Theme 2 Flashcards
Advertising
Communication between a business and its customers where images are placed in the
media to encourage the purchase of products.
Aesthetics
How well the product appeals to the senses.
Availability
Being able to access the correct products when needed.
Average rate of return
The return of profit from a proposed capital project.
Barriers to effective communication
Something that prevents the flow of communication. E.g. Use of
jargon, misunderstanding, person delivering the message is not clear.
Batch production
Where work is divided into parts, each part is completed before the next one.
Bonus
A payment in addition to the basic wage for reaching targets or in recognition of a service.
Branding
Giving an identity to a product, through things such as design, reputation, or image which
consumers easily recognise.
Centralised structure
An organisation in which decisions are made at Head Office.
Commission
Percentage payment on a sale, made to the salesperson.
Curriculum vitae (CV)
A document that lists personal details, qualifications, experience, referees and
other information about a job seeker.
Decentralised structure
An organisation that allows staff to make decisions at local/branch level.
Differentiation
The process of making a product seem distinct from its competitors, maybe with a
USP.
Distribution
The route a product takes from the producer to the customer.
Economic manufacture (Cost)
Making sure the design is cost effective.
Effective communication
Communication that is clear, accurate and easily understood.
Environment
The natural world around us, which may be affected business.
e‐tailer
A retailer selling goods via electronic transactions on the Internet.
Ethics
The moral rules and principles of a business. Going over and above what is required by law.
Excessive communication
Too much communication causing overload.
Extension strategy
A strategy to maintain or increase sales and avoid decline on the product area life
cycle.
External recruitment
Appointing workers from outside of the business.
Flat structure
A structure with 3 or less levels of hierarchy.
Flexibility
The ability to change quickly.
Flexible hours
When an employee can choose their work hours.
Flotation
When a firm offers its shares for sale to the public on the stock exchange for the first time.
Flow production
Where a task is worked on continuously and products are uniform.
Formal training
Training which is done away from your normal place of work in an organised/planned
manner.
Freelance contractors
Workers who do not work directly for an employer but are given a contract to
complete an agreed task for a set fee.
Fringe benefits
Rewards given to staff, also known as ‘perks’. E.g. Company car, private health care,
discounts of products.
Full‐time employees
A work contract where the employee works approximately 37.5 hours or more a
week.
Function
Making sure the product works well every time.
Gross profit
The difference between revenue and the cost of sales figure.
Gross profit margin
The proportion of revenue left over after the business has paid its cost of sales.
Hierarchical structure
A structure with 4 or more levels of hierarchy.
Import tariff
A way of protecting UK products by adding a tax to imports into the UK.
Informal training
Learning on the job, normally by working with a more experienced colleague.
Inorganic (External) growth
Two or more businesses joining together to make one much larger one in
a merger or takeover.
Internal recruitment
Appointing workers from within a business.
Job description
A document that shows clearly the tasks, duties and responsibilities expected of a
worker for a particular job.
Job enrichment
Giving employees greater responsibility and recognition by vertically extending their
job role.
Job production
A complete task handled by one person or a group of people. Often only one product
is worked on at a time.
Job rotation
Changing jobs or tasks from time to time.
Just‐in‐time
Having regular but smaller deliveries, so stock is ordered and delivered as needed.
Lead time
The time it takes for a supplier to deliver after a customer places an order.
Logistics
Ensuring supplies are ordered and delivered on time.
Marketing
Anticipating and meeting customers’ needs and wants.
Market share
The proportion of total sales in a market for which one product, business or brand is
responsible.
Merger
Occurs when two or more businesses join together and operate as one.
Motivation
The will to work.
Multinational
A business which operates in more than one country.
Net profit
The profit left after all costs have been paid.
Net profit margin
The proportion of revenue left over after the business has paid all of its costs.
Organic (Internal) growth
A business growth strategy that involves a business growing gradually using
its own resources.
Organisational structure
A diagram showing the different job roles in a business and how they relate to each other.
Part‐time employees
A work contract where the employee works less hours than a normal full time
position.
Performance reviews
Discussions between employee and their manager about their performance and
target setting for the future.
Permanent employees
Employees who work directly for the employer and have an on‐going contract.
Person specification
A person profile of the type of person needed to fill a particular job role. This may
be split into essential and desirable experience, qualifications and personal qualities.
Post‐sales service
Service after the point of sale. E.g. A free service for a car or complaints procedures.
Pricing strategy
The pricing policies or methods used by a business when deciding what to charge for
its products, to achieve the aims of the company.
Procurement
Obtaining the correct supplies from the correct supplier.
Product area life cycle
A graph showing the stages that products go through within their lifetime from
research to decline.
Productivity
A measure of efficiency, usually measured as output per person.
Product trial
When a business tests a market by releasing a product for a short period of time or in a
restricted area.
Public limited company (Plc)
An incorporated business, with Plc after its name that can openly sell
shares on the stock market.
Quality assurance
A method of working for businesses that takes into account customers wants when
standardising quality.
Quality control
Making sure the quality of a product meets specified quality performance criteria,
usually done by checking the product at the end of the production process by inspectors.
Remote working
Working away from your normal place of work.
Remuneration
The reward for work.
Retailer
A business that buys goods from manufacturers and wholesalers, and sells them in smaller
quantities to the consumer.
Sales process
Ensuring an interested person becomes a customer.
Self‐learning
Teaching Yourself
Special offers
Method of promoting products in the short term to boost sales. E.g. free gifts, vouchers
or BOGOF.
Sponsorship
Making a financial contribution to an event/team in return for publicity. E.g. Carling Cup.
Staff retention
What proportion of staff stay working for a business rather than leave.
Stock
The raw materials, work in progress and finished products a business has to sell.
Stock control
Ensuring that stock is always available for customers, but without over stocking.
Stock market
Where buyers and sellers can trade shares.
Takeover
The process of one business buying another.
Temporary employees
Employees who work directly for the employer but have an end date on their
contract.
Trade bloc
A group of countries that has signed an agreement to reduce or eliminate all import/export
protection.
Viral advertising
Advertising that encourages people to spread your message through social media.
