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IB Business Management HL 2016+ > Unit 1 - Business Organisation > Flashcards

Unit 1 - Business Organisation Flashcards

1
Q

added value

A

difference between a product’s price and the total cost of the inputs that went into making it; extra worth created in the production process

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2
Q

aim

A

long-term goals of a business, often expressed in the firm’s mission statement

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3
Q

Ansoff’s matrix

A

tool to analyse product and market growth strategies

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4
Q

backward vertical integration

A

business buys a firm operating in an earlier stage of production, e.g. firm buys supplier

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5
Q

business

A

organisation involved in the production of goods and/or provision of services

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6
Q

business cycle

A

cyclical fluctuations in economic activity; the business cycle shows that economies typically move through a pattern of economic growth with the phases: recovery, boom, recession, trough

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7
Q

business plan

A

report detailing how a business sets out to achieve its aims and objectives

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8
Q

capital

A

all non-natural resources used in the production process, e.g. money, machines, buildings

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9
Q

charities

A

non-profit organisations established to support good causes

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10
Q

company

A

business that is owned by shareholders with a separate legal identity from its owners

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11
Q

conflict

A

situation where people have disagreements or certain matters due to differences in their opinions

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12
Q

conglomerates

A

businesses with a diversified range of products and operations in different industries, e.g. Virgin

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13
Q

corporate social responsibility CSR

A

consideration of ethical and environmental issues relating to business activity

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14
Q

decision-making framework

A

systematic process of dealing with business problems, concerns or issues in order to make the best decision

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15
Q

decision trees HL

A

tool to calculate the probable values of different options

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16
Q

deregulation

A

removal of government rules and regulations which constrain an industry

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17
Q

diseconomies of scale

A

cost disadvantages of growth as unit costs eventually rise as a firm grows, e.g. lack of control

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18
Q

diversification

A

growth strategy that involves selling new products in new markets

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19
Q

division of labour

A

breaking a job down into particular roles or tasks that are repeated by the same workers

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20
Q

driving forces HL

A

forces acting for change, e.g. benefits after the change

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21
Q

economic growth

A

increase in the GDP of a country

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22
Q

economies of scale

A

cost advantages of growth as unit costs eventually decrease as a firm grows, e.g. bulk buying

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23
Q

ethics

A

moral values that determine and affect business behaviour and decision-making

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24
Q

entrepreneurs

A

people who organise the other 3 factors or production and take the risk

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25
exchange rate
value of a currency in terms of another currency
26
external growth
business grows by collaborating, buying up or merging with another firm
27
external stakeholders
are not part of the organisation but have direct interest in its actions, e.g. customers, suppliers, government
28
factors of production
inputs necessary for the production process (land, labour, capital, entrepreneurship)
29
fishbone diagram HL
decision-making framework based on identifying the root causes of a problem or issue
30
force-field analysis HL
model that deals with the forces for and against change
31
forward vertical integration
business buys a firm operating in a later stage of production, e.g. firm buys costumer
32
franchise
agreement between a franchisor selling its rights to other businesses to allow them to sell products under its name in return for a fee, e.g. McDonald’s, Subway, Benetton
33
free trade
trade without trade barriers
34
globalization
integration and interdependence of economic, social, technical and cultural issues of the world’s economies
35
Gross Domestic Product (GDP)
total value of all goods and services produced in an economy in one year
36
horizontal integration
business buys a firm operating in the same stage of production, e.g. firm buys competitor
37
inflation
steady increase in the price level
38
interest rate
price of borrowed money
39
internal growth
business grows by using its own resources to increase the scale of its operations and sales revenue
40
internal stakeholders
are members of the organisation, e.g. employees, shareholders, managers
41
joint venture
two or more different organisations share costs, risks, control and rewards and form a separate legal enterprise, e.g. Sony-Ericsson
42
labour
physical and mental effort
43
land
all natural resources, e.g. land itself, water, wood
44
limited liability
restriction on the amount of money the owners of a company can lose if the business goes into bankruptcy
45
market development
growth strategy that involves selling existing products in new markets
46
market penetration
growth strategy that involves selling more existing products in existing markets
47
merger
form of external growth whereby two or more firms agree to form a new organisation
48
mission statement
declaration of an organisation’s overall purpose
49
multinational corporations (MNCs)
companies that operate production or service facilities outside their home country
50
non-governmental organisations (NGOs)
private sector organisations that operate for the benefit of others rather than aiming to make a profit, e.g. Oxfam, Amnesty International
51
objectives
short-term targets of an organisation
52
partnerships
form of business owned by 2 – 20 people with shared responsibilities and burdens of running and owning the business
53
PEST analysis
decision-making framework used to analyse the opportunities and threats of the political, economic, social and technological environment
54
pressure groups
individuals with a common concern who seek to place demands on organisations to act in a particular way or to influence a change in their behaviour
55
primary sector
cultivation or extraction of natural resources, e.g. farming, mining, fishing, forestry
56
private limited company
business owned by shareholders with limited liability but whose shares cannot be bought by or sold to the general public
57
private sector
part of the economy under the control of private individuals or businesses
58
product development
growth strategy that involves selling new products in existing markets
59
protectionism
any measure taken by a government to protect the domestic industry from foreign competition
60
public corporations
organisations wholly owned by the government
61
public limited company
business owned by shareholders with limited liability whose shares can be bought by or sold to the general public via a stock exchange
62
public-private partnership
government creates commercial partnerships with the private sector to provide certain goods or services
63
public sector
part of the economy under the control of the government
64
restraining forces HL
forces acting against change, e.g. disadvantages after the change
65
secondary sector
construction and manufacturing of products
66
shareholders
owners of a company
67
SMART objectives
objectives that are specific, measurable, achievable, realistic and time-specific
68
sole trader
self-employed person who runs the business on their own and has sole responsibility for its success or failure
69
stakeholders
individuals or organisations that have direct interest in the activities and performance of a business
70
stock exchange
market place for trading stocks and shares of public limited companies, e.g. LSE, NYSE
71
strategic alliance
two or more different organisations share costs, risks, control and rewards, but don’t form a separate legal enterprise, e.g. Star Alliance
72
strategy
medium- to long-term methods that businesses can use to achieve its goals
73
structural change
shift of the relative share of national output and employment that is attributed to each business sector
74
SWOT analysis
analytical tool used to assess internal strengths and weaknesses and external opportunities and threats
75
tactics
short-term methods that businesses can use to achieve their objectives
76
takeover or acquisition
form of external growth whereby on firm buys up another by purchasing enough shares to hold a majority
77
tertiary sector
provision of services
78
unemployment
number of people in a country who are willing and able to work but cannot find a job
79
unlimited liability
feature of sole traders and partners who are legally liable for all money owed to their creditors, even if it means that they have to sell their personal possessions to pay for this
80
vision statement
organisation’s long-term aspirations, i.e. where it ultimately wants to be
81
consumers
people or organizations who actually use a product
82
cooperative
for-profit social enterprise set up, owned and run by their members
83
customers
people or organizations who buy a product
84
ethical code of practice
documented beliefs and philosophies of an organization
85
GANTT chart HL
visual representation of all the tasks in a particular project plotted against the timescale
86
initial public offering
(IPO) occurs when a business sells all or part of its business to shareholders on a stock exchange for the first time
87
microfinance
type of financial service aimed at entrepreneurs of small very businesses
88
needs
basic necessities that a person must have to survive
89
optimal level of output
most efficient sale of operation for a business which occurs at the level of output where average costs of production are minimized
90
organizational planning tools HL
methods that businesses use to aid their decision-making, e.g. decision trees, GANTT charts
91
product
refers to both goods and services: goods are physical products, services are intangible products
92
social enterprise
revenue-generating business with social objectives at the core of their operations and can be for-profit and non-profit, but all surpluses are reinvested for the social purpose
93
STEEPLE analysis
analytical framework used to analyse the opportunities and threats of the external environment (social, technological, economic, environmental, political, legal and ethical environments)
94
want
people’s desires

IB Business Management HL 2016+ (5 decks)

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