Important Definitions Flashcards
Marketing
The action or business promoting and selling products or services, including market research and advertising.
Research and development
Work directed towards the innovation, introduction and improvement of products and processes.
Finance
The management of large amounts of money, especially by governments or large companies.
Operations
In how the business operates and their objectives.
Objective
A goal that is set to be met in a short or long period of time.
Vision statement
A statement on where the business is heading.
Mission statement
Expresses why an organisation exists, it’s purpose and how it will operate.
Strategies
Are the actions that an organisation takes to achieve specific objectives.
Downsizing
When a business wants to downsize and have a smaller market and less employees and facilities.
Outsourcing
Is the contracting of some organisational operations to outside suppliers.
Internal environment
Includes all those things over which the organisation has some degree of control.
External environment
Includes those things over which the business has little control. It may be divided into an operating environment and a macro environment.
Operating environment
Refers to the outside factors with which the organisation directly interacts in the course of conducting its business.
Customers
Are the buyers or users of the product of a large scale organisation.
Suppliers
Are those organisations and individuals that supply resources to the organisation, allowing it to conduct its operations.
Competitors
Are other organisations that offer rival products or services.
Lobby groups
Are groups of people who attempt to directly influence or persuade an organisation to adopt particular policies.
Macro environment
Is made up of the broad factors in the economy and society within which the organisation operates.
Effectiveness
Is the degree to which an organisation has achieved its started objectives.
Efficiency
Refers to how well an organisation uses resources to achieve objectives.
Performance indicators
Are specific criteria used to measure the efficiency and effectiveness of the organisations performance.
Profitability
Is the ability of a business to make a profit.
Number of sales
Measures the number of products sold.
Percentage market share
Is the proportion of the total market that a business has, expressed as a percentage.
Rate of productivity
Measures the change in productivity in one year compared to the previous year.
Customer survey
Measures how satisfied the customers are with the organisations performance.
Staff survey
Measures how satisfied the staff are within the organisation.
Staff turnover
Measures the number of staff who are leaving the organisation.
Customer complaints
Indicate whether or not customers are satisfied with the performance of the organisation.
Level of wastage
Measures the amount of waste created by the production process.
Number of workplace accidents
Indicates how safe the workplace is for employees.
Benchmarking
Occurs when an organisation measures its performance against that of other leading organisations known for thief excellence.
Stakeholders
Are groups and individuals who interact with the organisation and gave an interest in its activities.
Social responsibility
Is the obligations a business has over and above its legal responsibilities to the wellbeing of employees and customers, shareholders and the community as well as the environment.
Ethical management
Refers to the process of abiding by moral standards and doing the right thing in the interests of all stakeholders.
Shareholders
Purchase shares in a company.
Management
Management has the responsibility of running a profitable or successful organisation.
Employees
Employees are vital to an organisation as they manufacture and produce the product that the organisation sells.
Profit
Revenue - expenses. This is money the the business has made which indicates that the business isn’t going backwards.
Human resources
The personnel of a business or organisation, regarded as a significant asset in terms of skills and abilities.
