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A Level Business Studies - Starbucks Ansoff Matrix and Porter's Generic Strategies

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Starbucks is an American coffee company and chain, first founded in Seattle in 1971. It started with more basic beverages but has since expanded and moved into new products – an act of diversification. This is important because the coffee industry is very crowded and so Starbucks has lots of companies to compete with. Although Starbucks’ market share of the U.S. coffee chain industry stands at a pretty might 39.8%, the brand still requires differentiation as it does not adopt a cost leadership or focus approach. For the Ansoff Matrix, Starbucks mostly stuck to market penetration in its early years to establish itself in the market. They gave customers the products they knew and loved: coffees, cappuccinos and espressos. They also write their customers’ names on the cup which gives service a more personal touch. The intention of this is to increase sales as customers become more satisfied with the service. The coffee shop market is very saturated for market penetr...
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A Level Business Studies - Responding to a fall in industry capacity utilisation

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Many car manufacturers are expected to respond to a fall in overall capacity utilisation in the industry by cutting prices. To what extent is cutting prices a good way for any business to respond to a fall in the overall capacity utilisation in its industry? Capacity utilisation is the percentage of total capacity that is actually achieved in a period of time. The extent to which cutting prices is a good way for a business to respond to a fall in capacity will depend on the price elasticity. This essay will look at whether it is good for all businesses or not. Cutting prices would lead to the product becoming more accessible. Reducing overall capacity utilisation means that the business will have higher costs as demand is lower; goods being sold will not have their revenue spread across the fixed costs. A Daihatsu car may work to combat this because a car is a luxury product and is price elastic, meaning that demand will change as the price does. A fall in selling price will mean...
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A Level Geography - TNCs and Globalisation Essay

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Assess the role played by TNCs in the globalisation process (12 marks) Transnational companies (TNCs) are companies that have parts of their business in different parts of the world. This can be due to a country having cheap, flat land and also because wages can be low for those who are employed by the business. Having workplaces abroad has both positive and negative effects which we be explored, and will be weighed up to make a judgement on the overall role TNCs play in the globalisation process. When a TNC invests in a less economically developed country or a developing country, it does so because it is able to benefit from cheap workers. Often, places do not have a minimum wage like the United Kingdom does, meaning that they can be worked hard by the company to ensure heightened efficiency. However, because costs are low initially, it means that profit will increase which means that the company can reinvest and expand their branch. This can have negative effects on th...
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A Level Business Studies - Leadership Style

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Introduction  This post will be looking at and exploring the management techniques of James Dyson (founder of Dyson) and Jeff Bezos (Amazon). James Dyson is a British inventor who founded the Dyson company. He invented the Dual Cyclone bagless vacuum cleaner, and is worth £5 billion. Dyson has machines in over 65 countries, and has over 1,000 engineers worldwide. They strive for more ideas and more invention every day. Jeff Bezos is the founder, chairman and CEO of Amazon.com. He is an American technology entrepreneur and investor who is worth 66.7 billion US dollars, making him the 3 rd richest person in the world on the Forbes list of billionaires. His company, Amazon, is the world’s largest online retailer and provides customers with products and services. Founded in 1994, Amazon was initially set up in Bezos’ garage, but ballooned in size due to the rapid growth of the internet. Leadership style James Dyson’s leadership style appears to be relaxed due to the inn...
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