Important Definitions- Exams

Question 1

Human Resources

Answer 1

The human resource department is responsible for coordinating all the activities involved from acquiring to terminating employees of the organisation

Question 2

Marketing

Answer 2

The marketing department is responsible for the marketing mix, often referred to as the 4Ps (product, price, promotion and place)

Question 3

Research and Development

Answer 3

The research and development department is responsible for designing and developing new products

Question 4

Finance

Answer 4

The finance department is responsible for managing the financial aspects of the organisation

Question 5

Operations

Answer 5

The operations department is responsible for the production of the organisation’s product, whether it is a manufactured good or the provision of a service

Question 6

Objective

Answer 6

An objective is a desired goal, outcome or specific result that an organisation intends to achieve

Question 7

Vision Statement

Answer 7

The vision statement states what the organisation aspires to become

Question 8

Mission Statement

Answer 8

The mission statement expresses why an organisation exists, its purpose and how it will operate

Question 9

Strategies

Answer 9

Strategies are the actions that an organisation takes to achieve specific objectives

Question 10

Downsizing

Answer 10

Downsizing involves workplace staff reductions, with the elimination of jobs and positions

Question 11

Outsourcing

Answer 11

Outsourcing is the contracting of some organisational operations to outside suppliers

Question 12

Internal Environment

Answer 12

The internal environment includes all those things over which the organisation has some degree of control

Question 13

External Environment

Answer 13

The external environment includes those things over which the business has little control. It may be divided into an operating environment and a macro environment

Question 14

Operating Environment

Answer 14

An organisation’s operating environment refers to the outside factors with which the organisation directly interacts in the course of conducting its business

Question 15

Customers

Answer 15

Customers are the buyers or users of the products of a large-scale organisation

Question 16

Suppliers

Answer 16

suppliers are those organisations and individuals that supply resources to the organisation, allowing it to conduct its operations

Question 17

Competitors

Answer 17

Competitors are other organisations that offer rival products or services

Question 18

Lobby Groups

Answer 18

Lobby groups are groups of people who attempt to directly influence or persuade an organisation to adopt particular policies

Question 19

Macro Environment

Answer 19

The macro environment is made

up of the broad factors in the economy and society within which the organisation operates

Question 20

Effectiveness

Answer 20

Effectiveness is the degree to which an organisation has achieved its stated objectives

Question 21

Efficiency

Answer 21

Efficiency refers to how well an organisation uses resources to achieve objectives

Question 22

Key Performance Indicators

Answer 22

Performance indicators are specific criteria used to measure the efficiency and effectiveness of the organisation’s performance

Question 23

Profitability

Answer 23

Profitability is the primary goal of all business ventures. Without profitability the business will not survive in the long run

Question 24

Number of Sales

Answer 24

Number of sales measures the number of products sold

Question 25

Percentage of Market Share

Answer 25

Percentage of market share is the proportion of the total market that a business has, expressed as a percentage

Question 26

Rate of Productivity growth

Answer 26

The rate of productivity growth measures the change in productivity in one year compared to the previous year

Question 27

Customer Survey

Answer 27

A customer survey measures how satisfied customers are with the organisation’s performance

Question 28

Staff Survey

Answer 28

A staff survey measures how satisfied staff are within the organisation

Question 29

Staff Turnover

Answer 29

Staff turnover measures the number of staff who are leaving the organisation

Question 30

Customer Complaints

Answer 30

Customer complaints indicate whether or not customers are satisfied with the performance of the organisation

Question 31

Level of Wastage

Answer 31

The level of wastage measures the amount of waste created by the production process

Question 32

Number of Workplace Accidents

Answer 32

The number of workplace accidents indicates how safe the workplace is for employees

Question 33

Benchmarking

Answer 33

Benchmarking occurs when

an organisation measures its performance against that of other leading organisations known for their excellence

Question 34

Stakeholders

Answer 34

Stakeholders are groups and individuals who interact with the organisation and have an interest in its activities

Question 35

Social Responsibility

Answer 35

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

Question 36

Ethical Management

Answer 36

Ethical management refers to the process of abiding by moral standards and doing the ‘right’ thing in the interests of all stakeholders

Question 37

Employees

Answer 37

Employees are vital to an organisation as they manufacture or produce the product the organisation sells. The quality of the product depends on their skill and commitment to the process. Employees should be valued as members of the organisation by being paid fairly, trained properly and treated ethically

Question 38

Shareholders

Answer 38

Shareholders purchase shares in a company, so they are partial owners. Shareholders want the organisation that they have invested in to be profitable as they receive a proportion of the profits
(called dividends)

Question 39

Management

Answer 39

Management has the responsibility of running a profitable or successful organisation

Question 40

Profit

Answer 40

A financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something