other Flashcards
business model
underlying plan of how the business is to make a profit in the long term
enterprise resource planning erp
planning that logs all of a firms costs resources working methods within a piece of software
supply chain
path from suppliers of raw materials through production and storage on to customer delivery
barrier to entry
factors that make it hard for new firms to break into an existing market
GDP
gross domestic product, value of all goods/services produced in a country in a year
job enrichment
giving people opportunity to use their ability
lean production
focus in on minimising wastage of resources throughout the supply process
downtime
period when machinery is not being used in production
excess capacity
when there is more capacity than justified by current demand
rationalisation
when there is more capacity than justified by current demand
subcontracting
where another business is used to perform or supply certain aspects of a firms operations
buffer stock
desired minimum stock level held by a firm just in case something goes wrong
opportunity cost
cost of missing out in next best alternative when making a decision
stockholding cost
overheads resulting from the stock levels held by a firm
trade-off
accepting less of one thing to achieve more of another
zero defects
eliminating quality defects by getting things right first time
administration
directors of a business feel forced by the threat of insolvency to hand over management control to an administrator
collusion
when managers from different firms get together to discuss ways to work together to restrict supply/raise prices
non price competition
all competitive strategies other than price
oligopolies
markets dominated by a few large companies
predatory pricing
pricing low with the deliberate intention of driving a competitor out of business
cartel
agreement between producers to control supply thereby control prices
Laissez-faire
‘let it be’ implying leaving businesses free to choose their own policies and practices
