Exam Practise Flashcards
Internal economies of scale
Results from the increase in the scale of operations of the business/ benefits a company gets when it grows bigger or increases its production.
Geographical organisational structure
Structure based on geographical area in which each division is self-contained with its own functional areas.
Shareholders
An investor in the business seeking a return in the form of dividends and/or share price increase.
Price earnings ratio formula
Market share price/earnings per share
ROCE formula
Operating profit/capital employed x 100
Capital employed formula
Issued shares + reserves + non-current liabilities
Employee performance
How effectively and efficiently a worker carries out their responsibilities and duties within an organisation.
Off-the-job training
When employees receive training away from the usual workplace such as in training centers, workshops, etc.
Labour turnover
Rate at which employees leave an organisation and are replaced over a given period of time.
Corporate culture
The beliefs and behaviours that determine how a company’s employees and management interact
with each other and the outside world. Often referred to how things are done in a company.
Blue ocean strategy
The aim to combine product differentiation with low costs to develop new markets.
