THEME 2 KEY TERMS Flashcards
Aesthetics
The visual attractiveness of something
Application form
A document completed by a potential employee when they apply for a job
Autonomy
Independence or the freedom to make your own decisions
Average rate of return
Average annual profit as a percentage of the cost of the investment. This shows profitability and can be compared with the interest rates available on bank deposit accounts
Bar gate stock graph
A diagram which shows changes in the stock level of a business over a period of time
Barrier to communication
Anything which prevents the flow of accurate information within a business
Batch production
Producing a limited number of identical products
Buffer stock
The minimum level of stock help by a business
Centralised organisational structure
An organisation in which most decisions are made at head office
Commision
Being paid a percentage of the value of a sale
Communication
The passing of information from one person or organisation to another
Competing internationally
Finding a way to succeed against rival businesses located overseas
Competitive advantage
An advantage a business has over its rivals that is unique and sustainable
Customer engagement
The attempt to make a customer feel part of something rather than an outsider
Customer feedback
Comments, praise, or criticism given to the business by its customers
CV
A document created by an individual which sets out a person’s qualifications, experience, and any other relevant facts that a potential employer may want to know
Decentralised organisational structure
An organisation that allows staff to make decisions at a local or branch level
Demographic
Relating to the population, such as age, average income, gender, race/religion and more
Differentiate
Show that something (in this case a product) is different from similar things
Distribution
The process by which goods and services move from the product to the consumer
E-commerce
Using the internet to carry out business transactions
E- newsletter
Regular updates on the activities of a business sent electronically to actual or potential customers
Environmental considerations
Factors relating to green issues, such as sustainability and pollution
E- tailer
An electronic retailer, in other words purchasing electronically, either by e-commerce or, more likely mobile commerce (m-commerce)
Ethics
Moral principles or standards that guide the behaviour of a person or business
Excessive communication
The passing on of too much irrelevant information within a business
Extension strategy
Any strategy used to extend the product life cycle and prevent the product from entering the decline phase
External / Inorganic growth
Where a business increases its market share by taking over or merging with another business
External recruitment
Appointing new employees from outside the business
Flat organisational structure
An organisational structure with very few layers if hierarchy, resulting in managers being responsible for many employees
Flexibility
The ability to switch quickly and easily from one task to another
Flexible hours
A contract between a company and an employee that doesn’t specify how many hours of work will be provided
Flow production
Continuous production of an identical product in a factory
Formal training
The official programme of teaching employees new skills in a business
Freelance contract
An agreement over one job between a company and self-employed worker
Fringe benefits
A non-financial method of motivating employees such as company cars and discounted products
Function
How well a good or service fulfils its purpose
Globalisation
When businesses operate on an international scale and gain international power
Gross profit margin
Gross profit as a percentage of sales revenue
Hierarchical organisational structure
An organisation with many layers of management, therefore creating a tall organisational pyramid
Imports
A good or service that is made overseas and sold in another country
Informal training
Unofficial teaching of a new skill to employees by colleagues or through the use of the internet
Insufficient communication
Too little communication, which might leave some staff under informed and demotivated
Integrated marketing mix
A marketing mix that has a theme, with the elements all supporting eachother
Internal / Organic growth
Where a business increases its market share through the use of its resources (such as improvements to the marketing mix)
Internal recruitment
Appointing staff from within the business to a new role
Job description
A short account of the main features of the job
Job enrichment
Being given a range of activities and responsibilities that enable the worker to learn and to grow
Job production
Production of a single product which is customised to the consumers exact requirements
Job responsiblities
These are the things that someone is required to do in order to fulfil their role in a business
Job roles
These are different positions within a business, where each position requires different levels of skill and training
Job rotation
Having several tasks to do at work to relieve the boredom of doing the same thing all the time
Just in Time (JIT)
Running the business with so little stock that new supplies arrive just in time before they run out
Logistics
The process of ensuring the right supplies will be ordered and delivered on time
Making human resource decisions
A department within a business that is focussed on managing employees
Marketing mix
The four P’s of marketing, which are product, price, promotion and place
Merger
When two or more businesses join together to operate as one business
Motivation
The desire to want to complete a task
Multinational
These are businesses that produce goods and services in more than one country
Net profit margin
Net profit as a percentage of sales revenue
Ongoing training
Regular, scheduled teaching of new skills to employees within a business
Organisational structure
The way in which the workforce is organised, usually a hierarchy with people reporting to managers all the way up to the chief executive officer (CEO)
Permanent contract
An agreement between an employer and an employee that work and income will be provided consistently into the long term future
Person specification
A description of the type of person who would best fit the job, their character, their experience and skills
Post- sales service
Service received after the purchase is completed, perhaps because something has gone wrong or as a way of promoting customer engagement
Procurement
The process of ordering the right supplies from the right supplier
Pressure group
An organisation that aims to make a government or business change its decision making
Product differentiation
The extent to which customers see your product as being distinct from its rivals
Product knowledge
How well staff know all the features of the product and the service issues surrounding the product, such as the precise terms of Kia’s seven-year warranty on its new cars
Product life cycle (PLC)
How the sales of a product vary over time
Productivity
Output per person per period of time
Promotional strategy
A medium to long term plan for communicating with our target customers
Quality assurance
The checking of a product to make sure that it is fault free and of an acceptable standard throughout each stage of the production process
Quality control
The checking of a product to make sure that it is fault free and of an acceptable standard at the end of the production process
Remote working
Working away from a business office, usually using the internet
Renumeration
The financial rewards from work in the form of wage or salary
Research and development
The investigation of new products and processes and turning this into saleable products
Retailer
A shop or chain of shops, usually selling from a building in a high street or shopping centre
Retention
The ability of a business to keep its existing employees, rather than leave to take a position with another employer
Self- learning
Teaching yourself, perhaps by thinking why a problem occurred and making sure you learn from your mistakes
Sponsorship
When companies pay to have a brand associated with an iconic individual or event (usually connected with sports or the arts)
Stock
The amount of raw materials, work in progress and finished goods held by a business
Stock market flotation
Listing company shares on the stock market, allowing anyone to buy shares. This means the price can float freely (up and down).
Sustainability
Acting to ensure that natural resources are used responsibly, to protect the environment for future generations
Takeover
Where one business acquires more than 50% of the shares in another business, allowing it to gain overall control
Target setting
When you are set goals by a manager and your job is to achieve them
Tariffs
Taxes charged on imported goods and services
Temporary contract
An agreement between a company and an employee that work and income will be provided for a short period of time
Trade blocs
A group of countries that have agreed to have free trade within external tariff walls
Trade-offs
How having more of one thing may force you to have less of another, for example higher ethical standards may mean less profit
Trust
Building a business relationship in which both sides know that the other side wont let then down
Unique selling point (USP)
Something that makes a product stand out from its competitors
Viral advertising
Advertising using social networking to increase sales or boost brand awareness
