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Business A Level > Business Glossary > Flashcards

Business Glossary Flashcards

1
Q

Marketing

A

is about understanding customers and finding ways to provide products or services which customers demand

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2
Q

Mass market

A

largest part of a market, with many similar products on offer

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3
Q

Niche market

A

smaller segment of a market, where customers have specific needs and wants

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4
Q

Branding

A

the process of creating a unique and identifiable brand which differentiates a product/service or company from its competitors.

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5
Q

Market research

A

research carried out to identify the needs and wants of customers

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6
Q

Segmentation

A

Splits up a market into different segments to enable a business to target its products to the relevant customers.

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7
Q

Product differentiation

A

making the product different from its competitors

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8
Q

Marketing mix

A

Known as the 4ps. deals with the way in which a business uses price, product, place and promotion to market and sell its product.

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9
Q

Demand

A

the amount of a product that customers are prepared to buy.

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10
Q

Supply

A

quantity of a good/service that a producer is able to supply

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11
Q

Equilibrium price

A

the consumer cost assigned to some product or service such that supply and demand are equal, or close to equal

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12
Q

Subordinates

A

employee who ranks below another employee within the corporate hierarchy

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13
Q

Chain of command

A

the route through which messages are passed

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14
Q

Centralisation

A

when authority rests with senior management at the centre of a business

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15
Q

Organisational chart

A

shows the internal structure of an organization or company.

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16
Q

Span of control

A

number of subordinates a line manager is supervising

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17
Q

Hierarchy

A

arrangement and organization of individuals within a corporation according to power, status, and job function

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18
Q

Debt factoring

A

external, short-term source of finance for a business by selling their outstanding sales invoices to a third party (a factoring company) at a discount.

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19
Q

Creditor’s

A

individuals/entities that have lent money to another individual/entity

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20
Q

Contribution

A

difference between sales and variable costs of production

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21
Q

Capital.

A

the finance provided to operate over the long-term

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22
Q

Debtors

A

any entity that owes money to another because they have been provided with a service/good, or borrowed money from an institution.

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23
Q

Internal finance .

A

finance comes form inside the business

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24
Q

External finance.

A

source of finance comes from outside the business

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25
Q

Fixed assets (non-current assets) .

A

assets that the business has purchased and expects to keep in the business for more than one year.

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26
Q

Fixed costs

A

costs that do not change with output

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27
Q

Overdraft

A

allows the business to withdraw more money from the bank then in its account

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28
Q

Profit

A

the financial return or reward

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29
Q

Share capital

A

money invested in a company by the shareholders, its a long-term source of finance.

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30
Q

Trade credit

A

A business buys goods or services from a supplier and agrees to pay for them in 30 days

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31
Q

Venture capitalism

A

a form of investment for early-stage, innovative businesses with strong growth potential

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32
Q

Variable costs

A

costs that change with output produced

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33
Q

brand

A

A symbol, logo or design that is recognisable and distinguishes
a product from competitors

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34
Q

competition

A

The rivalry among sellers trying to achieve goals e.g.
increasing profits, market share, and sales volume

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35
Q

competitive market

A

When there are many rivals selling similar products

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36
Q

Competitor

A

A rival business operating in the same market offering similar
goods or services/an appropriate

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37
Q

direct competition

A

Businesses produce similar products that appeal the same
group of customers

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38
Q

dynamic market

A

A market that is subject to rapid/continuous change

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39
Q

indirect competition

A

Different businesses make or sell products that are not in direct competition but compete for the same customer experience e.g. Netflix & local cinema

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40
Q

innovation

A

The creation, development and implementation of a new
product, process or service

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41
Q

market

A

Where buyers and sellers interact

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42
Q

market growth

A

An increase in demand/sales for a particular product/service

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43
Q

market share

A

The % of the total market a business has in terms of volume or value

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44
Q

market size

A

The total amount of sales/customers in a market measured by value/volume

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45
Q

mass market

A

A large unsegmented market where mass appeal products are
on sale

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46
Q

niche market

A

A specialist area of the market/is a subset of the market on
which a specific product focuses. It is a smaller segment of a
larger market where consumers have specific needs and wants

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47
Q

online retailing

A

Selling goods and services on the internet

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48
Q

product innovation

A

The development/creation of products not previously available

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49
Q

sales volume

A

The quantity of a good or service sold within a period of time.
Calculation Sales revenue/selling price

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50
Q

uncertainty

A

The inability to predict/a lack of knowledge about future events
and outcomes/reasons for uncertainty. Is caused by unexpected often external factors outside the businesses control, even though sometimes these can be predictable

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51
Q

biased questions

A

Where the findings do not give a true reflection of the views of
the target audience on the product or service

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52
Q

consumer behaviour

A

Observes how consumers make decisions about how they
choose and use products or services

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53
Q

databases

A

An organised collection of data stored electronically with instant
access, searching and sorting facilities

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54
Q

Face-to-face
survey

A

A research method used where the interviewer communicates
directly with the respondent using a questionnaire

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55
Q

focus group

A

A group of people who participate in a discussion as part of market research to give feedback about a product or service

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56
Q

government data

A

Government publications that a business can use such as the
census of the population

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57
Q

interview bias

A

Where the opinion of the interviewer interferes with the
judgements of the interviewee

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58
Q

market orientation

A

When a businesses products/services are based around the needs and wants of the customer.

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59
Q

market reports

A

A document that contains info, stats, research and facts on a chosen field

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60
Q

market research

A

Gathering, presenting and analysing information about
products/customers

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61
Q

market segmentation

A

Dividing a whole market into particular customer groups that
have similar characteristics

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62
Q

market segments

A

An identifiable group of individuals/a part of the market where consumers share one or more characteristic or need

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63
Q

observations

A

Where market researchers watch the behaviour of customer

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64
Q

primary market research

A

Obtaining data first hand by the business to match the specific
needs of the business. It can also be known as field research

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65
Q

product orientation

A

When a business prioritises a products design quality or
performance rather than meeting customer preferences to guide production and marketing decisions

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66
Q

qualitative research

A

Market research collected relating to the opinions and beliefs of consumers . Data not presented numerically.

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67
Q

quantitative research data

A

Numerical information gathered and can be presented and
analysed using graphs, charts, table

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68
Q

respondent bias

A

When respondents respond inaccurately to a question for some reason

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69
Q

sample

A

A small group of people who must represent a proportion of a total market when carrying out market research

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70
Q

secondary market share

A

Data collected by another business or organisation but used by the business in question. Also known as desk research

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71
Q

segmentation

A

Dividing the market into groups of people with similar attributes
or common characteristics

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72
Q

social networking

A

A platform such as Facebook, X and YouTube to market a
businesses products/services

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73
Q

survey

A

A method of (primary) research used to collect information

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74
Q

test marketing

A

Trialling the product in a small area or to a limited number of
users to assess the suitability of a product

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75
Q

trade publications

A

Specialist magazines that look at current trends in the business
world

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76
Q

added value

A

The increase in value that a business creates when producing a product/service. The difference between the price the customer pays and the total cost of inputs needed to create a product

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77
Q

competitive advantage

A

A feature of a business and/or its products that enable it to
compete effectively with rival producers/products.

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78
Q

differentiation

A

Making products or services different or distinct from competing products/creating a USP

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79
Q

market mapping

A

A form of market positioning. It is the use of a 2-dimensional
diagram that plots products or services in a market using two
key variables. It is used to spot a gap in the market

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80
Q

market positioning

A

An effort to influence consumer perception of a brand or product, relative to the perception of competing brands or products

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81
Q

product differentiation

A

The act of distinguishing a product/service from competitors to make it more attractive to a particular target market

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82
Q

complementary goods

A

Products consumed/used together, so they are purchased
together

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83
Q

consumer income

A

The money earned/received from work/investments

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84
Q

demand

A

The quantity of goods/services that a consumer is willing to buy
at a given price and at a given time

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85
Q

demographics

A

The structure of the population such as age, gender and
geographical distribution

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86
Q

external shocks

A

Factors beyond the control of a business

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87
Q

seasonality

A

When demand rises or falls at particular times of the year
according to seasonal factors

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88
Q

substitutes

A

Goods that can be bought as an alternative to others, but
perform the same function

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89
Q

government subsidies

A

A payment given to producers, usually to encourage production
of a certain good

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90
Q

indirect taxes

A

Taxes imposed by the government on spending e.g. VAT and Excise duties. Responsibility for payment lies with the business.

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91
Q

supply

A

The amount that producers are willing/able to produce at a given price/over a given period of time

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92
Q

equilibrium price

A

The price where supply and demand are equal. Also known as market clearing price

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93
Q

non price factors

A

Factors other than price e.g. Change in consumer incomes,
advertising and seasonality

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94
Q

shortages in markets

A

Where demand exceeds supply

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95
Q

surplus in markets

A

Where supply exceeds demand

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96
Q

luxury

A

Goods that consumers like to buy if they can afford them eg air travel and fashion items

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97
Q

necessity

A

Basic goods that consumers need to buy eg food, electricity and water

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98
Q

price elastic

A

Demand is responsive to a change in price

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99
Q

price elasticity of demand

A

Measures the responsiveness of demand to a change in price. Always negative due to laws of demand.

100
Q

price inelastic

A

Demand for the product is less responsive proportionately to a change in price

101
Q

income elasticity of demand (YED)

A

Measures the responsiveness of changes in demand to changes in consumer income

102
Q

Inferior Good

A

When incomes increase there is a decrease in demand eg
budget goods

103
Q

marketing mix

A

A plan for using the right blend of product, price, promotion, and place in order to maximise sales

104
Q

social trends

A

Changing patterns in consumer behaviour reflected in changing demands e.g. increased use of social media/being
environmentally friendly

105
Q

aesthetics

A

Relates to the appearance of a product

106
Q

cost (design mix)

A

When the business focusses on being economically viable,
therefore they aim to minimise costs

107
Q

design for recycling

A

Producing products using materials that have been discarded as waste and recycled

108
Q

design for reuse

A

When materials used in the initial product are utilised again in the future beyond their initial intended use.

109
Q

design for waste minimisation

A

Reducing the quantity of resources that are discarded in the
production process

110
Q

design mix

A

The combination of factors needed in designing a product and include Aesthetics, Function, Economic Manufacture

111
Q

ethical sourcing

A

When a business buys materials that are produced with fair
working conditions/pay and minimum impact on the environment

112
Q

function

A

Relates to the quality and reliability of a product.

113
Q

rebranding

A

A marketing strategy in which a new name, term, symbol, design or combination is created for an established brand with the intention of developing a new, differentiated identity in the minds of consumers, investors, and/or competitors.

114
Q

resource depeltion

A

the using up of natural resources

115
Q

advertising

A

A paid form of communication, used by a business to raise
customer awareness of its products, services and brands, to
persuade purchases to be made

116
Q

customer loyalty

A

Repeat purchases with the same business/favour it over
competitors in the same market.

117
Q

digital communcations

A

electronic transfer of data

118
Q

direct marketing

A

Where a business mail out leaflets or letters to households

119
Q

emotional branding

A

The creation of brands that perhaps appeal to customers’
emotional nature, rather than their logical side.

120
Q

manufacture/corporate branding

A

Brands created by the producers of goods and services eg
Kellogg’s cornflakes (bear the producers name)

121
Q

own-brand

A

Products that are manufactured for wholesalers or retailers by other businesses e.g. Tesco Beans

122
Q

personal selling

A

Direct communication between a salesperson and the customer

123
Q

premium price

A

Charging a higher price than competitors because of customer loyalty that has been built up over a period of time

124
Q

product branding/ generic branding

A

Products that only contain the name of the product category
rather than the company or product name e.g. Carrots

125
Q

promotion

A

The way a business creates demand/awareness for their
product/service.

126
Q

public relations

A

An organisations attempt to communicate with interested
parties, usually through unpaid media such as press
conferences

127
Q

sales promotions

A

Methods of promoting products in the short term to boost sales

128
Q

social media

A

Websites and applications that enable users to participate in social networking.

129
Q

sponsorship

A

A company giving a product or money to support another
business or person

130
Q

USP

A

A feature that differentiates a product from its competitors

131
Q

viral marketing

A

Encouraging customers to share information/adverts through existing social media platforms e.g. Facebook

132
Q

competitive pricing

A

When a business sets a price similar to competitors selling
similar/rival products

133
Q

cost-plus pricing

A

A cost-based method for setting the prices of goods and
services and is calculated by adding a mark-up percentage to
the cost of the product

134
Q

penetration pricing

A

Setting a low price initially and accepting limited short-term
profits/losses in order to build market share before switching to a more profitable price

135
Q

predatory pricing

A

Setting a low-price forcing rivals out of the market. This is illegal in the UK

136
Q

price comparison websites

A

A website that compares the price of a particular product or
service in different stores or from different businesses

137
Q

price skimming

A

Setting a high price at the launch of a product, to gain the money back from R&D and to take advantage of those wanting to be the first people to purchase.

138
Q

pricing strategy

A

A method used by a business when deciding the price at which a product is sold for

139
Q

psychological pricing

A

Tactics that are designed to appeal to a customer’s emotional
response to prices

140
Q

channels of distribution

A

Methods used by businesses to get their products from
manufacture to consumer. It can include intermediaries such as wholesalers and retailers.

141
Q

distribution

A

Getting products to the right place for customers and at the right time

142
Q

distribution channels

A

The methods by which a product gets from the manufacturer to the consumer

143
Q

distribution strategy

A

A plan to get a product or service to the customer

144
Q

four stage distribution channel

A

Manufacturer/producer to wholesaler to retailer, then consumer. Examples include groceries and confectionery

145
Q

online distribution/ eccomerce

A

The use of electronic systems to sell goods and services

146
Q

place

A

Where the product can be purchased and is also the process of making a product or service available to the consumer

147
Q

product

A

A tangible item offered for sale

148
Q

service

A

The non-physical, intangible parts of our economy, as apposed to goods, which we can touch

149
Q

three stage distribution channel

A

Manufacturer/producer to retailer, then consumer. Examples
include electrical goods and cars

150
Q

two stage distribution channel

A

A direct marketing approach with no intermediary levels e.g.
Manufacturer/producer to consumer

151
Q

boston matrix

A

A method used to analyse the product portfolio of a business
that contains stars, Cash cow, question mark and dog

152
Q

business to business (B2B)

A

When a business promotes the sale of products/services to
other businesses for use in their operations

153
Q

business to customer (B2C)

A

Where a company targets to sell its products to individual
customers

154
Q

consumer loyalty

A

A preference for a product or brand based on experience and/or an emotional attachment, which inclines buyers to repeat purchases and away from rivals

155
Q

extension strategy

A

A plan that is aimed at preventing the decline stage of a
product/service’s sales in the medium-to-long term

156
Q

marketing objective

A

A goal the business aims to achieve through its marketing
activities

157
Q

marketing strategy

A

The methods used/plan/way chosen to achieve marketing
objectives

158
Q

portfolio analysis

A

When business considers each of its products in the context of its market position

159
Q

product life cycle

A

The stages that a product goes through from introduction to
decline

160
Q

product portfolio

A

The collection/range/ list of items/products produced/sold/
offered by a business

161
Q

collective bargaining

A

Negotiation of wages/conditions of employment between
employee representatives / trade unions and the employer

162
Q

dismissal

A

Referred to informally as firing or sacking. It is the termination of employment by an employer against the will of the employee.

163
Q

employer/ employee relations

A

The way in which a company’s management and its employees behave towards each other

164
Q

individual approach (employee relations)

A

When employers develop relationships with employees at an
individual level

165
Q

multiskilling

A

The process of increasing the skills of employees

166
Q

part-time employees

A

Workers that generally work a few hours or a few days a week. Fewer hours than a full-time employee.

167
Q

redundancy

A

When a business needs to reduce the size of its workforce or
even close. Redundancy can be voluntary

168
Q

staff as a cost

A

A cost to businesses in terms of recruitment, training,
remuneration, welfare and even severance

169
Q

staff as an asset

A

Employers recognise the input of employees as an important
business resource. They contribute to the value of output,
whether this is through providing added value to a product by supporting the manufacturing process or through effective customer service

170
Q

temporary work

A

The job position is generally for a limited period of time

171
Q

trade unions

A

A workforce representative that act to protect and improve the economic and working conditions for their members.

172
Q

external recruitment

A

When the business looks to fill the vacancy from outside of the business.

173
Q

induction training

A

Introductory training given to employees coering its background, policies, health and safety procedures

174
Q

internal recruitment

A

Selecting employees who already work within the business to fill job vacancies

175
Q

off the job training

A

When employees are given training away from their normal job environment, often in a classroom

176
Q

on the job training

A

Learning/gaining/developing skills whilst at work doing the job

177
Q

recruitment

A

The process of finding and selecting workers.

178
Q

training

A

The developing of a person, to enhance skills and knowledge.
Training can be on-the-job or off-the-job

179
Q

centralised structure

A

An organisational structure where business decisions are made at the top of the hierarchy by senior management/or at the headquarters of a business

180
Q

chain of command

A

The way authority and power is organised in an organisation

181
Q

decentralised structure

A

When a business allows branches to take more control/make
their own decisions

182
Q

flat organisational structure

A

One with few layers and a wider span of control for each
manager

183
Q

hierarchy

A

The order or levels of responsibility in an organisation, from the lowest to the highest

184
Q

matrix organisational structure

A

Organises employees from different disciplines or divisions into projects/teams

185
Q

organisation structure

A

A diagram that shows who is answerable to whom in an
organisation. It can also show vertical and horizontal
communication links

186
Q

span of control

A

The number of employees/subordinates that a manager is
responsible for

187
Q

tall organisational structure

A

One with many layers and a narrow span of control for each
manager

188
Q

bonus

A

A sum of money added to an employee’s wages/salary as a
reward for performance when they reach or exceed their targets

189
Q

commission

A

A payment to a worker based on a percentage of the value of
sales.

190
Q

consultation

A

Employees opinions/feedback are sought when making business decisions

191
Q

delegation

A

Authority to pass down from superior to subordinate

192
Q

empowerment

A

Giving official authority to employees to make decisions and to control their own work activities

193
Q

financial incentives

A

Monetary rewards used to help improve staff motivation and
achievement. They can include Piecework, commission,
bonuses, profit sharing and performance related pay

194
Q

flexible workforce

A

Employees have choice over how/when they work by agreement with the company. E.g. zero hours contracts, homeworking, parttime

195
Q

herzberg’s two factro theory

A

A theory of motivation that is split into two categories: Motivators and Hygiene factors

196
Q

job enlargement

A

Giving an employee more work to do of a similar nature,
horizontally extending their work role

197
Q

job enrichment

A

Giving employees greater responsibility and recognition by vertically extending their work role

198
Q

job rotation

A

The changing of jobs or tasks

199
Q

maslow’s hierarchy of needs

A

The order of people’s needs, starting with basic human needs

200
Q

mayo’s human relation theory

A

Emphasises the importance of the ways in which people interact and how they are treated. Motivation can improve when employees feel more involved

201
Q

motivation

A

The reason for people’s actions, willingness and goals.

202
Q

non-financial methods of motivation

A

Non-monetary rewards

203
Q

non-financial techniques

A

Ways of encouraging employees without the use of monetary
rewards e.g Delegation, consultation, empowerment, team
working, flexible working, job enrichment, job rotation and job enlargement

204
Q

performance-related pay

A

A financial reward to employees whose work is considered to
have reached a required standard

205
Q

piece rate

A

A payment system where employees are paid an agreed rate for every item produced

206
Q

profit-sharing

A

A form of financial incentive given to employees, where part of the profit of the business is shared amongst the employees

207
Q

taylor’s scientific management

A

Suggested a job could be broken down into constituent parts, so that the most efficient way of working could be calculated. He believes workers are motivated by money

208
Q

team working

A

Organising people into working groups that have a common aim

209
Q

working conditions

A

The physical surroundings and the atmosphere of the
workplace, and the way staff are treated by managers

210
Q

autocratic leadership

A

A leadership style where the decision-making is best kept with managers, who will direct subordinates with little consultation

211
Q

democratic leadership

A

A type of leadership style in which members of the group take a participative role in the decision-making process. Group members are encouraged to share ideas and communication is two ways

212
Q

leadership

A

Having a vision, sharing that vision with others and providing
direction

213
Q

Laissez-faire

A

A leadership style where employees are encouraged to make
their own decisions within certain limits

214
Q

managment

A

The day-to-day organisation of the business, including staffing.

215
Q

paternalistic leaders

A

Leaders that are in control, but take the welfare of employees into account when making decisions

216
Q

entrepreneur

A

Someone who organises a business venture by combining the other factors of production, namely land, labour and capital.They task risks to set up a business in hope of profit/reward

217
Q

entrepreneurship

A

The activity of setting up a business, taking on risks, normally in the hope of making a profit

218
Q

risk

A

Something an entrepreneur can essentially plan for. Probabilities of outcomes are known or at least understood or considered.

219
Q

entrepreneural characteristics

A

Qualities or traits demonstrated by an individual starting up and running a business

220
Q

entrepreneurial motive

A

Factors that drive a person to start a business

221
Q

ethical stance

A

in support of a moral belief that they believe in

222
Q

home working

A

Setting up a business from home

223
Q

independence

A

A desire to be their own boss

224
Q

product satisfaction

A

Making enough profit to satisfy the needs of the business owner

225
Q

social entrepreneurship

A

Setting up a business and showing concern for the local area

226
Q

business objective

A

A goal/target set by the business in the short/medium term to help achieve its aim/mission

227
Q

cost efficiency

A

Minimising costs/expenses/waste when producing a product or service

228
Q

customer satisfaction

A

Is a measurement of how satisfied a customer is with their
purchase

229
Q

employee welfare

A

Facilities and benefits provided by a business to meet the wellbeing of the employee

230
Q

profit maximisation

A

When the difference between sales revenue and cost is at its
greatest

231
Q

sales maximisation

A

An attempt to sell as much as possible in a given time period (or to generate as much sales revenue as possible)

232
Q

social objectives

A

A goal to benefit/improve the community

233
Q

survival

A

A short-term business objective that aims to keep the business running

234
Q

franchise

A

A business is buys the right to trade using the
brand/logo/business model of an existing firm in return for a
fee/royalty

235
Q

franchising

A

A type of business where a business operator (franchisor) allows others (franchisee) to trade under its name (for a fee)

236
Q

lifestyle business

A

A business set up with the aim of making no more than a set
level of income from which to enjoy a particular lifestyle

237
Q

partnership

A

A type of business ownership/organisation owned by two or
more people

238
Q

private limited company ltd

A

A small to medium sized business, usually run by the family thatowns it. Shares are sold to friends, family, and business
associates and it has limited liability.

239
Q

public limited company plc

A

A business with limited liability whose shares are publicly traded on the stock market

240
Q

social enterprise

A

a business that has aim/objectives which benefits society and isnot for profit/its profits are reinvested into the
business/community

241
Q

sole trader

A

A business that that is owned by one person who has unlimited liability

242
Q

stock market floatation

A

When a business sell shares publicly on the stock exchange for the first time

243
Q

opportunity cost

A

The next best alternative forgone when making a decision

244
Q

trade-off

A

A situation where having more of one thing leads to having less of something else

245
Q

leader

A

A person who inspires and motivates others to meet objectives

246
Q

salaries

A

A fixed regular payment to an employee

247
Q

wages

A

A payment made to the employee from the employer, usually paid on an hourly or daily basis

Business A Level (12 decks)

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