Business - Unit 2

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  • Created on: 22-02-15 22:03
Adverse Variance
The difference between actual and budgeted amounts which is bad news
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Paid-for communication, aimed at informing and persuading
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Assessment centres
Where a recruiting firm runs a series of extended selection procedures, each lasting one or two days or sometimes longer
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The replacement of workers with machines to perform a task in production
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Boston matrix
A model which analyses the product portfolio into four categories (star, cash cows, problem children and dogs)
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The use of a trade name, symbol, logo or other differentiate 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
Abbreviated to B2B, business to business involves the selling of products by one business directly to another
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Capacity Utilisation
The proportion of the total capacity which is used
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The process of exchanging information or ideas between individuals or groups
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The business that compete for the share of the market
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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
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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 using intermediaries
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Distribution channel
How the business gets the products to the end consumer
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Delegating powers to employees so that they can make their own decisions
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External recruitment
Where candidates for Job vacancy come from outside the organisation
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A source of finance where a business receives a proportion of the amount owed 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 at hand and needs the employees
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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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Part of the recruitment process where the candidate 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
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
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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.
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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-sale,usually in a retail environment.
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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.
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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.
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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
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The finished product (goods or services) that result from production ( or "transformation") process.
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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
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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
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Price elasticity of demand
The responsiveness of demand to change 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
Price strategy where a higher price is charged for new product to take advantage of customers prepared to pay for innovation
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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
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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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Measures of output per worker over a given period of time
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Promotional mix
The mix of activities and approaches taken to promoting a product including, advertising, direct selling 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 articles, sponsorships and similar activities. Usually shorten to PR.
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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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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
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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. Sale and leaseback involves a business selling a major asset and then leasing the same asset back from the new owner
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Sales promotion
Tactical, point of sales 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 with existing resources
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Stock Control
The processes and controls used by a business to ensure that it is sufficient stock for its purchases
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Delegation by one firm of a portion of its production process, under contract, to another firm, including in another country
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An individual, business or other organisation which provides goods or services to 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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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
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The difference between budgeted amounts and what actually happens. A variance can be "positive" (favourable) or "negative" (adverse)
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A cost of production. Sub-standard completed output or raw material 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 specified time period
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Other cards in this set

Card 2


Paid-for communication, aimed at informing and persuading



Card 3


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


Preview of the back of card 3

Card 4


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


Preview of the back of card 4

Card 5


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


Preview of the back of card 5
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