Conditions that Prompt Trade

A push factor is a factor which pushes a business out of its own market into a new market, and a pull factor is a factor which pulls a business into a new market.

Push factors

Saturated markets are markets which are populated by many competitors and gaining new market share in these markets is difficult.
Saturated markets can force a business to grow outside of its current market.
When Facebook signed up almost everyone in the USA, it moved its focus towards developing nations like India.

Pull factors

Economies of scale refer to the reduction in the unit cost of production.
If a business enters a new market, its output increases, and it may benefit from economies of scale.
The benefit of economies of scale can pull a business towards a new market.
Risk spreading can pull a business towards a new market if it wishes to spread risk by operating in two or more different markets.

Off-Shoring, Outsourcing and a Product's Life Cycle

Off-shoring and outsourcing could be used to help a business expand.

Offshoring

Off-shoring refers to a business moving part of its operations overseas.
Off-shoring has advantages and disadvantages:
- Off-shoring can reduce a business’ costs. This increases competitiveness or profitability.
- Off-shoring can lead to quality problems if strict standards are not enforced.
For example, Ford used off-shoring to move its customer services division to India to reduce cost.

Outsourcing

Outsourcing refers to a business using the services of a third-party external supplier.
Outsourcing has advantages and disadvantages:
- Outsourcing can lead to increased quality if a third party has greater expertise than the business in a specific element of its operations.
- Outsourcing can lead to quality problems if strict standards are not enforced.
For example, many schools and hospitals outsource their IT network management as they lack the expertise to run these services securely and cost efficiently.

Life cycle

Selling in different markets can extend a product’s life cycle as a product may be declining in one market but be growing in another market.

1Exploring Business

2Marketing Campaigns

2.1Marketing

2.1.1Setting Marketing Objectives

2.1.2Customer Needs

2.1.3The Market

2.1.4Competition & The Market

2.1.5Consumer Behaviour

2.1.6Market Research

2.1.7Forms of Market Research

2.1.8Market Segmentation

2.1.9Cultural & Social Factors in Marketing

2.1.10Promotional Decisions 3

2.1.11Pricing Strategies

2.2Marketing Mix

2.2.1Marketing Mix

2.2.2Product Life Cycle

2.2.3Pricing Decisions & Price Skimming

2.2.4Pricing Decisions & Price Penetration

2.2.5Promotional Decisions

2.2.6Promotional Decisions 2

2.2.7Promotional Decisions 3

2.2.8Market Mapping

3Business Finance

3.1Sources of Finance

3.1.1Internal Finance

3.1.2External Finance

3.1.3External Finance 2

3.1.4Sources of Business Finance

3.2Financial Planning

3.2.1Revenue

3.2.2Costs

3.2.3Cash & Cash Flow

3.2.4Cash & Cash Flow 2

3.2.5Break-Even Analysis

3.2.6Profits

3.3Financial Statements

3.3.1Balance Sheets

3.3.2Income Statements

3.3.3Liquidity

4International Business

4.1Globalisation

4.1.1Growing Economies

4.1.2Specialisation & Trade

4.2International Business

4.2.1Internationalisation

4.2.2International Trade

4.2.3MNCS

4.2.4Conditions that Prompt Trade

4.2.5Assessment of a Country

4.3International Economic Environment

4.3.1Globalisation

4.3.2Factors Contributing to Globalisation

4.3.3Protectionism

4.3.4The EU & the WTO

4.3.5Trading Blocs

4.4Factors Affecting International Business

4.4.1Global Competitiveness

4.4.2Ethics of Global Business

4.4.3Controlling MNCs

4.4.4Cultural & Social Factors in Marketing

5Principles of Management

5.1Management & Leadership

5.1.1Managers

5.1.2Management Theories

5.1.3Managing Organisational Culture

5.1.4Management Style

5.2Theories of Motivation

5.2.1Motivating & Engaging Employees

5.2.2Taylor's Theory

5.2.3Mayo's Theory

5.2.4Maslow's Theory

5.2.5Herzberg's Theory

5.3Managing Change

5.3.1Change

5.3.2Key Factors in Change

5.3.3Scenario Planning

5.3.4Managing Change

5.3.5Managing Strategic Implementation

6Business Decision Making

6.1Business Principles & Practices

6.1.1Influences in External Environments

6.1.2Product Decisions

6.1.3Competitive Environment

6.1.4Corporate Strategy

6.1.5Quantitative Sales Forecasting

6.1.6Legislation

6.2Quality Management

6.2.1Importance of Quality

6.2.2Measuring Quality

6.2.3Total Quality Management

6.2.4Evaluating TQM

6.3Human Resources

6.3.1Contracts

6.3.2Recruitment

6.3.3Training a Workforce

6.4Documents & Business Decisions

6.4.1Sales Forecasts

6.4.2Managing Strategic Implementation

6.4.3Problems with Strategy

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