EDEXCEL BUSINESS STUDIES UNIT 2A: MANAGING THE BUSINESS A-Z GLOSSARY TERMS

Anyone who is just doing business studies("NOT BUSINESS & ECONOMICS") for Edexcel board are welcome to look at the document. You can look at the definitions for just the "UNIT 2A: MANAGING THE BUSINESS". This unit only focuses on the Marketing, People in business, Operations management and lastly Finance. If anyone wants "UNIT 1: DEVELOPING THE BUSINESS IDEA" glossary terms A-Z can send the request so that I can upload it.  

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Preview of EDEXCEL BUSINESS STUDIES UNIT 2A: MANAGING THE BUSINESS A-Z GLOSSARY TERMS

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BUSINESS STUDIES
UNIT 2A: MANAGING THE BUSINESS
Above the line promotion = main media, paid for, advertising eg TV, Newspapers ads.
Below the line promotion = all types of promotion apart from main media eg Public Relations,
Sponsorship, Special offers, Direct Mail selling.
Bonus = extra salary paid to worker for meeting a target (individual or group)
Boston Matrix ­ method of analysing your product portfolio by plotting market growth against market
size.
Branding ­ differentiating your make of a product so that people do not just ask for the product, but
your brand of that product. Eg Heinz Tomato Sauce.
Budget ­ a financial plan for the future, it involves estimating revenue for next month or year, and
estimating or allocating amounts to be spent under different headings eg labour, materials. The
forecast or estimate is normally then compared each month to the actual revenue or spend.
Capacity Utilisation ­ measures what % of your maximum output is actually being produced.
Capital Intensive ­ production method with large input of machinery ( capital) and less amount of labour
eg Oil Refinery
Cash Flow Forecast ­ an attempt to forecast future inflows and outflows of cash ­ usually on a monrh
by month basis ­ done partly to forecast any months where an overdraft may be needed.
Centralisation ­ when decisions in a business are made mainly "in the centre" or at the top by senior
managers.
Chain of Command ­ the vertical links in a firm with several layers in the hierarchy. Communication or
instructions are passed down (and maybe up) the chain of command.
Consumer Protection Laws ­ laws or legislation designed to protect consumers/customers from unfair
actions by those selling them products. Eg a product must be "fit for the purpose" and "as desribed".
Contingency finance ­ working capital in reserve ready to be used when a one off financial problem
occurs (could be advanced permission to have or increase an aoverdraft).
Consultation ­ when management asks subordinates for their opinons on an issue, problem, or decision.
Then managers listen, but they still make the final decision.
Credit terms ­ the length of time ( eg 60 days) that a seller gives a buyer before they have to pay.
Applies especially when a business sells to another business and gives them "Trade Credit"

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Decentralisation ­ when the senior managers of a firm allow important decisions to be made at a lower
level eg by their branch managers.
Delegation ­ when senior managers pass the authority to make decisions or plan tasks, down to their
subordinates.…read more

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Job enrichment ­ giving a worker higher level tasks to do, often with appropriate training
Job rotation ­ moving workers round to different tasks of same level to avoid boredom.
Just in Time - stock control system where components or raw materials are not stocked in large
quantities but delivered by suppliers "just in time" to be used.…read more

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Product Life Cycle = method of analysing your product range or portfolio according to its age.
Product Design ­ see Design Mix
Quality Assurance - making sure of high quality products by building quality checks into the process. Ie.
Preventing defects.
Quality Control ­ inspecting products to spot defects at the end of the production process. Ie.…read more

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Zero Budgeting - when a spending budget (eg for materials) is zero, and managers must request and
justify each item of spending.…read more

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