Business location and growth
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教育者の方へ： Business location and growth（Business Studies、Business in the Real World）向けのすぐ使えるレッスンスライド, 復習ノート — レッスンで使うか、学習者がライブゲームとして遊ぶインタラクティブなクラス活動としてトピックを実施できます。
レッスンノート
Choosing a location
- Location factors include proximity to customers, relevant footfall, competition, premises costs, skills and wages, suppliers, transport, connectivity, infrastructure and applicable planning constraints. Cost and access matter differently for a retailer, manufacturer or online fulfilment business.
- Footfall is not the same as purchases. In the fictional two-site example, expected purchases = visitors × assumed conversion rate. Compare the resulting contribution after rent alongside other costs, uncertainty and qualitative considerations. Business rates are a tax on most non-domestic property in the England example; rules and relief differ by jurisdiction.
Location depends on business activity
Online and digital
- E-commerce can widen reach and allow orders outside shop opening hours, but it still requires marketing, payment handling, customer support and, for physical goods, storage, delivery and returns. Lower storefront costs do not guarantee lower total costs or profit.
- Physical location remains relevant to warehouse costs, transport links, suppliers, labour and connectivity. Online sellers can offer personal contact through support or video, while customers may have less chance to examine a physical product before purchase.
Why grow
- Growth may support higher returns, a larger customer base, market access or economies of scale, but these are potential benefits rather than guaranteed results. Expanding into different activities may spread some risks while adding unfamiliar ones.
- Measure growth explicitly using sales, capacity, outlets or another relevant indicator. Rising sales do not prove higher market share if the market grows faster, and larger revenue does not prove higher profit or adequate cash.
Internal (organic) growth
- Organic growth develops the existing business’s activity through products, markets, outlets or capacity rather than acquiring another business. It may be funded internally or externally, so the funding source does not determine the growth classification.
- It can build on existing systems and allow a chosen pace, but may take time and strain cash, staff or management. Ownership can change if new equity funds the expansion, so keeping control or having lower risk is not guaranteed. AQA GCSE groups franchising with organic expansion; follow the board’s stated convention.
Separate growth from its finance
External growth
- External growth combines businesses through merger or takeover. A classroom merger joins businesses by agreement without requiring equality; a takeover acquires control. Both may provide rapid access to resources but involve valuation, financing and integration risks.
- Horizontal integration combines firms in the same industry and stage, such as two bakeries. Vertical integration combines stages of the same supply chain: backward towards input suppliers and forward towards customers. Conglomerate integration combines unrelated activities.
- Franchising licenses a brand and system to independent operators, normally for fees, with support and standards requirements. It is not the same as buying a franchisee’s business or acquiring another company. Network expansion can use franchisees’ investment but still needs monitoring.
Relationships in business integration
Economies of scale
- Economies of scale are average-cost advantages from a larger scale of operation, such as purchasing discounts or more productive machinery. Technical equipment needs sufficient use; bulk buying can add storage and spoilage costs. Total costs may rise even while unit cost falls.
- In the fictional scale comparison, £10,000 ÷ 1,000 items = £10 each; £16,000 ÷ 2,000 = £8; £27,000 ÷ 3,000 = £9. The pattern illustrates potential economies then diseconomies, but the numbers alone do not prove a particular cause or represent measured data.
Average cost at different scales
Problems of growth
- Growth can require spending on stock, people or equipment before customers pay, causing cash strain. More sites or layers can make communication, coordination and motivation harder. These risks depend on how expansion is financed and managed.
- Assess expected benefits against full costs, cash forecasts, compatibility, resources and demand evidence. A takeover is suitable only where the opportunity and integration plan justify its risks; organic growth or delaying expansion may be better in another case. No method guarantees success.
Test a growth plan before choosing
スライド
練習問題
無料プレビュー — 35問中8問。すべて見るには登録を。
1.What is e-commerce?
Easy- Abuying and selling online
- Bselling in a shop only
- Cmaking products
- Dpaying tax
2.What is a merger?
Easy- Aone firm closing
- Ba share issue
- Ca loan
- Dtwo firms joining together
3.What is a takeover?
Easy- Aa firm closing
- Ba loan
- Cone firm buying control of another
- Dtwo firms joining equally
4.What is internal growth?
Easy- Afranchising only
- Bgrowing from within the business
- Cbuying another firm
- Dmerging
5.What is external growth?
Easy- Agrowing by merger or takeover
- Bgrowing from within
- Cshrinking
- Dclosing
6.What is franchising as growth?
Easy- Abuying a rival
- Bclosing branches
- Creducing prices
- Dlicensing a brand and business system to franchisees under agreements
7.What is a vertical merger?
Easy- Abetween unrelated industries
- Bbetween banks only
- Cbetween businesses at different stages of the same supply chain
- Dbetween firms at the same stage
8.What is a conglomerate merger?
Easy- Abetween banks only
- Bbetween businesses in unrelated activities
- Cbetween rivals
- Dbetween suppliers
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