March 2021 Revision key words Flashcards
Enterprise
Spotting opportunities
Initiative
Making decisions using your own judgement
Business plan
How owners/managers sets out objectives
finance
money
partnership
a business owned by 2-20 people
soletrader
Business owned by 1 person
deed of partnership
legal document stating owner of partnership, money each invested & their role
Public limited liability (Ltd)
Only sells shares to family/friends
Public limited liability (PLC)
Sells shares to anyone on stock exchange market
Business objectives
aims - survival, profit, growth and providing a service
Stakeholders
People who show an interest in a business
Growth
Increasing sales in a business
Organic growth
Growth inside a business
Backward vertical growth
A distributor merges with suppler
Diversification
Entering a new market when merging/acquisition
External growth
Outside the business - takeover or merger
Forward vertical growth
A supplier merges with distributor
Horizontal growth
Same stage of production
Merger
two or more businesses join to become a new business
Takeover / Acquisition
Controlling interest in another business, buys 50% or more of shares
Marketing
Finding and meeting the needs of customers
Market research
Collecting data on customer’s habits
Primary research (field)
Data collected for the first time
Secondary research (desk)
Collecting data that already exists
4p’s of the marketing mix
profit, product, promotion, place
Price skimming
Product with initially high price then starts to decrease
Cost-plus pricing
Cost of production of product and a set amount or profit are added
Promotional
Lowering price
Competitor pricing
Products priced at similar amount to competitors products
Penetration
price starts low then increases once sales have grown
Point of sale promotion
A benefit to the customer when buying a product
Physical distribution
the movement of goods from producer to consumer
Physical distribution channel 1
Producer - consumer
Physical distribution channel 2
Producer - retailer - consumer
Physical distribution channel 3
Producer - wholesaler - retailer - consumer
Digital distribution
The distribution of goods and services digitally - downloads
Tall organisational structure
Many layers of staff in a business
Flat organisation structure
Little layers of staff in a business
authority
Power
Subordinates
Workers that a line manager is responsible for
Delegation
A manager gives their subordinate responsibility to make certain decisions
Chain of command
Link in authority from top to bottom of the business
Span of control
The number of subordinates that a manager has authority over
Full time working
Person works 35+ hours a week
Flexible working
Working at a time when it suits the employee
Part-time working
Person works less than 35 hours a week
Self-employment
When people work on their own
Temporary working
A person works for a short period of time for an employer
Working from home
When a person completes work for a business or themselves from home
Working while mobile
Working while on the move
Communication
transmission of a message from a sender to a receiver through a means of communication
Verbal communication
communicating by speaking (face to face )
Written communication
communication by written words
Digital communication
The electronic exchange of information using ICT
Recruitment
The process of finding people to work in a new or established business
Bonus
An additional payment to workers for achieving a target
Fringe benefits
Additional benefits that works may receive in addition to their pay
Motivation
Encouragement given to workers to work well
Pay
The money earned by a worker as a reward for the work they do
Profit sharing
When workers receive some of the profits made by a business
Award scheme
A presentation to recognise an individual worker or team’s effort and achievement
Praise
Complimenting an employee’s work to make them feel recognised and valued
Working environment
The quality of physical workplace and its atmosphere
Labour turnover
A measure of the number of proportion of staff who leave an organisation each year and who therefore need replacing
Motivation
About commitment to do something, in other words, ‘the will to want to work’
Retention
When workers choose to stay employed in a business rather than leaving to work elsewhere
Induction training
Introducing a new worker to an organisation when they first join
Off-the-job training
Training off site of usual place of work
On-the-job
Training on site of usual place of work whilst carrying out the job
Training
short term instruction that focuses on helping a worker to do their job correctly / gain more knowledge
Productivity
Output per worker measuring their performance
Apprenticeship
A long-term development programme for workers ro learn job skills while they work
Professional development
Involves developing the long-term potential of workers
Staff development
Includes apprenticeships and professional development programmes
Contract of employment
a legal agreement between an employer and an employee
Discrimination
Treating one worker differently to another for no acceptable reason
Employment law
Regulations and rules put in place to protect workers from employers who may treat them unfairly
Statement of employment particulars
Part of a contract of employment, it gives details of the terms of employment
Formula to work out holiday entitlement
days worked per week x 5.6
Spotting an opportunity
- ‘gap in the market’
- improves product/service already provided
- producing a product or service more cheaply
Developing an idea
- designing the product/service
- planning production
Satisfying customer needs
- producing the product or producing the service
- marketing the product or service
Limited liability
Owners are only responsible for the amount of money they invested if a business fails
Unlimited liability
Owner is responsible for repaying ALL debts of a business
Questionnaire
A set of questions sent out to selected people in the post or asked online
Interview
A person asks individual or a group of people questions (in person or on phone) and records their answers
Trialling
a product is sold for a short period, usually in one region of a country. If it sells well the business will go into full production
Focus groups
A small group of people are asked to use a product or think about an advertisement and to give their opinion. The feedback helps the business to re-design the product or advert.
UK census data
info about all UK households every 10 years.
info about income, where they live, people in household
Data from newspapers and magazines
articles in publications often describe people’s interests and current fashions
Data from websites
info about other companies, product range and prices
Internal data
collected by business - past sales, profits and customer feedback
