Key Terms Flashcards
Absenteeism
Staff leaving
PED
Price elasticity of demand
YED
income elasticity of demand
Joint venture
A joint venture (JV) is a separate business entity created by two or more parties, involving shared ownership, returns and risks.
Merger
A merger is a combination of two previously separate firms which is achieved by forming a completely new firm into which the two original businesses are integrated.
Appropriable
Appropriable - re firms comp advantage should be so distinct it cannot be copied
Takeover
Involves an existing firm acquiring more than 50% of another firms and thereby gaining control of it
Product Portfolio
Assesses the position of each product or brand in a firms portfolio to help determine the right marketing strategy for each
liquidity
How easily assets can be turned into cash and used to buy things
Indirect competition
Different businesses make or sell products that are not in direct competition but compete for the same customer experience e.g Netflix and the local cinema
Product innovation
The development/creation of products not previously available
Market orientation
When a business’s products/services are based around the needs and wants of the customer - business needs to find out the needs and wants of the customers and respond to them/ meet customer requirements
Market segmentation
Dividing a whole market into particular customer groups that have similar characteristics
Product orientation
When a business prioritises a products design quality or performance rather than meeting customer preferences to guide production and marketing decisions
Trade publications
Specialise magazines that look at current trends in the business world
Added value
The difference between the selling price and the cost of inputs
