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B. Business Theme 1 > Theme 1 Key terms > Flashcards

Theme 1 Key terms Flashcards

1
Q

Added Value

A

Making the product worth more in the eyes of the customer

Added Value = Price - Cost of Raw Materials

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2
Q

Aesthetics

A

The way a product looks/feels/smells/tastes I.e. how the product appeals to the senses

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3
Q

Autocratic Leader

A

A leader who makes decisions without consulting others

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4
Q

Bonus

A

An extra pay award usually for a company or worker who exceeds targets set

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5
Q

Boston Matrix

A

A model which analyses a firms product portfolio in terms of market growth and market share

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6
Q

Brand

A

A name, identity or symbol which is used to make a product stand out from its rivals

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7
Q

Business Objective

A

A specific and measurable target set out by a firm e.g. profit maximisation

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8
Q

Centralisation

A

Where decisions are made at the top of an organisation by the senior managers and then passed down to subordinates

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9
Q

Chain of Command

A

Shows the levels of an authority through an organisation from the top level to the shop floor

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10
Q

Collective Bargaining

A

Where a union negotiates with managers on behalf of the workforce as opposed to individual workers having to negotiate separately

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11
Q

Commission

A

Pay provided to staff as a percentage of sales made by a company

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12
Q

Competitive advantage

A

The advantage one brand or product has over rivals in terms of various factors like quality services or features

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13
Q

Competitive Pricing

A

Charging similar prices to rival products in the market

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14
Q

Cost Plus Pricing

A

Where a percentage mark up is added on to the unit costs of production in order to calculate the price to enable a profit margin to be made

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15
Q

Decentralisation

A

Where decisions are made at local level or lower managers rather than senior managers

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16
Q

Delegation

A

Passing decisions making authority down the chain of command to a subordinate

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17
Q

Demand

A

The amount of consumers willing and able to purchase the product at a given price

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18
Q

Democratic Leader

A

A leader who invites opinions from other members off staff before taking a decision

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19
Q

Design

A

Design involves creating a product which people desire to have by balancing the affordability, reliability and economic manufacture with the aesthetics of the product

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20
Q

Design Mix

A

The different variables that need to be considered and managed when designing a product: aesthetics, function and economic manufacture

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21
Q

Direct distribution

A

Where a product moves from producer to consumer without the use of any intermediate

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22
Q

Dismissal

A

Where a person is removed from a job position for failing to meet the standards set out in their contract of employment

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23
Q

Distribution

A

Shows how the product moves from producer to consumer through the various stages

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24
Q

Empowerment

A

Giving workers more power over their working lives

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25
Enterprise Skills
The skills of risk taking and creativity possessed by an entrepreneur
26
Entrepreneur
Somebody who takes risks, innovates and is willing to start a new business venture in order to achieve a reward/profit
27
Equilibrium Price
The market price reached when demand is equal to supply
28
Ethical
Morally acceptable i.e. paying fair trade prices to suppliers
29
Ethical Sourcimg
Finding suppliers in a manner which is morally acceptable e.g. using sustainable fishing methods
30
Ethical Stance
The moral position/view of a business e.g. it may take a strong view on animal testing like Body Shop
31
Flat Structure
An organisational chart with fewer levels of hierarchy
32
Flexible Workforce
A workforce that is able to adjust effectively to demand e.g. using temporary or permanent part time staff
33
Franchise
A license to use a business format or product concept from another firm
34
Franchisee
The person who pays for a franchise to use a business format from another firm (the franchise)
35
Franchisor
A business which sells the rights to use its products or business concept to another firm (the franchisee) and receives a fee and a percentage turnover in exchange for this
36
Home Worker
A person who works from their home as opposed to in an office
37
Income Elastic
A product or service where a demand is sensitive to income. YED is greater than 1
38
Income inelastic
Where demand does not respond highly to income changes e.g. for milk or bread
39
Indirect Distribution
Where a product passes from a producer to consumer via an intermediary such as wholesaler or retailer
40
Individual Bargaining
Where each individual worker negotiates separately with management over issues such as payments and conditions
41
Induction Training
Initial training provided to new staff to help settle them into the role and understand vital health and safety matters. It will involve showing them their new working environment and meeting their new colleagues
42
Inferior Good
A product that has increased demand when income falls e.g. own brands
43
Internal Recruitment
Seeking to appoint staff for a job position from within the existing workforce
44
Intrapreuner
Somebody who has the risk taking and entrepreneurial qualities of an entrepreneur but is working within a large organisation
45
Job Description
A document which sets out the tasks,duties and responsibilities relating to a job
46
Job Enlargement
Increasing the scope of a job position by increasing the number of tasks given
47
Job Enrichment
Adding more complexity or responsibility to a role
48
Job Rotation
Trying to add variety to a job role by enabling workers to change tasks from time to time to remove boredom and monetary
49
Labour Turnover
The amount of staff who leave a company per year
50
Laissez Faire Leader
A person who allows workers to make their own decisions with little or no involvement with the leader. Leader is simply a facilitator who’s there to provide the necessary resources when needed.
51
Leadership
Influencing and inspiring others in order to achieve business objectives
52
Levels of hierarchy
The levels of authority in an organisational structure
53
Lifestyle Business
A firm that is set up around the life and interests of the owner e.g. a surfing school
54
Luxury Good
A product with an income elasticity of above 1 where demand is sensitive to changes in income
55
Market Mapping
Using a diagram with 2 or more axis to plot the positions of rival products in the market in terms of various factors on the axis e.g. quality, price
56
Market Research
The gathering of information in order to help a firm make marketing decisions
57
Market Segentation
Dividing a market into groups of customers within similar characteristics e.g. 18 and over, 30+ etc
58
Marketing Strategy
A plan of how the marketing debt intend to achieve marketing objectives, usually consisting of the marketing mix (product,price,promotion and place) along with the marketing budget
59
Mass Marketing
Targeting several large segments or the majority of a market by selling in large volumes
60
Matrix Structure
An organisation structure in which staff are organised into teams of workers made up off staff from a variety of functional areas
61
Motivation
The willingness to apply effort to a task
62
Multiskilling
Enabling staff to have a range of skills so they can perform a variety of tasks
63
Niche Marketing
Targeting a very small segment of the market e.g. Judo equipment
64
Normal good
A product with an income elasticity between 0 and 1. Demand changes with income but is not highly sensitive to income changes e.g. toothpaste
65
Off the Job Training
Training carried away from the immediate place of work such as going out to a training centre
66
On the Job Training
Training provided in the immediate place of work and doing the job e.g. sitting next to an experienced member of staff
67
Online business
A firm that sells goods or services to individual consumers via the internet
68
Opportunity Costs
The cost of one business decision in terms of the next best alternative e.g. the costs of holding too much stock is a lack of cash for advertisement
69
Organisational Structure
A diagram to show the levels of command and authority in a business
70
Outsourcing
Asking another firm to complete production tasks
71
Part Time Worker
A person who works for under 30 hours per week
72
Partnership
A business owned by 2-20 people who usually have unlimited liability
73
Paternalistic Leadership
A leader who makes the decisions in the best interests of the workers. Decisions are therefore made in an autocratic way but for the benefit of the staff
74
Penetration pricing
Charging a low initial price in order to gain market share in a competitive market
75
Performance related pay
Where workers are paid a bonus or additional amount for that performance above targets
76
Person specification
A document which sets out the skills and qualifications of an individual to carry out a job role
77
High market growth but low market share? BM
Question Marks
78
Low Market Growth and Low Market Share? BM
Dogs
79
Low Market Growth but High Market Share? BM
Cash cow
80
High Market Share and High Market Growth? BM
Star

B. Business Theme 1 (4 decks)

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