Definitions 1.2 Flashcards
Recession
two or more consecutive quarters of negative growth
Sustainability
making something using materials that will still be around for future generations, perhaps because you are planting a tree for every one you fell
Capacity utilisation
this measure actual usage of your facilities as a percentage of the maximum possible
Corporate brand
a brand that represents the whole company as well as its products
Crowdfunding
obtaining external finance from many individual, small investments, usually through a web based appeal
Loss leader
pricing a product below cost in order to attract further, profitable business
Price sensitive
when customer demand for a product reacts sharply to a price change (that is, demand is highly price elastic)
Pricing tactics
short-term pricing responses to opportunities or threats
Barriers to entry
factors that make it hard for new firms to break into existing
Impulse purchasing
buying in an unplanned
Long tail
the huge number of tiny businesses appealing to minority tastes that can find a profitable existence online because they can target the whole planet, not just the local area
Opportunity cost
the cost of missing out on the next best alternative when making a decision (or when committing resources)
Wholesaler
the middleman between the producer and retailers, who breaks bulk down from container lorry-loads into manageable parcels, such as a case of 12
Cash cow
a product that has a high share of a low-growth market
Dog
a product that has a low share of a low-growth market
Rising star
High market share of a high growth market
Problem child
Low market share high market growth
Homogenous goods
these have no points of differentiation and therefore each one is the same as every other (making competition focus on price)
Zero-hour contracts
employment contracts that agree employee duties and hourly pay rates, yet offer no guarantee of any work (and therefore income) in any specific week
Flexible approach
an approach to operations that implies a move away from mass production to batch production, the ue of machinery that can be quickly reprogrammed to carry out a range of tasks, and the creation of a multi-skilled and flexible workforce that can quickly adapt to meet a firms changing requirements
Hot-desk
an approach that provides a temporary desk for home-workers to use when they come to the main office; they are not allowed to leave any of their own possessions there
Peripheral workers
those workers who are not seen as being central to a firms operations. They may carry out necessary tasks, but may be required only on a temporary basis and may be easily replaced
Subcontracting
where another business is used to perform or supply certain aspects of a firms operations
Hygiene factors
‘everything that surrounds what you do in the job’, such as pay, working conditions and social status; all are potential causes of dissatisfaction, according to Herzberg
