Studied by 1 personbreak even
where total costs and total revenue are the same
cost plus pricing
adding a mark up of the cost to set a price
penetration pricing
setting a low price to get established in the market
competition based pricing
pricing based off of competitor pricing
predatory pricing
setting a low price until rivals go out of business
skimming
setting a high price initially and then lowering it later
loss leader
product sold below cost to draw in customers
boston matrix
2×2 matrix that describes products according to market share
star
high market share and high growth potential
cash cows
high market share but low growth potential
question mark
low market share but the market is growing
dogs
low market share and low growth potential
extension strategies
methods used to extend a product’s life cycle
public corporation
organisation owned and controlled by the government
examples of financial objectives for a business
survival
profit
financial security
increased market share
sales
examples of non financial objectives for a business
independence
personal satisfaction
challenge
multinational
large company that operates in at least two different countries
advantages of multinational companies
powerful marketing abilities
can exploit economies of scale
experienced staff
public limited company
a company where shares are freely sold and traded
advantages of a PLC
large amounts of capital can be raised
shareholders have limited liability
exploit economies of scale
disadvantages of a PLC
high set up costs
outsiders can gain control by buying shares
financial information has to be made public
Note
Flashcard