Business - Unit 2

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  • Created by: jkav
  • Created on: 22-02-15 22:03
Adverse Variance
The difference between actual and budgeted amounts which is bad news
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Advertising
Paid-for communication, aimed at informing and persuading
2 of 84
Assessment centres
Where a recruiting firm runs a series of extended selection procedures, each lasting one or two days or sometimes longer
3 of 84
Automation
The replacement of workers with machines to perform a task in production
4 of 84
Boston matrix
A model which analyses the product portfolio into four categories (star, cash cows, problem children and dogs)
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Branding
The use of a trade name, symbol, logo or other differentiate product or service
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Budget
A detailed plan of income and expenses expected over a certain period of time
7 of 84
Business to Business
Abbreviated to B2B, business to business involves the selling of products by one business directly to another
8 of 84
Capacity Utilisation
The proportion of the total capacity which is used
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Communication
The process of exchanging information or ideas between individuals or groups
10 of 84
Competition
The business that compete for the share of the market
11 of 84
Competitiveness
The ability of the business to offer a better product than competitors
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Cost reduction
Actions taken by a business aimed at reducing total costs, or lower average unit costs
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Customer expectations
What customers expect to receive as a result of buying a service or good; 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
15 of 84
Delegation
Where responsibility for carrying out a task or role is passed onto someone else in the business
16 of 84
Direct selling
A method of distribution which involves a business transacting with a customer without using intermediaries
17 of 84
Distribution channel
How the business gets the products to the end consumer
18 of 84
Empowerment
Delegating powers to employees so that they can make their own decisions
19 of 84
External recruitment
Where candidates for Job vacancy come from outside the organisation
20 of 84
Factoring
A source of finance where a business receives a proportion of the amount owed by trade debtors from a specialist finance provider
21 of 84
Favourable variance
A difference between actual and budgeted results which is good news
22 of 84
Flexible working
Where a business uses a number of different working practises in order to suit the job at hand and needs the employees
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Hierarchy
The structure and number of layers of management and supervision in a organisation
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Induction training
Training aimed at introducing to the business and its procedures
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Internal recruitment
Where candidates for a job vacancy come from within the organisation
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Interview
Part of the recruitment process where the candidate is met face-to-face
27 of 84
Job description
A summary of the main duties and responsibilities of a job
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Job design
They way in which tasks are combined to form a job
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Job enlargement
Giving employees more tasks of a similar level of complexity. Job enlargement expands the number of jobs 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
34 of 84
Marketing mix
The set of marketing tools that the firm uses to pursue its marketing objectives. Commonly taken to compromise product, price, promotion and place.
35 of 84
Mass market
Describes the largest group of customers with specific needs and wants in an industry
36 of 84
Merchandising
Promotion of a product at the point-of-sale,usually in a retail environment.
37 of 84
Net profit
Profit that remains after all operating costs are taken away from sales revenue. Net profit is usually stated before any deductions of tax.
38 of 84
Net profit margin
A measure of profitability. Net profit margin is calculated as net profit divided by sales revenue. The resulting figure is shown as a percentage.
39 of 84
Niche market
A niche market is focused segment of a larger market sector which it is possible to target.
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Off-the-job training
Training that takes place away from the workplace e.g (a course)
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On-the-job training
Takes place at the workplace (e.g being supervised and coached whilst working)
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Organisational structure
The way that roles and responsibilities within the organisation are structured
43 of 84
Output
The finished product (goods or services) that result from production ( or "transformation") process.
44 of 84
Overtime
Staff who work for more than the standard working week or day
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Payment terms
The period of time a supplier allows for a invoice to be settled
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Penetration pricing
Pricing strategy that involves the setting of a lower, rather than higher prices in order to receive a large market share
47 of 84
Permanent employee
A employee who has a permanent position in the business
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Person specification
A description which identifies the skills and experience which are likely to be held by a successful applicant for a job vacancy
49 of 84
Price elasticity of demand
The responsiveness of demand to change the price of a product
50 of 84
Price leader
A market leader business whose price changes are followed by rivals
51 of 84
Price skimming
Price strategy where a higher price is charged for new product to take advantage of customers prepared to pay for innovation
52 of 84
Price taker
A business 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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Price strategies
The overall strategic approach to pricing over the medium-to-long term, often based on the market positioning of a product
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Pricing tactics
The short-term pricing decisions and approaches taken - e.g. the temporary use of sales promotion or a short price war
56 of 84
Product life cycle
A theory which predicts the stages a product goes through from introduction to withdrawal from a market
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Product portfolio
The collection of products and brands owned and operated by a firm
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Productivity
Measures of output per worker over a given period of time
59 of 84
Promotional mix
The mix of activities and approaches taken to promoting a product including, advertising, direct selling etc.
60 of 84
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
61 of 84
Public relations
The promotion of a business through news articles, sponsorships and similar activities. Usually shorten to PR.
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Quality
Where a product meets customer 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 the right production standards have been achieved
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Rationalisation
Reorganising production in order to improve efficiency and productivity. Often involves closure or relocation of production capacity
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Return on capital
A measure of return made by investing in a business or business project. Return on capital is calculated as: (Net profit / Capital Invested) X 100
67 of 84
Robotics
The science and technology of robots, and their design, manufacture and application
68 of 84
Sale and Leaseback
A method of raising finance. Sale and leaseback involves a business selling a major asset and then leasing the same asset back from the new owner
69 of 84
Sales promotion
Tactical, point of sales material or other incentives designed to stimulate purchases
70 of 84
Selection
The process of deciding which applicant for a job a business should accept
71 of 84
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 with existing resources
73 of 84
Stock Control
The processes and controls used by a business to ensure that it is sufficient stock for its purchases
74 of 84
Sub-contracting
Delegation by one firm of a portion of its production process, under contract, to another firm, including in another country
75 of 84
Supplier
An individual, business or other organisation which provides goods or services to customer or consumer
76 of 84
TQM
Total Quality Management. An attitude to quality where the aims are zero defects and total customer satisfaction.
77 of 84
Training
The provision of work-related education or skills development
78 of 84
Unit cost
The average production cost per unit
79 of 84
USP
USP is an acronym for 'unique selling point'. A USP is a feature of a product which makes it stand out from the competition. If a USP is sustainable, then it can be a source of competitive advantage for the business
80 of 84
Variance
The difference between budgeted amounts and what actually happens. A variance can be "positive" (favourable) or "negative" (adverse)
81 of 84
Waste
A cost of production. Sub-standard completed output or raw material which are not retained in the production process
82 of 84
Workforce role
The tasks involved in a particular level or grade of job
83 of 84
Workload
The amount of work assigned to a particular worker, normally in a specified time period
84 of 84

Other cards in this set

Card 2

Front

Paid-for communication, aimed at informing and persuading

Back

Advertising

Card 3

Front

Where a recruiting firm runs a series of extended selection procedures, each lasting one or two days or sometimes longer

Back

Preview of the back of card 3

Card 4

Front

The replacement of workers with machines to perform a task in production

Back

Preview of the back of card 4

Card 5

Front

A model which analyses the product portfolio into four categories (star, cash cows, problem children and dogs)

Back

Preview of the back of card 5
View more cards

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