Business studies paper one NSC prep
Forward intergration - answer The business combines businesses with or take over its
distributions
Backward integration - answer The business combines business with or take over its
suppliers
Horizontal integration - answer A business incorporates other businesses in the same
industry which sell the same goods\services
Market penetration - answerNew products penetrate an existing market at a low
price,until it is well known to the customers and then the price increases
Market development - answerSells its existing products in new market
Product development - answerBusinesses aim to introduce new markets
Concentric diversification - answerAdds new product or service that is related to existing
products and new customers
Horizontal diversification - answerNew products or services that are unrelated to the
existing products
Conglomerate diversification - answerIncreases sales and reduces the risk of relying on
one product
Divestment - answerDisposes assets that are no longer profitable
Retrenchment - answerTermination of the employment contract for operational reasons
Liquidation - answerAll assets are sold to pay creditors due to lack of capital
Forward intergration - answer The business combines businesses with or take over its
distributions
Backward integration - answer The business combines business with or take over its
suppliers
Horizontal integration - answer A business incorporates other businesses in the same
industry which sell the same goods\services
Market penetration - answerNew products penetrate an existing market at a low
price,until it is well known to the customers and then the price increases
Market development - answerSells its existing products in new market
Product development - answerBusinesses aim to introduce new markets
Concentric diversification - answerAdds new product or service that is related to existing
products and new customers
Horizontal diversification - answerNew products or services that are unrelated to the
existing products
Conglomerate diversification - answerIncreases sales and reduces the risk of relying on
one product
Divestment - answerDisposes assets that are no longer profitable
Retrenchment - answerTermination of the employment contract for operational reasons
Liquidation - answerAll assets are sold to pay creditors due to lack of capital
