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2.1 - Coggle Diagram

- - - - SPICED - Strong,Pound,makes,Imports,Cheaper,and,Exports,Dearer
    - - Quotas- A limit on the amount of a certain product which a business can import to a country
      - Tariffs- A tax imposed on certain imported goods into a country (providing revenue to the government yet having a detrimental impact on some regional trades)
      - Trading Bloc(s)- A union of countries which have exclusive trading laws between them, making it easier for countries within the bloc to trade with each other.
        
        This can make trade outside of the bloc more difficult and can cause the countries economies to slow down as they are limited to who they can effectively trade with. (e.g UK leaving European Union)
        
        Promotes free trade (no tariffs) and labour within the bloc, possibly increasing economic productivity and reducing unemployment.
  - - - Allows customers to conveniently reach the business so does not require the business to set up physical stores in new markets- reducing potential costs of globalisation
      - Allows customers to reach the business 24/7 which accounts for time zones/differences- allowing trade to continue and thus increase.
      - Using social media if effective at reaching a large amount of people in a short space of time therefore increasing brand exposure in newer markets more rapidly- decreasing the time taken for the business to penetrate new markets
    - - If the business sells overseas it has to organise a courier service to deliver the product which can be expensive (for either business or customer) if there is large distance to travel.
  - - - Product- Depending on tariffs, trading blocs, demand or ability to export products the price of products might increase in respect to each market.
- - - - The business gains market share and puts pressure on competitors
      - The business uses its existing reputation to sell which can make initial sales increase (builds on their strengths)
      - Can be financed internally so less need for loans or greater equity loss (via profits)
      - Not very expensive and less risky
    - - Slow method so competitors could adapt more quickly (reducing the increase in market share)
      - Still limited by the market growth (e.g expansion in diesel cars will still be limited by the stigma and less people purchasing diesel cars)
      - Shareholders can become unhappy as their is less return on their investment (more profits are reinvested for the expansion)
    - - E-commerce/Technology
      - Launching new products
      - Entering a new market (e.g Volvo enter the electric car market)
  - - - Will probably benefit from economies of scale (the selling of more products will decrease the cost of manufacturing)
      - Potential for rapid growth or increase in market share
      - Able to merge/buy out competition
    - - Managers may be inexperienced in new industry
      - The business might conflict with the brew business' ethics or ideas causing a conflict of interests (e.g Body Shop and L'Oreal)
      - Expensive and risky with no guarentee that the growth will work
    - - Mergers- when two businesses combine to increase in market share
      - Takeovers- when a business buys another to increase market share
      - Integration
        
        Forward vertical- integrating towards retailers (e.g Cadbury's and sainsbury's)
        
        Backwards vertical- integrating towards suppliers (e.g Cadbury's and diary farmers)
        
        Horizontal- integrating within a market (e.g Cadbury's and Galaxy)
        
        Conglomerate- integrating outside of the market (e.g Cadbury's and Honda)
- - - - Employee dedication
      - Productivity
      - Out of date practices
    - - Lower employee productivity
      - New managment style
      - Different ethos (e.g Body Shop and L'Oreal)
    - - New skills needed
      - Lack of experience
  - - - Customer needs/wants changing (e.g people do not want to buy diesel cars)
      - Products becoming obsolete (e.g landline telephone)
      - Whether a market is growthing/in decline
    - - Can make products obsolete
      - Can make business practices (e.g manufacturing or market research) more efficient
    - - Practices become out of date
      - Higher costs (e.g HASAWA education)
      - Products need to be adapted