Definitions Flashcards
Adding Value
Selling a product for more than it cost to buy
Appraisal
A review of an employee’s performance
Apprenticeship
Paying employees to train while working
Asset
Something belonging to a business
Asset lock
A way of ensuring that the assets of a social enterprise are used for the benefit of the cause or community
Asset Stripping
Buying a company intent on selling off all the profitable parts of it
Autocratic leadership
Managers are fully in charge of decisions and command employees
Backward vertical integration
A business joining with another in an earlier sector of industry in the same market
Board of Directors
A group that manages a company and makes the main decisions
Boston matrix
A tool that analyses each part of a product portfolio in terms of market share and market growth
Capital intensive
Production using mostly machines
Cash Budget
A financial statement that looks ahead to the possible cash situation by subtracting future cash outflows from future cash inflows
Centralised management
Most control of a business retained at the top
Channel of distribution
The chain of businesses or intermediaries that products pass through until they reach the end customer
Charity
A third sector organisation that raises money to benefit others
CMA
Competition and Markets Authority is a Government department that enforces competition policy to ensure competition and fairness in markets
Conglomerate integration
A business joins a business in a completely different market
Co-operative
Democratically owned enterprise that aims to provide a service for its members
Core Activities
The main tasks of the business, often what it is best at or what is most profitable
Corporate culture
The ‘feel’ of business, what makes it unique to staff
CSR
Corporate Social Responsibility is when companies take responsibility for their effect on the environment or society
Decentralised management
Branch or department where managers have most control
Deintegration
Selling off parts of the business that has been vertically integrated
Delayering
Removing a level of management i.e. flattening the structure
Delegation
Giving subordinates a chance to do higher-level tasks they wouldn’t normally do
De-merger
A business splitting into two separate companies
Democratic leadership
Managers give employees a say in decision-making while remaining in charge
Divestment
Selling off an area of the business, e.g. a poorly performing branch
Downsizing
Removing staff from the business
Economic Cycle
The state of the economy and how, in general, well of customers are
Economic policy
Tools used by the Government to help control the economy, i.e. jobs, public funds, inflation, etc
Employee participation
Getting employees involved in decision-making e.g. works council
