Unit 7A Glossary
BTEC Level 3 Business Studies. Unit 7: Business Decision Making
Aims - The overall long-term target or goal of an organisation. What it wants, needs, and intends to achieve.
Business ideas - Thinking processes on how to profitably create products, services, and processes
Business location - Geographical areas or premises where a business chooses to operate from. It could be local, national or international.
Business plan - A document outlining a company's future goals and tactics for achieving them.
Business purpose - The reason why a business was created which drives strategy.
Business structure - How a business is legally recognised. E.g. sole trader, partnership or limited company.
Competitors - Their objectives are to gain market share from rival businesses so will be interested in products and practices of competition to devise strategies to outperform them.
Current trends - The latest preferences and behaviours of customers.
Developing business - A business that has survived its initial start-up phase and is establishing a stable customer base.
Diversification - Developing a range of different goods and services to meet the needs of new customers.
Economic climate - The general state of the economic systems in which a company operates.
Flat structure - An organisational structure that has a wide span of control, few management levels and a short chain of command.
Gap in the market - A group of customers who's needs are not currently being met by current goods and services on offer.
Hierarchical structure - A formal or traditional structure where the organisational chart has many layers of authority.
International business - A business that operates in multiple countries
Likely demand - A prediction of the amount of a product or service that will be bought.
Local business - A business that operates in a small area.
Matrix structure - A flexible organisational structure in which teams are formed within functional areas and across functional areas.
National business - A business that operates in multiple locations within one country.
Objectives - The stated, measurable goals that a company sets in order to achieve its aims. The steps to be taken in order to achieve long-term goals.
Product - Items that are manufacturer or redistributed by a business in exchange for money.
Service - Non-tangible services provided by a business to its customers
Start-up - A business in the early stages of development. There is high investment requirements and low revenue at this stage.
Survival - The objective to keep the business in operation for the foreseeable future.
Trends - The general direction of behaviours.
Types of ownership - Sole trader, partnership, private limited company, public limited company and cooperative.
