Chapter 1 - Introducing Business's Flashcards
Business
A business is an organisation that provides goods and/or services to consumers in order to make a profit.
Profit
A Business makes a profit when the income earned (revenue) is greater than the costs of production (expenses).
Finished goods
Finished goods are those that are ready for customers to buy and use.
Market share
Market share refers to the business’s share of the total industry sales for a particular product.
Multinational corporation
A multinational corporation (sometimes referred to as a transnational corporation) is a company that has branches in many different countries.
Objective
An objective states what an organisation expects to achieve over a set period.
Economy
An economy is a system set up to determine what to produce, how to produce and to whom production will be distributed.
Economic growth
Economic growth occurs when the real value of goods and services increases over a set period of time.
Business environment
The business environment refers to the surrounding conditions in which the business operates. It can be divided into two broad categories: internal and external.
Internal environment
The internal environment, sometimes called the micro environment, includes those factors over which the business has some degree of control.
External environment
The external environment includes those factors over which the business has little control. It may be further divided into two categories: operating and macro.
Corporate culture
The corporate culture is a set of mostly unwritten or informal rules that spell out how people are to behave most of the time.
Policy
A policy is a general guide to help employees deals with recurring situations.
Operating environment
A business’s operating environment, sometimes called the task environment, refers to the specific outside stakeholders with whom the business interacts in conducting its business.
Stakeholder
A stakeholder is any group or individual who has an interest in, or is affected by, the activities of a business.
Suppliers
A business’s suppliers are those organisations and individuals that supply the resources that the business needs to conduct its operations.
Competition
Competition is rivalry among businesses that seek to satisfy a market.
Competitors
Competitors are businesses that offer rival products or services.
Sustainable competitive advantage
A sustainable competitive advantage is the ability of a business to develop strategies that ensure it has an ‘edge’ over its competitors.
Interest groups
Interest groups are groups of people who attempt to directly influence or persuade an organisation to adopt particular policies.
Macro environment
The macro environment is made up of the broad conditions and trends in the economy and society within which a business operates.
Workplace Diversity
Workplace diversity means the multitude of individual differences that exist among people in the workplace.
Business ethics
Business ethics is the application of moral standards to business behaviour.
Socially Responsible Management
Socially responsible management
is managing an organisation in such a way that the broader social welfare of the community is taken into consideration when making business decisions.
