Business Studies

Key Terms

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Information gathered for a specific purpose through direct investigation.

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Information that already exists.

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Part of a market that contains a group of buyers with similar buying habits.

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Data than can be expressed as numbers and can be statistically analysed.

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Data about opinions, judgements and attitudes.

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Socio-economic groups

The classing for the sort of people the products are aimed at.

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Brand loyalty

Keeping with the same brand of product.

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Product life cycle

Introduction: The introduction of the product.

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Product life cycle

Growth: More people start to buy the product.

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Product life cycle

Maturity: Lots of people have the product.

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Product life cycle

Decline: The sales start to decrease/ decline.

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Product life cycle

Extension strategy: A strategy to extend the products life.

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The Boston Matrix

Stars: High market share and lots of sales.

Yellow Star Clip Art (

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The Boston Matrix

Problem children: Low market share with low sales but high potential.


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The Boston Matrix

Cash cows: High market share, low growth market.


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The Boston Matrix

Dogs: Low market share, low market growth.


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Unique Selling Point.

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Each product can be used for a different purpose.

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Brand symbol.

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Company name.

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Make the product affordable to the target market. (amount the product is being sold for).

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Is aimed at a certain audience and is to the customers need. (the item being offered to the public).

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Easily accessible for the customer.

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Getting the product out there and known.

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Customer expectations

The customer needs and wants out of a product.

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How well a product appeals to the senses.

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Granted by the government meaning no-one can copy your invention for a number of years.

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Buffer stock

The lowest amount of stock a business will hold.

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A business that sells goods to the customer.

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The amount of resources a company has at one time e.g. raw materials, work in progress, finished product.

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JIT- Just In Time

A stock management system where stocks are only delivered when they are needed and so no stocks are kept by the business.

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The work environment and the product are good quality so they are willing to make the product to a high standard.

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Quality control

Quality culture includes quality improvement measures as well as the individual and collective commitment to quality maintenance and improvement.

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An agreement between customer and the business detailing conditions where the product will be fixed or replaces with no cost to the customer.

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Machine operated.

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The efficiency of a worker or business.

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Customer service

The quality of the product or service provided to the customer.

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Repeat purchase

The customer buys the same brand of product repeatedly.

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Assurance to the customer that the product will last and work for the amount of time promised.

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A company that has 25% or more of the market share.

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Red tape

The collection or sequence of forms and procedures required to gain bureaucratic approval for something.

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EU Grant

Money given to company/ industry from european union which does not need to be paid back.

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Money left after paying all of the costs. The difference between revenue and costs.

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Amount of money earned by a firm from selling its products/ services.

Calculation: Products sold X Price.

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Breakeven point

The level of output where total revenues are equal to total costs; this is where neither a profit nor a loss is being made.

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Breakeven chart

A graph which shows total revenue and total costs, allowing the break-even point to be drawn.

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External finance

Finance which is obtained from outside the business such as bank loans and cash from the issue of new shares.

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Internal finance

Finance which is obtained within the business such as retained profit or the sale of assets.

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Organisational chart

A diagram which shows the internal structure of an organisation.

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Centralised organisation

A type of business organisation where decisions are made at the centre of the organisation and then down the chain of command.

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Decentralised organisation

A type of business organisation where decision-making is pushed down the hierarchy and away from the centre.

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In work, the desire to complete a task.

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