BUSS3

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  • Created by: abezhani
  • Created on: 14-05-15 14:35
Corporate Objective
The long term quanitifiable targets or goals to be achieved by a business within a given time frame
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Functional Objectives
The medium to long term goals of the functions within a business which contribute towards achieving corporate objectives
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Financial Objectives
The monetary targets a businss wants to achieve in a given time period
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Cash Flow Targets
Objectives designed to achieve a specific net cash balance at the end of the month, year or specific trading period
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Cost Minimisation Targets
Objectives focussed on actions that can be taken to minimise fixed and/or variable costs
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ROCE
A minimum acceptable percentage for the money the business ges back comapred to how much money is being used within the business
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Shareholders Returns Targets
A minimum acceptable levels of financial rewards in return for shareholders investments
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Balance Sheet
A formal financial document that summarises the net worth of a business at a given point in time, it balanecs net assets with total equity
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Income Statement
A fomal financial document that summarises a business' trading activities and expenses to show whether the businss has made a profit or a loss
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Deprecation
The accounting process of spreading the cost of non-current assets over their useful life to a business
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Profit Utilisation
How the pofit after tax is used
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Profit Quality
The sustainability of the profit figure
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Working Capital
Measures a firms liquidity (current assets - current liabilities)
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Ratio Analysis
A comparison of two or more pieces of data taken from the financial records of a business
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Profitability
The efficiency of a business in generating profits (ROCE)
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Liquidity
A measure of a firms ability to meet short term debts (current ratio, acid test)
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Financial Efficiency
A measure of how the internal management are utilising and controlling the business' financial assets (asset turnover, inventory turnover, payables days, receivables days)
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Gearing
A measure of the debt to equity ratio within a business
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Shareholders Ratios
Measures of the value of returns made to shareholders (dividend per share, dividend yield)
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Profit Centres
Individual sections of a business that are responsible for their own costs, revenues and profits
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Capital Expenditure
Money used for the purchase of non-current assets
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Revenue Expenditure
The money used for the day to day running of the business
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Investment Appraisals
Numerical techniques to analyse the predicted financial outcomes of potential investments.
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Payback
Calculates how long it will take to pay back the cost of the initial investment
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Average Rate of Return
Calculates average profit as a percentage of the cost of the initial investment
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Net Present Value
Calculates the total return of an investment taking into account the time value of money
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Investment Criteria
A predetermined set of guidelines against which an investment can be judged
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Marketing Objectives
The targets that the marketing functions of a business wants to achieve in a given time period
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Market Analysis
The investigation of characteristics of markets in order to determine their attractiveness to a business
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Moving Averages
A method of market analysis that shows whether a trend is significant by smoothing out fluctuations in data
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Extrapolation
The use of past data to extend an identified trend into the future
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Correlation
The identification of a relationship between 2 variables
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Marketing Strategy
The medium to long term marketing plans adopted by a business in order to achieve its marketing objectives
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Michael Porters Generic Strategy
Analyses the low cost strategy against one of differentiation
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Ansoffs Matrix
Looks at the degree of risk and potential for reward from different strategic options
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Market Penetration
Low risk strategy, limited potential reward
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Product Development
Risk comes from not knowing the products, high R&D costs and competitors' reaction
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Market Development
Risk associated with lack of knowledge of customers
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Diversification
High risk strategy as 2 elements are unknown - the market and the product
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Marketing Plan
A written document that outlines the marketing activities to be implemented to achieve the marketing objectives
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Operational Objectives
The targets a business sets in order to produce goods/services in the most effective way
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Operational Strategies
The medium to long term operational plans adopted by a business in order to achieve its operational objectives
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Economies of Scale
The advantages enjoyed by a firm as it increases the scale of production leading to a fall in unit cost
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Diseconomies of Scale
The problems experienced as a firm increases the scale of production leading to a rise in unit cost
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Capital Intensive Production
The sue of relatively high proportion of capital such as machinery in the production of a good or service
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Labour Intensice Production
The use of a relatively high proportion of labour in the production of a good or service
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Innovation
The development of an idea into a new product or process
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Research and Development
The scientific investigation and technical growth of a new product or process
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Multi-site Location
When a business is operating from more than one location
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Off-shoring
The term used for the relocation of business processes abroad
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Trade Barriers
Anything that limits the free movement of goods and services between countries
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Lean Production
A collective term that relates to working practices derived from Japan that focus on cutting waste whilst maintaining, or improving quality
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Time Based Management
The effective management of resources to ensure that unproductive time is eliminated from the production process
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JIT
A technique used to minimise stock holdings at each stage of the production process
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Kaizen
A system that concentrates on small, but frequent, improvements in every aspect of the production process
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Critical Path Analysis
A technique used to identify the order in which all tasks need to be completed when planning a complex project
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Float Time
The amount of extra time available to complete a non-critical activity without delaying the whole project
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HR Objectives
The targets that the HR function of a business wants to achieve in a given time period
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HR Strategies
The overall way in which a business treats its staff
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Soft HRM
The workforce is treated as an asset to the business that can contribute and help the business achieve its objectives
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Hard HRM
The workforce is treated as a resource that must be managed in order for the business to control costs and outputs
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Workforce Plan
A detailed plan of the strategies that teh HR department will undertake to ensure that future workforce needs are met
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Hierarchical Structure
A formal structure with clear levels of authority and channels of communication
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Matrix Structure
A dynamic structure with project teams comprising of people from different functions and different levels
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Informal
There is no clear hierarchical structure, creativity and an enterprising culture is promoted
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Employee Representation
Giving a voice to employees through a recognised body that represents them
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Works Council
A group made up of managers and representative employees who meet regularly to discuss issues relating to the business and specifically issues affecting the workforce
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Trade Unions
National organisation with a remit to protect its member and improve their economic and working conditions
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Industrial Dispute
When there is a disagreement between the employer and the employee/employee representative
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Industrial Action
When the employees take actions to try and impose pressure on the employer
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ACAS
An independent body that can be called in to help or resolve disputes by helping both parties work together
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Other cards in this set

Card 2

Front

The medium to long term goals of the functions within a business which contribute towards achieving corporate objectives

Back

Functional Objectives

Card 3

Front

The monetary targets a businss wants to achieve in a given time period

Back

Preview of the back of card 3

Card 4

Front

Objectives designed to achieve a specific net cash balance at the end of the month, year or specific trading period

Back

Preview of the back of card 4

Card 5

Front

Objectives focussed on actions that can be taken to minimise fixed and/or variable costs

Back

Preview of the back of card 5
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