO3)</span></p></div></div><div class="panel-body"><div><p><span style="font-family:arial,helvetica,sans-serif;"><img alt="" height="118" src="../../../ib/businessmanagement/images/deal.png" width="254"></span></p><p><span style="font-family:arial,helvetica,sans-serif;">A <strong>joint venture</strong> (JV) is an external growth method that involves two or more organizations agreeing to create a new business entity, usually for a finite period of time. The newly created business is funded by its parent companies. Examples of JVs include:</span></p><ul class="branded"><li><p><span style="font-family:arial,helvetica,sans-serif;">Caradigm – formed by Microsoft and GE (General Electric)</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Fiat-Tata – formed by India’s Tata Motors and Italy’s Fiat Automobiles</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Galvani Bioelectronics – formed by Google and GlaxoSmithKline</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Hisun-Pfizer – formed by China’s Hisun and America’s Pfizer</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Hong Kong Disneyland – formed by the Hong Kong SAR government and the Walt Disney Company</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Sony–Ericsson – formed by Finland’s Ericsson and Japan’s Sony.</span></p></li></ul><p><span style="font-family:arial,helvetica,sans-serif;"><img alt="" src="../../../ib/businessmanagement/images/jv.jpg" style="width: 400px; height: 497px;"></span></p><hr class="hidden"><p><span style="font-family:arial,helvetica,sans-serif;">At the end of the pre-determined time period for the JV, there are three possible options:</span></p><ul class="branded"><li><p><span style="font-family:arial,helvetica,sans-serif;">The joint venture is dissolved (discontinued)</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">One of the parent companies buys out the JV</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">The JV project is extended for a period of time.</span></p></li></ul><hr class="hidden"><h5><span style="font-family:arial,helvetica,sans-serif;"><span class="snippet-fa fa fa-check-circle-o fa-lg" style="color: rgb(61, 30, 128);"> </span> Advantages of joint ventures</span></h5><ul class="branded"><li><p><span style="font-family:arial,helvetica,sans-serif;">As the JV is set up for a finite time, it can be dissolved at the end the project if needed, without compromising the operations of the parent companies.</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">The parent companies combine their expertise, technologies and financial resources, to create the new business, thereby increasing its chances of success. For example, more finance is raised than if the companies were to grow organically, and the financial risks are split between the parent companies.</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Joint ventures are generally cheaper than M&As, which involve high legal and administrative costs. It is also quicker to form a JV than to go through with a merger or acquisition.</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">The parent companies can enjoy the benefits of growth without losing their individual corporate identities. At the same time, the JV can also create synergies from working with a partner company (such as the transfer of specialist skills), thus strengthening the position of both firms in the market.</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">For international joint ventures, the partner company can provide local knowledge to cope with any problems related to cultural differences and business etiquette in overseas markets.</span></p></li></ul><hr class="hidden"><h5><span style="font-family:arial,helvetica,sans-serif;"><span class="snippet-fa fa fa-times-circle-o fa-lg" style="color: rgb(103, 7, 124);"> </span> Disadvantages of joint ventures</span></h5><ul class="branded"><li><p><span style="font-family:arial,helvetica,sans-serif;">As with all forms of partnerships with other entities, there are possible conflicts and disagreements between the parent companies. This might be due to different organizational cultures and management styles. This can create communication and productivity problems, thus jeopardising the joint venture.</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">In the case of poor performance, a joint venture is more difficult to terminate than a strategic alliance. This is partly due to the legally binding responsibilities committed by the parent companies of the joint venture.</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Many joint ventures are short-lived as they do not succeed or are purchased outright by one of the parent companies.</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">For joint ventures that do succeed, the parent companies have to share the profits.</span></p></li></ul><p><span style="font-family:arial,helvetica,sans-serif;"><img alt="" height="183" src="../../../ib/businessmanagement/images/conflict.jpg" width="272"></span></p><p><span style="color:#696969;"><span style="font-family:arial,helvetica,sans-serif;"><em>Conflict can cause the end of a joint venture</em></span></span></p><hr class="hidden"><p>In 2018, Volkswagen (VW) and Ford announced they would form a joint venture. Watch this short video and identify the key reasons why VW and Ford would want to form a joint venture despite being rivals in the same industry.</p><section class="tib-hiddenbox"><p><span style="color:#FF0000;">The two main benefits from this joint venture are:</span></p><ul class="branded"><li><p><span style="color:#FF0000;">Pool resources to develop electric cars and self-driving cars (the pooling of resources will help them gain economies of scale which will allow for cost savings in the R&D and production process)</span></p></li><li><p><span style="color:#FF0000;">To gain a first-mover advantage in the market for electric cars and self-driving cars (especially in response to competition from the likes of Google and Uber in the market for self-driving cars).</span></p></li></ul></section></div></div><div class="panel-footer"><div></div></div></div><div class="panel panel-purple panel-expandable"><div class="panel-heading"><div><p><span style="font-family:arial,helvetica,sans-serif;">Strategic alliances (AO3)</span></p></div></div><div class="panel-body"><div><p><span style="font-family:arial,helvetica,sans-serif;"><strong>Strategic alliances </strong>are created when two or more organizations join together to benefit from external growth <em>without</em> having to set up a new separate entity or to make major changes to their own business models. Examples include:</span></p><ul class="branded"><li><p><span style="font-family:arial,helvetica,sans-serif;">Apple and MasterCard (the first credit card company to offer Apple Pay)</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Google and Luxottica (high technology for premium quality eyewear products)</span></p></li><li><p>General Motors and Lyft (a strategic alliance set up to develop a driverless car)</p></li><li><p><span style="font-family:arial,helvetica,sans-serif;"><a href="https://www.bbc.co.uk/news/technology-30080974">Spotify and Ube</a>r (riders can listen to their own playlists)</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Star Alliance (one of the largest airline alliances consisting of 27 airlines)</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Starbucks and PepsiCo (bottling, distributing and selling Frappuccino coffee)</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Tata Coffee and Starbucks (coffee retailer / cafe operators in India).</span></p></li></ul><span style="font-family:arial,helvetica,sans-serif;"></span><p><span style="font-family:arial,helvetica,sans-serif;"><img alt="" height="120" src="../../../ib/businessmanagement/images/star-alliance.jpg" width="313"></span></p><p><span style="color:#696969;"><span style="font-family:arial,helvetica,sans-serif;"><em>There are 27 airline companies in the Star Alliance</em></span></span></p><p><span style="font-family:arial,helvetica,sans-serif;">For a strategic alliance to work, information sharing and genuine willingness to support other companies is vital. This includes a commitment to a common goal, the exchange of knowledge, and joint company events (partly to promote the SA). Strategic alliances are built on trust and a true desire to grow together.</span></p><hr class="hidden"><h5><span style="font-family:arial,helvetica,sans-serif;"><span class="snippet-fa fa fa-check-circle-o fa-lg" style="color: rgb(61, 30, 128);"> </span> Advantages of strategic alliances</span></h5><ul class="branded"><li><p><span style="font-family:arial,helvetica,sans-serif;">As with a JV, members of a strategic alliance can benefit from the pooling of resources in a business project. This created synergies, such as the sharing of: industry expertise, research and development, financial resources, distribution channels, and the spreading of risks. For example, a SA in the airline industry (such as <em>One World </em>and <em>Star Alliance</em>) allows member airlines to expand into markets (cities and/or countries) where their current routes do not serve.</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Businesses in a SA retain their individual corporate identities, without the expenses of establishing a new company with its own legal status (as in the case of joint ventures). This also means it is usually quicker to set up a SA than a JV.</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">As with a JV, a strategic alliance fosters cooperation rather than competition. In theory, if there is less competition, profits should rise.</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">There is greater flexibility with a strategic alliance than a joint venture because membership (of the alliance) can change without having to terminate the coalition.</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Similarly, it is more straightforward to terminate a SA than a JV, or to demerge, if the alliance does not work out for whatever reason.</span></p></li></ul><hr class="hidden"><h5><span style="font-family:arial,helvetica,sans-serif;"><span class="snippet-fa fa fa-times-circle-o fa-lg" style="color: rgb(103, 7, 124);"> </span> Disadvantages of strategic alliances</span></h5><ul class="branded"><li><p><span style="font-family:arial,helvetica,sans-serif;">Unlike a JV, there are few barriers to entry and exit in a strategic alliance. For example, as it is much easier for members to pull out of a strategic alliance, they may be less committed. This can be destabilising for the business venture.</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Many strategic alliances are only short-term agreements. This can limit the options for an organization’s external growth strategies.</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">As there can be numerous members in a SA, the business organization in question is exposed to the potential mistakes or misconduct of member firms in the alliance.</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">As with all cases of working with and relying on third parties, there is the potential of conflict and misunderstandings. Communication problems, divergent corporate cultures and perspectives, and mistrust are key reasons for the failure of many strategic alliances.</span></p></li></ul></div></div><div class="panel-footer"><div></div></div></div><div class="panel panel-purple panel-expandable"><div class="panel-heading"><a class="expander pull-right" href="#"><span class="fa fa-plus"></span></a><div><p><span style="font-family:arial,helvetica,sans-serif;">Franchising (AO3)</span></p></div></div><div class="panel-body"><div><p><img alt="" src="../../../ib/businessmanagement/images/businesses/mcdonald-s.jpg" style="width: 300px; height: 225px;"></p><p><span style="font-family:arial,helvetica,sans-serif;"><strong>Franchising</strong> is a growth method that involves two parties, with the <strong>franchisor</strong> giving the licensing rights to a franchisee to sell goods and services using the franchisor’s branded or trademarked products. For this privilege, the franchisee has to purchase the licensing rights to use the brand name and business model of the established franchisor. In addition, the franchisee must also pay royalties to the franchisor, based as a pre-determined percentage of the franchisee’s sales revenues. They are also contractually obliged to respect and follow the corporate norms and practices of the franchisor's business model.</span></p><p><span style="font-family:arial,helvetica,sans-serif;"><span style="font-family:arial,helvetica,sans-serif;">Franchising is hugely popular in the fast food, hotels and restaurants industries. The f</span>ranchisees of these businesses are often sole traders who own and run a single unit, but they can also be partnerships or large business organizations. </span></p><p>As with all forms of businesses, establishing a franchisee can be very expensive. Franchisee need to make a significant up-front financial investment in the franchise. For example, to purchase a franchised McDonald's restaurant in the UK means having at least £100,000 ($130,000) in unencumbered funds (sources of finance that are free of debt or other financial liability). In addition, franchisees need to prove they can lead and work within the McDonald's framework to give both the franchisee and franchisor (McDonald's) the greatest chance of success. This screening process can take over 12 months, before a McDonald's franchise agreement is approved (see ATL Activity 3 below).</p><div class="panel-footer" style="background-color: rgb(247, 245, 250);"><div><div class="yellowBg"><h5><span style="color:#FF0000;"><span style="font-family:arial,helvetica,sans-serif;"><span class="snippet-fa fa fa-file-text-o fa-lg" style="color: rgb(103, 7, 124);"> </span> Case Study 1 - Franchises are everywhere...</span></span></h5><p><span style="font-family:arial,helvetica,sans-serif;">Examples of businesses that use franchising as a growth model include the following:</span></p><div class="row-fluid"><div class="span6 col-left"><div><ul class="branded"><li><p><span style="font-family:arial,helvetica,sans-serif;">7-Eleven, convenience stores</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Avis Rent A Car, car rental</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Baskin Robbins, food</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Ben & Jerry’s, food</span></p></li><li><p>Burger King, fast food</p></li><li><p>Domino's Pizza, fast food</p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">The Body Shop, beauty and cosmetics</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">FamilyMart, convenience stores</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Hard Rock Café, restaurant</span></p></li><li><p>Hertz, car rental</p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Hilton Hotels & Resorts, hotels</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Hotel Inn, hotels</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">InterContinental Hotels Group, hotels</span></p></li></ul></div></div><div class="span6"><div><ul class="branded"><li><p><span style="font-family:arial,helvetica,sans-serif;"></span><span style="font-family:arial,helvetica,sans-serif;">KFC, fast food</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Kwik Fit, car repairs and servicing</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Kumon, education</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">L'Occitane en Provence, beauty and cosmetics</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">McDonald’s, fast food</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Outback Steakhouse, restaurant</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Pizza Hut, fast food</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Starbucks, coffee</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Subway, fast food</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Supercuts, hair salon</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Swarovski, jewellery</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Travelodge Hotels, hotels</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Western Union, finance</span></p></li></ul></div></div></div></div></div></div><h5><span style="font-family:arial,helvetica,sans-serif;"><span class="snippet-fa fa fa-check-circle-o fa-lg" style="color: rgb(61, 30, 128);"> </span> Advantages of franchising for the franchisor</span></h5><ul class="branded"><li><p><span style="font-family:arial,helvetica,sans-serif;">Franchising is a faster method of growth than using internal growth. It is advantageous for the franchisor to use partner firms to purchase, own and run additional franchised outlets. This means franchising can actually be cheaper than internal methods of growth for the franchisor.</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Franchisees fund the growth of the franchise as they pay an upfront fee to purchase the franchise license. In addition, the franchisor received royalties, usually calculated as a percentage of the franchisee’s sales revenues.</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">The franchisor benefits from selling the franchise agreement to someone who has been vetted and is more motivated to succeed than salaried managers employed to run a particular store, unit or outlet.</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">The franchisor, in its pursuit of growth in other geographical locations, can also again from the franchisee’s local knowledge.</span></p></li></ul><h5><span style="font-family:arial,helvetica,sans-serif;"><span class="snippet-fa fa fa-check-circle-o fa-lg" style="color: rgb(61, 30, 128);"> </span> Advantages of franchising for the franchisee</span></h5><ul class="branded"><li><p><span style="font-family:arial,helvetica,sans-serif;">The success rate of franchising is very high in most industries. Franchisees gain access to a tried and test business model.</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">In many cases, the franchisee benefits from the brand recognition and brand loyalty established by the franchisor. Hence, there are opportunities for the franchisee to earn large profits. ATL Activity 3 below<span style="font-family:arial,helvetica,sans-serif;"> (McDonald's) shows that franchisees can become owners of some of the world’s most iconic brands / businesses.</span></span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Franchisees receive ongoing support and expert advice from the franchisor, such as upskilling training, market research findings, and legal advice. This improves the chances of success for the franchisees. For example, before a person is approved to operate as <span style="font-family:arial,helvetica,sans-serif;">a McDonald's franchisee</span>, they have to complete a comprehensive restaurant training programme for a minimum of 26 weeks.</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">They gain from the purchasing economies of scale of the franchisor, rather than facing much higher costs (of inventory, for example) if operating as a sole trader of a much smaller, independent organization.</span></p></li></ul><h5><span style="font-family:arial,helvetica,sans-serif;"><span class="snippet-fa fa fa-times-circle-o fa-lg" style="color: rgb(103, 7, 124);"> </span> Disadvantages of franchising for the franchisor</span></h5><ul class="branded"><li><p><span style="font-family:arial,helvetica,sans-serif;">The franchisor’s corporate image and brand reputation is at risk if a franchisee is negligent and/or incompetent. Breaking the franchise agreement with such franchisees can be a both time consuming and costly.</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Therefore, although not the owner of a franchised outlet, the franchisor still needs to ensure quality standards are met. This means the franchisor may need to closely monitor the operations of their franchisees; after all, their reputation and overall business model is at stake.</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">The franchisee, as the owner of the franchised unit, gets to keep the profits they generate. This would not be the case if the franchise chose to grow organically.</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">The franchise method of growth is not applicable to all businesses as they lack the expertise, resource and brand awareness to attract buyers (franchisees).</span></p></li></ul><h5><span style="font-family:arial,helvetica,sans-serif;"><span class="snippet-fa fa fa-times-circle-o fa-lg" style="color: rgb(103, 7, 124);"> </span> Disadvantages of franchising for the franchisee</span></h5><ul class="branded"><li><p><span style="font-family:arial,helvetica,sans-serif;">Buying a franchise is usually very expensive. Even so, the process of applying for a franchise license is typically complex and time consuming. Even after paying for the start-up costs and running costs of the business, the franchisee must also pay a percentage of its sales revenues to the franchisor as royalty payments. This can cut a franchisee’s profit margins quite substantially.</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">The franchisee is constrained by the standards and practices set by the franchisor. The franchisee must follow the franchisor’s established business model, without scope for truly independent decision making or innovation.</span></p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">Like the franchisor, each individual franchisee is at risk of a damaged reputation if another franchisee of the business makes a serious blunder.</span></p></li></ul><div class="panel-footer" style="background-color: rgb(247, 245, 250);"><div><ul class="branded"></ul></div></div></div></div><div class="panel-footer"><div></div></div></div><div class="panel panel-purple panel-expandable"><div class="panel-heading"><a class="expander pull-right" href="#"><span class="fa fa-plus"></span></a><div><p>ATL Activities for external growth methods</p></div></div><div class="panel-body"><div><p>To consolidate your understanding of this topic (External growth methods), have a go at the following ATL activities for this part of the course.</p><div class="yellowBg"><h5><span style="color:#FF0000;"><span style="font-family:arial,helvetica,sans-serif;"><span class="snippet-fa fa fa-linode fa-lg" style="color: rgb(103, 7, 124);"> </span> ATL Activity 1 (Thinking skills) - The 5-4-3-2-1 Quiz</span></span></h5><p><span style="font-family:arial,helvetica,sans-serif;"><img alt="" height="126" src="../../../ib/businessmanagement/pst-3.png" style="float: left;" width="101">For each of the following slides, students will be shown a different set of questions/tasks linked to franchises.</span></p><p><span style="font-family:arial,helvetica,sans-serif;">Give them just 30 seconds to write down up to 5 different answers. They score 1 point for each correct answer, and get 1 bonus point for any answer that is unique in your class (i.e. not suggested by anyone else).</span></p><p><span style="font-family:arial,helvetica,sans-serif;">Here goes...</span></p><hr class="hidden"><p><span style="font-family:arial,helvetica,sans-serif;"><strong>Round 1 </strong>- State <strong>5</strong> examples of franchises</span></p><section class="tib-hiddenbox"><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;"><span style="color:#FF0000;">Some possible answers:</span></span></span></p><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;"><span style="color:#FF0000;"></span>7-Eleven, Baskin-Robbins, Burger King, Dunkin' Donuts, Domino's Pizza, Hard Rock Cafe, KFC, McDonald's, Nandos, Pizza Hut, Starbucks ...</span></span></p></section><p><span style="font-family:arial,helvetica,sans-serif;"><strong>Round 2 </strong>- State <strong>4</strong> advantages of operating as a franchise.</span></p><section class="tib-hiddenbox"><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Some possible answers: </span> </span></p><ul class="branded"><li><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Being your own boss of a well-known brand/franchise</span></span></li><li><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Less risk due to the tried and tested formula of running the franchise</span></span></li><li><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Easier to raise finance as the franchise is probably well-known</span></span></li><li><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Buying economies of scale as part of a large franchise network</span></span></li><li><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Marketing economies of scale from the franchisor</span></span></li><li><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Receiving expert advice and support from the franchisor</span></span></li></ul></section><p><span style="font-family:arial,helvetica,sans-serif;"><strong>Round 3 </strong>- State <strong>3</strong> facts about franchising as a method of growth.</span></p><section class="tib-hiddenbox"><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Possible answers could include:</span></span></p><ul class="branded"><li><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">It tends to have a very low failure rate</span></span></li><li><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Franchise contracts are usually non-negotiable</span></span></li><li><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Not everyone qualifies to purchase a franchise, as the franchisor take a huge amount of risk selling their business name/br</span><span style="color:#FF0000;">and/model to an independent buyer</span></span></li><li><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">There are significant costs in running a franchise, including the expectation/requirement for the franchisee to reinvest profits back into the business</span></span></li></ul></section><p><span style="font-family:arial,helvetica,sans-serif;"><strong>Round 4 </strong>- State <strong>2</strong> disadvantages of operating as a franchisee.</span></p><section class="tib-hiddenbox"><ul class="branded"><li><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">It is highly costly to purchase a franchise, and to pay on-going costs such as royalties to the franchisor</span></span></li><li><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">There is little control over the firm's marketing and product strategies, as these are determined by the franchisor</span></span></li></ul></section><p><span style="font-family:arial,helvetica,sans-serif;"><strong>Round 5 </strong>- State <strong>1 </strong>financial cost of franchising apart from the set-up costs.</span></p><section class="tib-hiddenbox"><p><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;">Royalty payments to the franchisor, License fees; and Inventory costs (buying stocks from the franchisor).</span></span></p></section></div><div class="yellowBg"><h5><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;"><span class="snippet-fa fa fa-linode fa-lg" style="color: rgb(103, 7, 124);"> </span> ATL Activity 2 - Buying and running a McDonald's franchise</span><img alt="" height="223" src="../../../ib/businessmanagement/images/franchising.jpg" style="float: right;" width="280"></span></h5><p><span style="font-family:arial,helvetica,sans-serif;">Take a look at the September and November 2013 issues of <em><a href="http://www.hoddereducation.co.uk/Product?Product=9781471891335">Business Review</a> </em>magazine (published by Philip Allan, Hodder Education) for two case studies on buying and running a McDonald’s franchise.</span></p><p><span style="font-family:arial,helvetica,sans-serif;">You can download the article here (permission for sharing these documents has been granted by Hodder Education):</span></p><p><span style="font-family:arial,helvetica,sans-serif;"><a href="Browse server to select file" target="_blank" title="Student handouts"><img class="ico" src="../../../thinkib/icons/student-handout-1.png"> </a><a href="/media/ib/businessmanagement/files/franchises---buying-a-mcdonald-s-franchise-(br-sept-2013)(1).pdf">Buying a McDonald's franchise</a></span></p><p><span style="font-family:arial,helvetica,sans-serif;"><a href="/media/ib/businessmanagement/files/franchises---running-a-mcdonald-s-franchise-(br-nov-2013).pdf" target="_blank" title="Student handouts"><img class="ico" src="../../../thinkib/icons/student-handout-1.png"> </a><a href="/media/ib/businessmanagement/files/franchises---running-a-mcdonald-s-franchise-(br-nov-2013).pdf">Running a McDonald's franchise</a></span></p></div><div class="yellowBg"><p><span style="font-family:arial,helvetica,sans-serif;"><span class="snippet-fa fa fa-search fa-lg" style="color: rgb(103, 7, 124);"> </span> Read more about franchising from a McDonald's franchisee in London (reproduced with the permission of McDonald's and <strong>Tonina Hoang</strong>, who became the UK's youngest McDonald's franchisee at the time she was approved as a franchisee).</span></p><p><span style="font-family:arial,helvetica,sans-serif;"></span></p></div><div class="yellowBg"><h5><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;"><span class="snippet-fa fa fa-linode fa-lg" style="color: rgb(103, 7, 124);"> </span> ATL Activity 3 - The world's largest franchises</span></span></h5><p><span style="font-family:arial,helvetica,sans-serif;">Take a look <a href="http://www.franchisedirect.com/top100globalfranchises/rankings/">here</a> to discover the world’s largest 100 franchise businesses.</span></p><p><span style="font-family:arial,helvetica,sans-serif;">Were you surprised by any that <em>didn’t </em>make the Top 10 in this list?</span></p><section class="tib-hiddenbox"><p><span style="color:#FF0000;">Students are likely to name at least some of the more well-known franchises mentioned in ATL Activity 1 above. There is also likely to be some local bias in their responses, as the list does not necessarily contain businesses that operate in their country. However, use this as an opportunity to discuss the key concepts in the role of franchising and organizational growth (creativity, ethics, sustainability, and change).</span></p></section></div><div class="yellowBg"><h5><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;"><span class="snippet-fa fa fa-linode fa-lg" style="color: rgb(103, 7, 124);"> </span> ATL Activity 4 - Inquiry task and the key concepts</span></span></h5><p>Recommended time: <strong>45 minutes</strong> (plus Homework time to prepare for the presentation).</p><p><span style="font-family:arial,helvetica,sans-serif;">Investigate the external growth of an organization of your choice. Outline the method(s) of external growth with consideration of any combination of the following:</span></p><div class="row-fluid"><div class="span6 col-left"><div><ul class="branded"><li><span style="font-family:arial,helvetica,sans-serif;">Mergers and acquisitions (M&As)</span></li><li>Takeovers</li><li><span style="font-family:arial,helvetica,sans-serif;">Strategic alliances</span></li></ul></div></div><div class="span6"><div><ul class="branded"><li><span style="font-family:arial,helvetica,sans-serif;">Joint ventures</span></li><li><span style="font-family:arial,helvetica,sans-serif;">Franchising</span></li></ul></div></div></div><hr class="hidden"><p><span style="font-family:arial,helvetica,sans-serif;">Consider the impact of any combination of the key concepts (creativity, ethics, sustainability, and change) on the growth of your chosen organization.</span></p><p>Share these findings with the rest of the class in a 5 minutes presentation during the next week's lesson.</p></div><div class="yellowBg"><h5><span style="color:#FF0000;"><span style="font-family:arial,helvetica,sans-serif;"><span class="snippet-fa fa fa-linode fa-lg" style="color: rgb(103, 7, 124);"> </span> ATL Activity 5 - Case Study: Chick-fil-A</span></span></h5><p>This activity has been suggested by IB educator <strong>David Weyant</strong>. Watch this 8-minute video from the Wall Street Journal about how Chick-fil-A has built its rapid growth using an unconventional franchise model from the likes of McDonald's and Starbucks.</p><p>As you watch the video, take note of the strategies driving the company’s huge success, including the company's corporate culture and values.</p><p><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="360" src="https://www.youtube.com/embed/grkHcEyZu04" title="The Unconventional Franchise Model Behind Chick-fil-A’s Success | The Economics Of | WSJ" width="640"></iframe></p></div><div class="greenBg"><h5><span style="color:#FF0000;"><span style="font-family:arial,helvetica,sans-serif;"><span class="snippet-fa fa fa-briefcase fa-lg" style="color: rgb(61, 30, 128);"> </span> Business Management Toolkit (BMT)</span></span></h5><p>Discuss the importance of <a href="../44027/bmt-3-steeple-analysis.html" title="New syllabus (first teaching 2022) » Business Management Toolkit (BMT) » BMT 3 - STEEPLE analysis">STEEPLE analysis</a> for a firm's external growth strategies.</p></div></div></div><div class="panel-footer"><div></div></div></div><div class="panel panel-purple panel-expandable"><div class="panel-heading"><a class="expander pull-right" href="#"><span class="fa fa-plus"></span></a><div><p>Exam Practice Question - L’Oreal and The Body Shop</p></div></div><div class="panel-body"><div><div><p>In March 2006,<em> The Body Shop </em>was sold for £652m ($892 million) to <em>L’Oreal </em>after shareholders of the French cosmetics and beauty giant voted in favour of a <strong>takeover </strong>bid. Six months later, <em>L’Oreal </em>announced plans to expand <em>The Body Shop’s </em>2,000 stores to 5,000 outlets. The expansion was targeted mainly at new markets such as China, India, Brazil, Argentina and Chile. However, by the end of 2017, there were only around 3,000 stores globally.</p><p>Critics of the takeover argued that <em>L’Oreal</em> would harm the ethical image of <em>The Body Shop. L’Oreal</em>, however, claimed that they share <em>The Body Shop’s </em>ethical stance against animal testing. Instead the company tests products on artificially-produced human skin and volunteers from its workforce. <em>The Body Shop</em> was also criticised for selling the company because <em>Nestlé </em>(a key stakeholder in <em>L’Oreal</em>) had gained a poor reputation due to its unethical marketing of baby powdered-milk in low income countries.</p><p>In June 2017, <em>The Body Shop</em> was sold by <em>L’Oreal </em>to <em>Natura </em>(a Brazilian global personal care cosmetics group headquartered in São Paulo) for an agreed sum of £880 million ($1.2 billion). The deal was approved in September 2017.</p><p><em>The Body Shop </em>was founded in Brighton, UK in 1976 by Dame Anita Roddick (1942 - 2007). Today, the company enjoys sales in excess of $1.4 billion and employs more than 10,000 workers.</p><table><tbody><tr><td>(a)</td><td>Define the term <em>takeover.</em></td><td><em>[2 marks]</em></td></tr><tr><td>(b)</td><td>Use the case study to explain the difference between <em>shareholders </em>and <em>stakeholders</em>.</td><td><em>[4 marks]</em></td></tr><tr><td>(c)</td><td>Examine how different stakeholder groups are affected by the growth strategies at <em>L’Oreal</em>.</td><td><em>[6 marks]</em></td></tr></tbody></table><section class="tib-teacher-only" readonly="true" title="This box is not visible to students"><div class="header" readonly="true"><img class="icon" src="../../../thinkib/icons/teacher-only.svg"> Teacher only box</div><div class="content" readonly="false"><p><strong><span style="color:#FF0000;">Answers</span></strong></p><p><strong>(a) Define the term <em>takeover</em>. <em>[2 marks]</em></strong></p><p><span style="color:#FF0000;">A takeover involves one company buying a controlling interest (majority stake) in another company, usually against the wishes of the target company. The purchasing company becomes the majority shareholder of the target company, thereby effectively taking over the business.</span></p><p><span style="color:#FF0000;">Award <em>[1 mark] </em>for a definition that shows some understanding of the term takeover.</span></p><p><span style="color:#FF0000;">Award <em>[2 marks] </em>for a clear and accurate definition that shows good understanding of the term takeover, similar to the example above.</span></p><hr><p><strong>(b) Use the case study to explain the difference shareholders and stakeholders. <em> [4 marks]</em></strong></p><p><span style="color:#FF0000;">Shareholders are the owners of a joint-stock company, such as <em>L’Oreal</em>. They have a direct interest in the activities and performance of the business and are, therefore, stakeholders of the organization. However, there are other stakeholders of an organisation that do not necessarily own shares in the business, e.g. employees, the local community, government and pressure groups. In other words, shareholders are stakeholders, but stakeholders are not necessarily shareholders.</span><br><br><span style="color:#FF0000;">Award <em>[1 </em>– <em>2 marks]</em> for an answer that shows some understanding of the demands of the question. There is limited, if any, appropriate reference to the case study.</span></p><p><span style="color:#FF0000;">Award <em>[3 – 4 marks]</em> for a good answer that shows a clear understanding of the demands of the question, explaining the difference between shareholders and stakeholders in the context of the case study.</span></p><hr><p><strong>(c) Examine how different stakeholder groups are affected by the growth strategies at <em>L’Oreal</em>. <em>[6 marks]</em></strong></p><p><span style="color:#FF0000;">There are various stakeholders mentioned in the case study: <em>L’Oreal, The Body Shop, Nestle</em>, employees and shareholders. Possible impacts are outlined below:</span></p><ul class="branded"><li><p><span style="color:#FF0000;">Employees – Due to the expansion plans, there are likely to be more employment opportunities at <em>The Body Shop</em>. For some employees, this might include opportunities for personal growth and development, as well as job promotional opportunities.</span></p></li><li><p><span style="color:#FF0000;">Shareholders – in the short term, the funds used to acquire The Body Shop might reduce the profits of <em>L’Oreal</em> and therefore the amount it pays out in dividends. In the long term, the larger company may be able to award shareholders with greater returns (although <em>The Body Shop </em>has not been able to grow at the rate that <em>L'Oreal</em> had initially intended). Shareholders were also likely to have gained from the sales of <em>The Body Shop</em> to <em>Natura</em>, given that the company was sold for at least $308 million more in 2017 than <span style="color:#FF0000;">when <em>L'Oreal </em>took over <em>The Body Shop</em> back in 2006.</span></span></p></li><li><p><span style="color:#FF0000;">Pressure groups – Animal-rights activists, for example, might campaign against the practices of <em>L’Oreal</em>. This could harm the company's corporate image, at least in the short term.</span></p></li><li><p><span style="color:#FF0000;">Rival firms – Competitors such as<em> Revlon</em> or <em>Johnson & Johnson </em>may be threatened by the increased market share and power of<em> L’Oreal</em>. They may respond by launching products to directly compete with <em>The Body Shop </em>in order to gain some market share.</span></p></li><li><p><span style="color:#FF0000;">Financial investors – Financial backers such as <em>Nestle </em>are likely to benefit from the larger scale operations of <em>L’Oreal</em>, especially if the company is able to succeed in overseas markets such as China, India,Brazil, Argentina and Chile.</span></p></li></ul><p><span style="color:#FF0000;">Award <em>[1 – 2 marks] </em>for a vague or generic answer that shows a limited understanding of the demands of the question.</span></p><p><span style="color:#FF0000;">Award <em>[3 – 4 marks]</em> for an answer that shows good understanding of the demands of the question, with consideration of at least two stakeholder groups or if application of the case study is limited or superficial.</span></p><p><span style="color:#FF0000;">Award <em>[5 – 6 marks]</em> if there is a thorough examination of at least two stakeholder groups and how they are affected following the growth strategies of <em>L’Oreal</em>. There is appropriate use of terminology throughout the answer, and appropriate application of the stimulus material in the case study.</span></p></div></section></div></div></div><div class="panel-footer"><div></div></div></div><div class="panel panel-purple panel-expandable"><div class="panel-heading"><a class="expander pull-right" href="#"><span class="fa fa-plus"></span></a><div><p><span style="font-family:arial,helvetica,sans-serif;">Key terms</span></p></div></div><div class="panel-body"><div><ul class="branded"><li><p>An <strong>acquisition </strong>involves one company buying a controlling interest (majority stake) in another company based on mutual agreement.</p></li><li><p><strong>Brand acquisition </strong>is the process of taking over another firm’s brands rather than the entire company.</p></li><li><p><strong>Franchising</strong> is a growth method that involves the franchisor giving the licensing rights to a franchisee to sell goods and services using the franchisor’s brands and trademarked products.</p></li><li><p>A <strong>joint venture</strong> (JV) is an external growth method that involves two or more organizations agreeing to create a new business entity, usually for a finite period of time.</p></li><li><p>A <strong>merger</strong> is similar but the two companies agree to form a single, larger company thereby benefiting from operating on a larger scale. By contrast, takeovers are almost always hostile in nature.</p></li><li><p>A<strong> strategic alliance</strong> is created when two or more organizations join together to benefit from external growth <em>without</em> having to set up a new separate entity or to make major changes to their own business models.</p></li><li><p><span style="font-family:arial,helvetica,sans-serif;">A <strong>takeover </strong>(or <strong>hostile takeover</strong>) involves one company buying a controlling interest (majority stake) in another company against the wishes of the target company.</span></p></li></ul></div></div><div class="panel-footer"><div></div></div></div><p><span style="font-family:arial,helvetica,sans-serif;">Return to the <a href="../44045/15-growth-and-evolution.html" title="New syllabus 2022 » Unit 1 - Introduction to Business Management » 1.5 Growth and evolution">Unit 1.5 - Growth and evolution</a> homepage</span></p><p><span style="font-family:arial,helvetica,sans-serif;">Return to the <a href="../43522/unit-1-introduction-to-business-management.html" title="New syllabus 2022 » Unit 1 - Introduction to Business Management">Unit 1 - Introduction to Business Management</a> homepage</span></p><p><span style="font-family:arial,helvetica,sans-serif;"><a href="../../../businessmanagement.html"><img alt="" src="../../../ib/businessmanagement/logo-blue-black-1.png" style="width: 170px; height: 54px;"></a></span></p><script>document.querySelectorAll('.tib-teacher-only').forEach(e => e.remove());</script>
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