Unit 7B Glossary
BTEC Level 3 Business Studies. Unit 7: Decision Making
5Cs Analysis - A framework for analysing opportunities for success and risk factors in a business's operating environment by investigating the company, collaborators, customers, competitors 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.
Bar charts - Graphics used to compare quantities by representing them using bars of different heights
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
Buffer stock levels - A level of inventory that a company will strive to maintain in order to avoid disruptions in production.
Correlation coefficient - A measure of the strength of the relationship between two variables
Critical path analysis - A project planning diagram that uses a diagram to show the earliest start and latest finish times to discover the quickest route to complete all activities.
Data legislation - Laws that govern how organisations handle information they collect about individuals.
Data storage - The methods used to protect information collected in research from individuals and organisations who have not been authorised to access it.
Discounted cash flow - The process of calculating the current value of money received in the future.
Ethical issues - The moral principles that underpin a businesses approach to storing information such as ensuring any activity does not cause harm.
Extrapolation - An extension of a trend line to make a prediction about the future of that trend
Frequency distributions - How often a variable appears in a sample.
Gantt charts - A planning tool for organising project activities by shading in the day, week, or month on a timeline in which they are to be done.
Histograms - Graphics used to compare quantities by representing them using bars of different surface areas
Internal rates of return - The anticipated annual rate of growth from an investment.
Line graphs - Diagrams of data in which specific values are plotted as dots and connected using lines.
Linear trend lines - An approximation of the trend in a graph by drawing a line of best fit
Management information systems - Systems used to aid decision-making by storing and evaluating various sorts of data.
Mean - The average calculated by adding the scores and then dividing by the number of scores.
Measures of dispersion - The spread of data in a set.
Median - The average measured as the middle score in a distribution; half the scores are above it and half are below it
Mode - The value that occurs most frequently in a given data set.
Net present value - The current value of money received in the future.
Networking - Techniques for project planning that consider how distinct activities interact with one another.
Percentiles - The values obtained by dividing a data set into 100 parts.
Pie charts - A Graphic representation of data. A circle is divided into sectors which shows a percentage of a whole.
Porter's Five Forces Model - Threat of entry, threat of substitutes, supplier power, buyer power, and competitive rivalry.
Primary sources - Data gathered first hand for the purpose of the investigation.
Quartiles - The values obtained by dividing data sets into four.
Regulatory issues - The processes a business needs to put in place to ensure that it adheres to any data protection laws.
Representative Values - The middle of a group of scores, as represented by the mean, mode, and median.
Scatter graphs - The use of visuals to study the relationship between two factors.
Secondary sources - Data gathered that already exists as part of previous research but may be relevant to current investigation
Security of information - The methods used to protect information collected in research from individuals and organisations who have not been authorised to access it.
Sources for data collection - Ways in which organisations can collect data about their customers and their environment.
Standard deviation - A measure of how dispersed a set of data is from the mean.
