Economies of Scale -  refers to the cost advantages that businesses achieve due to size and scale or efficiency of their operation. 

How to increase Economies of Scale - Investing in more efficient machinery or technology to produce at a larger scale, hiring specialized managers to improve efficiency in different departments, buying raw materials at a discounted rate and accessing better loans.

Diseconomies of Scale - Growing too large leads to inefficiencies and increased unit per cost.

Causes of Diseconomies of Scale - Managerial inefficiencies, loss of employee morale, overextension of resources, and bad communications.

Internal Growth (Organic Growth) - This occurs when the company grows itself.

External Growth (Inorganic Growth) - This occurs when the overall industry grows, benefiting the company.

Merger - This is the combination of two or more companies to combine into one. This is typically to increase market share or obtain more efficiency.

Acquisition or Takeover - One business takes control over another one by buying enough shares in the company to gain control of it. It can happen either with or without consent of the company.

Strategic Alliance - This is a formal agreement between two or more companies to work towards a common goal both are trying to achieve.

Franchise - This is a business model in which the company grants permission for other people to operate a business using the franchisor’s brand.

Globalization - this is the process by which businesses, cultures, or technologies become interconnected and interdependent. This involves the integration of different markets and production.

Multinational Corporation (MNC) MNC is a company that operates in multiple countries beyond its home company (where its HQ is).

Benefits of becoming a Multinational Corp - Corporations gain access to new markets, increased profitability, tax benefits, and access to cheaper resources.

Drawbacks of becoming a Multinational Corp - Some drawbacks include more competition in the market, higher operation costs, environmental and social responsibilities, and different security risks.

Benefits of Free Trade and Globalization - Some benefits of free trade and globalization are lower prices for consumers, access to larger markets, more job creation, and more economic growth. 

Impact on host countries of multinational companies - There are some positive impacts like cost advantages and more infrastructure development but there are also some negatives like regulatory challenges and economic vulnerability.

Stakeholder - Any individual, group, or party that has an interest in an organization and the outcomes of its actions.

Shareholder - A person or institution that has invested money in a corporation in exchange for a “share” of the ownership

Internal Stakeholder Examples - Employees, suppliers, investors, executive officer, creditors, customers, board members, managers owners, trade union

External Stakeholder Examples - Customers, communities, employees, organization, regulatory bodies, investors, suppliers, trade union, business stakeholders, project managers, government, shareholders

STEEPLE- what does it stand for? - Social, technological, economic, environmental, political, legal, and ethical

What is the purpose of a STEEPLE analysis? - Measure external factors of the business environment to predict economic growth

SWOT- what does it stand for? - Strengths, weaknesses, opportunities, and threats

What are internal factors in a SWOT? - Financial and human resources, tangible and intangible (brand name)assets, and operational efficiencies

What are external factors in a SWOT? - Supplier operations, tenders and grants, competitors, politics, the social and natural environment global trade, financial markets

What does CSR stand for? - Corporate social responsibility

How does CSR relate to a company’s ethical code? - Companies voluntarily uphold accountability to themselves, stakeholders, and the wider community 

What are the benefits of companies setting ethical objectives? - Positive work environment and employee morale.There’s a strong correlation between ethical practices, a positive work environment, and high employee morale. Employees tend to feel more satisfied and motivated when they work for a company that has a strong ethical framework. 

What are potential drawbacks of companies setting ethical objectives? - They can reduce a company's ability to maximize profits. For example, having factories in developing countries can reduce costs, This is because companies can have practices in place, such as child labour and low wages, which help to maximize profit. 

Why have we seen changes in CSR? - A big change for CSR would be social media because the rise of social media has made it so information spreads rapidly, consumers can easily share their experiences with the product.

Sole Proprietorship - Someone who owns an unincorporated business by themselves

Partnership - An arrangement between two or more people to oversee business operations and share its profits and liabilities

Private Limited Company - An organization owned by shareholders who have each invested a sum into the business

Public Limited Company - A company that has limited liability and has offered its shares to the general public

Charity - An organization whose primary objectives are philanthropy and social well-being

NGO - Non-governmental organization

Cooperative - A user-owned and controlled business from which benefits are derived and distributed equita-bly on the basis of use or as a business owned and controlled by the people who use its services

Social Enterprise -A business designed to achieve specific social objectives as its primary purpose

Microfinance Company - A type of banking service provided to low-income individuals or groups who otherwise wouldn’t have access  to financial services

Triple Bottom Line - A sustainability framework that revolves around the three P’s: people, planet and profit.