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Business A-level Edexcel > Unit 1 Key Terms > Flashcards

Unit 1 Key Terms Flashcards

1
Q

Market

A

all of the buyers and sellers that trade a particular type of product in a particular place

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2
Q

Mass Market

A

a large unsegmented market where mass appeal products are on sale

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3
Q

Niche market

A

a small section of a market where customers have specific needs and wants

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4
Q

Market size

A

the total value of sales in a market over a period of time

the total number of consumers in that market

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5
Q

Market share

A

the percentage of the total market a business has in terms of sales volume or value

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6
Q

Brand

A

a unique design, sign, symbol, words, or logo which makes a business recognisable and differentiates it from its competitors

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7
Q

Dynamic market

A

a market subject to rapid and continuous change over a short period of time

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8
Q

Market growth

A

an increase in demand/sales for a particular product/service

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9
Q

Competition

A

the contest between organisations that provide similar or the same products/services

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10
Q

Risk

A

When the potential outcomes of a decision are known

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11
Q

Uncertainty

A

the inability to predict future events and outcomes

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12
Q

Product orientation

A

when a business focuses heavily on design, quality, and performance when creating and selling products

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13
Q

Market orientation

A

a business’s products/ services are based around meeting the needs and wants of the consumer

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14
Q

Market research

A

gathering, presenting, and analysing information about products and customers

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15
Q

Primary market research

A

collecting data about customers and the market first hand

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16
Q

Focus groups

A

a group of people who participate in a discussion as part of market research to give feedback and opinions about a product/service

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17
Q

Secondary market research

A

gathering and analysing data that already exists and has been collected for another purpose

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18
Q

Quantitative research

A

the data collected is numerical and is collected usually using methods such as questionnaires and surveys

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19
Q

Qualitative data

A

the data collected to find out the motivations behind consumer behaviour- this could be done through focus groups

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20
Q

Market segmentation

A

when a market is split up into identifiable groups where consumers share one or more characteristics or need

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21
Q

Market positioning

A

an effort to influence consumers perceptions of a brand/product relative to the perception of completing brands and products (maybe through differentiation or adding value)

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22
Q

Market mapping

A

the use of two-dimensional diagram that plots products/services in a market using two variables

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23
Q

Competitive advantage

A

a feature of a business that enable it to compete effectively with rivals

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24
Q

Product differentiation

A

making a product distinctive from competitor’s products or creating a USP

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25
Q

USP

A

a factor that differentiates a product from its competitors

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26
Q

Added value

A

the difference between the price the customer pays and the cost of inputs

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27
Q

Adding value

A

the process of turning factor inputs into something that will sell for more than it costs

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28
Q

Demand

A

the amount of goods and services consumers are willing and able to but at a given price

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29
Q

Substitutes

A

a product that can be used to replace another because customers see them as being very similar products

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30
Q

Complimentary goods

A

products which are bought and used together

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31
Q

External shocks

A

an unexpected change which takes place outside of a business and affects the economy

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32
Q

Seasonality

A

where the levels of business activity varies based on the time of year

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33
Q

Supply

A

The quantity of products that producers are willing and able to produce/provide at a given price

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34
Q

Indirect taxes

A

tax on goods and services rather than profit e.g. VAT

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35
Q

Government subsidies

A

any form of government support offered to producers (and occasionally consumers)

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36
Q

Equilibrium

A

when there is a balance between supply and demand, making the price stable

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37
Q

Price elasticity of demand

A

measures the responsiveness of demand to a change in price

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38
Q

Price inelastic of demand

A

demand for the product isn’t very dependent on price

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39
Q

Price elastic of demand

A

demand for the product is very dependent on price

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40
Q

Inferior goods

A

a product that has a negative income elasticity of demand

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41
Q

Necessity

A

products/services that consumers buy regardless of the changes in their income levels

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42
Q

Luxury goods

A

demand increases more than what is proportional as income rises

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43
Q

Product/ service design

A

The process of creating a new product that will be sold by the business

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44
Q

Design mix

A

the combination of factors needed in designing a product - aesthetics costs and function

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45
Q

Social trends

A

concerns from people in society over resource depletion, waste minimisation, recycling and ethical resourcing

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46
Q

Resource depletion

A

when natural resources are used quicker than the rate of replenishment

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47
Q

Recycling

A

the conversion of waste into renewable material

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48
Q

Re-use

A

using an item, whether for its original purpose or to fulfill a different function

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49
Q

Ethical sourcing

A

involves a business buying materials and products that are produced using fair working conditions and/or with no negative impact on the environment

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50
Q

Branding

A

involves creating an image or name that gives a product an identity that is recognisable and positive

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51
Q

Promotion

A

any type of marketing communication used to inform or persuade consumers to use or buy a particular brand

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52
Q

Advertising

A

paid for communication by a business to raise customer awareness of its products/services/brand

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53
Q

Sponsorship

A

a company giving a product or money to support another business or person

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54
Q

Viral marketing

A

the use of social networks to rapidly raise awareness of a new product/service

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55
Q

Social media

A

websites and apps that enable users to create and share content to participate in social networking

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56
Q

Emotional branding

A

seeks to create a bond between the consumer and product by provoking an emotional response to advertisement

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57
Q

Price

A

the amount of money that is paid for a product/service

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58
Q

Cost plus pricing

A

Price is calculated by adding a markup percentage to the cost of the product

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59
Q

Price skimming

A

setting a high initial price for a product when launched to take advantage of those wanting to be the first people to purchase it

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60
Q

Price penetration

A

setting a low initial price to build market share before switching to a more profitable price

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61
Q

Predatory pricing

A

deliberately lowering prices to force another business out of the market

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62
Q

Competitive pricing

A

when a business sets a price similar to competitors selling similar products

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63
Q

Psychological pricing

A

when a firm sets a price for the product in order to entice the customer

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64
Q

Distribution channels

A

the stages/methods involved in getting the finished product to customers

65
Q

Manufacturer

A

a person/company that produces finished goods and raw materials by using various equipment and resources

then sells them to consumers, wholesalers, distributors and retailers

66
Q

Wholesaler

A

a business that buys goods from manufacturers in bulk and sells them in smaller quantities to retailers

67
Q

Retailer

A

a business or person that sells goods to the consumers

68
Q

Intermediaries

A

individuals or companies that behave as middlemen between parties

(organisations involved in each stage of distribution)

69
Q

Marketing strategy

A

the methods chosen to achieve marketing objectives and to compete with rivals

70
Q

Marketing mix

A

using the right blend of product, price, place and promotion in order to maximise sales

71
Q

Product life cycle

A

it describes the stages a product goes through from introduction to decine

72
Q

Extension strategy

A

a method to lengthen the life/sales of a product/service by preventing the entering of the decline stage in the product life cycle

73
Q

Boston matrix

A

a method used to analyse the product portfolio of a business based on market share and market growth which categories them as either question marks, stars, cash cows or dogs

74
Q

Cash cow

A

a product that has a high market share and a low market growth

75
Q

Problem child/question mark

A

a product that has a small market share and a high market growth

76
Q

Dog

A

a product that has a low market share and a low market growth

77
Q

Star

A

a product that has a high market share and a high market growth

78
Q

Product portfolio

A

the collection/range/list of items/products produced/sold/offered by a business

79
Q

Business 2 business marketing

A

businesses that promote the sale of products/services to other businesses for use in their operations

80
Q

Business 2 Consumer marketing

A

the marketing of a business’ product to a consumer

Where businesses sell directly to consumers.

81
Q

Customer loyalty

A

customers will return to the business again and again or favour it over competitors in the same market

82
Q

Flexible workforce

A

a workforce that may be multiskilled, part-time, temporary, work flexible hrs, work from home and are outsourced where necessary

83
Q

Multiskilling

A

where staff are allowed to carry outa variety of tasks rather than specialise

84
Q

Part time employees

A

work for a few hrs or days a week

85
Q

Temporary employees

A

workers work for a limited period of time

86
Q

Flexible hrs

A

where staff vary the hrs they work to meet both the needs of the business and to some extent their own

87
Q

Home working

A

involves employees carrying out all/ part of their job at home without the need to attend the business’ premises

88
Q

Outsourcing

A

when a business has one or more of its activities carried out by another business

89
Q

Dismissal

A

When an employer ends an employee’s contract of employment due to misconduct or for breaching company rules

90
Q

Redundancy

A

When an employee loses their job because their job role is no longer required due to a lack of business/ restructuring

91
Q

Employer/employee relationships

A

The working connection between employees and employers in the workplace

92
Q

Individual bargaining

A

When a single employee negotiates work-related issues with their employer

93
Q

Collective bargaining

A

Negotiation over wages and working conditions between employee representatives/trade unions and the employer

94
Q

Trade unions

A

A group that acts on behalf of a group of employees in negotiations with employers

95
Q

Recruitment process

A

The process of finding and hiring a person for a specific job role that needs filling within a business

96
Q

Person specification

A

Describes the personal attributes desired in a potential employer
(The skills and experience required to succeed in a specified job application.)

97
Q

Job description

A

A summary of a job role, including working hrs, salaries, and duties

98
Q

Selection process

A

The process of deciding which applicant for a job a business should accept

99
Q

Internal recruitment

A

When a business looks to fill a vacancy from within a company

100
Q

External recruitment

A

New employees are selected from candidates who have not previously worked in the business

101
Q

Training

A

The process of increasing the knowledge and skills of the workforce to enable them to perform their jobs successfully

102
Q

Induction training

A

Training provided to new employees to introduce them to the business and their job role

103
Q

On-the-job training

A

Learning and developing skills whilst at work doing the job

104
Q

Off-the-job training

A

Learning and developing skills away from their normal job environment e.g. in a classroom

105
Q

Organisational structure

A

This shows the roles, responsibilities, and hierarchy within a business and shows who is answerable to whom as well as the vertical and horizontal communication links that exist

106
Q

Hierarchy

A

The series of levels in a business organised by the amount of authority and responsibility that workers have

107
Q

Span of control

A

The number of employees a manager is responsible for

108
Q

Chain of command

A

The path of communication and authority up and down the hierarchy of a business

109
Q

Centralised structure

A

Where business decisions are made at the top of the hierarchy by senior management or at the headquarters of the business

110
Q

Decentralised structure

A

A business allows branches to take more control to make their own decisions

111
Q

Tall organisational structure

A

one with many layers and narrow span of control for each manager

112
Q

Flat organisational structure

A

one with few layers of hierarchy, short chain of command and wider span of control for each manager

113
Q

Matrix organisational structure

A

employees work within teams on projects as well as within their own functional area or department

114
Q

Motivation

A

a factor that encourages employees to be more interested and committed to their work

115
Q

Financial incentives

A

monetary (money) methods used to motivate workers

116
Q

Piecework

A

when workers are paid per unit produced

117
Q

Commission

A

an amount of money paid to an employee that is based on a percentage of the sales they have achieved

118
Q

Commission

A

an amount of money paid to an employee that is based on a percentage of the sales they have achieved

119
Q

Bonus

A

workers are paid extra on top of their salary once an agreed target has been met

120
Q

Profit share

A

a scheme that pays employees an additional amount based on the yrs profit

121
Q

Performance related pay

A

workers are paid based on their performance or the performance of the business

122
Q

Non-financial incentives

A

ways of encouraging/motivating employees without the use of monetary rewards

123
Q

Delegation

A

allocating a task to someone who would not normally be responsible for it

124
Q

Consultation

A

seeking employees’ opinions/feedback when making business decisions

125
Q

Empowerment

A

employees are given more control over their day to day work

126
Q

Team working

A

puts workers into small groups and lets them organise their own work

127
Q

Flexible working

A

employees have a choice over how and when they work by agreement with the company

128
Q

Job enrichment

A

when workers are given more challenging work and training they need to do it

129
Q

Job rotation

A

when workers are moved between different tasks

130
Q

Job enlargement

A

when workers are given a greater range of work at the same level

131
Q

Working conditions

A

the physical surrounding and the atmosphere of the workplace and the way staff are treated by managers

132
Q

Leadership

A

the functions of ruling, guiding and inspiring others

a person who has a vision that they share with others, whilst pushing them in the right direction

133
Q

Management

A

the planning, organising, directing and controlling all or part of a business

(a person who makes decisions that affect day to day running of a business)

134
Q

Autocratic leadership

A

decision making is kept with managers who will direct subordinates with little consultation

135
Q

Paternalistic leadership

A

leaders keep control but take the welfare of employees into account when making decisions

136
Q

Democratic leadership

A

managers lead a business based on decisions made by the majority- it involves consultation between managers and subordinates

137
Q

Laissez faire leadership

A

where the leader may offer coaching and support to employees, but will rarely interfere in the running of the business

138
Q

Entrepreneur

A

a person who sets up a business/ takes risks in hope of profit/reward

139
Q

Intrapreneur

A

when an employee of a business shows entrepreneurial skills within the business

140
Q

Profit maximisation

A

when the difference between sales and revenue and cost is at its greatest

141
Q

Profit satisficing

A

when a business is making enough profit so that the owner has a desirable quality of life, or shareholders are paid satisfactory dividends

142
Q

Entrepreneurial characteristics

A

qualities/traits demonstrated by an individual starting up in business e.g. resilience, creativity

143
Q

Business objective

A

a target/goal set by the business in the short to medium term to achieve its aim/mission

144
Q

Cost efficiency

A

minimising the costs of producing goods and services

145
Q

Social objective

A

a goal to benefit/improve the community

146
Q

Limited liability

A

owners are legally responsible for all business debts

147
Q

Unlimited liability

A

owners are only liable for the money they have invested in the business

148
Q

Sole trader

A

a business that is owned by one person who has unlimited liability

149
Q

Partnership

A

a type of business ownership owned by two or more people

150
Q

Private limited company (LTD)

A

a company owned by shareholders who usually also run the business. They cannot sell shares without the agreement of the other shareholders and shares cannot be sold on the stock market

151
Q

Shareholders

A

an individual that owns shares in a business

152
Q

Public limited company (PLC)

A

they are owned by shareholders that have limited liability and the share are available to the public on the stock market

153
Q

Stock market flotation

A

the process of converting a business into a PLC by issuing shares to the public on the stock market

154
Q

Franchise

A

a business that is allowed to trade using the brand/logo/business model of an existing business in return for a fee and royalties

155
Q

Social enterprise

A

a business that has aims/objectives which benefit society and is not for profit or profits are reinvested into the community

156
Q

Lifestyle business

A

a business set up with the aim of making no more than a set level of income from which to enjoy a particular lifestyle

157
Q

Online business

A

involves selling products on the internet

158
Q

Opportunity cost

A

the next best alternative forgone when making a decision

159
Q

Trade off

A

a situation where having more of one thing leads to having less of another

Business A-level Edexcel (14 decks)

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