Theme 1 Flashcards
Market Segmentation
Dividing the market into groups of people with similar attributes or common characteristics.
External Shocks/Crisis
Factors beyond the control of a business.
Equilibrium
The price where supply and demand are equal.
Complimentary Goods/Products
Product that are consumed and used together.
Emotional Branding
Creation of brands that may appeal to customers emotional nature rather than their logical side.
Psychological Pricing
Tactics that are designed to appeal to a customer’s emotional response to the
Competitive pricing
When a business sets a similar price selling similar
Penetration Pricing
Setting a low price initially and setting
Price skimming
Setting a high price at the launch of a product
Cost plus pricing
A cost base method for setting the prices of goods and services and is calculated by adding the mark up of percentage to the cost of product.
Redundancy
When a business needs to reduce the size of his workforce or even close.
External Recruitment
When the business looks to fill the vacancy from outside the business.
Internal Recruitment
Selecting employees who already work within the business to fill the vacancy.
Off-Site training
When employees are given training away from their normal job environment this can often be in a classroom.
Chain of Command
The way the authority and power is organised in a business.
Hierarchy
The order or levels of responsibility in an organisation from the lowest to the highest
Flat structure
Structure with few layers and a wider span of control for each manager.
Tall structure
one with many layers and a narrow span of control for each manager
Span of control
the number of employees or subordinates that a manger is responsible
Delegation
authority to pass down from superior to subordinate
Commission
a payment to a worker based on a percentage of the value of sales.
Piece rate pay
a payment system where employees are paid and agreed rate for every item produced
Laissez faire
a leadership style where employees are encourage to make their own decisions
Democratic
a type of leadership style in which members of the group take a participation in the decision making process for stock group member are encourage to share ideas and communication is two ways
A trade off
a situation where having more of one thing leads to having less of something else a level business
Franchise
a type of business operator allows others to trade under his name for a fee
