Business studies unit 2

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Adverse variance
A difference between actual and budgeted amounts which is bad
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Paid-for communication, aimed at informing or persuading
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The replacement of workers with machines to perform tasks in production
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Boston matrix
A model which analyses the product portfolio of a business into four categories (star, cash cow, problem child and dog)
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The use of a trade name, symbol, logo or other device to differentiate a product or service
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A detailed plan of income and expenses expected over a certain period of time
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Business to business (B2B)
Involves the selling of products and services by one business directly to another
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Capacity utilisation
The proportion of total capacity that is used
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The process of exchanging information or ideas between individuals or groups
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The businesses that compete for a share of a market
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The ability of a business to offer a better product than rivals
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Cost reduction
Actions taken by a business aimed at reducing total costs or lowering average cost per unit
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Customer expectations
What customers expect to receive as a result of buying a good or service; influenced by perceptions of factors such as quality and price
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Customer service
The ways in which a business meets the needs and wants of its customers
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Where responsibility for carrying out a task or role is passed onto someone else in the business
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Direct selling
A method of distribution which involves a business transacting with a customer without the use of intermediaries
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Distribution channel
How a business gets its products to the end consumer
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Delegating power to employees so that they can make their own decisions
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External recruitment
Where candidates for a job vacancy come from outside the organisation
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A source of finance where a business receives a proportion of the amount owned by trade debtors from a specialist finance-provider
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Favourable variance
A difference between actual and budgeted results which is good news
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Flexible working
Where a business uses a number of different working practises in order to suit the job I'm hand and the needs of employees
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The structure and number of layers of management and supervision in an organisation
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Induction training
Training aimed at introducing new employees to a business and it's procedures
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Internal recruitment
Where candidates for a job vacancy come from within the organisation
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Part of the recruitment process where a confidante is met face-to-face
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Job description
A summary of the main duties and responsibilities of a job
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Job design
The way in which tasks are combine to form a job
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Job enlargement
Giving employees more tasks of a similar level of complexity and expands the number of tasks completed by an employee
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Job enrichment
Making a job more interesting or varied so that it is more rewarding
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Labour productivity
The output produced per employee over a given period of time
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Loss leader
Where a price is set deliberately below the cost of production in order to attract customers who will buy other, more profitable products
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Market research
The process of planning, collecting and analysing data relevant to help make marketing decisions
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Marketing mix
The set of marketing tools that the firm uses to pursue its marketing objectives, product, price, place, promotion
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Mass market
Describes the largest group of customers with specific needs and wants in an industry
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Promotion of a product at the point-of-sales, usually in a retail environment
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Net profit
Profit that remains after all operating costs are taken away from sales revenue
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Net profit margin
A measure of profitability. Calculated by net profit divided by sales revenue
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Niche market
A Moche market is a focused segment of a larger market sector which is possible to target
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Training the takes place away from the workplace
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Training that takes place at the workplace
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Organisational structure
The way that the roles and responsibilities within an organisation are structured
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The finished products that result from the production process
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Part time employee
Staff who work for less than a standard working week or day
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Payment terms
The period of time that a supplier allows for an invoice to be settled
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Penetration pricing
Pricing strategy that involves the setting of lower, rather than higher prices I'm order to achieve a large market share
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Permanent employee
An employee who has a permanent position
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Person Specification
A description which identifies the skills and experience that are likely to be held by successful applicant for a job vacancy
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Price elasticity of demand
The responsiveness of demand to a change in the price of a product
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Price leader
A market leader business whose price changes are followed by rivals
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Price skimming
Pricing strategy where a higher price is charged for a new product to take advantage of customers prepared to pay for innovation
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Price taker
A business that has no option but to charge the ruling market price
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Pricing decisions
The decisions taken about how to price a product
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Pricing strategies
The overall strategic approach to pricing over the medium-to-long, often based on the market positioning or a short price war
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Pricing tactics
The short-term pricing decisions and approaches taken
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Product life cycle
A theory which predicts the stages of a product hoes through from introduction to withdrawal from the market
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Product portfolio
The collection of products and brands owned and operated by a firm
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Measures of output per worker over a given time period
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The ability of a business to generate profits from its activities. It is often measured in terms of the return on sales or return on capital
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Promotional mix
The mix of activities and approaches taken to promoting a product, including advertising, direct sales etc
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Psychological pricing
Using price as a way of influencing a consumer's behaviour or perceptions, for example using high prices to reinforce a quality image
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Public relations
The promotion of a business through news stories, sponsorships and similar activities
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Where a product meets a customer's requirements
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Quality assurance
Organising every process to get the product "right first time" and prevent mistakes ever happening
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Quality control
The inspection of products as part of a sampling process to ensure that the right production of standards have been achieved
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Reorganising production in order to increase productivity and efficacy. Often involves closure or relocation of production capacity
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Return on capital
A measure of the return made by investing in a business or business project
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The science and technology of robots, and their design, manufacture and application
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Sale and leaseback
A method of raising finance by selling a major asset and then leasing the same asset back from the new owner
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Sales promotion
Tactical, point of sale material or other incentives designed to stimulate purchases
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The process of deciding which applicant for a job a business should accept
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Span of control
The number of employees who are directly supervised by a manager
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Spare capacity
When a business is able to produce more it's existing resources
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Stock control
The processes and controls used by a business to ensure that it has sufficient stock for its purposes
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Raw materials, work-in-progress and finished goods held for resale. Stocks are so,entires also referred to as "inventories"
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Delegation from one firm of a portion of its production process, under contract, to another firm, including in another country
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An mid visual, business or other organisation which provides goods or services to a customer or consumer
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Total Quality Management. An attitude to quality where the aims are zero defects and total customer satisfaction
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The provision of work-related education or skills development
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Unit cost
The average production cost per unit
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A feature of a product or service that makes it stand out compared with the competition
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The difference between the budgeted amount and what actually happens
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A cost of production. Sub-standard completed output or raw materials which are not retained in the production process
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Workforce role
The tasks involved in a particular level or grade of job
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The amount of work assigned to a particular worker, normally in a specific period of time
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Other cards in this set

Card 2


Paid-for communication, aimed at informing or persuading



Card 3


The replacement of workers with machines to perform tasks in production


Preview of the back of card 3

Card 4


A model which analyses the product portfolio of a business into four categories (star, cash cow, problem child and dog)


Preview of the back of card 4

Card 5


The use of a trade name, symbol, logo or other device to differentiate a product or service


Preview of the back of card 5
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