Chapter 2 Flashcards
Business Plan
It is a planning tool/report drafted by a business to show how
businesses set out to achieve its aims and objectives
Economies of Scale
It refers to lower average costs of production as a firm operates on a large scale due to improvement in productive efficiency.
Joint Venture
A business arrangement where two or more businesses (parties) agree to pool resources for a specific task or project
Strategic Alliance
It is same as joint venture except that each of the businesses
remain as independent organisations
Merger
Integration of two or more businesses to form one single
company.
Takeover
It occurs when a company buys a controlling interest in another
company.
Vertical Integration
This takes place between businesses that are at different
stages of production.
Horizontal Integration
This occurs when there is integration of firm that operates in the same industry.
Conglomerate
This refers to the integration of two firms that are completely
in different markets.
Franchise
It is a form of business whereby a person or business buys a
licence to trade using another firm’s name, logo, brand and trademarks.
Workforce Planning
This is the management process of anticipating an organisation’s
current and future staffing needs.
Recruitment
This is the process of stimulating candidates to apply for a job in a given organisation.
Selection
It is the process of eliminating candidates who do not satisfy the needs of the organisation
Job Description
It is a document that outlines the details of a particular job such as the job title, the roles and duties to be undertaken
Job Specification
It is a business document that gives the profile of an ideal
candidate in terms of skill, qualification and experience required for the job.