Economics and business B Theme 2 definitions J-Z

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