Business Studies: How can businesses grow?
GCE O Level/ IGCSE Business Studies: Business Expansion
There are several ways to grow a business. A business can expand through 1) horizontal merger, 2) vertical merger or 3) Conglomerate merger
1) A horizontal merger is when a firm merges with or takes over another one in the same industry at the same stage of production.
2) A vertical merger is when one firm merges with or takes over another one in the same industry but at a different stage of production. Vertical integration can be either forward- when a firm integrates with another firm that is at a later stage of production, or backward- when a firm integrates with another firm at an earlier stage of production, ie. closer to the raw material supplies.
A conglomerate merger is when one firm merges with or takes over a firm in a completely different industry, also known as diversification.
Over the weekend: New Discovery
Last weekend, I have discovered this stall that offer yummy-licious little pancakes located off PJ paramount. The name of the stall is called Little Lim's Penang Pancakes. The little pancakes are delicious and a great choice for an evening snack.
In fact, they have a variety of flavoring, such as Ham & Cheese, Chocolate & Peanut, Ham & Egg etc.
There was quite a long queue when I ordered my take-away. I was standing there waiting, and at the mean time, I can't help but to gaze at how he makes the pancakes. It was really efficient, as the he is using specialisation and division of labour to maximise the production method. He has a helper who assists him in taking orders and preparing the food, while he does the cooking.
Division of labour is when when the production process is split up into different tasks and each worker performs one of these tasks. It is also known as specialisation
Apparently, Little Lim's business is doing very well; he had expanded his business and opened a branch at Sunway.
For more the review of Little Lim, please click here
What kind of business expansion is this? (Hints: Vertical, Horizontal or Conglomerate)
Why do you think he had decided to grow his business in this way?
What would suggest to Little Lim on his future business expansion? Why?
Last but not least, a picture of my fantastic students, the class of Business Studies. The future young entrepreneur!
Joshua: we miss you in the Business Studies class; it would be even more fun with you around ;)
Cheerios
Dominic
There are several ways to grow a business. A business can expand through 1) horizontal merger, 2) vertical merger or 3) Conglomerate merger
1) A horizontal merger is when a firm merges with or takes over another one in the same industry at the same stage of production.
2) A vertical merger is when one firm merges with or takes over another one in the same industry but at a different stage of production. Vertical integration can be either forward- when a firm integrates with another firm that is at a later stage of production, or backward- when a firm integrates with another firm at an earlier stage of production, ie. closer to the raw material supplies.
A conglomerate merger is when one firm merges with or takes over a firm in a completely different industry, also known as diversification.
Over the weekend: New Discovery
Last weekend, I have discovered this stall that offer yummy-licious little pancakes located off PJ paramount. The name of the stall is called Little Lim's Penang Pancakes. The little pancakes are delicious and a great choice for an evening snack.
In fact, they have a variety of flavoring, such as Ham & Cheese, Chocolate & Peanut, Ham & Egg etc.
There was quite a long queue when I ordered my take-away. I was standing there waiting, and at the mean time, I can't help but to gaze at how he makes the pancakes. It was really efficient, as the he is using specialisation and division of labour to maximise the production method. He has a helper who assists him in taking orders and preparing the food, while he does the cooking.
Division of labour is when when the production process is split up into different tasks and each worker performs one of these tasks. It is also known as specialisation
Apparently, Little Lim's business is doing very well; he had expanded his business and opened a branch at Sunway.
For more the review of Little Lim, please click here
What kind of business expansion is this? (Hints: Vertical, Horizontal or Conglomerate)
Why do you think he had decided to grow his business in this way?
What would suggest to Little Lim on his future business expansion? Why?
Last but not least, a picture of my fantastic students, the class of Business Studies. The future young entrepreneur!
Joshua: we miss you in the Business Studies class; it would be even more fun with you around ;)
Cheerios
Dominic
