Terms : Hide Images
| 6668076951 | Business Objectives | Targets that a business aims to achieve in a set period of time. | 0 | |
| 6668076952 | Profit Objectives | Target to maximise financial returns, in the form of profit, in a set period of time. | 1 | |
| 6668076953 | Revenue | Money coming into the business from the sales of goods or services, selling price x amount sold. | 2 | |
| 6668076954 | Profit | Surplus money made by a business when revenue exceeds costs. | 3 | |
| 6668076955 | Non-profit Organisations | Businesses with a motive other than profit, may be to provide a social benefit or service to society or to support a cause. | 4 | |
| 6668076956 | Ordinary Share Capital | Investment given to the business by shareholders in return for a share of the business. | 5 | |
| 6668076957 | Share Price | Refers to the value attached to each share bought and sold on the stock exchange. These change in accordance to performance. | 6 | |
| 6668076958 | Demographic Factors | Factors which influence populations . | 7 | |
| 6668076959 | Autocratic Leadership | Individual control over all decisions and little input from group members. Typically make choices based on their ideas and judgments and rarely accept advice. | 8 | |
| 6668076960 | Democratic Leadership | Members of the group take a more participative role in the decision-making process. Everyone is given the opportunity to participate, ideas are exchange freely, and discussion is encouraged. | 9 | |
| 6668076961 | Laissez-faire Leadership | The laissez-faire leadership style is where all the rights and power to make decisions is fully given to the worker. | 10 | |
| 6668076962 | Tannenbaun Schmidt Continuum | Model of leadership that considers the level of indepednence a worker has within a business. 7 levels of control from autocratic to democratic. | 11 | |
| 6668076963 | Decision Trees | Numerical data applied and the probaility of the outcomes is estimated. | 12 | |
| 6668076964 | Stakeholder Mapping | Tool which helps manage stakeholders effectively. Low interest and power = minimal effort, high interest and power = key players, high interest and low power= keep informed and low interest and high power = keep satisified. | 13 | |
| 6668076965 | Market Growth | change in size of market / original size x 100 | 14 | |
| 6668076966 | Market Mapping | Process of positioning competition within a market but plotting key variable which differenciate the products to see a gap in the market. | 15 | |
| 6668076967 | Stratified Sampling | One selected from a specific sub-section of a population. | 16 | |
| 6668076968 | Quota Sampling | Random sampling of a sub-section of the population which represents the target market. | 17 | |
| 6668076969 | Confidence Intervals | Known as a margin of error, the range between which the actual result may be. | 18 | |
| 6668076970 | Extrapolation | USe of past data to identify a trend in the future. | 19 | |
| 6668076971 | Digital Marketing | Makes use of technology and comprimises social media. | 20 | |
| 6668076972 | Price Elasticity of Demand | Measures responsiveness of demand to a change in price. %change in demand / % change in price x 100 | 21 | |
| 6668076973 | Income Elasticity of Demand | Measures responsiveness of demand to changes in income. %change in demand / %change in income x 100. | 22 | |
| 6668076974 | Price Inelastic | When a product isn't very responsive to a change in price. | 23 | |
| 6668076975 | Price Elastic | When a product is really responsive to a change in price. | 24 | |
| 6668076976 | Income Inelastic | Change in income leads to a less than proportional change in demand. | 25 | |
| 6668076977 | Income Elastic | Change in income leads to a bigger proportional change in demand. | 26 | |
| 6668076978 | Luxury Goods | Items very sensetive to levels of income. They normally have a positive income elasticity of more than +1.5 or -1.5. | 27 | |
| 6668076979 | Necessities | Product essential and therefore customers continue to purchase no matter if the price increases. Therefore is in-elastic. | 28 | |
| 6668076980 | Segmentation | Process of dividing the market up into subsections or groups of people with similar characteristics to fit a sub-section. (Behavioural, Geographic, Income and Demographics) | 29 | |
| 6668076981 | Targeting | After segmenting the market, a firm will choose who the target market is. | 30 | |
| 6668076982 | Positioning | How a product is percieved in relation to competitors. | 31 | |
| 6668076983 | Demographic | Segmentating the market according to characteristics of the population e.g. age, gender or ethnicity. | 32 | |
| 6668076984 | Geographic | Segmentating the market according to the location of the popluation e.g. whether they are rural or not or the climate of the location. | 33 | |
| 6668076985 | Income | Segmenting the market based on the income levels and proffesion. e.g. A= Higher managerial C1= Junoir proffesionals E= Pensioners, student etc. | 34 | |
| 6668076986 | Behavioural | Segments the market according to the way people act. | 35 | |
| 6668076987 | Niche Markets | When a firm targets a small subsection or a small gap in the market. Allows them to charge a premium price. | 36 | |
| 6668076988 | Mass Marketing | When a firm targets a whole market. Usually means high sales but lower prices. | 37 | |
| 6668076989 | Marketing Mix (7 P's) | Product, Price, Place, Promotion, Process, Physical Enviornment and People. | 38 | |
| 6668076990 | Convenience Goods | Widely consumed goods like bread and milk. | 39 | |
| 6668076991 | Shopping Goods | Involve a greater level of thought on behalf of consumer compared to other goods but less than speciality goods. E.g. clothing | 40 | |
| 6668076992 | Speciality Goods | Often high priced and consumers will put alot of research into the product before purchase. | 41 | |
| 6668076993 | Cash Cow | Within Boston Matrix, characterised by low market growth and high market share. Can be 'milked' to support growth of other new products. | 42 | |
| 6668076994 | Problem Child | High market growth and low market share. Cash cows used to help establish these products. | 43 | |
| 6668076995 | Rising Star | High market growth and high market share. Likely to have tough competitiors but very profitable. | 44 | |
| 6668076996 | Dog | Low market share and low market growth, strategy may be used to revive the product. | 45 | |
| 6668076997 | Launch | Product introduced to market. Low sales and high promotional costs. | 46 | |
| 6668076998 | Growth | Sales volume and revenue is increasing, now focusing on brand loyalty. | 47 | |
| 6668076999 | Maturity | Productis fully established and sales tend to be stable. May act as a cash cow for organisation. | 48 | |
| 6668077000 | Decline | Sales are starting to fall. Business needs to decide to either allow the prodcut to stop the product to prevent further declining or use an extention strategy. | 49 | |
| 6668077001 | Price Skimming | Setting a high inital price for a new product in order recoup high research and development costs. | 50 | |
| 6668077002 | Promotional Mix | Public relations; Branding; Merchandising; Sales promotions and Advertising. | 51 | |
| 6668077003 | Direct Selling | Cutting out intermediaries and sell directly to customer. | 52 | |
| 6668077004 | Distribution Decisions | How the business will get the product to the consumer. | 53 | |
| 6668077005 | Multi-Channel Distributions | Allows products to be bought in a number of ways. | 54 | |
| 6668077006 | E-Commerce | Buying and selling of goods online. | 55 | |
| 6668077007 | Operational Objectives | Targets a business sets to produce goods or services in the most effective way. E.g. cost; quality; speed of response; dependability. | 56 | |
| 6668077008 | Labour Productivity | output / number of workers | 57 | |
| 6668077009 | Unit Costs | total cost / output | 58 | |
| 6668077010 | Capacity Utilisation | actual output / max output x 100 | 59 | |
| 6668077011 | Lean Production | Based on cutting waste whilst maintaning or even improving quality. E.g. Just-In-Time, Kaizen. | 60 | |
| 6668077012 | Quality Assurance | Checking quality at each stage of production. | 61 | |
| 6668077013 | Quality Control | Checking th equality of a product at the end of production. | 62 | |
| 6668077014 | Mass Customisation | Firm employs flexibility, providing tailor made prodcuts on a separate production line. | 63 | |
| 6668077015 | Buffer Level | Inventory held by the firm to cope with unforeseen circumstances. | 64 | |
| 6668077016 | Gross Profit | Profit after cost of sales are deducted. sales revenue - cost of sales. | 65 | |
| 6668077017 | Operating Profit | Profit after other expenses are deducted. gross profit - expenses. | 66 | |
| 6668077018 | Net Profit | Profit after tax is deducted but before payment of dividends. | 67 | |
| 6668077019 | Cash Flow Forecast | The flow of money into and out of a business in a short term time frame. | 68 | |
| 6668077020 | Capital Expenditure | Investment on capital equipment such as vehicles or porperty. | 69 | |
| 6668077021 | Capital Objectives | In order to maximise the chances of long term success a firm must decide how to spend its capital. | 70 | |
| 6668077022 | Adverse Varience | Negative for business | 71 | |
| 6668077023 | Favorable Variance | Good for business | 72 | |
| 6668077024 | Expenditure Budget | Target amount of money a business can spend in a given time. | 73 | |
| 6668077025 | Profit Budget | A target amount of surplus to be achieved in a given time. | 74 | |
| 6668077026 | Cash Flow Forecast | Estimating size and time of cash inflows and outflows within a business. | 75 | |
| 6668077027 | Cash Inflows | Reciept of cash into a business. E.g. sale of goods, loans recieved and sales of assets. | 76 | |
| 6668077028 | Cash Outflows | Cash outflows from a business e.g. Costs (wages, bills etc). | 77 | |
| 6668077029 | Net Cash Flow | The difference between the cash inflows and outflows of a business. | 78 | |
| 6668077030 | Closing Balance | opening balance + cash inflows - outflows | 79 | |
| 6668077031 | Break-Even Chart | Representaion of total costs and total revenues identifing the point at which break even is achieved. | 80 | |
| 6668077032 | Break-Even Analysis | Technique used by a business to identify the number of units necessary to achieve an equilibrium. total costs = total revenue | 81 | |
| 6668077033 | Break-Even Output | Level of output at which the business is making niether a loss or profit. | 82 | |
| 6668077034 | Margin of Safety | Positive difference between the actual number of units produced and the number required to break-even. actual output - breakeven output | 83 | |
| 6668077035 | Break-Even Output | fixed costs / contribution (per unit) | 84 | |
| 6668077036 | Profitability | Efficiency of a business in generating profit | 85 | |
| 6668077037 | Financial Data | Form of quantitative research required for decision making. | 86 | |
| 6668077038 | Ratio Analysis | More meaningful analysis of published accounts, shows relationship between figures. | 87 | |
| 6668077039 | Improving Cash-Flow | Increases the volume or speed of the inflow of cash or reducing the volume or speed of the outflow of cash. | 88 | |
| 6668077040 | Liquidity | Ability of the business to meet day to day expenses. and short term debts. | 89 | |
| 6668077041 | HR Objectives | What the business wants to achieve in a given time period. E.g. matching workforce skills, size and location to business needs; minimsing labour costs; making full use of workforce. | 90 | |
| 6668077042 | Employee and Involvement | Degree of commitment an employee shows enthusiasm toward working with the business to achieve goals. | 91 | |
| 6668077043 | Soft HR Management | Staff are an asset to the business that can contribute and help the business achieve its objectives. Characteristics include, opportunities for staff development; training and internal promotion; empowerment; consultation; flatter organizational structure. | 92 | |
| 6668077044 | Hard HR Management | Staff are treated as a resource that must be managed in order for the business to control costs and output. | 93 | |
| 6668077045 | Human Resource Data | Quantifiable information that HR managers use to help improve organizational performance. Includes labour productivity, turnover, retention rates and labour costs per unit. | 94 | |
| 6668077046 | Retention Rates | Refers to the ability of an organization to keep its employees. Linked to labour turnover. number of employees with one or more years service / overall workforce number x 100. | 95 | |
| 6668077047 | Labour Productivity | Output / number of workers | 96 | |
| 6668077048 | Employee costs as % of labour turnover | employee costs / sales turnover x 100 | 97 | |
| 6668077049 | Organisational Design | Process of structuring an organization so that it is in a format that enables it to deliver its objectives in both short and long term. | 98 | |
| 6668077050 | Job Design | Way in which job roles and tasks are allocated in the workplace. | 99 | |
| 6668077051 | Span of Control | Number of subordinates that a manager is in direct control of. | 100 | |
| 6668077052 | Wide Span of Control | Many subordinates, can be more difficult the wider it becomes and can be hard to communicate and coordinate. | 101 | |
| 6668077053 | Narrow Span of Control | Few subordinates, can improve competitiveness. | 102 | |
| 6668077054 | Hierarchy | Structure of a workforce within an organisation, shows who is accountable to whom in an organisation and the span of control. | 103 | |
| 6668077055 | Centralisation | HR strategy where the responsibility for decision making is maintained by a limited number of senior managers at the top of hierarchy. | 104 | |
| 6668077056 | Decentralisation | HR strategy where the responsibility for decision making is delegated to a number of middle managers throughout hierarchy. | 105 | |
| 6668077057 | Delayering | Method used to improve competitiveness by removing levels of hierarchy. | 106 | |
| 6668077058 | Internal Recruitment | Candidates for a position are recruited from within the organisation. | 107 | |
| 6668077059 | External Recruitment | Occurs when candidates for a position are recruited from outside the organisation. | 108 | |
| 6668077060 | Human Resource Flow | Part of a workforce plan, considers the flow of skills into the business via recruitment, within the business as employees change jobs or redeployed and out of the business via redundancy. | 109 | |
| 6668077061 | Redeployment | Transferring an employee who faces redundancy to a suitable alternative position in the organisation. | 110 | |
| 6668077062 | Motivation | Reasons why people behave the way they do, leads to greater employee engagement. | 111 | |
| 6668077063 | Maslow's Hierarchy | Theory that states that human needs are arranged in order and one need is fulfilled greater motivation will achievement by moving to the next level. Needs are, physical needs, safety needs, psychological needs, esteem needs and self-actualization. | 112 | |
| 6668077064 | Taylor's Management | States that all tasks should be studied scientifically and that each employee should be trained and instructed in exactly how to do the job in the most efficient manner. Ideas of piece rate, divisions of labour and mass production. He believed that employees were motivated by money. | 113 | |
| 6668077065 | Herzberg Dual Factor | States that motivating factors will create job satisfaction and others reduce motivation factors. Motivating factors include achievement , recognition, responsibility, promotion and growth. Hygiene factors include pay, benefits, company policy, relationships, work conditions, status and job security. | 114 | |
| 6668077066 | Financial Motivators | Time based pay, performace related pay, bonus and profit share. | 115 | |
| 6668077067 | Non-Financial Motivators | Motivation through job design rather than monetary rewards. | 116 | |
| 6668077068 | Job Enrichment | Increase level of responsibility that an employee has in order to increase motivation. Non-financial motivator. | 117 | |
| 6668077069 | Job Enlargement | Increase level of tasks that an employee has in order to increase motivation. | 118 | |
| 6668077070 | Financial Reward Systems | Monetary incentives as a method of motivating employees. E.g. piece rate, commission and salary schemes. | 119 | |
| 6668077071 | Non-Financial Systems | Using incentives other than money to motivate employees. Linked to Maslow and Herzberg's theories. E.g. training, job enlargement and enrichment and rotation, empowering employees, team work and offering basic hygiene factors. | 120 | |
| 6668077072 | Employee Representation | Put in place to aim communication between employers and employee. Maintains positive employee/employer relations leading to a more productive and motivated workforce. E.g. employee groups, works councils and trade unions. | 121 | |
| 6668077073 | Trade Unions | National organisations with a remit to protect members and improve their economic wellbeing and working conditions. They're key objectives are securing jobs, maximizing pay, ensuring safe and acceptable conditons and fair treatment. | 122 | |
| 6668077074 | Works Council | Internal group made up of representatives of employees within a business who meet to discuss issues effecting the workforce. | 123 | |
| 6668077075 | Industrial Action | Sanctions available to put employees to put additional pressure when relationships have broken down. E.g. work to rule, go slow, overtime ban and striking. | 124 | |
| 6668077076 | Income Statement | A financial document showing the businesses profit or loss over a yearly time frame. | 125 | |
| 6668077077 | Statement of financial position (Balance Sheet) | A financial document that shows the assets and liabilities of a business at a particular moment in time. | 126 | |
| 6668077078 | Current Asset | An item of value that the business owns and intends to turn into cash within a year. (Stock, debtors etc) | 127 | |
| 6668077079 | Fixed Asset | An item of value that the business owns and intends to keep for longer than a year (Premises, machinery etc) | 128 | |
| 6668077080 | Current liability | A debt that the business must pay within a year (creditors, overdraft) | 129 | |
| 6668077081 | Long term liability | A debt that the business intends to keep for longer than a year (mortgage, bank loan) | 130 | |
| 6668077082 | Gross profit margin | Gross profit/revenue x 100 | 131 | |
| 6668077083 | Shows what % of every £1 in revenue is turned into gross profit | 132 | ||
| 6668077084 | Net profit margin | Net profit/revenue x 100 | 133 | |
| 6668077085 | Shows what % of every £1 in revenue is turned intonetprofit | 134 | ||
| 6668077086 | Current ratio | current assets/current liabilities | 135 | |
| 6668077087 | Shows how easily the business can repay their short term debts. (expressed as a ratio e.g. 5:1 which means that the business has £5 assets for every £1 of debts) | 136 | ||
| 6668077088 | Acid test ratio | current assets-stock/liabilities | 137 | |
| 6668077089 | Shows how easily the business can repay their short term debts once stock has been removed from the equation as there is no guarantee they can sell stock. (expressed as a ratio e.g. 3:1 which means that the business has £3 assets for every £1 of debts) | 138 | ||
| 6668077090 | Revenue | Money made from sales | 139 | |
| 6668077091 | Selling price x quantity sold | 140 | ||
| 6668077092 | Profit | Total revenue-Total costs | 141 | |
| 6668077093 | Break even | Fixed costs/SP-VC per unit | 142 | |
| 6668077094 | Flat structure | An organisational structure with few layers of management and wider span of control | 143 | |
| 6668077095 | Tall structure | An organisational structure with a high number of layers and narrower span of control | 144 | |
| 6668077096 | Mission Statement | A brief statement which describes the overall purpose of an organisation and defines its existing scope and boundaries so that it can remain focused. A mission statement answers the question, "Why do we exist?" | 145 | |
| 6668077097 | Corporate Strategy | An overall plan with clearly defined objectives that provides a clear sense of direction and assists decision making within an organisation | 146 | |
| 6668077098 | Strategic Objectives | These are objectives set for the whole organisation by senior management. They will have long-term implications and involve major uses of resources. | 147 | |
| 6668077099 | Functional Objectives | These are objectives designed to improve the efficiency of business operations in areas such as production, marketing and sales, human resources, finance, and research and development. They can only be effective if there is co-operation between the business functions. | 148 | |
| 6668077100 | SMART Objectives | Objectives set by the businesses which are specific, measurable, attainable, realistic and time-based. This will allow for monitoring and evaluation of performance by management. | 149 | |
| 6668077101 | Stakeholders | Individuals or groups who have a genuine interest in a particular business and will be affected by or can affect the activities undertaken by that business. Stakeholders can be internal or external to the business. | 150 | |
| 6668077102 | Stakeholder Objectives | These are the goals of people who have an interest in the business | 151 | |
| 6668077103 | Stakeholder Conflict | This can occur in business when stakeholder objectives are different | 152 | |
| 6668077104 | Profit Maximisation | Producing at a level of output which generates the most profit for a business | 153 | |
| 6668077105 | Profit Satisfaction | Generating sufficient profit to satisfy owners and relevant stakeholders such as management. | 154 | |
| 6668077106 | Growth | An objective chosen to allow the firm to become competitive, to dominate the market, to diversify and reduce risks. | 155 | |
| 6668077107 | Survival | A possible objective for a business during early stages of trading, during a recession or in response to a threat from a takeover | 156 | |
| 6668077108 | Corporate Image | An objective chosen to enhance the reputation of the business in relation to ethics and social responsibility. It is the mental picture that springs up at the mention of a firm's name. | 157 | |
| 6668077109 | Environment | An objective chosen when the firm is pursuing policies to reduce the negative impact of its activities on the environment. | 158 | |
| 6668077110 | Business Plan | A set of documents prepared by a firm's management to summarize its operational and financial objectives for the near future and to show how they will be achieved. | 159 | |
| 6668077111 | SWOT | An analysis of internal strengths and weaknesses and the external threats and opportunities facing a business. | 160 | |
| 6668077112 | PESTEL | An analysis of the political, economic, social, technological, environmental and legislative impacts affecting a business. | 161 | |
| 6668077113 | Ansoff's Matrix | A decision making model used by marketing managers to help them adapt to changing situations and developing new strategies for growth that consider new and existing products and new and existing markets | 162 | |
| 6668077114 | Boston Matrix | A decision making tool used by a business that has to manage a product portfolio. It examines its products in relation to market share and market growth. | 163 | |
| 6668077115 | Sales Revenue | Income earned in the accounting period from trading activities. | 164 | |
| 6668077116 | Opening Inventories | Stock that the organisation has at the start of the trading period, carried over from the previous trading period. | 165 | |
| 6668077117 | Closing Inventories | The amount of unsold stock left at the end of the trading period. | 166 | |
| 6668077118 | Cost of Sales | Opening Inventories + Purchases - Closing Inventories. | 167 | |
| 6668077119 | Gross Profit | Sales Revenue - Cost of Sales. | 168 | |
| 6668077120 | Net Profit | Gross Profit - Expenses. | 169 | |
| 6668077121 | Assets | Items of value held by a business which is likely to generate future income. | 170 | |
| 6668077122 | Equity | The value of funds within the business which can be attributed to the owner/s. | 171 | |
| 6668077123 | Tangible Assets | These include property/ premises,plant/machinery/equipment/vehicles: items that may be physically viewed. | 172 | |
| 6668077124 | Intangible Assets | Intellectual rights/property/goodwill/programming rights/music rights: items which are not physical in nature. | 173 | |
| 6668077125 | Dividend | A proportion of a company's profits paid to the owners of shares in a particular company. | 174 | |
| 6668077126 | Share Capital | Money introduced into the business through the sale of shares. | 175 | |
| 6668077127 | Ratio Analysis | This is a numerical process of investigating accounts by comparing two related figures. | 176 | |
| 6668077128 | ROCE | Return on Capital employed i.e. the profit of a business expressed as a percentage of the total amount of money used to generate it | 177 | |
| 6668077129 | Gearing | This examines the capital structure of the business and compares the proportion of capital raised from a borrowed source and equity. | 178 | |
| 6668077130 | Earnings Per Share | This refers to the amount each ordinary share earns. | 179 | |
| 6668077131 | Investment Appraisal | The evaluation of an investment project to determine whether or not it is likely to be worthwhile. | 180 | |
| 6668077132 | Payback | A method of investment appraisal that shows the amount of time it takes to recover the cost of an investment project. | 181 | |
| 6668077133 | ARR | Average Rate of Return - a method of investment appraisal which measures the net return per annum as a percentage of initial spending | 182 | |
| 6668077134 | Macro-economics | The study of how the whole economy works. | 183 | |
| 6668077135 | Business Cycle | A measure of the regular fluctuations in the level of economic activity | 184 | |
| 6668077136 | Boom | The stage when an economy is at the peak of activity. | 185 | |
| 6668077137 | Recession | Income and output begin to fall and business confidence is reduced | 186 | |
| 6668077138 | Slump | The lowest point in the trade cycle - production is low,businesses close and unemployment is high | 187 | |
| 6668077139 | Recovery | At this stage income will start to rise and business output will increase, firms will invest more, consumers will start to increase spending and businesses will start to recruit new workers. | 188 | |
| 6668077140 | Exchange Rate | The price of one currency in relation to another. | 189 | |
| 6668077141 | Unemployment | The number of people who are of working age but not in a job. | 190 | |
| 6668077142 | Multi-Nationals | A company which owns or controls production or service facilities outside the country in which it is based. | 191 | |
| 6668077143 | Trade barriers | The use of controls to prevent free movement of goods between countries | 192 | |
| 6668077144 | Emerging Markets | Emerging markets are nations with social or business activity in the process of rapid growth and industrialisation. E.g. India | 193 | |
| 6668077145 | Business Ethics | This is the influence of values and beliefs upon the conduct and operation of business activities e.g. Fair Trade, Animal Welfare. | 194 | |
| 6668077146 | CSR | Corporate Social Responsibility. The willingness of a business to accept responsibility for its actions and their impact on stakeholders | 195 | |
| 6668077147 | Culture | This is the way a business does things and the way that people in the business expect things to be done. It shapes staff behaviour and attitude and how they make decisions | 196 | |
| 6668077148 | External Environment | The factors outside a business that may influence its decisions | 197 | |
| 6668077149 | Merger | The joining together of two businesses. | 198 | |
| 6668077150 | Takeover/Acquisition | The purchase of one business by another. | 199 | |
| 6668077190 | Joint Venture | Two firms who share the cost, responsibility and profits of a business | 200 |
