My Big Fat Revision

How many countries make up the European Union (EU)? 28 Identify and explain three benefits of the EU for UK businesses. 1.      The business will increase in market size – as a result of freedom of movement of goods and services. UK businesses can sell to any of the other fourteen countries without facing extra costs or restrictions on the types of products they can sell. 2.      Greater access to cheap factors of production – raw materials, technology and labour. They can employ from any part of Europe. The NHS is an example of this as they get skilled doctors and nurses when they have had shortages. 3.      Lower administration costs to trade – do not have to pay extra money to send goods abroad, other than normal transport costs. Explain the significance of a free trade area and a customs union, such as that provided by the EU, for a business, based in the UK that buys its supplies from busi...

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...