A-Level Business — Core Concepts & Strategy

Front

What defines 'Opportunity Cost' in business decision-making?

Back

The benefit that is lost or sacrificed when choosing one alternative over another. It is a key concept in evaluating business strategy, as the cost of an action is not just the financial outlay, but the value of the next best alternative foregone.

Front

Differentiate between 'Internal' and 'External' Stakeholders.

Back

Internal stakeholders (e.g., employees, managers, shareholders) operate within the organization and directly influence its daily operations. External stakeholders (e.g., government, suppliers, community) are outside the firm but are affected by or can affect its activities.

Front

Explain the 'Ansoff Matrix' strategic growth options.

Back

A strategic planning tool that outlines four growth strategies: 1. Market Penetration (selling existing products in existing markets). 2. Product Development (new products in existing markets). 3. Market Development (existing products in new markets). 4. Diversification (new products in new markets).

Front

What is 'Price Elasticity of Demand' (PED)?

Back

A measure of the responsiveness of the quantity demanded to a change in price. If PED > 1, demand is elastic (price-sensitive). If PED < 1, demand is inelastic. It is calculated as % Change in Quantity Demanded / % Change in Price.

Front

Compare 'Mass Marketing' with 'Niche Marketing'.

Back

Mass marketing aims for the whole market with a single product, benefiting from economies of scale but facing high competition. Niche marketing targets a specific segment with a distinct product, often allowing for higher profit margins and brand loyalty but limited scale.