Economics and business B Theme 2 definitions J-Z

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  • Created by: baimzej
  • Created on: 07-03-16 19:55
Just in time
a stock control system that reduces the need for large stock levels
1 of 55
Kaizen
the Japenese word for continuous improvement. Summarises an approach to quality control
2 of 55
Labour intensive production
uses large ammount of labour and relatively little capital
3 of 55
Lead time
the time taken between having the idea to selling the product to the consumer
4 of 55
Leakages
reduce the demand for domestically produced product , goods and services by diverting peoples incomes into savings, taxes and spending on imports
5 of 55
Lean production
refers to any system of production where there is an emphasis on reducing waste and eliminating costs
6 of 55
Long tail
the mass of nich markets that extended as a result of consumer choice, with many small and larger businesses providing for small groups of consumers
7 of 55
Market leader
the firm with the greatest control over prices and output in the market
8 of 55
Marketing mix
range of strategies that are used to promote and sell the product or services. includes pricing, design and all forms of marketing
9 of 55
Market power
exists when a successful company with a significant market share is able to influence prices and output in that market
10 of 55
Mean income
average income, ie total income (GDP) divided by the population
11 of 55
Median income
middle value of all incomes
12 of 55
Merger
joining together of two firms into a single business with the approval of the shareholders and management
13 of 55
Micromarketing
the marketing of a product to meet the needs of a small section of the market
14 of 55
Minimum efficiency scale
the lowest point of the average cost curve where all available economies of scale have been put to use
15 of 55
Monetary policy
uses interest rates to control the level of spending in the economy
16 of 55
Monopoly
only one firm in the market and no competition
17 of 55
Monopoly power
when a business is big enough to act like a monopoly and control price or supply
18 of 55
Monopsony
occurs when there is only one buyer for the service
19 of 55
Monopsony power
occurs when a firm is the only buyer or behaves like the only buyer.it is able to drive down the price by refusing to buy more
20 of 55
Multinational corporations (MNCs)
are businesses that are active in more than one economy
21 of 55
Nominal value
the value is expressed in numerical terms at current prices
22 of 55
Normal good
goods or services for which quantity demanded rises when incomes rise and falls when incomes fall
23 of 55
Oligopoly
several large firms dominate the industry
24 of 55
Organic growth
the firm grows from within useing its own resources to increase and expand output or size
25 of 55
Outsourcing
buying inputs from independent suppliers or locating the whole production process abroad
26 of 55
Physical capital
any tools, buildings, and equipment that will generate output
27 of 55
Price elastic
a price change causes a proportionally bigger change in quantity demanded
28 of 55
Price inelastic
a price change causes a proportionally smaller change in quantity demanded
29 of 55
Pricing strategy
the way in which a business decides on the price to charge and the factors that influence that decision
30 of 55
Productivity
describes how efficeintly resources are being used, increasing efficiency and looking at output per unit of input
31 of 55
Product innovation
occurs when a completely new product is created or changed
32 of 55
Process innovation
when process methods are improved, possibly resulting in lower cost or increased efficiency
33 of 55
Product life cycle
the stages that a product passes through from the initial idea to the end of its use
34 of 55
Promotion
the use of advertising, branding and public involvement to increase sales
35 of 55
Public sector deficits
government spending exceeds tax revenues and so borrowing occurs to make up shortfall
36 of 55
Quality control
a treaditional way of checking that goods are produced to an adequate standard
37 of 55
Quality assurance
the upholding of standards are agreed and maintained throughout the organisation
38 of 55
Real value
the effects of inflation have been removed. real value is the nominal value minus the inflation rate
39 of 55
Recession
occurs when there are at least two consecutive quaters of negative growth in GDP
40 of 55
Recovery
follws a recession.The GDP slowly increases and then rises
41 of 55
Resources
land,capital,enterprise, labour, skills, expertise, raw amterials, tools
42 of 55
SME
abbreviation for Small and medium sized enterprises
43 of 55
Structural unemployment
people have the wrong skills for the employment on offer or are located too far from the available jobs
44 of 55
Supply chain
the sequence of processes by which a product is created. this may involve different suppliers and even locations
45 of 55
Supply-side policies
are designed to increase the productive capacity of the economy by influencing aggregate supply
46 of 55
Synergy
sometimes the combination of 2 businesses that have merged together yield more than expected. 2+2=5
47 of 55
Takeover
one firm makes a bid for another and secures over 50% of the shares
48 of 55
Team working
employees are divided into teams that share responsibility for production
49 of 55
Total quality management (TQM)
employees involved in quality control and with responsibility for the quality of their and their team's work
50 of 55
Uncertainty
events are unpredictable and beyond the control of the business
51 of 55
Unemployment
the number of working age people who are not in work. the claimant count measures those claiming benefits
52 of 55
Underemployment
employment whose work does not make full use of their qualifications or to those forced to take part time work
53 of 55
Vertical integration
two businesses in the same industry but at differing stages of the production process or supply chain that have joined together
54 of 55
Viral marketing
spreads product information from person to person as individauls spread messages via social media, text or email
55 of 55

Other cards in this set

Card 2

Front

the Japenese word for continuous improvement. Summarises an approach to quality control

Back

Kaizen

Card 3

Front

uses large ammount of labour and relatively little capital

Back

Preview of the back of card 3

Card 4

Front

the time taken between having the idea to selling the product to the consumer

Back

Preview of the back of card 4

Card 5

Front

reduce the demand for domestically produced product , goods and services by diverting peoples incomes into savings, taxes and spending on imports

Back

Preview of the back of card 5
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