Key Terms Theme 2 Flashcards
Research and development
Research into new products or processes and developing the ideas that are generated from research
Innovation
The act of creating new products or processes
E- Commerce
Using the internet to carry out business transactions
Merge
When two or more businesses join together to operate as one business
Takeover
When one business buys another business and incorporates it into their own business
PLC
Public limited company
Can sell shares to the company
Multinational
A business with operations in more than one country
Aka a multinational corporation
Assets
Items owned by a business such as premises, equipment or stock
Interest
The cost of borrowing , or a percentage of the amount of money borrowed to the original amount borrowed
Secured
Guaranteed, because if the business fails to pay back the money the bank can take the asset and sell it.
Dividends
A percentage of a business’s profits that is paid to shareholders as a reward for their investment in the business
Stock market flotation
The process of changing a business to a PLC by issuing shares for a sale on a stock exchange
Stock exchange
A place where shares in PLCs can be bought and sold
Degree of competition
The number and size of business competing in a particular market
Market share
The proportion of sales in a market that are taken by one business
Culture
The general attitudes, behaviour and beliefs of a business and it’s general workforce.
Retrenchment
When a business downsizes the scales if it’s operations by reducing the number of employees or closing down less profitable branches
Organisational structure
The way in which the workforce is organised, usually a hierarchy with people reporting to mangers all the way up to the CEO
Product portfolio
The range if goods and services offered by any one business
🟡promotional campaigns can be made more effectively to advertise a range of products
🟡customer / brand loyalty can be encouraged to buy different products
Globalisation
Hen businesses operate on an international scale and gain international influence or power
Imports
The flow of goods and services into a country from another country
Exports
The flow of goods and services out of a country to another country
Domestically
at home or within a business’s home or country
Tariff
A tax imposed by a country in imported and exported goods and services
- aimed to reduce the demand for imported goods, and therefore increase the demand for exported goods
Protectionist measure
an action taken by a government to reduce the flow of imports into the country
Trading bloc
A group of countries that agree to act together to promote trade between themselves
* encouraging trade between certain countries
Localise
Adapted to suit the local area and it’s needs, particularly in terms of culture, language or geographical location
Ethics
Moral principles of moral standards that guide the behaviour of a person or a business
Stakeholder
Anyone who has interest in the activities of a business, such as it’s workers, it’s suppliers and the government
Trade off
A balance between two different or opposing objectives, such as making a profit and spending money on ethical activities that will enhance the business’s reputation
Profit margin
The proportion of revenue left over after costs have been deducted
Sustainability
Acting your ensure that natural ewig es are used responsibly, to protect the environment for future generations
Finite resources
A source that doesn’t renew itself quickly enough to meet societ’s consumption
Green audit
a detailed review of a business’s impact on the environment, either conducted by the business itself or by an independent organisation
Pressure group
A group of people who join together, who try to influence government policy or a business policy for a particular cause
Boycott
Refusal to buy or interact with a particular business or organisation
Viral marketing
Using online Channels or social media to spread a campaign message by encouraging people to share is with their friends
Lobbying
Trying to influence businesses or other organisations
What is the importance of differentiating a product/service?
Pricing strategies
🟣high volume pricing strategy
🟣high margin pricing strategy
Aesthetics
The visual attractiveness of somthing
Viable
Cable of working or succeeding
Product portfolio
The range of goods and services öfters by a business
Economies of scale
Average cost of unit decreases as business increases the amount of product that it produces, distributes and sells
Mass market
A large market where customers have similar needs and characteristics
Generic
A characteristic relating to an entire group, not specific
Nice market
Customers have very specific needs and characteristics
Emotive language
Language intended to addict people At an emotional level
Medium
The way in which something can be communicated
Stock
The products held by a business in a shop or a warehouse for sale to customers
Viral advertising
Advertising using social networking to increase sales or boost brand awareness
E- Commerce
Using the internet to carry out business transactions
Retailing
Selling products or services to customers (in a physical shop)
E -tailing
Retailing to customers through the internet, such as E commerce website
Markup
The amount of money added to the cost price of a product or service to make the final retail price
Patent
A Legal protection of an invention , design or idea , meaning that it is illegal for another company to copy it
Bespoke
Designed and made for an individual customer
Procurement
The process of managing a business’s major purchases from raw materials to delivery vans
What happens if a supplier is unable to supply stuff on the right time of right quantity?
🟢staff unable to complete orders, unsatisfied customers with customer service , loss of reputation for business
What is the role of procurement (relationship with suppliers?
cost- variable costs for business, larger profit margins
, delivery-speed and cost,
quality of goods provided, customers happy and satisfied, reputation of business
availability, if can meet depending of fluctuating demand, otherwise cannot meet customer needs , trust levels)
Variable costs
The costs paid by a business that change depending on how many products or services the business sells
Logistics
The organisation and management within a business of the transport of raw material and goods
Perishable
Likely to go out of data or go off quickly
Cost of sales
The direct costs of purchasing raw materials and manufacturing finished products
Profit margin
The percentage of profit from the revenue
Inflation
A Gera mal increase in prices over times
Layers
(Organisational structure)
Levels of job roles within the business
Span of control
The number of employees managed by a manger
Accountability
Being responsible for some and their actions
Freelancer
Someone who is self employed and contracted by businesses to work for them
Salary band
A range of possible salaries for the role being advertised
Productivity
How much work a business is able to complete
Legislation
Laws set by government that country as a whole must comply
Motivation
The reasons for behaving a particular way
Employee working well , increasing their productivity
Autonomy
Independence or freedom to make your own decisions
Job satisfaction
Achievement or fulfilment received from job
