Key Definitions

  • Created by: Soph
  • Created on: 28-05-13 12:59
Absenteeism
The proportion of employees who are not present at work over a given period of time
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Brand Loyalty
A strongly motivated and long standing decision to purchase a particular product or service
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Budget
A detailed plan of income and expenses over a certain period of time. For a start up it will usually cover the first year
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Business Objectives
Specific targets that a business will set and aim to achieve
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Capacity
Capacity refers to the total potential production output, measure over a period of time
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Cash Cow
From the Boston matrix, low growth business or products with a relatively high market share
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Cash Flow/forecast
The movement of cash into and out of a business/a projection, usually by week or month of the likely movements of cash
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Chain of command
Describes the line of authority in an organisation, who reports to whom
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Commission
Payments to a sales person for selling goods and services
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Competitiveness
The ability of an organisation to operate effectively within its market.
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Cost plus pricing
Price is set by calculating full costs of a product and adding a profit margin
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Credit Control
The management of debtors to ensure credit sales are paid when payment falls due
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Delegation
Responsibility to make decisions or carry out a specific role is passed down to a colleague
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Demand
The amount of a product or service that customers are willing and able to pay at a given time.
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Demographic Segmentation
A method of dividing up market segments based on factors such as age, income and family status,
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Distribution
The method used to get the product to the consumer
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Division of Labour
The specialisation of employees on particular tasks and roles, intended to increase productivity
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Dog
A product that has a low share of a declining market
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Efficiency
Measures how much output is being produced per unit of ouput
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Employment Agency
A services that recruits employees on behalf of a business
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Employment Contract
A legally bound document that sets out the employees rights and responsibilities
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Empowerment
Delegating power to employees so they can make their own decisions
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Excess Capacity
Where a business has production capacity that is more than demand
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Factoring
A source of finance a business receives a proportion of the amount owned by trade debtors from a specialist finance provider
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Factors of production
Land, labour, capital and entrepreneurship that are combined to create outputs from the production process
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Fixed Costs
Costs that do not vary with output
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Flexible Working
Where a business uses a number of different working practices in order to suit the job in hand and the needs of the employees
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Focus Group
A group of people who are bought together to informally discuss market research questions
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Fringe Benefits
Compensation or other benefits for employees that isn't cash, e.g. staff discounts
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Geographic Segmentation
A method of Segmenting the market on the basis of different geographic units or ares
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Going Rate
A price set largely based on competitor pricing
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Gross Profit
Profit made from sales after the costs of producing the goods or services into account
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Hierarchy
The structure and number of layers and management and supervision in an organisation
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Hygiene factors
Job factors that can cause dissatisfaction if missing, but if implemented doesn't necessarily motivate employees
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Induction Traingin
Training that is aimed at introducing new employees to a business and its procedures
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Infrastructure
The system of transport links, communication and other services that a business needs to operate efficiently in a location
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Job enlargement
Increasing the task range of an employee, reducing boredom and increasing motivation
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Jon enrichment
This is the process of improving work processes; it is an attempt to motivate employees by giving them the opportunity to use a range of their abilities
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Job Rotation
Employees move between two or more different jobs over a period of time
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Job Security
The feeling of employees regarding the likeliness of them having the same job in the future.
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Job Sharing
Flexible working where two or more workers share a specific role
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Just in time
Where inputs into the production process arrive just as they are needed
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Loss Leader
n advertised product sold at below cost in an attempt to attract customers who will buy other, more profitable items
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Market Growth
An increase in the demand for a particular product or service over time. Market growth can be slow if consumers do not adopt a high demand or rapid if consumers find the product or service useful for the price level. Read more: http://www.businessdi
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Market Mapping
A study of various market conditions that is plotted on a map to identify trends and corresponding variables between consumers and products. Read more: http://www.businessdictionary.com/definition/market-mapping.html#ixzz2UaNuqMnl
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Market Research
The process of gathering, analyzing and interpreting information about a market
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Market Segmentation
The process of defining and subdividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand characteristics.
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Market Share
A percentage of total sales volume in a market captured by a brand, product, or company. Read more: http://www.businessdictionary.com/definition/market-share.html#ixzz2UaOJpNPh
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Market Size
The number of individuals in a certain market who are potential buyers and/or sellers of a product or service.
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Marketing
Marketing is based on thinking about the business in terms of customer needs and their satisfaction.
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Mass Market
An attempt to appeal to an entire market
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Monopoly
Market situation where one business controls supply of a good or service, and where there is little competition
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National Market
The marketplace for goods and services operating within the borders of a particular country
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Net Profit/Margin
the amount by which income from sales is larger than all expenditure/Net profit margin is the percentage of revenue remaining after all operating expenses, interest, taxes and preferred stock dividends have been deducted
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Niche Market
Concentrating all marketing efforts on a small but specific and well defined segment of the population. Niches do not 'exist' but are 'created' by identifying needs, wants, and requirements Read more: http://www.businessdictionary.com/definition/nic
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Oligopoly
An oligopoly is a market structure in which a few firms dominate. When a market is shared between a few firms, it is said to be highly concentrated.
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Opportunity Cost
The cost of an alternative that must be forgone in order to pursue a certain action
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Appraisal
Assessing how effectively an employee is working
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Economies of scale:
The reasons why average costs of each item fall as a firm expands.
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Organisational structure:
The internal links between managers and workers showing lines of authority.
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Outsourcing:
Using other businesses to make all or part of a product or provide an aspect of customer care.
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Penetration pricing:
Setting a price at a low level to gain greater market share.
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Price skimming: .
Setting a price at a high level to create a high-quality and exclusive image
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Product life cycle:
The lifespan of a product, recorded in sales from launch to being taken off the market.
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Product portfolio/product mix: .
The range of products sold by a business
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Promotion:
All the ways a business communicates to consumers with the aim of selling products.
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Promotional mix:
The combination of promotion methods used by a business.
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Quality assurance:
Setting and trying to meet quality standards throughout the business.
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Quality product:
Goods or services that meets customers’ expectations and is therefore ‘fit for purpose’.
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Recruitment:
Attracting people to apply for a job vacancy.
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Sale and leaseback:
Selling an asset, such as a building, to a leasing company and paying an annual leasing charge so that the asset can still be used.
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Span of control:
The number of junior employees each manager is directly responsible for.
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Target market:
The group of consumers aimed at by the business.
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MArketing Mix
A planned mix of the controllable elements of a product's marketing plan commonly termed as 4Ps
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Problem Child
a product with a low market share but high growth potential. Problem children often have good long-term prospects, but high levels of investment
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Wholesaler:
Middleman or distributor that buys in bulk, holds stocks and sells mainly to retailers not consumers.
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Total Quality Management (TQM): .
An approach to quality that aims to involve all employees in the quality improvement process
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Variance
The difference between an expected and actual result, such as between a budget and actual expenditure
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Performance Related Pay
Performance-related pay is a financial reward to employees whose work is: • Considered to have reached a required standard, and/or • Is above average
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Product Portfolio
An analysis of elements of a company's product mix to determine the optimum allocation of its resources.
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Price Leader
a firm that uses its dominant position in a market to establish a price which other firms have to follow
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Price Taker
small trader on a market, whose actions will have no effect on the market as a whole and who trades at prices determined by the market
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Price Elasticity of Demand
a situation in which a change in price has the effect of causing a bigger change in demand
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Product Differentiation
the process of ensuring that a product has some unique features that distinguish it from competing ones
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Product Extension
The act of introducing a product with which the company is familiar, but that has features that consumers are not yet aware of. Read more: http://www.businessdictionary.com/definition/product-extension.html#ixzz2UaVObGds
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Profitability
the amount of profit made, shown as a percentage of costs or sales revenue
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Qualitative Research
research based on finding the opinions and attitudes of respondents rather than any scientifically measurable data
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Quantitative Research
research based on measurable data gathered by sampling
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Quality Assurance
the system of procedures used in checking that the quality of a product is good
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Retailer
selling goods direct to the public
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Return on Capital
A return from an investment that is not considered income. The return of capital is when some or all of the money an investor has in an investment is paid back to him or her, thus decreasing the value of the investment.
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Supplier
a person or company that provides goods, services or equipment
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Trade Credit
the provision of goods or services to another company with an agreement to invoice them later, which is a major source of capital for many businesses
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Trademark
a particular name, design, etc., which has been registered by the manufacturer and which cannot be used by other manufacturers
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USP
a special quality of a product which makes it different from other goods and is used as a key theme in advertising
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Unit Cost
Expenditure incurred in producing one unit of a good or service,
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Other cards in this set

Card 2

Front

Brand Loyalty

Back

A strongly motivated and long standing decision to purchase a particular product or service

Card 3

Front

Budget

Back

Preview of the front of card 3

Card 4

Front

Business Objectives

Back

Preview of the front of card 4

Card 5

Front

Capacity

Back

Preview of the front of card 5
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