bus AS Flashcards
vocal
added value
the difference between cost of purchasing bought-in materials and the price the finished goods are sold for
opportunity cost
the benefit of the next most desired option which is given up
entrepreneur
someone who takes the financial risk of starting and managing a new venture
capital goods
the physical goods used by industry to aid in the production of other goods and services, such as machines and commercial vehicles
social enterprise
a business with mainly social objectives that reinvests most of its profits into benefiting society rather than maximising return to owners
public sector
comprises organisations accountable to and controlled by central or local government (the state)
private sector
comprises businesses owned and controlled by individuals or groups of individuals
mixed economy
economic resources are owned and controlled by both private and public sectors
free-market economy
economic resources are owned and controlled largely by private sector with very little state intervention
command economy
economic resources are owned, planned and controlled my the state
sole trader
a business in which one person provides permanent finance and, in return, has full control of the business and is able to keep all of the profit
partnership
a business formed by two or more people to carry on the business together, with shared capital investment and, usually shared responsibilities
limited liability
the only liability- or potential loss-a shareholder has if the company fails is the amount invested in the company, not the total wealth of the shareholder
private limited company
a small to medium -sized business that is owned by shareholders who are often members of the same family ; this company cannot sell shares to the general public
share
a certificate conforming part ownership of a company and entitling that shareholder owner dividends and certain shareholder rights
shareholder
a person or institution owning shares in a limited company
public limited company
a limited company often a large business, with the legal right to sell shares to the general public- share prices are quoted on the national stock exchange
memorandum
this states the name of the company, the address o the head office through which it can be contracted, the maximum share capital for which the company seeks authorisation and the declared aims of the business
articles of association
this document covers the internal working and control of the business- for example, the names of the directors and the procedures to be followed at meeting will be detailed
franchise
a business that used the name, logo and the trading system of an existing successful business
joint venture
two or more businesses agree to work closely together on a particular project and create a separate business division to do so
public cooperation
a business enterprise owned and controlled by the state- also known as nationalised industry
holding company
a business organisation that owns and controls a number of separate businesses, but dose not unite them into unified company
consumer goods
the physical and tangible goods sold to the general public- they include durable consumer goods, such as cars and washing machines, and non-durable consumer goods, such as food drinks and sweets that can be used only once
consumer services
the non-tangible products sold to the general public- they include hotel accommodation, insurance services and train journeys
creating value
increasing the difference between the cost of purchasing brought- I materials and the price the finished goods are sold for
triple bottom line
the three objectives of social enterprises; economic, social and environmental
revenue
total value of sales made by a business in a given time period
capital employed
total value of all long-term finance invested in the business
market capitalisation
the total value of a company’s issued shares
market. share
sales of the business as a portion of total market share
formular;
(total sales of the business/total sales of market)*100
internal growth
expansion of a business by means of opening a new branch or factory, well known as an organic growth
mission statement
a statement of the. business’s core aim, phrased in a way to motivate employees and stimulate interest by external groups
corporate social responsibility
this concept applies to those businesses that consider the interests of society by taking responsibility for the impact of their decisions and activities on customers, employees, communities and the environment
management by objectives
a method of coordinating and motivating all staff in an organisation by dividing its overall aim into specific targets for each department, manager and employee
ethical code( code of conduct )
a document detailing a company’s rules and guidelines on staff behaviour that must be followed by all employees
stakeholders
people or groups of people who can be affected by- and therefore have an interest in- any action by an organisation
stakeholder concept
the views that businesses and their managers have responsibilities to a wide range of groups, not just shareholders
manager
responsibility for setting objectives, organising resources and motivating staff so that the organisation’ s amis are met
leadership
the art of motivating a group of people towards achieving a common objective
autocratic leadership
a style of leadership that keeps all decision-making at the centre of organisation
democratic leadership
the leadership style that promotes the active participation of workers in taking decisions
laissez- faire leadership
a leadership style that leaves much of the business decision-making to the workforce- a hand off approach and the reverse of autocratic leaderhip
informal leader
a person who has no formal authority but has the respect of colleagues and some power over them
emotional intelligence (EI)
the ability of managers to understand their own emotions, and those people they work with, to achieve better business performance
motivation
the internal and external factors that stimulates people to take actions that lead to achieving a goal
self-actualisation
a sense of self-fulfilment reaches by feeling enriched and developed by what one has learned and achieved
motivating factors ( motivators )
aspect of workers’ job that can lead to positive job satisfaction, such as achievement, recognition, meaningful and interesting work and advancement at work
hygiene factors
aspects of a worker’s job that have the potential to cause dissatisfaction, such as pay, working conditions, status and over- supervision by managers
job enrichment
aims to use the full capabilities of workers by giving them opportunity to do more challenging and fulfilling work
time based wage rate
payment to a worker made for each period of time worked
piece rate
a payment to a worker for each unit produced
salary
the annual income that usually paid on a monthly basis
commission
a payment to a sales person for each sale made
bonus
a payment made in addition to the contracted wage or salary
performance-related pay
a bonus scheme to reward staff for above-average work performance
profit sharing
a bonus for staff based on the profit of the company-usually paid as a proportion of basic salary
Fringe benefits
benefits given, separate from pay, by an employer to some or all employees
job rotation
increasing the flexibility of employees and the variety of work they do by switching from one job to another
job enlargement
attempting to increase the scope of a job by brooding or deepening the tasks undertaken
job redesign
involves the restructuring of a job- usually with employees’s involvement and agreement- to make work more interesting, satisfying and challenging.
quality circles
voluntary groups of workers who meet regularly to discuss work-related issues and problems
worker participation
workers are actively encouraged to become involving in decision-making within the organisation.
team working
production is organised so that the groups of workers undertaken compete units of work
human resources management ( HRM )
the strategic approach to the effective management of an organisation’s workers so that they help the business gain a competitive advantage
recruitment
the process of identifying the need for a new employee, define the jot to be filled and the type of person needed to fill it and attracting suitable candidates for the job
selection
involves the series of steps by which the candidates are interviewed, tested and screened for choosing the most suitable person for vacant post
job description
a detailed list of the key point about the job to be filled- stating the tasks and responsibilities
person specification
a detailed list of the qualities, skills and qualifications that a successful applicant will need to have
employment contract
a legal document that sats out the terms and conditions governing a worker’s job
labour turnover
measures the rate at which employees are leaving an organisation. it is measured by;
( number of employees leaving in 1 year/aveage number of people employed )*100
training
work-related education to increase workforce skills and efficiency
induction training
introductory training programme to familiarise new recruits with the systems used in the business and the layout of the business site
on-the-job training
instruction at the place of work on how a job should be carried on
off-the-job training
all training undertaken away from the business, e.g. work-related college courses
employee appraisal
the process of the assessing the effectiveness of an employee judged against pre-set objectives
dismissal
being dismissed or sacked from a job due to incompetence or breach of discipline
unfair dismissal
ending a worker’s employment contract for a reason that the law regards as being unfair
redundancy
when a Job is no longer required, the employee doing this job becomes unnecessary through no fault of their own
work-life balance
a situation in which employees are able to give the right amount of time and effort to work and to their personal life outside work, for example to family or other interests
equality policy
practices and processes aimed at achieving a faire organisation where everyone is treated in same way and has the opportunity to fulfil their potential
diversity policy
practices and processes aimed at creating a mixed workforce and placing positive value on diversity in the workplace
marketing
the management task that links the business to the customer by identifying and meeting the needs of customers profitably- it does this by getting the right product at the right price to the right place at the right time
marketing objetives
the goals set for the marketing department to help the business achieve its overall objective
marketing strategy
long-term plan established for achieving marketing objectives
market orientation
an outward-looking approach basing product decisions on consumer demand, as established my market research
( happens after product orientation )
product orientation
an inward-looking approach that focuses on making products that can be made or have been made for a Lon time - and then trying to sell them
(produce large number and get the cheaper price
= good quality+cheap
problem: over production)
asset-led marketing
an approach to marketing that bases strategy on the firm’s existing strengths and assets instead of purely on what the customers wants
societal marketing
this approach considers not only the demands of consumers but also the effects on all members of the public (society) involved in some way when firms meet these demands
demand
the quantity of a product that consumers are willing and able to buy at a given price in a time period
supply
the quantity of a product that firms are prepared to apply at a given price in a time period
equilibrium price
the market price that equates supply and demand for a product
market size
the total level of sales of all producers with a market
market growth
the percentage change in the total size of a market (volume or value) over a period of time
market share
the percentage of sales in the total market sold by one business. this is calculated by
(firm’s sales in time period/ total market sales in time period)*100
direct competitor
businesses that provide the dame or very similar goods or services
USP-unique selling point
the special feature of a product that differentiates it from competitors’ products
product differentiation
making a product distinctive so that is stands out from competitors’ perception
nich marketing
identifying and exploiting a small segment of a large market by developing products to suit it
mass marketing
selling the same products to the whole market with no attempt to target groups within it
market segment
a sub-group of a whole market in which consumers have similar characteristics
consumer profile
a quantified picture of consumers of a firms’s products, showing proportions of age groups, income levels, location, gender and social class
market research
this is the process of collecting, recording and analysing data about customers, competitors and the market
primary research
the collection of first-hand data that is directly related to a firm’s needs
secondary research
collection of data from second-hand sources
qualitative research
researching the in-depth motivations behind consumers buying behaviour or opinions
quantitative research
research that leads to numerical results that can be statistically analysed
focus group
a group pf people who are asked about their attitude
towards a product, service, advertisement or new style of packaging
sample
the group of people taking part in a market research survey selected to be representative of the overall target market
random sampling
every member of the target population has an equal chance of being selected
systematic sampling
every nth item in the target population is selected
stratified sampling
this draws a sample from a specified sub-group or segment of the population and uses random sampling to select an appropriate number from each stratum
quota sampling
when the population has been stratified and the interviewer selects an appropriate number of respondents from each stratum
cluster sampling
using one or a number of specific groups to draw samples from and not selecting from the whole population, e.g. using one town or region
open questions
those that invite a wide- ranging or imaginative response - the result will be difficult to collate and present numerically
closed questions
questions to which a limited number of per-set answers is offered
