business studies termnology

?
  • Created by: Alice
  • Created on: 04-08-13 16:13
Standardised goods
goods are those that are mass produced and uniform in quality. They meet a predetermined level of quality and are generally produced with a production focus.
1 of 218
lean production
production that aims to eliminate waste.
2 of 218
operations
The business processes that involve transformation or, more generally, ‘production’.
3 of 218
product differentiation
a way of distinguishing a product (good or service) in some way from its competitors
4 of 218
customised goods
goods that are that are varied according to the needs of customers. These goods are produced with a market focus rather than a production focus.
5 of 218
interdependence
This refers to the mutual dependence that key business functions have on one another.
6 of 218
value adding
The creation of extra or added value as inputs are transformed into outputs
7 of 218
cost leadership
This involves aiming to have the lowest costs or to be the most price-competitive in the market.
8 of 218
transformation
The conversion of inputs (resources) into outputs (goods and services).
9 of 218
self-service
This type of service means encouraging the customers to take the initiative to help themselves.
10 of 218
economies of scale
a cost advantage that can be created as a result of an increase in scale of business operations.
11 of 218
technology
The design, construction and/or application of innovative devices, methods and machinery upon operations processes.
12 of 218
variable cost
These types of costs vary in direct relationship to the level of business activity (level of production).
13 of 218
cost based competition
competition is derived from determining a breakeven point of a product or service and then applying strategies to create cost advantages over competitors.
14 of 218
Carbon footprint
This refers to the amount of carbon produced and entering the environment from operations processes.
15 of 218
innovation
This occurs when a business creates novel (new) products, and in doing so leads the market.
16 of 218
environmental sustainability
that business operations should be shaped around practices that consume resources today without compromising access to those resources for future generations.
17 of 218
fiduciary
A person in a position of financial trust with respect to others’ money.
18 of 218
supply chain
range of suppliers a business has and the nature of its relationship with those suppliers
19 of 218
globalisation
the breakdown of tradebarriers between countries
20 of 218
global web
A reference to the network of suppliers a business has, chosen on the basis of lowest overall cost, lowest risk and maximum certainty in quality and timing of supplies.
21 of 218
outsourcing
This involves the use of outside specialists to undertake one or more key business functions.
22 of 218
corporate social responsibility
open and accountable business actions based on respect for people, community/society and the broader environment.
23 of 218
quality
how well designed, made and functional goods are, and the degree of competence with which services are organised and delivered.
24 of 218
compliance costs
These types of costs are associated with meeting the requirements of legal regulations.
25 of 218
reverse engineering
a business analysing a competitor’s product and using different materials to make their own version at a lower cost
26 of 218
fixed costs
costs that do not change regardless of the level of business activity.
27 of 218
customer satisfaction
a measure how goods and services supplied by a business meet or exceed customer expectation.
28 of 218
profit maximisation
occurs when there is maximum difference between the total revenue (that is, the number of sales made multiplied by the price) coming into the business and total costs being paid out.
29 of 218
mass markets
seller mass-produces, mass-distributes and mass-promotes one product to all buyers
30 of 218
consumer markets
consist of individuals — that is, members of a household who plan to use or consume the products they buy.
31 of 218
niche market
known as a concentrated or micro market, is created when the mass market is finely divided into smaller markets consisting of buyers who have specific needs or lifestyles.
32 of 218
corporate social responsibility
known as a concentrated or micro market, is created when the mass market is finely divided into smaller markets consisting of buyers who have specific needs or lifestyles.
33 of 218
customer orientation
refers to the process of collecting information from customers and basing marketing decisions and practices on customers’ wants and interests.
34 of 218
resource market
consists of those individuals or groups that are engaged in all forms of primary production, including mining, agriculture, forestry and fishing.
35 of 218
strategies
The actions that a business takes to achieve specific goals.
36 of 218
intermediate market
consists of wholesalers and retailers who purchase finished products and resell them to make a profit.
37 of 218
industrial market
includes industries and businesses that purchase products to use in the production of other products or in their daily operations.
38 of 218
discretionary income
disposable income that is available for spending and saving after an individual has purchased the basic necessities of food, clothing and shelter.
39 of 218
marketing
A total system of interacting activities designed to plan, price, promote and distribute products to present and potential customers.
40 of 218
motive
An individual’s reason for doing something
41 of 218
perception
The process through which people select, organise and interpret information to create meaning.
42 of 218
psychological factors
influences within an individual that affect his or her buying behaviour.
43 of 218
desire
An individual’s desire to constantly acquire possessions.
44 of 218
dishonest advertising
when an advertisement uses words that are deceptive or claim that a product has some specific quality when it does not.
45 of 218
peer group
a group of people with whom a person closely identifies, adopting their attitudes, values and beliefs.
46 of 218
advertising
A paid non-personal message.
47 of 218
acceptable quality
product is fit for the purpose for which it is being sold, acceptable in appearance and finish, free from defects, safe, and durable
48 of 218
brand loyalty
favourable attitude towards a single brand results in repeat sales over time.
49 of 218
self-regulation
a system by which a business or industry controls its own activities rather than being publicly regulated by an outside organisation such as the government.
50 of 218
implied conditions
unspoken and unwritten terms of a contract.
51 of 218
sugging
A sales technique disguised as market research, e.g. selling under the guise of a survey.
52 of 218
learning
This refers to changes in an individual’s behaviour caused by information and experiences.
53 of 218
viral marketing
a method of promotion that involves the spreading of messages from person to person without the involvement of the originator.
54 of 218
bait and switch advertising
involves advertising a few products at reduced and, therefore, enticing prices to attract customers.
55 of 218
unconscionable conduct
any practice by a business that is not reasonable and is often illegal.
56 of 218
sociocultural influences
forces exerted by other people and groups that affect an individual’s buying behaviour.
57 of 218
product placement
inclusion of advertising in entertainment.
58 of 218
puffery
Exaggerated praise or flattery, especially when used for promotional purposes that no reasonable person would take as factual.
59 of 218
self-image
how a person views himself or herself
60 of 218
personality
collection of all the behaviours and characteristics that make up that person.
61 of 218
customer choice
decisions and actions of customers when they purchase products for personal or household use.
62 of 218
socio-economic status
a person’s relative rank in society, based on his or her education, income or occupation.
63 of 218
price discrimination
setting of different prices for a product in separate markets.
64 of 218
warranty
A promise by the business to repair or replace faulty products.
65 of 218
greenwashing
The practice of making a misleading or deceptive claim about the environmental benefits of a product, business practice or technology in order to present a positive public image.
66 of 218
consumer exploitation
when the rights of consumers are ignored.
67 of 218
market research
the process of systematically collecting, recording and analysing information concerning a specific marketing problem.
68 of 218
customer service
responding to the needs and problems of the customer.
69 of 218
monitoring
Checking and observing the actual progress of the marketing plan.
70 of 218
target market
a group of present and potential customers to which a business intends to sell its product.
71 of 218
survey
gathering data by asking or interviewing people.
72 of 218
niche market
a narrowly selected target market segment.
73 of 218
implementation
The process of putting the marketing strategies into operation.
74 of 218
marketing objectives
the realistic and measurable goals to be achieved through the marketing plan.
75 of 218
marketing profitability analysis
a method in which the business breaks down the total marketing costs into specific marketing activities.
76 of 218
product life cycle
consists of the stages a product passes through: introduction, growth, maturity and decline
77 of 218
market share
refers to the business’s share of the total industry sales for a particular product.
78 of 218
primary data
the facts and figures collected from original sources for the purpose of the specific research problem.
79 of 218
statistical interpretation analysis
the process of focusing on the data that represents average, typical or deviations from typical patterns.
80 of 218
Market Segmentation
when the total market is subdivided into groups of people who share one or more common characteristics.
81 of 218
SWOT
involves the identification and analysis of the internal strengths and weaknesses of the business, and the opportunities in, and threats from, the external environment.
82 of 218
product placement
the inclusion of advertising in entertainment.
83 of 218
secondary data
information that has already been collected by some other person or organisation.
84 of 218
product deletion
the elimination of some lines of products.
85 of 218
sales analysis
comparing of actual sales with forecast sales to determine the effectiveness of the marketing strategy.
86 of 218
product mix
total range of products offered by a business.
87 of 218
packaging
The development of a container and the graphic design for a product
88 of 218
promotion
The methods used by a business to inform, persuade and remind a target market about its products.
89 of 218
premium
A gift that a business offers the customer in return for using the product.
90 of 218
prestige pricing
a pricing strategy where a high price is charged to give the product an aura of quality and status.
91 of 218
trademark
signifies that a name or symbol is registered and the business has exclusive right of use.
92 of 218
behavioural segmentation
the process of dividing the total market according to the customers’ relationship to the product.
93 of 218
psychographic segmentation
the process of dividing the total market according to personality characteristics, motives, opinions, socioeconomic group and lifestyles.
94 of 218
price skimming
occurs when a business charges the highest possible price for the product during the introduction stage of its life cycle.
95 of 218
frequency of advertisement
measures the average number of times someone is exposed to the message.
96 of 218
noise
Interference or distraction that affects any or all stages in the communication process.
97 of 218
reach
an advertisement measures the number of people exposed to the message.
98 of 218
price leader
a major business in an industry whose pricing decisions heavily influence the pricing decisions of its competitors.
99 of 218
segmentation variable
the characteristics of individuals or groups that are used by marketing managers to divide a total market into segments.
100 of 218
market based pricing
is a method of setting prices according to the interaction between the levels of supply and demand.
101 of 218
physical distribution
activities concerned with the efficient movement of the products from the producer to the customer.
102 of 218
product/service positioning
activities concerned with the efficient movement of the products from the producer to the customer.
103 of 218
inventory control
a system that maintains quantities and varieties of products appropriate for the target market.
104 of 218
tariff
A tax on an imported product.
105 of 218
supply
The quantity of a product businesses are willing to offer for sale at a particular price.
106 of 218
loss leader
a product sold at or below cost price.
107 of 218
ethical consumerism
involves buying products that are not harmful to the environment, animals and society.
108 of 218
bundle pricing
where customers gain a ‘package’ of goods and services in addition to the tangible good they purchased.
109 of 218
geographic segmentation
is the process of dividing the total market according to geographic locations.
110 of 218
relationship marketing
the development of long-term, cost effective and strong relationships with individual customers.
111 of 218
competition based pricing
where the price covers costs and is comparable to the competitor’s price.
112 of 218
transnational corporation
any business that has production facilities in two or more countries and that operates on a worldwide scale.
113 of 218
channel
Any method used for carrying a message.
114 of 218
demographic segmentation
the process of dividing the total market according to particular features of a population, including the size of the population, age, sex, income, cultural background and family size.
115 of 218
price penetration
occurs when a business charges the lowest price possible for a product or service so as to achieve a large market share.
116 of 218
publicity
Any free news story about a business’s products.
117 of 218
market coverage
refers to the number of outlets a firm chooses for its product.
118 of 218
product/service differentiation
the process of developing and promoting differences between the business’s products or services and those of its competitors.
119 of 218
advertising
A paid, non-personal message communicated through a mass medium.
120 of 218
brand
A name, term, symbol, design or any combination of these that identifies a specific product and distinguishes it from its competition.
121 of 218
labelling
The presentation of information on a product or its package.
122 of 218
strategy
The major tool adopted by a business to achieve its goals.
123 of 218
liquidity
The extent to which a business can meet its financial commitments in the short term.The extent to which a business can meet its financial commitments in the short term.
124 of 218
effeciency
The ability of a business to use its resources effectively in ensuring financial stability and profitability.
125 of 218
growth
The ability of the business to increase its size in the longer term.
126 of 218
solvency
The extent to which the business can meet its financial commitments in the longer term.
127 of 218
business objectives
break the business operations into achievable and manageable outcomes that can be measured and evaluated.
128 of 218
bank overdraft
allows a business or individual to overdraw their account up to an agreed limit and for a specified time.
129 of 218
global economic outlook
refers specifically to the projected changes to the level of economic growth throughout the world.
130 of 218
leasing
A long-term source of borrowing for businesses. It involves the payment of money for the use of equipment that is owned by another party.
131 of 218
dividends
A distribution of a company’s profits (either yearly or half-yearly) to shareholders and is calculated as a number of cents per share.
132 of 218
bill of exchange
a document ordering the payment of a certain amount of money at some fixed future date.
133 of 218
factoring
The selling of accounts receivable for a discounted price.
134 of 218
secondary markets
deal with the purchase and sale of existing securities.
135 of 218
interest rates
the cost of borrowing money.
136 of 218
debentures
issued by a company for a fixed rate of interest and for a fixed period of time
137 of 218
primary markets
deal with the new issue of debt instruments by the borrower of funds
138 of 218
unsecured notes
is a loan for a set period of time but is not backed by any collateral or assets
139 of 218
equity
The finance (cash) raised by a company by issuing shares.
140 of 218
mortgage
A loan secured by the property of the borrower (business).
141 of 218
australian securities exchange
primary stock exchange group in Australia.
142 of 218
working capital
the funds available for the short-term financial commitments of a business
143 of 218
cash flow
the movement of cash in and out of a business over a period of time.
144 of 218
cost centres
particular areas, departments or sections of a business to which costs can be directly attributed.
145 of 218
payment in advance
allows the exporter to receive payment and then arrange for the goods to be sent.
146 of 218
fixed costs
costs that are not dependent on the level of operating activity in a business
147 of 218
depreciation
a downward movement of the Australian dollar (or any other currency) against another currency.
148 of 218
option
gives the buyer (option holder) the right, but not the obligation, to buy or sell foreign currency at some time in the future.
149 of 218
variable costs
costs that change proportionately with the level of operating activity in a business.
150 of 218
currency swap
an agreement to exchange currency in the spot market with an agreement to reverse the transaction in the future
151 of 218
derivatives
Simple financial instruments that may be used to lessen the exporting risks associated with currency fluctuations.
152 of 218
recievables
Sums of money owed by the business to other businesses from whom it has purchased goods and services.
153 of 218
clean payment
occurs when the payment is sent to, but not received by, the exporter before the goods are transported.
154 of 218
foreign exchange market
determines the price of one currency relative to another.
155 of 218
forward exchange contract
a contract to exchange one currency for another currency at an agreed exchange rate on a future date, usually after a period of 30, 90 or 180 days.
156 of 218
payables
Sums of money due to a business from customers to whom it has supplied goods or services.
157 of 218
hedging
The process of minimising the risk of currency fluctuations.
158 of 218
current assets
assets that a business can expect to convert into cash within the current accounting period.
159 of 218
outsourcing
The use of human resources outside the business to supply services or functions previously carried out by the business such as maintenance and recruitments.
160 of 218
line managers
responsible for the management of staff contributing to the prime function of the business, for example a production manager, service manager or sales manager.
161 of 218
contracter
An external provider of services to a business.
162 of 218
human resource management
refers to the management of the total relationship between an employer and employee.
163 of 218
log of claims
a list of demands made by workers against their employers.
164 of 218
social justice in the workforce
involves businesses being responsible or behaving in a fair and ethical manner towards their employees, customers and the broader community.
165 of 218
code of practice
a statement of the principles used by a business in its operations
166 of 218
employment contract
a legally binding, formal agreement between employer and employee.
167 of 218
discrimination
Occurs when a policy or a practice disadvantages a person or a group of people because of a personal characteristic that is irrelevant to the performance of the work.
168 of 218
female participation rate
refers to the proportion of women aged 15–69 employed or actively looking for work.
169 of 218
enterprise agreements
collective agreements made at a workplace level between an employer and a group of employees about terms and conditions of employment.
170 of 218
trade organisations
organisations formed by employees in an industry, trade or occupation to represent them in efforts to improve wages and the working conditions of their members.
171 of 218
affirmative action
refers to measures taken to eliminate direct and indirect discrimination, and for implementing positive steps to overcome the current and historical causes of lack of equal employment opportunity for women.
172 of 218
casual employees
in employment that is short term, irregular and uncertain; they are not entitled to paid holiday or sick leave.
173 of 218
employer asscioations
organisations that represent and assist employer groups.
174 of 218
code of conduct
a statement of acceptable and unacceptable behaviours in a business
175 of 218
statutes
Laws made by federal and state parliaments; for example, laws relating to employment conditions, wage and salary determinations and dispute resolution.
176 of 218
modern award
an industry or occupation-based award, which covers all private sector employers and employees who perform work that falls within their scope.
177 of 218
awards
Legally enforceable, formal agreements made collectively between employers and employees and their representatives at the industry level.
178 of 218
centralised industrial relations system
is a collectivist approach in which disputes are referred to industrial tribunals, such as Fair Work Australia, for conciliation and arbitration.
179 of 218
common law
developed by courts and tribunals.
180 of 218
constitutional corporation
identified as foreign corporations, and trading or financial corporations, formed within the limits of the Commonwealth
181 of 218
workers compensation
provides a range of benefits to an employee suffering from an injury or disease related to their work.
182 of 218
equity in the workplace
the provision of equal opportunities for all employees to gain access to jobs, training and career paths in the workplace
183 of 218
structural change
a change in the nature and pattern of production of goods and services within an economy.
184 of 218
judicial power
the power of courts to interpret and apply laws.
185 of 218
ethical business practices
practices that are socially responsible, morally right, honourable and fair.
186 of 218
redundancy
refers to employees losing their jobs, where the employees? job or work no longer needs to be done.
187 of 218
unfair dismissal
occurs where an employee is dismissed by their employer and they believe the action is harsh, unreasonable or unjust.
188 of 218
maintenance
The process of managing the needs of staff for health and safety, industrial relations and legal responsibilities, including compensation and benefits, of all staff.
189 of 218
placements
locating the employee in a position that best utilises the skills of the individual to meet the needs of the business.
190 of 218
seperation
The process of employees leaving voluntarily or through dismissal or retrenchment processes.
191 of 218
performance appraisal
a process of assessing the performance of an employee, generally against a set of criteria or standards.
192 of 218
fringe benefits tax
a tax employers must pay on certain benefits they provide to their employees or their employees’ associates, such as a family member.
193 of 218
aquisition
The process of locating and attracting the right quantity and quality of staff to apply for employment vacancies or anticipated vacancies at the right cost.
194 of 218
orders
Decisions that require employees or employers to carry out a direction from the tribunal.
195 of 218
negioation
A method of resolving disputes when discussions between the parties result in a compromise and a formal or informal agreement.
196 of 218
polycentric approach
uses parent-country staff in its organisation.
197 of 218
ethnocentric staffing approach
approach uses host country staffing with parent country staff in corporate management at its headquarters.
198 of 218
insourcing
refers to delegating a job to someone within the organisation, as opposed to someone outside the organisation.
199 of 218
geocentric staffing approach
uses the staff with the most appropriate skill set for a particular role and location, and builds a pool of managers with global experience.
200 of 218
recruitment
The process of locating and attracting the right quantity and quality of staff to apply for employment vacancies or anticipated vacancies at the right cost.
201 of 218
grievance procedures
formal procedures, generally written into an award or agreement, that state agreed processes to resolve disputes in the workplace.
202 of 218
strikes
situations in which workers withdraw their labour.
203 of 218
industrial dispute
a disagreement over an issue or group of issues between an employer and its employees, which results in employees ceasing work.
204 of 218
arbitration
The process where a third party hears both sides of a dispute and makes a legally binding decision to resolve the dispute.
205 of 218
diverse workforce
include employees from different cultural and ethnic backgrounds, who were able to demonstrate the ability to speak in more than one language, and to demonstrate cultural awareness and sensitivity in their interactions with people from other cultures
206 of 218
lockouts
occur when employers close the entrance to a workplace and refuse admission to the workers
207 of 218
conciliation
A process where a third party is involved in helping two other parties reach an agreement.
208 of 218
extrinsic rewards
given or provided outside the job itself.
209 of 218
pickets
protests that take place outside the workplace, generally associated with a strike.
210 of 218
mediation
The confidential discussion of issues in a nonthreatening environment, in the presence of a neutral, objective third party.
211 of 218
intrinsic rewards
those that the individual derives from the task or job itself, such as a sense of achievement.
212 of 218
monetary rewards
those reflected in pay or having financial value
213 of 218
gain sharing plan
involves the benefits of improvements and success, such as productivity improvements, cost savings and sales and profit increases, being reflected in rewards for teams, such as shares, cash bonuses or annual bonuses.
214 of 218
indicators
Performance measures for individuals, teams or organisations that are used to evaluate organisational or individual effectiveness.
215 of 218
benchmarking
A process in which indicators are used to compare business performance between internal sections of a business or between businesses.
216 of 218
staff turnover
separation of employees from an employer, both voluntary and involuntary, through dismissal or retrenchment. It is often shown as a percentage of total staff numbers.
217 of 218
human resource audit
a diagnostic tool used to evaluate HR policies and practices in order to identify problems and develop solutions in an attempt to rectify problems.
218 of 218

Other cards in this set

Card 2

Front

lean production

Back

production that aims to eliminate waste.

Card 3

Front

operations

Back

Preview of the front of card 3

Card 4

Front

product differentiation

Back

Preview of the front of card 4

Card 5

Front

customised goods

Back

Preview of the front of card 5
View more cards

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all business resources »