Edexcel AS/A Level Business
Corporate objectives correct answers The objectives of a medium to
large-sized business as a whole
Departmental and functional objectives correct answers The objectives of a
department within a business
Mission statement correct answers A brief statement, written by the
business, describing its purpose and objectives, designed to encapsulate
its present operations
Objective (or goal) correct answers A target of or outcome for a business
that allows it to achieve its aims
SMART correct answers Acronym for the attributes of a good objective:
Specific, Measurable, Agreed, Realistic and Time Specific
Corporate strategy correct answers The plans and policies developed to
meet a company's objectives. It is concerned with what range of activities
the business needs to undertake in order to achieve its goals. It is also
concerned with whether the size of the business organisation makes it
capable of achieving the objectives set.
Distinctive capability correct answers A form of competitive
advantage that is sustainable because it cannot easily be replicated
by a competitor
Diversification correct answers Developing new products in new
markets
Market development correct answers The marketing of existing
products in new markets
Penetration correct answers Using tactics such as the marketing mix to
increase the growth of existing products in an existing market
Portfolio analysis correct answers A method of categorising all the
products and services of a firm (its portfolio) to decide where each fits
within the strategic plans
Product development correct answers Marketing new or modified products
in existing markets
External audit correct answers An audit of the external environment
in which as business finds itself, such as the market within which it
operates or government restrictions on its operations
Internal audit correct answers An analysis of the business itself and
how it operates
, SWOT analysis correct answers An analysis of the internal strengths and
weaknesses of the business and the opportunities and threats presented by
its external environment
Trade association correct answers An organisation whose members are all
involved in the same industry or trade. The organisation pursues the
interests of these businesses.
Monopoly correct answers A market dominated by a single
business Oligopoly correct answers A market dominated by a
few large businesses
PESTLE analysis correct answers Analysis of the external political,
economic, social, technological, legal and environmental factors affecting a
business
Diseconomies of scale correct answers Rising long-run average costs as a
business expands beyond its minimum efficient scale
Economies of scale correct answers The reductions in average costs
enjoyed by a business as output increases
External economies of scale correct answers The cost reductions
available to all business as the industry grows
Internal economies of scale correct answers The cost reductions enjoyed
by a single business as it grows
Minimum efficient scale correct answers The output that minimises long-
run average costs
Backward vertical integration correct answers Joining with a business in
the previous stage of production
Forward vertical integration correct answers Joining with a business in the
next stage of production
Horizontal integration correct answers The joining of businesses that are in
exactly the same line of business
Integration correct answers The joining together of two businesses as a
result of a merger or takeover
Merger correct answers Occurs when two (or more) businesses join
together and operate as one
Synergy correct answers The combining of two or more activities or
businesses creating a better outcome than the sum of the individual
parts
Corporate objectives correct answers The objectives of a medium to
large-sized business as a whole
Departmental and functional objectives correct answers The objectives of a
department within a business
Mission statement correct answers A brief statement, written by the
business, describing its purpose and objectives, designed to encapsulate
its present operations
Objective (or goal) correct answers A target of or outcome for a business
that allows it to achieve its aims
SMART correct answers Acronym for the attributes of a good objective:
Specific, Measurable, Agreed, Realistic and Time Specific
Corporate strategy correct answers The plans and policies developed to
meet a company's objectives. It is concerned with what range of activities
the business needs to undertake in order to achieve its goals. It is also
concerned with whether the size of the business organisation makes it
capable of achieving the objectives set.
Distinctive capability correct answers A form of competitive
advantage that is sustainable because it cannot easily be replicated
by a competitor
Diversification correct answers Developing new products in new
markets
Market development correct answers The marketing of existing
products in new markets
Penetration correct answers Using tactics such as the marketing mix to
increase the growth of existing products in an existing market
Portfolio analysis correct answers A method of categorising all the
products and services of a firm (its portfolio) to decide where each fits
within the strategic plans
Product development correct answers Marketing new or modified products
in existing markets
External audit correct answers An audit of the external environment
in which as business finds itself, such as the market within which it
operates or government restrictions on its operations
Internal audit correct answers An analysis of the business itself and
how it operates
, SWOT analysis correct answers An analysis of the internal strengths and
weaknesses of the business and the opportunities and threats presented by
its external environment
Trade association correct answers An organisation whose members are all
involved in the same industry or trade. The organisation pursues the
interests of these businesses.
Monopoly correct answers A market dominated by a single
business Oligopoly correct answers A market dominated by a
few large businesses
PESTLE analysis correct answers Analysis of the external political,
economic, social, technological, legal and environmental factors affecting a
business
Diseconomies of scale correct answers Rising long-run average costs as a
business expands beyond its minimum efficient scale
Economies of scale correct answers The reductions in average costs
enjoyed by a business as output increases
External economies of scale correct answers The cost reductions
available to all business as the industry grows
Internal economies of scale correct answers The cost reductions enjoyed
by a single business as it grows
Minimum efficient scale correct answers The output that minimises long-
run average costs
Backward vertical integration correct answers Joining with a business in
the previous stage of production
Forward vertical integration correct answers Joining with a business in the
next stage of production
Horizontal integration correct answers The joining of businesses that are in
exactly the same line of business
Integration correct answers The joining together of two businesses as a
result of a merger or takeover
Merger correct answers Occurs when two (or more) businesses join
together and operate as one
Synergy correct answers The combining of two or more activities or
businesses creating a better outcome than the sum of the individual
parts
