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Glossary

A Examine the business principles and practices that determine business decisions

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Business ideas - Thoughts on how to innovate products, services and processes in a profitable way

Business objectives - The aims or targets that a business works towards.

Internal environment - The processes and culture within an organisation

External environment - The factors outside of an organisation that may have an impact on their activities

Start-up - a newly formed business that is usually small

Entrepreneur - A person who starts up and takes on the risk of a business

Product innovation - a change in the appearance or the performance of a product or a service or the creation of a new one

Gap in the market - an opportunity for a business to sell a product or service not currently being offered

Current trends - The general direction things are developing in such as fashion

Likely demand - A prediction on the sales of particular products and services

Stages of business growth - start-up, growth, expansion, maturity etc

Economic climate - The overall health of the economic systems within which a firm operates.

Social and economic trends - Changes in the way people live their lives and the flow of money in the economy

Intrapreneurship - entrepreneurial activity that takes place within the context of a large corporation

Competition in the market - Rival firms selling the same or similar products and services

Product portfolio - The range of goods sold by a business

New markets - Customers that a business does not yet sell to

Innovations - New or improved products and processes

Changes to processes - Adapting the way in which tasks are completed

Production processes - Actions and steps in creating a product

Business systems - Ways in which tasks are completed in an organisation

Sales systems - The processes involved in selling products to customers and receiving payment

Procurement systems - The processes involved in buying equipment, raw materials etc by a business

Organisational structure - The way staff are arranged in a business to carry out its activities

Management responsibilities - Duties of managers

Organisation of the workforce - A responsibility of managers to allocate tasks to subordinates

Costs and returns - The benefits and drawbacks of a decision

Financial returns - When benefits can be measured by the money received

Non-financial returns - When the benefits cannot be measured using money received

Long-term strategy - The goals of a business that they are aiming to achieve over a number of years

Aims and objectives - The goals of a business

Profit maximisation - An objective to increase the amount of revenue left after costs

Sales maximisation - An objective to increase the number of products customers buy

Market share - An objective to increase sales compared to rival businesses

Brand recognition - An objective to increase the familiarity of the business amongst the population

Product development - An objective to achieve company growth by offering modified or new products to current market segments

Market development - An objective of company growth by identifying and developing new market segments for current company products

Efficiency savings - An objective to reduce costs by reducing waste growth - An objective to increase the size of a business, e.g. by increasing sales

Sole trader - A business owned and operated by one person partnerships - businesses with two or more owners

Limited companies - Firms owned by shareholders who have limited liability.

Change in ownership - A sole trader becomes a partnership or limited company

financing growth - The use of investment from additional owners to increase the size of the business

Competitive pressures - Rivalry from other businesses in the market that can cause a business to change their aims and objectives

Take-over - When a failing company is bought out by another and ownership is transferred

Flat organisational structure - An organisational structure that has a wide span of control, few management levels and a short chain of command.

Matrix organisational structure - A flexible organisational structure in which teams are formed within functional areas and across functional areas

Hierarchical organisational structure - A formal or traditional structure where the organisational chart has many layers of authority.

Business location - The geographical site of a business

Local business - A business that operates in a small area

National business - A business that operates in multiple locations within one country

International business - A business that operates in multiple countries

Operational decisions - Day to day choices made within a business

Human resources - The recruitment process, deciding wage rates, deciding the proportion of full and part time staff, agreeing contracts and planning training

Recruitment process - Efforts to attract the best staff for positions in the organisation

Wage rates - The price of labour full-time staff - Workers who have contracts to work around 35 - 40 hours per week.

Part-time staff - Workers who work shorter hours or fewer days than full time staff

Conditions of employment - The specific details of a job offer, such as working hours, salary or wages, and fringe benefits which are agreed in a contract

Training methods - The ways in which skills are developed in staff

Physical resources - premises, non-current assets, procurement practices business premises - The building where business operations take place. It can be bought or rented

Buy or rent - A choice of whether to purchase an asset or use an asset belonging to another business for a regular fee non-current assets - Items of value that the business will keep in their current state for over a year

Lease - To rent an asset for a period of time for a fee hire purchase - To rent an asset until the final payment where ownership is transferred buy outright - To pay in full for an asset

Procurement practices - To processes to purchase equipment and materials in an organisation

Just-in-time processes - Organising purchasing of goods so that they arrive as and when they are needed in the production process

Just-in-case - A traditional stock management system where buffer stocks are held

Financial resources - money or other items of value that are used to acquire goods and services

Sources of finance - Where or how businesses obtain money for investment or liquidity, such as from working capital, loans or overdrafts

Management information systems - Systems used to support decision making by storing and analysing a variety of information types

Data processing tools - Processing tools used to store large amounts of data relevant to a business organisation

Quality processes - Methods used to ensure high standards in production of goods and services such as testing and inspection

Quality control - Methods to check the standards of goods produced at the end of the production process

Quality assurance - Methods to ensure high standards of produced products by checking all stages of the production process

Total quality management - A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction.

quality circles - Voluntary groups of people drawn from various production teams who make suggestions about quality.

best practice - An optimal way recognised by industry to achieve a stated goal or objective

benchmarking - a process by which a company compares its performance with that of high-performing organisations

Legislation - Laws or sets of laws to regulate industry regulation - government intervention in a market that affects the production of a good

Health and safety at work - regulations protecting the employees from working in dangerous conditions without proper clothing or equipment

Data protection - Method of ensuring that personal data is correct and is not misused either by those holding it or others who have no right to access it.

Employment rights and protection - Regulations that protect the rights of workers

Consumer rights and protection - Regulations that protect the rights of those buying and using products

Business models - A plan that details how a company creates, delivers, and generates revenues

Porter's Five Forces - threat of entry, threat of substitute, supplier power, buyer power, and competitive rivalry

5Cs analysis - Customers, competitors, company skills, collaborators and context

Ansoff Matrix - An analytical tool to devise various product and market growth strategies, depending on whether businesses want to market new or existing products in either new or existing markets.

Boston Matrix - A model which analyses a product portfolio according market share and market growth. Products are categorised as question marks, stars, cash cows and dogs

Product Life Cycle - The stages through which goods and services move from the time they are introduced on the market until they are taken off the market.

Competitor analysis - The practise of identifying rivals and potential rivals and understanding their strengths and weaknesses

Economic trends - The overall direction of inflation, balance of payments, interest rates and exchange rates

Market trends - The overall direction of buying and selling in a market

Marketing plan - An outline of the strategies to be used to appeal to the target market

7ps - The extended marketing mix - product, price, promotion, place, people, processes and physical evidence

USP - A feature of a product that makes it stand out from its rivals

Target market - The intended buyers of a product

Market segmentation - Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviours

Demographic segmentation - segmenting markets by age, gender, income, ethnic background, and family life cycle

Geographic segmentation - the grouping of consumers on the basis of where they live

Psychographic segmentation - dividing a market into different segments based on social class, lifestyle, or personality characteristics

Behavioural segmentation - Dividing a market into segments based on their buying habits

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