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BUSS4 Key Terms
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CORPORATE AIMS AND OBJECTIVES
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Corporate Aims

Long term targets that will enable the business to fulfil its mission

Corporate Strategy
A plan based on the corporate aims and objectives which defines the overall scope and
direction of the business by identifying its choice…

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A measure of inflation based on the RPI but excluding housing costs
It is used by the government and the Bank of England
Target UK inflation target is 2% annual CPI inflation
Contractionary Fiscal Policy
Increases in taxes greater than increases in government spending
E.g. budget surplus
This reduces total…

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The use by the government of changes in tax rates or government spending to manage the
economy
Free Trade
International trade that is allowed to take place without restrictions such as protectionist
tariffs and quotas
Frictional Unemployment
Occurs when people take some time to find another losing or leaving their…

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Monopoly

In theory, an industry with just one supplier but the UK and EU definition of a firm with at
least 25% market share or a legal monopoly

Oligopoly
Industry with competition amongst a relatively few businesses

Protectionism

Policies used by governments, such as tariffs and quotas, to limit imports…

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Autocratic Leadership
Leaders take decisions on their own with no discussion

Backward Vertical Integration
Merger with a supplier business

Bureaucratic Leadership

Leaders use rigid and complex rules and procedures to direct and lead the organisation
Business Process Re-Engineering

Fundamentally rethinking and redesigning the processes of a business to…

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Merger with a customer business
Horizontal Integration

Merging with a taking over another business in the same industry at the same stage of
production

Information Management

The collection and assessment of information from one or more sources and the
distribution of that information to the appropriate managers

Internal Growth

Expansion…

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When individuals are given freedom to express themselves fully and make decisions for
themselves
PEST Analysis

The assessment of the external political, economic, social and technological factors that
may present constraints on strategic decisions made by a business

Power Culture

Concentrating power among just a few people

Private Equity Ownership…

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When a company buys over 50% of the shares of another company and becomes the
controlling owner of it
It is often referred to as an `acquisition'
Task Culture

Based on cooperation and teamwork

Vertical Integration

Merging with or taking over another business in the same industry but at a…

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