Key Words Flashcards
What is a mission statement?
A mission statement is a statement made about a business that highlights its goals and ethical obligations it wants to achieve
What is an aim?
An aim is the overall vision of a business and describes the business
What is an objective?
A business objective is a goal set usually set by higher management to help keep the business on track to complete its aim
What is a corporate vision?
A corporate vision is how a company sees itself in the future
What is a stakeholder?
A stakeholder is an individual or group that affect or are affected by the actions of a business
What is a competitive advantage?
A competitive advantage is anything that gives a company an edge over its competitors, helping it attract more customers
What is market share?
Market share is the proportion of a market controlled by a particular company, brand or product
What are barriers to entry?
Barriers to entry are conditions that make it difficult for a firm to enter a market to compete
What is globalisation?
Globalisation is the increasing integration of business, culture and experience on a global scale
What are economies of scale?
Economies of scale occurs when an increase in the scale of output results in a lower cost per unit
What are diseconomies of scale?
Diseconomies of scale occur when an increase in the scale of output results in a higher cost per unit
What is vertical integration?
Vertical integration is a merger or takeover of another firm in the supply chain
What is horizontal integration?
When there’s a merger or takeover of a firm at the same stage of the production
What is a competitive edge?
The factories that lead to a business having an advantage over its rivals
What is an internal stakeholder?
Internal stakeholders are individuals or groups inside the business
