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AS Level Business Studies > Definitions > Flashcards

Definitions Flashcards

1
Q

Ansoff’s matrix

A

Shows the strategies that a firm can use to expand, according to how risky they are

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2
Q

Asset

A

Anything that a business owns

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3
Q

balance sheet

A

A snapshot of a firm’s finances at a particular time

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4
Q

barrier to entry

A

An obstacle that makes it harder for companies to enter a market

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5
Q

benchmarking

A

Identifying how to improve your business by comparing its performance, products and processes against those of another firm

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6
Q

big data

A

A term used to describe the vast quantities of data that can be collected from various sources

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7
Q

Blake Mouton grid

A

A grid used to define managers according to how much they care about employees and about production

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8
Q

Boston Matrix

A

A matrix that compares a firm’s products based on their market growth and market share

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9
Q

Bowman’s strategic clock

A

Shows position strategies based on different combinations of price and perceived added value/benefits

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10
Q

break even analysis

A

Identifies the point where a company’s total revenues equal its total costs

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11
Q

budget

A

Forecasts future earnings and future spending

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12
Q

capacity utilization

A

How much of its maximum capacity a business is using

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13
Q

capital

A

A company’s wealth in the form of money or other assets

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14
Q

capital expenditure (fixed capital)

A

Money used to buy fixed assets

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15
Q

Carroll’s Pyramid of CSR

A

This is a diagram showing four elements of CSR as layers in a pyramid

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16
Q

cash flow

A

Money that moves in and out of a business over a set period of time

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17
Q

centralisation

A

A way to structure a business where all decisions come from a few people

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18
Q

channel of distribution

A

The route a product takes from the producer to the consumer

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19
Q

competitive advantage

A

The way that a company offers customers better value than competitors do

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20
Q

confidence level

A

A percentage showing how confident you are that a value falls within a confidence interval

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21
Q

confidence interval

A

A range in which you can say, with a certain level of confidence, that a value lies

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22
Q

Consumer Price Index

A

This measures changer in price of a sample of consumer goods and services. It measures inflation

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23
Q

contingency plan

A

A plan preparing for an event that is unlikely to happen, just in case it does

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24
Q

contribution

A

The difference between the selling price and the variable costs of a product

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25
Q

core competence

A

A unique feature of a business that gives it a competitive advantage

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26
Q

corporate objectives

A

A goal of a business as a whole

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27
Q

corporate social responsibility (CSR)

A

A company’s contribution to society

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28
Q

correlation

A

The relationship between two variables

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29
Q

cost-push inflation

A

When rising costs push up prices

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30
Q

creditor

A

Someone who a business owes money to

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31
Q

critical path

A

In network analysis, the series of activates that is critical in the timing of the overall project

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32
Q

current ratio

A

A liquidity ratio that compares current assets to current liabilities

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33
Q

debt capital

A

The capital raised by borrowing (also called loan capital)

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34
Q

debtor

A

Someone who owes money to a business

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35
Q

decentralisation

A

A way to structure a business where decisions are shared across the company

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36
Q

decision tree

A

A method of analyzing the expected pay-offs of different business decisions

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37
Q

delayering

A

Reducing the number of levels in the hierarchy on an organization

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38
Q

demand-pull inflation

A

When rise in disposable income means there is too much demand for too few goods, leading to business increasing in prices

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39
Q

demographic change

A

A change in the structure of a population

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40
Q

depreciation

A

Loss of value over time - fixed assets often depreciate

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41
Q

developed country

A

A relatively rich country with a high GDP

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42
Q

developing country

A

A relatively poor country with a low GDP

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43
Q

dimensions of national culture

A

A model used to compare the differences in cultural values between different countries

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44
Q

director

A

A person responsible for running a company

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45
Q

discrimination

A

When one group of people is unfairly treated differently to others

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46
Q

diversification

A

Selling new products to new markets

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47
Q

divorce between ownership and control

A

When the owners of a company no longer have total control

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48
Q

earliest start time (EST)

A

In network analysis, the earliest time that an activity can possibly start

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49
Q

economic growth

A

The rate of increase in GDP

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50
Q

economies of scale

A

When the cost of producing each item decreases as the scale of production increases

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51
Q

economies of scope

A

When a single company can make two or more products more cheaply than they can be made by separate companies

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52
Q

elasticity of demand

A

Shows the relationship between changes in demand for a product and the change in another variable (such as price or income)

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53
Q

Elkington’s Triple Bottom Line model

A

A model that assesses performance by considering by considering three overlapping areas: profit, people and planet

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54
Q

embargo

A

A ban on trade with particular countries

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55
Q

emergent strategy

A

A form of strategy that develops over time, based on experience and changes in the environment

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56
Q

emerging economy

A

A developing country with a fast growing but not yet fully developed, economy

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57
Q

employment tribunal

A

A type of court which hears disputes between employers and employees

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58
Q

equity capital

A

The capital raised by selling shares

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59
Q

ethical

A

Morally and professionally acceptable

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60
Q

exchange rates

A

The value of one currency in terms of another

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61
Q

fiscal policy

A

The government’s method of adjusting tax rates and its spending to control the economy

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62
Q

fixed assets

A

An asset that a business keeps long-term or uses repeatedly

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63
Q

fixed costs

A

A cost that stays the same - no matter how much or how little a firm produces

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64
Q

flat structure

A

An organizational structure that has few layers of management

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65
Q

float time

A

The amount of time a non-critical activity can be delayed without delaying the completion of the entire project

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66
Q

force field analysis

A

A technique used to analyze forces for and against change

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67
Q

forecasting

A

Trying to predict what will happen in the future

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68
Q

franchising

A

An agreement which allows one business to use the name, knowledge and processes of an established business

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69
Q

functional objective

A

An objective of an individual department or business function

70
Q

gearing

A

The proportion of a business financed through debt rather than equity or reserves

71
Q

globalization

A

The increase in how interconnected the world is

72
Q

gross domestic product (GDP)

A

The total market value of goods and services produced within a nation over a period of time (usually a year)

73
Q

historical budget

A

A budget based on pervious budged

74
Q

Human Resource Management (HRM)

A

Looks after all the people-related aspects of a business - like recruitment and training

75
Q

income statement

A

Statement showing how much money’s gone into and out of a company over period of time

76
Q

inflation

A

An increase in the price of goods and services

77
Q

infrastructure

A

The basic facilities such as roads, railways, power lines, water pipes and communication network that allow society to function

78
Q

innovation

A

Coming up with new ideas, products and processes

79
Q

insolvent

A

Unable to pay debts

80
Q

interest rate

A

The fee paid for borrowing

81
Q

inventory

A

A business’s entire stock

82
Q

inventory turnover ratio

A

How many times a year a business sells and replaces all its stock

83
Q

just-in-time (JIT) production

A

Manufacturing process that operates with very small amounts of stock

84
Q

kaizen

A

A lean production method that involves encouraging everyone to constantly improve quality

85
Q

kanban

A

The system used in JIT production that triggers repeat orders

86
Q

Kaplan and Norton’s Balanced Scorecard model

A

A model that assesses performance using four different perspectives: financial, internal business process, leaning and growth, and customers

87
Q

labor retention

A

The proportion of staff that stay at a company for a given period

88
Q

labor turnover

A

The proportion of staff that stay at a company during a given period

89
Q

latest finishing time (LFT)

A

In network analysis, the latest time that an activity can finish without delaying the completion of the entire project

90
Q

lean production

A

Techniques that aim to reduce waste to an absolute minimum

91
Q

liability

A

A debt a business owes

92
Q

liquidity ratio

A

A ratio that shows whether a business has enough liquid assets to pay its short-term liabilities

93
Q

living wage

A

The amount of money thought to be enough to allow an acceptable standard of living

94
Q

margin of safety

A

The difference between break-even output and actual output

95
Q

market development (market extension)

A

Selling existing products to new markets

96
Q

marketing mix

A

The seven Ps firms use to market their products - the four traditional Ps (price, product, promotion, place) and the three extra Ps (people, physical environment, process)

97
Q

market mapping

A

A graph that compares two aspects of different products or bands in a market

98
Q

market penetration

A

Trying to increase market share in your existing market

99
Q

market share

A

The percentage of sales in a market made by one firm or brand

100
Q

Maslow’s Hierarchy of Needs

A

A way of considering employees’ needs in a job

101
Q

mass customisation

A

This combines aspects of bespoke production with the low costs of mass production

102
Q

matrix structure

A

A way of organizing staff by two different criteria, e.g into a combination of departments and teams

103
Q

merger

A

Where two companies agree to join together into one business

104
Q

migration

A

The movement of people from one place to another

105
Q

minimum wage

A

The lowest amount that someone can legally be paid

106
Q

mission statement

A

A written description of a company’s corporate aims

107
Q

monetary policy

A

The government’s method of controlling inflation, exchange rates and the economy by adjusting interest rates

108
Q

monopoly

A

When one business has complete control over the market. Lack of competition can lead to high prices and low quality

109
Q

multinational

A

A business with its headquarters in one country and bases in other countries

110
Q

net realizable value

A

The amount a company could get by selling its stock in its current state

111
Q

network analysis

A

A method of calculating the most efficient order in which to carry out a series of activities

112
Q

new product development

A

Selling new products to existing markets

113
Q

node

A

A feature of networks that shows where activities start or finish

114
Q

objective

A

A medium- to long-term target

115
Q

offshoring

A

When a firm has one or several of its activities carried out abroad

116
Q

opportunity costs

A

The idea that money or time spent doing one thing means missing out on doing something else

117
Q

organic growth

A

When a business grows from within, also know as internal growth

118
Q

organizational culture

A

The way things are done within a business, in relation to expectations, attitudes and how staff make decisions

119
Q

organizational design

A

The structure or hierarchy of a company

120
Q

outsourcing

A

When a firm has one or several of its activities carried out by another specialist company

121
Q

payable

A

Money that a business owes

122
Q

payables days ratio

A

The number of days it takes a firm to pay for goods bought on credit

123
Q

planned strategy

A

A form of strategy that involves all strategic planning being done before it is implemented

124
Q

Porter’s Five Forces Model

A

A framework for analyzing competition within an industry and judging how attractive the market is

125
Q

Porter’s strategic matrix

A

Identifies a competitive strategies that can be used to gain a competitive advantage: cost leadership, differentiation and market scope

126
Q

privatisation

A

When state-owned firms are sold to private companies

127
Q

product

A

A good or service

128
Q

productivity

A

The output per worker in a given time period

129
Q

profit

A

The difference between total revenue and total costs

130
Q

protected characteristic

A

The Equality Act 2010 makes it illegal to discriminate against people based on a protected characteristic, such as age, disability, pregnancy or religion

131
Q

protectionist policy

A

A policy designed to protect domestic businesses from foreign competition,(e.g. by using subsidies, tariffs or quotas)

132
Q

quality assurance

A

Measures that are introduced to the production process to ensure quality products

133
Q

quality circle

A

A meeting of a group of employees to discuss quality

134
Q

quality control

A

Checking goods as they are made to see if anything is wrong with them

135
Q

quota

A

A limit on the quantity of a product that can be imported or produced

136
Q

re-shoring

A

When a firm brings activities back to the country it is based in

137
Q

receivable

A

Money owed to a business

138
Q

receivable days ratio

A

The number of days a business has to wait to be paid for goods it supplies on credit

139
Q

recession

A

A temporary decline in a country’s economic activity

140
Q

regional structure

A

A way of organizing a business based on geographical location

141
Q

regulation

A

Government rules that apply to all firms in a particular industry

142
Q

retrenchment

A

When a business decreases in size

142
Q

return on capital employed (ROCE)

A

Shows you how much money is made by the business compared to how much money’s been put into the business

143
Q

return on investment (ROI)

A

A calculation of how efficient an investment is

144
Q

sanction

A

A restriction on trade with a particular country

144
Q

revenue

A

The value of sales (also called sales or turnover)

145
Q

scientific management

A

A method of management that makes sure every worker is doing the right job for them and in the right way to improve efficiency

146
Q

shareholder

A

A person that owns a share of a company

147
Q

single market

A

The countries in a single market have few trade barriers between them. This means goods and labor can move freely within the single market

148
Q

sole trader

A

A self-employed individual who trades under his or her own name, or under a suitable trading name

149
Q

stakeholder

A

Anyone with an interest in a business, including workers, shareholders and customers

150
Q

strategic drift

A

When a business’s strategy does not adapt to changes in the environment

151
Q

strategy

A

A medium to long-term plan for achieving a business’s objectives

152
Q

SWOT analysis

A

A method of assessing a business’s current situation - it looks at the strengths, weaknesses, opportunities and threats facing the business

153
Q

tactics

A

Short-term plans for implementing strategy

154
Q

takeover

A

Where one firm buys over 50% of the shares of another firm, giving them a controlling interest

155
Q

tall structure

A

An organizational structure that has many layers of management, with a strict hierarchy

156
Q

Tannenbaum Schmidt Continuum

A

A scale used to define managers based on the style of their decision-making

157
Q

tariff

A

A tax on imports or exports that is put in place restrict trade

158
Q

time series analysis (TSA)

A

Recording data over time to help identify trends

159
Q

total equity

A

The total money that is been put into a business by shareholder

160
Q

total quality management (TQM)

A

A system that involves the whole workforce having input into quality improvements

161
Q

trade bloc

A

A group of countries with few trade barriers between them

162
Q

trade union

A

A group that acts on behalf of a group of employees in negotiations with employers

163
Q

urbanization

A

An increase in the proportion of a population that lives in towns and cities

164
Q

variable cost

A

A cost that varies depending on how much business a firm does

165
Q

variance

A

The difference between a budgeted figure and actual figure

166
Q

venture capital

A

High-risk investment in a business, in the form of share or loan capital

167
Q

wage-price spiral

A

A cycle in which wage increases cause price increases, which then cause further wage increases, and so on

168
Q

working capital

A

Money available for day-to-day spending

169
Q

World Trade Organization (WTO)

A

An international organization which encourages trade between member countries. It deals with trade rules and negotiations

170
Q

zero-based budget

A

A budget that is based on the specific spending plan for the year ahead

AS Level Business Studies (2 decks)

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