Business BUSS3 Revision Cards

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  • Created by: Kathryn
  • Created on: 04-04-14 14:23
What is a corporate objective?
Company Wide goals that need to be achieved to keep business on track for aims
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What is a strategy?
Medium to long term plans though which an organisation aims to attain its objectives
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What is a balance sheet? [MEASURING FINANCIAL PERFORMANCE]
Snapshot of businesses assets + liabilities
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What is an Income Statement? [MEASURING FINANCIAL PERFORMANCE]
Income and expenditure over a given period of time
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What are assets? [MEASURING FINANCIAL PERFORMANCE]
Items that are owned by an organisation
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Non-current assets? [MEASURING FINANCIAL PERFORMANCE]
Resources that can be used repeatedly in production process, although they do wear out (depreciate) or lose value. For example land, buildings, machinery and vehicles
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Current assets? [MEASURING FINANCIAL PERFORMANCE]
short-term items that circulate in a business on daily basis, can be turned into cash within a year. (inventories,receivables etc.)
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Liabilities? [MEASURING FINANCIAL PERFORMANCE]
Debts owed by an organisation to suppliers, shareholders, investors or customers who have paid in advance
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Total equity? [MEASURING FINANCIAL PERFORMANCE]
Funds provided by shareholders to set up business, fund expansion and purchase fixed asset.
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Depreciation? [MEASURING FINANCIAL PERFORMANCE]
The fall in value of an asset over time reflecting wear and tear as it becomes older
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What is Obsolescence? [MEASURING FINANCIAL PERFORMANCE]
When an asset is still functioning but is considered no longer useful because of its date (type writer)
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What is Gross Profit, and what does it show? [MEASURING FINANCIAL PERFORMANCE]
Revenue - Cost of Sales. Shows how efficiently a business is converting raw material or stock into finished products
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What is operating profit, and what does it show? [MEASURING FINANCIAL PERFORMANCE]
Revenue earned from everyday trading activities minus expenses and overheads.
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Trend [MEASURING FINANCIAL PERFORMANCE]
Underlying pattern of change shown in a set of numerical data
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Solvency? [INTERPRETING PUBLISHED ACCOUNTS]
A measure of a firms ability to pay debts on time. Meets financial deadlines = solvent.
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Debentures [SELECTING FINANCIAL STRATEGIES]
long-term loan made to a business at an agreed fixed percentage rate of interest and repayable on a stated date
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Retained Profit [SELECTING FINANCIAL STRATEGIES]
part of a firms profit that is reinvested in the business rather than distributed to shareholders
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Profit centre [SELECTING FINANCIAL STRATEGIES]
Identifiable part of organisation, for which costs and revenue (and thus profit) can be calculated
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Investment Appraisal [MAKING INVESTMENT DECISIONS]
Scientific approach to decision making, investigates expected financial consequences of investment
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Payback Period [MAKING INVESTMENT DECISIONS]
Income Required/ Net cashflow from next year X time period (e.g. 12 months)
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Average Rate of Return (ARR) [MAKING INVESTMENT DECISIONS]`
a = total net return on surplus from a project/ no of years b = a/initial cost answer = b X 100
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Net Present Value (NPV) [MAKING INVESTMENT DECISIONS]
NCF X Discount factor
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Market Analysis [ANALYSING MARKETS AND MARKET STRATEGIES]
study of market conditions to assist firms plans. Qualitative - considers reasons e.g why are internet sales growing. Quantitative - Examines statistical info to draw conclusions e.g GDP.
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Test Marketing [ANALYSING MARKETS AND MARKET STRATEGIES]
introduction of a product to a certain geographical area in order to asses its likely success.
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Extrapolation [ANALYSING MARKETS AND MARKET STRATEGIES]
Using previous patterns of numerical data in order to predict future values.
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Qualitive Forecasting[ANALYSING MARKETS AND MARKET STRATEGIES]
prediction based on personal opinion. 1) Delphi Oracle - Asking Individual Experts for their view. 2) Brainstorming - Involves all individuals concerned with product or service. 3) Individual Hunch - Particular manager held responsible
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Ansoff Matrix [ANALYSING MARKETS AND MARKET STRATEGIES]
A strategic model for helping a business analyse the relationship between general strategic direction and suitable marketing strategies
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Competitive advantage [ANALYSING MARKETS AND MARKET STRATEGIES]
Skills, competences, resources and other advantages that enable a business to out-perform its competition
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Diversification [ANALYSING MARKETS AND MARKET STRATEGIES]
The relatively risky strategy of trying to enter new markets with new products (from Ansoff matrix)
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Market analysis [ANALYSING MARKETS AND MARKET STRATEGIES]
The process of analysing the size, structure and growth of a market in order to support marketing decisions
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Market development [ANALYSING MARKETS AND MARKET STRATEGIES]
A growth strategy where the business seeks to sell its existing products into new markets - e.g. exporting (from Ansoff matrix)
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Market penetration [ANALYSING MARKETS AND MARKET STRATEGIES]
A relatively low-risk growth strategy where a business focuses on selling existing products into existing markets (from Ansoff matrix)
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Moving average [ANALYSING MARKETS AND MARKET STRATEGIES]
A calculation that takes a data series and “smoothes” the fluctuations in data to show a trend average
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Trend [ANALYSING MARKETS AND MARKET STRATEGIES]
A general direction in which something tends to move
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Capital intensity [OPERATIONAL STRATEGIES]
The extent to which production or operations depend on investment in and use of capital – i.e. machinery, IT systems, buildings etc
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Critical path analysis [OPERATIONAL STRATEGIES]
Project management tool that uses network analysis to help manage complex and time-sensitive operations
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Diseconomies of scale [OPERATIONAL STRATEGIES]
Factors which result in higher unit costs as production output reaches too high a level
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Economies of scale [OPERATIONAL STRATEGIES]
Cost advantages that a business can exploit as a result of expanding its scale of production. Economies of scale reduce the average (unit) cost of production
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Efficiency [OPERATIONAL STRATEGIES]
A measure of the ability of a business to achieve the required level of production whilst minimising the use of resources
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Industrial inertia [OPERATIONAL STRATEGIES]
Where a business decides to stay in its existing location despite potentially better locations being available to it
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Innovation [OPERATIONAL STRATEGIES]
Putting an new idea or approach into action – the commercial exploitation of ideas
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Just-in-time [OPERATIONAL STRATEGIES]
Method of lean production where production resources arrive at the moment they are required rather than being held in stock
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Labour intensity [OPERATIONAL STRATEGIES]
The extent to which production or operations depend on investment in and use of labour – i.e. people, training
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Labour productivity [OPERATIONAL STRATEGIES]
The level of output per unit of labour
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Lean production [OPERATIONAL STRATEGIES]
An approach to management that focuses on cutting out waste whilst still ensuring quality.
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Offshoring [OPERATIONAL STRATEGIES]
Where a business has work done for it overseas
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Outsourcing [OPERATIONAL STRATEGIES]
Where a business has work done for it by someone else
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Productivity [OPERATIONAL STRATEGIES]
Measures of how effective a business is in turning resources (e.g. labour hours) into output
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Purchasing economies [OPERATIONAL STRATEGIES]
Cost savings that arise from buying in bulk or from a more powerful relationship with a supplier due to increased output
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Quota [OPERATIONAL STRATEGIES]
A restriction on the volume or quantity of a good that can enter or be sold in a market (form of trade barrier)
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Tariff [OPERATIONAL STRATEGIES]
A tax levied on imports to increase their price compared with domestic goods (form of trade barrier)
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Technical economies [OPERATIONAL STRATEGIES]
Reductions in unit costs arising from the effective use of technology
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Unit costs [OPERATIONAL STRATEGIES]
The key measure of productive efficiency – calculated as total costs divided by total output (over a specific period)
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Arbitration [HUMAN RESOURCES STRATEGIES]
An alternative to a court of law in determining legal and employment disputes. Involves a specialist outsider being asked to make a decision on a dispute
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Centralisation [HUMAN RESOURCES STRATEGIES]
An organisational structure where authority rests with senior management at the centre of the business
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Core workers [HUMAN RESOURCES STRATEGIES]
Employees who are part of the core workforce of a business – central to the business activities
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Decentralisation [HUMAN RESOURCES STRATEGIES]
An organisational structure where authority is delegated further down the hierarchy, away from the centre
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Delayering [HUMAN RESOURCES STRATEGIES]
The process of removing one or more layers from the organisational structure
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Gap analysis [HUMAN RESOURCES STRATEGIES]
Analysis of the difference between the workforce needs or a business and its current capabilities
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Hard HRM [HUMAN RESOURCES STRATEGIES]
An approach to HRM based on treating employees as resources in the same way as any other business resource
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Peripheral workers [HUMAN RESOURCES STRATEGIES]
Employees who are on the fringe of the core workforce. They are not essential (core) workers, and their activities can often be outsourced or provided using flexible contracting
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Soft HRM [HUMAN RESOURCES STRATEGIES]
An approach to HRM based on treating employees as the most important resource in a business
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Staff turnover [HUMAN RESOURCES STRATEGIES]
The proportion of staff that leave their employment with a business over a period – usually measured over a year
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Trade union [HUMAN RESOURCES STRATEGIES]
Organisations of employees who seek to negotiate their employment terms through collective bargaining
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Workforce planning [HUMAN RESOURCES STRATEGIES]
How a business determines how many and what kind of employees are required
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Other cards in this set

Card 2

Front

What is a strategy?

Back

Medium to long term plans though which an organisation aims to attain its objectives

Card 3

Front

What is a balance sheet? [MEASURING FINANCIAL PERFORMANCE]

Back

Preview of the front of card 3

Card 4

Front

What is an Income Statement? [MEASURING FINANCIAL PERFORMANCE]

Back

Preview of the front of card 4

Card 5

Front

What are assets? [MEASURING FINANCIAL PERFORMANCE]

Back

Preview of the front of card 5
View more cards

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