Business Management (SL) Unit 1

Vision statement

A long term goal, a dream or understanding of what the future should look like

Mission statement

short statement on what they do to reach vision

Airbus vision statement

Airbus mission statement

Value

benefits of business for stakeholders involved

VC for

owners: entrepreneurship + ideas, consumers: payment + promotion, employees: development of quality products, feedback, suppliers: responsible employment enhances reputation, provide materials + delivery

VRB

owners: profits (income), c: goods/services, e: wages, working culture, development, s: fair wages, long-term contracts

economies of scale

lowering of production cost and

internal economies scale

technical economies (mass production), financial economies (lower rates of interest), managerial economies (specialization higher productivity), specialization economies (division of labor), marketing economies (selling in bulk), purchasing economies (buying resources in bulk), risk-bearing economies (spread fixed costs)

external economies of scale

technological progress, improved transportation networks, skilled labor, regional specialiization

internal diseconomies of scale

poor working relationships, productive productive efficiency, bureucracy, over-confidence

external diseconomies of scale

high rent, traffic

benefits of internal growth (business)

less expensive, less risky, more control, more respect of values

benefits of internal growth (social)

more products, employment, skill development, economic stability (mergers)

benefits of internal growth (ecological)

resource efficiency, lower logistocal emissions

limitations of internal growth (business)

limited resources, slower, need to restructure

limitations of internal growth (social)

brain drain, risk of layoffs, housing crisis

limitations of internal growth (ecological)

habitat disruption, waste generation

strategies of internal growth

increasing production, new products, new market, pay later, improved value for money

growth measurement methods

revenue, profit, market share, impact, creating opportunities for other business

strategies of external growth

mergers, franchising, joint venture, acquisition

benefits of external growth

potential for economies of scale, increased market reach, access to new tech

limitations of external growth

higher risk, culture clashes, risk of losing control