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Expanding a business
Expanding a business in AQA GCSE Business 8132 focuses on how real firms make decisions in the business in the real world part of the course. Students should connect key terms to business context, use evidence from case studies, and explain the likely effect on costs, revenue, profit, cash flow, customers, employees, owners, and other stakeholders. Strong revision separates similar concepts, weighs advantages against disadvantages, and uses figures where calculations or financial evidence are relevant. Exam answers should move beyond definitions by applying the idea to a specific business objective and reaching a justified judgement.
7
Objectives
35
Flashcards
35
Questions
90 min
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Syllabus checklist
What you need to know
7 objective pages available
Methods of expansion3 objectives
- Discuss advantages and disadvantages of business growth methods.
- Explain organic growth through franchising, opening new stores and e-commerce expansion.
- Explain outsourcing and external growth through mergers and takeovers.
Economies and diseconomies of scale4 objectives
- Explain how growth can create unit cost advantages through economies of scale.
- Explain purchasing economies and technical economies of scale.
- Explain how growth can create diseconomies of scale through communication problems, coordination issues and reduced staff motivation.
- Calculate and interpret average unit costs.
Key terms
Exam tips
- Methods of expansion exam tip 1: Use precise subject-specific vocabulary when you explain how to discuss advantages and disadvantages of business growth methods..
- Methods of expansion exam tip 1: Use precise subject-specific vocabulary when you explain how to explain organic growth through franchising, opening new stores and e-commerce expansion..
Common mistakes
- Methods of expansion common mistake 1: Answer by clearly explaining how to discuss advantages and disadvantages of business growth methods..
- Methods of expansion common mistake 1: Answer by clearly explaining how to explain organic growth through franchising, opening new stores and e-commerce expansion..
Practice preview
- PixelPrint serves small retailers while taking a loan; the case evidence includes capacity utilisation of ?2,848, sales of 283 units, and a 15% change in costs or demand. Which option best applies Discuss advantages and disadvantages of business growth methods?
- CloudCart serves health-conscious consumers while cutting delivery times; the case evidence includes cash inflow of ?8,750, sales of 945 units, and a 43% change in costs or demand. Which option best applies Discuss advantages and disadvantages of business growth methods?
- SwiftServe serves premium buyers while launching a product; the case evidence includes labour productivity of ?3,704, sales of 709 units, and a 21% change in costs or demand. Which option best applies Discuss advantages and disadvantages of business growth methods?
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