Paper 1 Quick revision Flashcards
Delayering
Removing one or more levels of hierarchy from the organisational structure.
Planned strategy
The intended strategy, influenced by specific corporate objectives (formal)
Emergent strategy
It is the strategy that actually happens
Responds to events as they arise
Contingency planning
Planning business continuity in the event of an unexpected outcome
Retrenchment
A term used to describe when a business decides to significantly cut or scale-back its activities.
Economies of scale
This is when the average unit cost of a product falls.
Synergy
When the value of two businesses brought together is higher than the sum of the value of the two individual businesses. 1+1=3
Overtrading
When a business expands too quickly without having the financial resources to support such a quick expansion.
Intrapreneurship
An employee who takes direct responsibility for turning an idea into a new product or service.
Benchmarking
Understand and evaluate the current position of a business or organisation in relation to best practice
Off shoring
The relocation of business activities from the home country to a different international location.
Reshoring
A business returning production or operations to the host country that had previously been moved to a different international location.
Big data
The process of collecting and analysing large data sets from traditional and digital sources to identify trends and patterns that can be used in decision-making.
Data mining
The process of analysing big data to extract information not offered by the raw data alone
Enterprise resource planning
A software system that a system that helps businesses integrate and manage their often complex financial, supply chain, manufacturing, operations, reporting, and human resource systems.
Delegation
Involves the assignment to others of the authority for particular functions, tasks, and decisions.
Centralisation
Maintaining control by keeping authority at the senior levels of the organisation.
Decentralisation
Where authority is spread widely through the organisation.
Short termism
Arises when a business prioritises short-term rather than long-term performance.
Economic growth (GDP)
a measure of the size and health of a country’s economy over a period of time
Fiscal policy
Relates to government revenue and spending, i.e., tax revenue and government expenditure.
Monetary policy
The policy involves influencing the supply and demand for money through interest rates
Outsourcing
Occurs when a business pays another firm to produce its products.
Mass customisation
The process of delivering market goods and services that are modified to satisfy a specific customer’s needs.
Capacity utilisation
A measure of the extent to which the productive capacity of a business is being used
Penetration pricing
A strategy used by businesses to attract customers to a new product or service by offering a lower price initially.
Price skimming
A product pricing strategy by which a firm charges the highest initial price that customers will pay and then lowers it over time.
Dynamic pricing
A pricing strategy in which businesses set flexible prices for products or services based on current market demands.
Multichannel distrubution
Involves a business using more than one type of distribution channel.
Positive/favourable
better than expected
Adverse/unfavourable
worse than expected)
J.I.T
Debt factoring
Revenue
Share capital
Retained profit
Venture capital
