Key words - Year 2

Question 1

Short-termism

Answer 1

A focus on immediate results and short-term gains without considering long-term consequences or sustainable growth strategies.

Question 2

Strategy

Answer 2

A plan or course of action designed to achieve long-term goals or objectives, often involving analysis, decision-making and resource allocation.

Question 3

Tactics

Answer 3

Specific actions implemented to achieve short-term objectives within the broader framework of a strategy.

Question 4

SWOT analysis

Answer 4

An assessment tool used to identify a business’ strengths, weaknesses, opportunities and threats, providing insights for strategic planning and decision-making.

Question 5

Core competencies

Answer 5

Unique capabilities or strengths that differentiate a business from its competitors and contribute to its competitive advantage.

Question 6

Regulator

Answer 6

A governmental or non-governmental entity responsible for overseeing and enforcing rules, regulations and standards within a particular industry or sector.

Question 7

Infrastructure

Answer 7

The physical and organisational structures, facilities and systems necessary for the operation of a society or enterprise, including transportation, communication and utilities.

Question 8

Fiscal policy

Answer 8

Government policies related to taxation, spending and borrowing aimed at influencing economic conditions, such as inflation, unemployment and economic growth.

Question 9

Monetary policy

Answer 9

Government policies related to the control and regulation of money supply, interest rates and credit conditions, often implemented by central banks to influence economic activity and stabilise financial markets.

Question 10

Open trade

Answer 10

A policy of unrestricted international trade and commerce, promoting the free flow of goods, services and capital across borders without barriers or tariffs.

Question 11

Protectionism

Answer 11

A policy of imposing restrictions, tariffs or trade barriers to protect domestic industries from foreign competition, often motivated by concerns about job loss or economic sovereignty.

Question 12

Migration

Answer 12

The movement of people from one place to another, either within a country or across international borders.

Question 13

Corporate social responsibility

Answer 13

The ethical and voluntary commitment of businesses to contribute to the well-being of society and the environment, beyond legal obligations.

Question 14

Market penetration

Answer 14

A strategy focused on increasing sales of existing products or services in current markets, often through pricing adjustments, marketing campaigns, or expanding distribution channels.

Question 15

Market development

Answer 15

A strategy aimed at expanding into new market segments or geographical areas with existing products or services, targeting new customer groups or market segments.

Question 16

New product development

Answer 16

The process of creating and introducing innovative products or services to meet evolving customer needs or to enter new markets, involving research, design, testing and launch phases.

Question 17

Diversification

Answer 17

A strategy involving the expansion of a company’s business activities into new products, services and markets that are unrelated to its current offerings, aiming to spread risk and capture new opportunities.

Question 18

Competitive advantage

Answer 18

The unique strengths, capabilities or resources that enable a company to outperform its competitors and achieve superior performance in the marketplace, leading to increased market share or profitability.

Question 19

Organic growth

Answer 19

Expansion achieved through internal development, such as increasing sales, expanding product lines or entering new markets without acquisitions.

Question 20

External growth

Answer 20

Expansion achieved through acquisitions, mergers or partnerships with other companies rather than through internal development.

Question 21

Technical economies of scale

Answer 21

Cost advantages obtained by increasing the scale of production, leading to lower average costs per unit due to efficiencies in technology and processes.

Question 22

Purchasing economies of scale

Answer 22

Cost advantages achieved through bulk purchasing of materials or supplies, allowing for lower unit costs due to volume discounts or reduced transaction costs.

Question 23

Economies of scope

Answer 23

Cost savings resulting from producing a variety of products or services together more efficiently than producing them separately, often by sharing resources or infrastructure.

Question 24

Diseconomies of scale

Answer 24

Increasing average costs per unit as production levels rise beyond a certain point, typically due to inefficiencies or complexities in managing larger operations.

Question 25

Synergy

Answer 25

The combined value and performance of two businesses will be greater than the sum of the individual parts.

Question 26

Overtrading

Answer 26

A situation where a company expands its operations too rapidly without adequate financial resources or operational capacity, leading to cash flow problems.

Question 27

Retrenchment

Answer 27

A strategic response to financial difficulties or poor performance, involving reducing the scale or scope of operations to improve efficiency and profitability.

Question 28

Merger

Answer 28

The combination of two or more companies into a single entity, typically with the aim of achieving synergies, expanding market share or increasing competitiveness.

Question 29

Takeover

Answer 29

The acquisition of a controlling interest in a company by another company.

Question 30

Venture

Answer 30

A business arrangement where two or more businesses agree to share their resources for mutual benefit.

Question 31

Franchising

Answer 31

A business model where individuals or groups (franchisees) are granted the right to operate under the brand and business model of a larger company (franchisor) in exchange for fees and royalties.

Question 32

Vertical integration

Answer 32

The expansion of a company’s operations into different stages of the supply chain, such as acquiring suppliers or distributors, to gain control over production or distribution processes.

Question 33

Horizontal integration

Answer 33

The expansion of a company’s operations into the same stage of the supply chain or industry, such as acquiring competitors, to increase market share or consolidate market power.

Question 34

Conglomerate integration

Answer 34

The diversification strategy of expanding into unrelated industries or businesses to spread risk and capture new opportunities, often through mergers or acquisitions.

Question 35

Kaizen

Answer 35

A Japanese business philosophy focused on continuous improvement in processes, products and services through incremental changes and employee involvement.

Question 36

Research and development (R&D)

Answer 36

The systematic process of creating, testing and improving products, services or processes through scientific investigation and experimentation.

Question 37

Intrapreneurship

Answer 37

The practice of fostering entrepreneurial behaviour and innovation within a business, encouraging employees to develop and implement new ideas or projects.

Question 38

Benchmarking

Answer 38

Comparing a company’s performance, processes or practices with those of competitors or industry leaders to identify areas for improvement and best practices.

Question 39

Patent

Answer 39

Legal protection granted to investors for their inventions, giving them exclusive rights to make, use or sell the invention for a limited period.

Question 40

Copyright

Answer 40

Legal protection granted to creators of original works, such as literature, music or software, giving them exclusive rights to reproduce, distribute or perform the work for a limited period.

Question 41

Globalisation

Answer 41

The process of increased interconnectedness and integration of economies, cultures and societies worldwide, facilitated by advances in technology, communication and trade.

Question 42

Emerging economy

Answer 42

A developing country with rapidly growing industrialisation, infrastructure and economic potential, often characterised by high growth rates and increasing integration into the global economy.

Question 43

Export

Answer 43

The sale of goods or services produced in one country to customers or markets in another country, contributing to international trade and economic growth.

Question 44

Licensing

Answer 44

A business arrangement where one company (licensor) grants another company (licensee) the right to use its intellectual property, such as patents, trademarks or copyrights, in exchange for fees or royalties.

Question 45

Alliances

Answer 45

Collaborative partnerships between companies to achieve common goals, such as sharing resources, technology or market access, while maintaining autonomy and independence.

Question 46

Direct investment

Answer 46

The establishment of business operations in a foreign country by a company based in another country, involving long-term ownership and control of assets.

Question 47

Off-shoring

Answer 47

The relocation of business processes, operations or production to another country.

Question 48

Re-shoring

Answer 48

The reverse of off-shoring, involving the return of business processes, operations or production to the original country.

Question 49

Big data

Answer 49

Large volumes of structured and unstructured data collected from various sources, such as social media, sensors or transactions, used for analysis and decision making.

Question 50

Data mining

Answer 50

The process of discovering patterns, trends and insights from large datasets using statistical, mathematical or machine learning techniques.

Question 51

Incremental change

Answer 51

Gradual or small-scale adjustments made to existing processes, products or strategies within a business, often aimed at improvement without fundamentally altering the status quo.

Question 52

Disruptive change

Answer 52

Radical or transformative shifts that significantly alter industry dynamics, business models or market structures, often leading to the displacement of established players and the emergence of new ones.

Question 53

Restructuring

Answer 53

A strategic reorganisation of an organisation’s structure, operations or resources, often involving changes to departments, roles, processes or hierarchies to improve efficiency or adapt to new challenges.

Question 54

Delayering

Answer 54

The process of reducing the number of hierarchical levels or management layers.

Question 55

Organic structure

Answer 55

An organisational design characterised by decentralised decision-making, flexible roles and responsibilities, and fluid communication channels.

Question 56

Mechanistic structure

Answer 56

An organisational design characterised decision-making, clear hierarchies, formalised roles and procedures, and standardised processes, often found in larger or more traditional organisations.

Question 57

Organisational culture

Answer 57

The shared values, beliefs, norms and behaviours that define the identity and personality of a business, shaping its attitudes, actions and interactions.

Question 58

Planned strategy

Answer 58

A deliberate and systematic approach to strategic planning and decision-making, involving formal processes, analysis and goal setting to guide future actions and resource allocation.

Question 59

Emergent strategy

Answer 59

A strategy that evolves over time in response to changing internal and external conditions.

Question 60

Strategic drift

Answer 60

The divergence of business’s strategy to the external environment. It occurs when a business fails to adapt its strategy in response to changes in its external environment.

Question 61

Contingency planning

Answer 61

The process of preparing for and managing unexpected events, crises or uncertainties that may impact the operations or performance of a business, involving risk assessment, mitigation strategies and response plans.

Question 62

Crisis management

Answer 62

The coordinated process of identifying, managing and resolving crises or emergencies that threaten the reputation, operations or viability of a business, involving crisis communication, decision-making and recovery efforts.