Unit 1 key words Flashcards
Reluctant to take any chances, probably not an entrepreneur
Risk averse
Someone who takes responsibility for organising business activity and carries business risk
Entrepreneur
The people who organise and control a business. Typically have both power and responsibility.
Managers
The reasons that lead us to act as we do
Motivation
Turning physical inputs into a saleable product; a sector that takes up a falling share of uk business activity.
Manufacturing
Revenue minus costs. Can be seen as a reward for enterprise and for carrying business risk.
Profit
Running a business to make the most profit possible, regardless of any other objectives.
Profit maximisation
Income received by a business from sales and other sources
Revenue
The expenditure incurred to operate any business activity
Costs
Wellbeing, sometimes measured just in terms of material goods but sometimes taking a wider view of the quality of life.
Welfare
People who target a satisfactory performance rather than profit maximisation
Satisfiers
In line with ideas on what is morally correct. Sometimes business face a choice between profit maximisation and ethical behaviour
Ethical
Businesses taking into account fairness and consideration towards their stakeholders; behaving ethically
Corporate responsibility
Taking responsibility for decisions plus organising and motivating fellow workers
Leadership
Means that decisions are handed down for implementation for subordinates are not expected to question decisions or to offer alternatives.
Autocratic
Things that are useful or valuable are assets. Premises, equipment and goodwill are examples
Assets
Where a leader is firmly in control but takes into account workers welfare
Paternalistic leadership
Leaders consult widely and share decision taking
Democratic
To assign or delegate freedom, decision taking and responsibility to individuals or teams of employees
Empower
Subordinates are allowed as much independence as possible
Laissez-faire
A business with activities in several countries.
Multinational company (MNC)
A management approach based on the idea that people are lazy and need close supervision
Theory X
A management theory approached based on the idea that people want to achieve and can be trusted
Theory Y
Businesses using the wishes of customers and what the are willing to pay to guide production and marketing decisions
Market orientation
Prioritising product quality or performance not customer wishes
Product orientated
A valuable characteristic that only one brand or supplier has, giving competitive advantage over rivals
Unique selling point
Subcontracting the marketing of parts or products. Multinationals commonly outsource to countries with lower costs
Outsourcing
Making your product stand out from others, because of real differences or effective marketing
Differentiation
Subdividing a market according to distinctive characteristics of the product and/or the buyers
Segmentation
A small section of a market with distinctive specialised requirements
Market niche
Reaching targets with minimum waste, effort or cost
Efficiency
The combination of desire for a product with ability and readiness to pay
Effective demand
The customers who buy and use goods and services
Consumers
Dividing up the total population by characteristics such as age and gender
Population structure
Consumer preferences for products or types of products or types of products, generally subject to shifts over time.
Tastes
Seeking an advantage over rivals by using anything other than price.
Non-Price Competition
Alternatives to a particular product.
Substitutes
Items that are consumed together; such as iPods and music downloads.
Complementary goods.
Money received.
Income
How much people have available to spend after tax and benefits.
Disposable income.
Items that we generally buy more of as income increases, unlike inferior goods. e.g clothes.
Normal Products.
Products we buy less of as rising income lets us switch to more attractive substitutes e.g Bus travel.
Inferior Goods
The way that income is shared out between members of a community.
Income distribution
The amount paid by the buyer in a transaction to the seller
Price
The best alternative given up when we make a choice and use a resource. Examples include the next best use of a land site, of income or of time.
Opportunity cost
The quantity that all producers of a product want to sell at a particular price.
Market supply
A period of time in which a business cannot change fixed costs
short term
The time it takes to make a change in the fixed asset of a business
Long run
The private enterprise system that has demand, supply, prices and profits deciding resource use, with minimal government participation.
Market system
In balance.
Equilibrium
Turning out large quantities of standardised products, often using a production line and seeking economies of scale to drive down unit costs.
Mass Production
the idea that modern markets have room for many small niche suppliers alongside larger firms that mass produce, thanks partly to technology such as the internet.
Long tail
Studying a market to gather data,particularly on factors influencing demand for the product.
Market research
Taking information from data already collected by others.
Secondary market research.
Conducting New research into demand for a product.
Primary market research
Numerical research
quantitative market research
Research into preferences and attitudes - often in some depth.
Qualitative market research
A set of questions aimed at gathering market research information, requiring careful construction to minimise bias.
Questionnaire
Gathering information from a small sample rather than the whole market or population.
Sampling
Skilled direction and planning to work towards meeting long-term objectives
Strategy
Approaches to meeting challenges and overcoming obstacles, often specific to an immediate situation.
Tactics
