Stakeholder Mapping
Stakeholder Mapping in a Nutshell Stakeholder mapping is a visual tool that classifies stakeholders by their level of power and interest in a business. It helps managers decide who to prioritise and…
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9 min
Revision: Strategy
Strategy is the long-term direction of a business and the methods it uses to make major decisions about growth and competitiveness. It involves analysing internal and external factors using tools such as SWOT and PESTLE, evaluating options with decision trees, planning projects with critical path analysis, and assessing financial choices through investment appraisal. These tools help businesses reduce uncertainty, choose the best course of action, and achieve sustainable success.
Stakeholder Conflict
Stakeholder Conflict in a Nutshell Stakeholder conflict occurs when two or more stakeholder groups have competing interests that cannot all be satisfied at the same time. A business must then prioritise one…
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8 min
External Stakeholder
External Stakeholder in a Nutshell An external stakeholder is any individual, group or organisation outside a business that is affected by, or can influence, its activities. Common examples include customers, suppliers, the…
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10 min
Internal Stakeholder
Internal Stakeholder in a Nutshell An internal stakeholder is any individual or group that operates within a business and has a direct interest in its performance. Employees, managers, directors, and owners are…
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9 min
Stakeholders
Stakeholders in a Nutshell Stakeholders are individuals or groups who have an interest in a business and can be affected by its activities. They include employees, customers, shareholders, suppliers, the government and…
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9 min
Net Present Value
Net Present Value (NPV) is a financial method used to assess whether an investment is worthwhile by calculating the total value of future cash flows in today's money, minus the initial cost. A positive NPV means the project is expected to generate profit beyond the required rate of return, while a negative NPV suggests the investment should be rejected. It is one of the most reliable investment appraisal techniques studied at GCSE and A-Level Business.
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11 min
Average Rate of Return
The Average Rate of Return (ARR) measures the annual percentage profit a business expects to earn on an investment, relative to the initial cost. It helps businesses compare projects and decide where to allocate funds. ARR is popular because it is simple to calculate and easy to understand, but it ignores the timing of cash flows and can oversimplify complex investment decisions.
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11 min
Payback Period
The payback period measures how long it takes for an investment to repay its initial cost from the cash inflows it generates. It is one of the simplest methods of investment appraisal, favoured by businesses for its ease of calculation and clear focus on liquidity. The main advantages include simplicity and quick risk assessment, while key disadvantages are that it ignores profitability after the payback point and the time value of money.
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11 min
Decision Trees
Decision trees are visual diagrams used by businesses to map out choices, possible outcomes, and their financial consequences. They help managers compare options by calculating expected monetary values, reducing the risk of costly mistakes. This guide covers the definition, features, advantages, disadvantages, calculation steps, and evaluation of decision trees for GCSE and A-Level Business Studies students.
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12 min
Community Interest Company
A community interest company (CIC) is a special type of limited company designed to use its profits and assets for the benefit of a community rather than private shareholders. CICs must pass a "community interest test" and are regulated by the CIC Regulator. They can trade, earn profits, and pay staff, but face restrictions on profit distribution.
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10 min
Charity
A charity is a not-for-profit organisation that exists to serve a social, environmental, or humanitarian cause rather than to generate profit for owners or shareholders. Charities raise funds through donations, grants, and trading activities, then reinvest all surplus income back into their mission.
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11 min
Public Limited Companies
A public limited company (PLC) is an incorporated business that sells shares on a stock exchange to the general public. It must have a minimum share capital of £50,000, at least two directors, and a qualified company secretary. PLCs can raise large amounts of capital but face strict regulation, public scrutiny, and the risk of hostile takeovers.
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18 min