Key Terms A - I Flashcards
Advertising
Paid for communication, aimed at informing or persuading
Assessment centres
Where a recruiting firm runs a series of extended selection procedures
Automation
The replacement of workers with machines to perform tasks in production
Boston matrix
A mod which analyses the product portfolio of a business into four categories (stars, cash cows, problem children, dogs)
Branding
The use of a trade name, symbol, logo or other device to differentiate a product or service
Budget
A detailed plan of income and expenditure expected over a certain period of time
Business to business (B2B)
Involves the selling of products and service by one business directly to another business
Capacity utilisation
The proportion of total capacity that is used (%)
Communication
The process of exchanging information or ideas or ideas between individuals or groups
Competition
The businesses that compete for a share of a market
Competitiveness
The ability of a business to offer a better product or service than other competitors
Cost reduction
Actions taken by a business, aimed at reducing total cost, or lowering average unit costs
Customer expectations
What customers expect to receive as a result of buying a good or a service
Customer service
The ways in which a business meets the needs and wants of its customers
Delegation
Where responsibility for carrying out a task or role is passed onto someone else in the business
Direct selling
A method of distribution which involves a business transacting with a customer without the use of intermediaries
Empowerment
Delegating power to employees so that they can make their own decisions
External recruitment
Where candidates for a job vacancy come from outside the organisation
(debt-) Factoring
A source of finance obtained by selling debt owed to a business to a third party
Favourable variance
A difference between actual and budgeted which is “good news” (e.g. Actual costs are lower than budgeted costs)
Flexible working
Where a business uses a number of different working practices in order to suit the job in hand and the needs of employees
Hierarchy
The structure and number or layers of management and supervision in an organisation
Induction training
Training aimed at introducing new employees to a business and its procedures
Adverse variance
A difference between actual and budgeted amounts which is “bad news” - e.g. Higher costs are incurred than what was budgeted
