Investigating Large Businesses IGCSE

What is the purpose of a company structure in a large business?

• To establish clear lines of authority, communication, and decision-making.

• To confuse employees with unnecessary bureaucracy

• To limit growth and innovation

• To create chaos and disorder within the organization

Explain the importance of market research for a large business.

• Market research is a waste of time and resources for large businesses.

• Large businesses already know everything about their target audience and competition.

• Market research is important for a large business to understand its target audience, competition, and industry trends, enabling strategic decision-making and effective product development and marketing campaigns.

• Market research is only important for small businesses, not large ones.

Define SWOT analysis and its significance in evaluating a large business.

• SWOT analysis focuses solely on weaknesses and threats, neglecting strengths and opportunities.

• SWOT analysis is a one-time assessment and does not need to be revisited regularly.

• SWOT analysis is crucial for evaluating a large business as it provides a comprehensive overview of the company's current position and helps in developing strategies to leverage strengths, mitigate weaknesses, capitalize on opportunities, and counter threats.

• SWOT analysis is only useful for small businesses, not large ones.

How is financial performance measured in a large business?

• Through key performance indicators (KPIs) such as revenue, profit margin, return on investment (ROI), earnings per share (EPS), and cash flow.

• Based on the number of social media followers

• By counting the number of office locations

• Through employee satisfaction surveys

Discuss the challenges and benefits of global expansion for a large business.

• Challenges include cultural differences, legal regulations, language barriers, and increased competition. Benefits include access to new markets, economies of scale, diversification of revenue streams, and potential for higher profits.

• Consistent consumer preferences worldwide

• No need for market research

• Minimal paperwork and bureaucracy

Why is corporate social responsibility important for large businesses?

• Large businesses do not need to worry about reputation or stakeholder trust.

• Corporate social responsibility is a concept that is only relevant for small businesses.

• Corporate social responsibility is important for large businesses because it helps enhance their reputation, build trust with stakeholders, attract and retain employees, mitigate risks, and contribute positively to society and the environment.

• Corporate social responsibility is not important for large businesses as it only adds unnecessary costs.

How does the company structure impact decision-making in a large business?

• The company structure impacts decision-making through marketing strategies, product development, and customer service.

• The company structure impacts decision-making through employee benefits, office location, and company culture.

• The company structure impacts decision-making through financial planning, budget allocation, and revenue forecasting.

• The company structure impacts decision-making through hierarchy, communication channels, and decision-making processes.

Give an example of a successful global expansion strategy by a large business.

• Starbucks global pricing strategy

• Amazon's exclusive product launches

• Coca-Cola's domestic market focus

• McDonald's localization strategy

What are the key components of a SWOT analysis for a large business?

• Strengths, Weaknesses, Opportunities, and Risks

• Strengths, Weaknesses, Opportunities, and Threats

• Strengths, Weaknesses, Opportunities, and Strengths

• Strengths, Weaknesses, Opportunities, and Challenges

Explain how corporate social responsibility can enhance the reputation of a large business.

• By engaging in unethical practices and corruption, which can damage the company's reputation

• By focusing solely on profit without considering social or environmental impacts, which can alienate stakeholders

• By showcasing commitment to ethical practices, sustainability, and community involvement, which leads to increased trust from customers, investors, and the public, ultimately improving the company's image and attracting more stakeholders.

• By ignoring environmental regulations and exploiting labor, which can lead to negative publicity and loss of trust