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IB Business Management > Paper 1 SVT > Flashcards

Paper 1 SVT Flashcards

1
Q

Public limited company (PLC)

A

A limited company, often a large business, with the legal right to sell shares to the general public; it’s share price quoted on the national stock exchange

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2
Q

Vision statement

A

A statement of the organization’s long term aspirations and what it would like to achieve or accomplish

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3
Q

Monopoly

A

a market structure where one company is the sole producer of a certain product

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4
Q

Acquisition

A

External growth strategy where a company buys over 50% of the shares of another company and becomes the controlling owner

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5
Q

Organizational structure by function

A

An organizational structure where the business is divided into smaller groups based on specialized functional areas, such as marketing, HR, operations, and finance

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6
Q

Situational leadership

A

A leadership style that varies based on the task at hand, situational leaders adapt their leadership styles to each situation

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7
Q

Autocratic leadership

A

A leadership style that keeps all decision making at the center of the organization

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8
Q

Internal growth

A

The organic growth of a business using its own capabilities and resources to increase its scale of operations with less risk

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9
Q

External growth

A

The inorganic growth of a business by means of merging, collaborating or taking over another business

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10
Q

Market share

A

Measures the value of a firm’s sales revenue as a percentage of the total sales revenue in the industry (market share = firm’s sales/ total sales in the market x 100)

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11
Q

Market growth

A

The increased percentage in the size of a market per year

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12
Q

Financial motivation

A

financial methods that businesses use to reward and extrinsically motivate their employees (commission, profit-related pay, performance-related pay, employee share-ownership, fringe benefits)

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13
Q

Non-financial motivation

A

non-financial methods that businesses use to intrinsically motivate their employees (job enrichment, job rotation, job enlargement, empowerment, teamwork, purpose/ the opportunity to make a difference)

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14
Q

Commission

A

Financial reward that provides workers a certain percentage of the sales of good/ service they are responsible for completing

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15
Q

Profit-related pay

A

Financial reward system which remunerates workers a certain percentage of the annual profits that the business earns

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16
Q

Performance-
related pay

A

Financial reward system to reward staff for reaching/ exceeding a set target

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17
Q

Employee share-ownership schemes

A

Financial reward system that gives workers, managers and directors shares in the company/ selling them at discounted prices

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18
Q

Fringe Benefits

A

Financial rewards of a job in addition to the basic pay including, medical insurance, a company car and pension schemes.

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19
Q

Job enrichment

A

Non-financial reward involving the vertical expansion of a job which attempts to motivate employees by giving them opportunities, challenges, and responsibilities

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20
Q

Job rotation

A

Non-financial reward involving moving employees between different tasks to promote experience and variety

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21
Q

Job enlargement

A

Non-financial reward involving the horizontal expansion of a job by increasing the scope of the work assigned

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22
Q

Empowerment

A

Non-financial reward involving the delegation of decision making power and greater responsibilities to employees to improve morale and motivation (as they believe their managers have trust in them)

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23
Q

Teamwork

A

Non-financial reward involving the combined efforts of a group of workers to achieve an organizational goal

24
Q

Purpose/ the opportunity to make a difference

A

Non-financial reward which involves the concept that some employees are not driven by self-interest, but rather are motivated by making a greater difference. By recognizing the purpose in their work, they are intrinsically motivated

25
Q

Economies of scale

A

Decrease in a firm’s unit (average) costs of production as the scale of operation increases (purchasing, technical, financial, marketing, managerial)

26
Q

Flexitime work

A

Employment contract that allows staff to be called in at times most convenient to employers and employees (usually during busy hours)

27
Q

Labor turnover

A

Measures the rate at which employees are leaving an organization. It is measured by the number of employees leaving/ the total number of employees x 100

28
Q

External recruitment

A

When a company fills a job vacancy by recruiting an employee from outside the business, usually because they need skills that it lacks in its current employees

29
Q

Induction training

A

Introductory training program to familiarize new recruits with the systems used in the business and the layout of the business (usually on-the-job)

30
Q

Dividends

A

A sum of money paid to shareholders decided by the board of directors of a company

31
Q

Market leadership

A

Businesses with the largest market share in a particular market

32
Q

Corporate Social Responsibility (CSR)

A

Businesses that accept its moral obligations to stakeholders other than investors and takes responsibility for the impact of their decisions on customers, employees, and the environment

33
Q

Charities

A

A non-profit social enterprise that provides voluntary support for good causes (often perform social/ environmental functions that would not be undertaken by private businesses and are dependent on donations, endorsements and promotion)

34
Q

Non-governmental organizations (NGOs)

A

A non-profit social enterprise that is not controlled by the government and has a specific aim to tackle issues that benefit society

35
Q

Research and development

A

the process of creating new products and processes to meet market needs

36
Q

Product innovation

A

Creating/ developing new/ existing products

37
Q

Process innovation

A

Developing new methods of production/ product delivery

38
Q

Position innovation

A

Changing the context of a product by repositioning it (marketing to a different target market/ a change in the organization’s focus)

39
Q

Paradigm innovation

A

Radical innovation that has the capability of changing the nature of a market which is highly risky

40
Q

What are the pricing strategies?

A
  1. Cost-plus pricing
  2. Penetration pricing
  3. Price skimming
  4. Psychological pricing
    5 .Loss leader
  5. Price discrimination
  6. Price leadership
  7. Predatory pricing
41
Q

Cost-plus pricing

A

a pricing strategy that involves adding a percentage/ predetermined amount of profit to the cost per unit of output

42
Q

Penetration pricing

A

a pricing strategy that involves setting low prices to gain entry into a market. Once the product has established market share, prices can be raised

43
Q

Price skimming

A

a pricing strategy that involves initially setting high prices for a limited period of time in order to gain short term profit and then gradually reducing it

44
Q

Psychological pricing

A

a pricing strategy where firms consider how pricing affects consumer’s perception of the value of the product by rounding down numbers to make prices seem lower

45
Q

Loss Leader

A

a pricing strategy that involves setting the price of a product below its production cost to entice customers to buy their other products with high profits in addition to the loss leader product

46
Q

Price Discrimination

A

a pricing strategy that involves charging different prices to different groups of customers for the same product

47
Q

Price Leadership

A

a pricing strategy that involves firms with the largest market share setting a price for its products and other firms in the market set the same prices

48
Q

Predatory pricing

A

a pricing strategy that involves setting temporarily low prices to force small competitors out of the market

49
Q

Subsidies

A

Financial assistance granted by a government to support business enterprises that are deemed beneficial to society/ in the public interest

50
Q

Place

A

the ways in which products move from producer to consumer (distribution channels)

51
Q

Secondary Research

A

the collection of second-hand data (data that has been collected by others)

52
Q

Market analysis

A

A report that contains data and information about a particular product, market or industry

53
Q

Academic journals

A

Publications from educational and research institutions that publish data and information of academic disciplines

54
Q

Government Publications

A

Official documents published by governments that discuss a broad range of data relating to economic, demographic or social matters

55
Q

Media Articles

A

Professional documents or articles written by journalists and authors

56
Q

Market Segmentation

A

The process of dividing a market into smaller groups of customers

IB Business Management (37 decks)

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