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  • Created by: Emily
  • Created on: 23-03-14 08:40
Absenteeism
No. of staff absent per period / Total no. of staff days worked per time period x 100
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Adverse Variance
The difference between the budgeted figure & the actual figure is bad for the business, it has a negative impact upon profit
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Advertising
A promotional method that involves the use of media to communicate with existing & potential consumers
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Assessment Centres
A selected method that involves assessing candidates performance throughout a series of activity, exercises & meetings over a period of time
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Automation
The use of machines to control a process e.g. stock control
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Barriers to Entry
Obstacle that make it difficult for a new firm to enter into a market including: brand loyally, ability to charge low prices, high start-up costs
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Boston Product Matrix
A model used to analyse a firm's product portfolio by considering market share in relation to market growth for each product
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Branding
A promotional method that involves the creation of an identity for the business that distinguishes the firm & its products from others
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Budgets
A target amount of money set by a business in a specific period of time
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Business to Business
When 1 business sells its goods or services to another business
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Business to Consumer
When 1 business sells its goods or services to individual consumers (B2C)
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Capacity Utilisation
The % of potential output being achieved
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Cash
Money which exists in a business at a point in time in the form of cash inland or at the bank. It is available for immediate use
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Cash Cow
A classification of product within the Boston Product Matrix characterised by low market grown & high market share
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Cash Flow
The movement of cash into and out of a business over a period of time
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Cash Flow Problems
When a business is forced to take action to survive as a result of a shortage of cash
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Communication Flows
How communication occurs within an organisation
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Competitive Advantage
A feature of a business' product that allows it to perform more successfully than others in the market
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Competitiveness
The degree to which a firm is successful at selling its products in the fact of competition in the market
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Competitor's Actions
The methods used by other organisations to effectively compete in the market
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Cost Reduction
The range of methods that a firm will use in order to lower costs & improve profitability
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Customer Expectations
Predetermined set of criteria established by a customer before purchasing a product
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Customer Service
The interaction between a business & actual/potential customers before, during & after sales
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Decline
The point in a product life cycle, after maturity, where sales are starting to fall
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Degree of Competition
This refers to the no. of firms that exist within a market
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Delegation
The passing of authority down the hierarchy
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Design Technology
The use of computers in the design stage of developing a product
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Direct Selling
A promotional method that involves the supplier of a product cutting out the intermediaries & selling directly to the customer
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Director
A senior manager elected by shareholders to represent their interests at board level
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Distribution Channel
The route to market that a product takes from producers to the final customer
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Distributors
Someone who sells an organisations' product on to a retailer
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Dog
A classification of product within the Boston Product Matrix characterised by low market growth & low market share
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Dominant Business
One that has the largest market share within an industry
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Empowerment
The delegation of responsibility to employees, allowing them to use their abilities & to have greater say in decision-making
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Entrepreneurial Skill
The skill that allows a business owners & managers to recognise an opportunity & take advantage of the rewards that may be available in exploiting this
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Expenditure Budget
A target amount of money a business is permitted to spend in a given period of time
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Extension Strategy
A strategy that is used to extend the lifetime of a product
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External Recruitment
Occurs when candidates for a position are recruited form outside of the organisation
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Factoring
A method of improving cash flow by selling a business' debts to a factor house at a reduced amount in order to receive immediate payment
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Favourable Variance
The difference between the budgeted figure & the actual figure is good for the business, having a positive impact upon profit
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Financial Motivators
A variety of methods that have a money value & are used to reward the workforce & influence their behaviour at work
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Flexibility
The ability of a supplier to adapt their processes in order to meet the requirement of a customer
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Growth
Occurs when sales volume & revenue is increasing over time
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Herzberg's Dual Factor Theory
Some (motivating) factors will create job satisfaction whilst others (hygiene factors) reduce dissatisfaction
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Hierarchy
The structure of the workforce within an organisation
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Improving Cash Flow
This entails increasing the volume of the inflow of cash or reducing the volume of the outflow of cash
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Improving Profit
Profit is the difference between total costs & total revenues
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Income Budgets
A target amount of money to be received from sales in a given period of time
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Induction
Introductory training for employees new to an organisation
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Integrated Marketing Mix
The marketing mix looks at the 4P's or price, product, promotion & place
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Internal Recruitment
Occurs when candidates for a position are recruited from within the organisation
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Interview
A question (& answer) session with a candidate, normally using the same questions for each candidate
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Job Allocation
The type of work an employee has been given to do
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Job Description
This sets out the tasks & responsibilities of a job
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Job Design
The way in which jobs are arranged in the workplace
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Job Enlargement
The process of increasing the number or responsibilities that an employee has
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Job Enrichment
An increase in the level of responsibility that an employee has in order to increase motivation
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Labour Productivity
A measure of workforce performance by looking at the output per worker
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Labour Turnover
The rate of change in a firm's labour force
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Launch
The stage of the product life cycle where the product is introduced to the market
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Levels of Hierarchy
The no. of layers of employees within an organisation structure
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Liquidity
The ability of a business to meet day to day expenses & short term debts
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Loss
The deficit experienced by a business when total costs exceed total revenue
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Loss leader
A pricing tactic that involves selling products at or below the cost of making the product
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Manager
An individual who is in charge of a no. of subordinates
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Manufacturers
Organisations that take raw materials or components & process them into finished or semi processed goods
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Market Conditions
The characteristics of the market in which the firm operates
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Market Growth
The % increase in the size of market. Change in market size / original size x 100
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Market Research
The collection, collation & analysis of data & information regarding a particular market
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Market Share
The proportion of total market sales that a particular firm has. Sales of firm / Total market sales x 100
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Marketing
The management process that allows a firm to identify, satisfy & revisit the requirements of the customer
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Marketing Mix
The combination of the 4P's of marketing through which a firm achieves its marketing objectives
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Maslow's Hierarchy of Needs
States that human needs are arranged in order, and as one need is fulfilled greater motivation will be achieved by moving to the next level
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Mass Marketing
When a firm targets the whole of a market rather than a particular segment
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Maturity
The stage of the product life cycle where sales of the product are fully established & sales tend to remain the same
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Mayo's Human Relations School of Thought
States that workers myst be seen as members of a group not as individuals
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Merchandising
A promotional method that involves the actions a firm takes to influence customers' buying behaviour at the Point of Sale
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Monopoly
Exists where there is only one firm in the market
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Motivation
The reason why people behave in the manner that they do
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Net Profit Margins
The relationship between sales revenue & net profit, expressed as a percentage. Net Profit / Sales Revenue x 100
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Niche Marketing
When a firm targets a small subsection or previously unexploited gap in a larger market
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Non-financial Motivators
Methods of motivating employees through job design
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Non-standard Orders
Requests to a company to supply a product of service which doesn't match their normal provision
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Off-the-job Training
Any form of educ. to improve an employees performance at work, that takes place away from the workplace
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Oligopoly
A market condition where there are only a few firms competing in the market
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On-the-job Training
Any form of educ. to improve an employees performance at work, that takes place within the workplace
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Operational Performance
How effective an organisation is at meeting the requirements of its customers
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Operational Targets
Operational targets relate to a no. of measures of operational efficiency including unit cost, quality & capacity utilisation
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Operations Management
Concerned with those aspects of the business which are directly linked to the fulfilment of customer orders
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Organisational Structure
The way in which the workforce within a firm is organised, inc. job roles & communication
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Overdrafts
The facility to borrow money, normally from a bank, in the short term
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Overtime
When an employee works more than their regular hours
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Part-time Staff
A person who is contracted to work less than 30 hours per week for a business
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Payment Terms
A agreement between a customer & supplier on when payment will be received in relation to the timing of an order
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Perfect Competition
A market condition where there are a large number of firms in the market each selling homogenous products
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Person Specification
A document used within the recruitment process that outlines the characteristics of the person required to do the job e.g. qualifications, skills, experience
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Place
The component within the marketing mix that defines both physical location where a product is available as well as the disturb. channel it has travelled through
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Price Elastic
The demand for a product is responsive to changes in price
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Price Elasticity of Demand
The responsiveness of demand to a change in price. % Change in Quantity Demanded / % Change in Price x 100
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Price Inelastic
The demand for a product is not very responsive to a change in price
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Price Leaders
When firms that dominate a market set the price & other firms in the market follow suit
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Price Penetration
Setting a low initial price for a new product in order to get a foothold in the market & gain market share
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Other cards in this set

Card 2

Front

The difference between the budgeted figure & the actual figure is bad for the business, it has a negative impact upon profit

Back

Adverse Variance

Card 3

Front

A promotional method that involves the use of media to communicate with existing & potential consumers

Back

Preview of the back of card 3

Card 4

Front

A selected method that involves assessing candidates performance throughout a series of activity, exercises & meetings over a period of time

Back

Preview of the back of card 4

Card 5

Front

The use of machines to control a process e.g. stock control

Back

Preview of the back of card 5
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