Vocab March 15th Flashcards
Lean Production Methods
An approach to business management that focuses in cutting out waste, whilst ensuring quality. Aims to cut cost by making business more efficient and responsive to market needs.
Just In Time (JIT)
A system used in lean production. Inventories (stocks) only arrive just as they are needed, risky and difficult as stock may run out before supplier can resupply stores, but reduces cost of holding stocks.
Outsourcing
The delegation of one or more business processes to an external provider, who then owns, manages, and administers the selected processes to an agreed standard. Aims to reduce costs and to buy-in specialist services.
Cost of Sales
Measures the cost of goods and services bought into from suppliers. Can be used to calculate gross profit margin for individual products, services, departments, and stores. Key in achieving aim of having lowest prices in market.
Marketing Mix
Traditionally comprises of Product, Price, Promotion, and Place. Overall mix of activities and strategies that combine to achieve the marketing objectives.
Low-Price Strategy
A strategy in which a business attempts to have an advantage over its competitors by having lower prices than its competitors. Key weapon in retailing, strategy can only be sustained long-term if business has low-cost supplies.
Purchasing Terms
Terms on which business buys goods and services from its suppliers. Terms aren’t just about price, but also agreement on when supplier invoice will be paid, quality requirements, how a retailer may return unsold goods, and arrangements for delivery to stores
Suppliers
Businesses that provide goods and services to another business.
Liquidation
When a business is legally closed and the assets and liabilities of business are sold and laid. (Normally happens when a business fails)
External Sources of Finance
Examples: bank loans, bank overdrafts, and credit from suppliers which are received from outside the business.
Salesperson
An employee whose job it is to “close the sale” by communicating with customers..
Management Responsibility
Where an employee has some control over decision-making, even if this is relatively limited.
Aim
A statement of where a business wants to go in the future, it’s goals. A statement of purpose.
Mission Statement
Sets out the business vision and values that enables employees, managers, and external stakeholders (e.g. Customers and suppliers) to understand the underlying basics for the actions of the business.
Sole-trader
A business that is owned by one person and is not incorporated. The owner (sole-trader) does not benefit from the protection of limited liability.
