key terms

Question 1

ADDED VALUE

Answer 1

Added value is the difference between the selling price and the cost price of a good or service. When a good or service is made more appealing, customers will usually be willing to pay more.

Question 2

BENCHMARKING

Answer 2

Benchmarking is to understand and evaluate the current position of a business or organisation in relation to best practice and to identify areas and means of performance improvement.

Question 3

BIG DATA

Answer 3

Big data is the process of collecting and analysing large data sets from traditional and digital sources to identify trends and patterns that can be used in decision-making.

Question 4

BRAND LOYALTY

Answer 4

Gaining loyal customers that wont leave your brand for another despite a incentive to.

Question 5

CAPITAL STRUCTURE

Answer 5

The capital of a business represents the finance provided to it to enable it to operate over the long-term. The capital structure refers to the balance of this finance in terms of how much is equity (or share capital) and how much is is in the form of debt.

Question 6

CONSUMER PRODUCTS

Answer 6

One way of categorising products is in terms of who the intended consumer or customer is. A broad distinction can be made between goods and services intended for use by individuals and households ( consumer products) and and for use by other businesses ( industrial products).

Question 7

CORE COMPETENCIES

Answer 7

Core competencies are those capabilities that are critical to a business achieving competitive advantage.

Question 8

DATA MINING

Answer 8

Data mining is the process of analysing data from different perspectives and summarising it into useful information, including discovery of previously unknown interesting patterns, unusual records or dependencies.

Question 9

FAIR TRADE

Answer 9

One of the driving forces behind Fair Trade was a desire to correct for market failures in industries for many primary sector commodities. These included the effects of monopsony power among transnational food processors and food manufacturers that often led to farmers in some of the world’s poorest countries receiving an inequitably low and unsustainable price for their products.

Question 10

FISCAL POLICY & MONETARY POLICY

Answer 10

Fiscal is the use of G&T to run either a budget surplus of deficit to encourage economic growth.
Monetary policy is the manipulation of interest rates to achieve the level of inflation the government sets.

Question 11

INTRAPRENEURSHIP

Answer 11

Established businesses often wish their employees and management were more “entrepreneurial”. In other words, they want people within an existing, established business to display the characteristics and traits associated with entrepreneurs.

Question 12

MARKET CAPITALISATION

Answer 12

Market capitalisation represents the total market value of the issued share capital of the company.

Question 13

MASS CUSTOMISATION

Answer 13

Production process involving mass production techniques where the output are somehow tailored to the customers design.

Question 14

MULTI-CHANNEL DISTRIBUTION

Answer 14

Multi-channel distribution involves a business using more than one type of distribution channel. Multi-channel distribution is increasingly common. For example, a high street retailer might now also distribute directly to customer using e-commerce and perhaps also using catalogues sent via direct mail.

Question 15

OFFSHORING

Answer 15

Offshoring involves the relocation of business activities from the home country to a different international location.

Question 16

OPPORTUNITY COST

Answer 16

THE NEXT BEST ALTERNATIVE FORGONE

Question 17

OUTSOURCING

Answer 17

Not having the all requirements to fully produce there services or products, i.e. a baker wouldnt grow all his own wheat and prodvue his own milk.