business definitions Flashcards
market research
gathering info on how customers purchase goods and services and finding their wants and needs.
product oriented
focuses on developing the product
EOS
the reduction in average costs enjoyed by a business as output rises
Distribution
the route a product takes from producer or manufacturer to consumer.
specialisation
specialisation refers to when a business or country focussed on producing just one product or a narrow range of products.
poters generic strategy
porters generic strategies describe the different strategies a business may use in order to gain a competitive advantage over their rivals there are 2 generic strategies either lower costs or differentiation which can be applied to mass or niche markets
Productivity
The output per worker or per machine in a given time
capacity utilisation
the percentage of total capacity that is actually being achieved in a given period.
bus wants to operate at a capacity of 85 - 90%
motivation
factors that stimulate desire and energy in people to be continually interested and committed to their job,role or subject or to make an effort to attain a goal.
market oriented
focuses on target markets wants and needs.
differentiation
making product unique from competitors
market mapping
A visual illustration of how current businesses are preceived in a market.
What are the four elements of the marketing mix.
Price product place promotion
Market segmentation
Grouping together customers but similar characteristics
R&D prototype
First versions of a device From which others are developed
Design mix
creating a product or service that people desire to have that they can afford to buy ot and works reliably
Business plan
the business plan is a document that illustrates the thought process of the start up bus or the future planning of an established business
Sales forecasting
A sales forecast is an attempt to estimate the likely number of products that will be sold by the business or market over a future period
Breakeven
Number of units or customers a business needs to sell so the revenue matches the cost fixed+ variable.There is no profit or no loss.
Stock market floatation
when a ltd becomes a plc by selling its shares publicly on a stock exchange for the public to buy.
Interest
A fee paid for the use of another parties money to the borrower it is the cost of renting cash to the lender the income from lending it
Asset
something valuable than entity own benefits from a has use of it in generating income
Retained profit
profits that are reinvested back into the business rather than paid to shareholders as dividend
overdraft
An agreement with the bank where businesses can make payments from their bank account exceeding the available cash balance
Peer-to-peer funding
An agreement with the bank where businesses can make payments from their bank account exceeding the available cash balance
Business Angel /venture capital list
an investor who is willing to invest in high-risk high growth firms at a very early stage they also usually carry out the role of a mentor to entrepreneurs.
Crowd funding
The practice of funding a project venture by raising small amounts of cash from a large number of people via the Internet in return the funders get some form of award
share capital
The funds that a company raises in exchange for issuing an ownership interest in the company in the form of shares the owners are entitled to voting rights and a share of profits in the form of dividends
Leasing/higher
A process by which a firm can obtain the use of a non-current asset for which it must pay regular payments rather than purchasing the asset outright
lessor is the person who is the owner of the assets
Lesse is the receiver of the service or asset on the lesse contract
Grants
Is some of cash given by a government or other organisation for a particular purpose
Trade credit
An agreement between businesses and its supplier that allows the exchange of goods and services without any immediate exchange of cash it’s a buy now pay later business scheme
Unlimited liability
the business owner or owners are legally responsible for all of the debts of the business.
limited liability
the business owner or owners are only responsible for business debts up to the value of their financial investment in the business
PED
how consumers react to prices of good and services
YED
How consumers react to change and income
Organisational culture
The values and behaviour shared by people in the organisation, what they consider to be important in life and work. It is shared understanding and a way to act.
