Theme 3 Key Words

?
  • Created by: HULKSMASH
  • Created on: 20-02-20 08:59
Corporate Objective
The objectives of a medium to large-sized business as a whole.
1 of 97
Departmental and functional objectives
The objectives of a department within a business.
2 of 97
Mission statement
A brief statement, written by the business, describing its purpose and objectives, designed to encapsulate its present operations.
3 of 97
Objective (or goal)
A target of or outcome for a business that allows it to achieve its aims.
4 of 97
SMART
acronym for the attributes of a good objective: Specific, Measurable, Agreed, Realistic and Time specific.
5 of 97
Corporate strategy
the plans and policies developed to meet a company's objectives. It is concerned with what range of activities the business needs to undertake in order to achieve its goals. It is also concerned with whether the size of the business makes it work.
6 of 97
Distinctive capability
A form of competitive advantage that is sustainable because it cannot easily be replicated by a competitor.
7 of 97
Diversification
Developing new products in new markets. Market development- the marketing of existing products in new markets.
8 of 97
Penetartion
Using tactics such as the marketing mix to increase the growth of existing products in an existing market.
9 of 97
Portfolio Analysis
A method of categorising all the products and services of a firm (its portfolio) to decide where each fits within the strategic plans.
10 of 97
Product development
Marketing new or modified products in existing markets.
11 of 97
External audit
An audit of the external environment in which a business finds itself, such as the market within which it operates or government restrictions on its operations.
12 of 97
Internal audit
An analysis of the business itself and how it operates.
13 of 97
SWOT Analysis
An analysis if the internal strengths and weaknesses of the business and the opportunities and threats presented by its external environment.
14 of 97
Trade association
An organisation whose members are all involved in the same industry or trade. The organisation pursues the interests of these businesses.
15 of 97
Monopoly
A market dominated by a single business.
16 of 97
Oligopoly
A market dominated by a few large businesses.
17 of 97
PESTLE analysis
Analysis of the external political, economic, social, technological, legal and environmental factors affecting a business.
18 of 97
Diseconomies of scale
Risking long-run average costs as a business expands beyond its minimum efficient scale.
19 of 97
Economies of scale
The reductions in average costs enjoyed by a business as output increases..
20 of 97
External economies of scale
The cost reductions available to all businesses as the industry grows.
21 of 97
Internal economies of scale
The cost reductions enjoyed by a single business as it grows.
22 of 97
Minimum efficient scale
The output that minimises long- run average costs.
23 of 97
Backward vertical integration
Joining with a business in the previous stage of production.
24 of 97
Forward vertical integration
Joining with a business in the next stage of production.
25 of 97
Horizontal integration
The joining of businesses that are in exactly the same line of business.
26 of 97
Integration
The joining together of two businesses as a result of a merger or takeover.
27 of 97
Merger
Occurs when two (or more) business join together and operate as one.
28 of 97
Synergy
The combining of two or more activities or businesses creating a better outcome than the sum of the individual parts.
29 of 97
Takeover
The process of one business buying another.
30 of 97
Vertical integration
The joining of two businesses at different stages of production.
31 of 97
Inorganic Growth
A business growth strategy that involves two (or more) businesses joining together to form one much larger one.
32 of 97
Organic Growth
A business growth strategy that involves a business growing gradually using its own resources.
33 of 97
Centering
A method used in the calculation of a moving average where the average is plotted or calculated in relation to central figure.
34 of 97
Correlation
A relationship between two sets of variables.
35 of 97
Correlation coefficient
A measure of the extent of the relationship between two sets of variables.
36 of 97
Moving average
A succession of averages derived from successive segments (typically of constant size and overlapping) of a series of values.
37 of 97
Scatter graph
A graph showing the performance of one variable against another independent variable on a variety of occasions. It is used to show whether a correlation exists between the variables.
38 of 97
Time series analysis
A method that allows a business to predict future levels from past figures.
39 of 97
Average rate of return or accounting rate of return (ARR)
A method of investment appraisal that measures the net return per annum as a percentage of the initial spending.
40 of 97
Capital cost
The amount of money spent when setting up a new venture.
41 of 97
Discounted cash flow (DCF)
A method of investment appraisal that takes interest rates into account by calculating the present value of future income.
42 of 97
Investment
The purchase of capital goods.
43 of 97
Investment appraisal
The evaluation of an investment project to determine whether or not it is likely to be worthwhile.
44 of 97
Net cash flow
Cash inflows minus cash outflows.
45 of 97
Net present value (NPV)
The present value of future income from an investment project, minus the cost.
46 of 97
Payback period
The amount of time it takes to recover the cost of an investment project.
47 of 97
Present value
The value today of a sum of a money available in the future.
48 of 97
Decision Tree
A technique which shows all possible outcomes of a decision. The name comes from the similarity of the diagrams to the branches of trees.
49 of 97
Earliest start time
How soon a task in a project can begin. It is influenced by the length of time taken by tasks which must be completed before it can begin.
50 of 97
Critical Path
The tasks involved in a project which, if delayed, could delay the project.
51 of 97
Critical Path Analysis (CPA)/ Network Analysis
A method of calcnualting the minimum
52 of 97
Free Float
The time by which a task can be delayed without affecting the following task.
53 of 97
Latest finish time
The latest time that a task in a project can finish.
54 of 97
Network diagram
A chart showing the order of the tasks involved in completing a project, containing information about the times taken to complete the tasks.
55 of 97
Nodes
Positions in a network diagram which indicate the start and finish times of a task.
56 of 97
Total Float
The time by which a task can be delayed without affecting the project.
57 of 97
Asset *********
The practice of buying businesses and breaking them up. The profitable parts are sold for cash and the rest are closed down.
58 of 97
Evidence- based decision making
An approach to decision making that involves gathering information and using a systematic and rational approach to reach a conclusion.
59 of 97
Long term
The time period where decisions only have an impact on the vision, mission and objectives of a business- typically longer than five years.
60 of 97
Short term
The time period where decisions only have an impact on the operational activities of a business- typically less than five years.
61 of 97
Strategic decisions
Decisions concerning policy that can have a long- term impact on a business. Can be risky.
62 of 97
Subjective decision making
An approach to decision making where the personal opinions of the key decision maker strongly influence the course of action chosen.
63 of 97
Cultural Dimesions
A set of characteristics that form the international context of business culture.
64 of 97
Organisational, organisation , corporate or business culture
The values, attitudes, beliefs, meanings and norms that are shared by people and groups within an organisation.
65 of 97
Strong Culture
A culture where the values, beliefs and ways of working are deeply embedded within the business and its employees.
66 of 97
External stakeholders
Groups outside a business with an interest in its activities.
67 of 97
Internal Stakeholders
Groups inside a business with an interest in its activities.
68 of 97
Shareholders value
A measure of company performance that combines the size of dividends with the share price.
69 of 97
Stakeholders
Those with an interest in the activities of a business.
70 of 97
Corporate Social Responsibility (CSR)
A business assessing and taking responsibility for its effects on the environment and its impact on social welfare. It involves the idea that businesses bear a responsibility that stretches beyond their shareholders.
71 of 97
Ethical codes of practice
Statements about how employees in a business should behave in particular circumstances where ethical issues arise.
72 of 97
Ethics
In the context of business ethics, consideration of the moral 'rights and wrongs' of a decision at an often strategic level, in accordance with the law, and a business's code of conduct in relationship to Corporate Social Responsibility.
73 of 97
Living wage
An hourly rate of pay based on the basic cost of living, set independently of government and updated annually.
74 of 97
National Minimum Wage
The minimum pay per hour all workers are entitled by law.
75 of 97
Remuneration
The reward for work in the form of pay, salary or wages, including allowances and benefits, such as company cars, health insurance, pension, bonuses and non-cash incentives.
76 of 97
Sanctions or Trade Embargos
Sanctions are restrictions imposed on trade or investment with the aim of influencing a policy change in another country. Trade embargoes can be included in sanctions, where commercial shipments are banned in and out of a particular country.
77 of 97
Finance cost
Interest paid by a business on any borrowed money.
78 of 97
Finance income
Interest received by a business on any money held in deposit accounts.
79 of 97
Gearing Ratios
Exploration of the capital structure of the business by comparing the proportions of capital raised by debt and equity.
80 of 97
Profitability or Performance Ratio
Illustration of the relative profitability of a business.
81 of 97
Ratio analysis
A numerical approach to investigating accounts by comparing two related figures.
82 of 97
Return on capital employed (ROCE)
The profit of a business as a percentage of the total amount of money used to generate it.
83 of 97
Window dressing
The legal manipulation of accounts by a business to present a financial picture that is to its benefit.
84 of 97
Labour productivity
Output per worker in a given time period.
85 of 97
Labour retention
The number of employees that remain in a business over a period of time.
86 of 97
Labour turnover
The rate at which staff leave a business.
87 of 97
Rate of absenteeism
The number of staff who are absent as a pers
88 of 97
Rate of absenteeism
The number of staff who are absent as a percentage of the total workforce. It can be calculated for different periods of time, e.g. daily or annually.
89 of 97
Organisational Change
A process in which a large company or organisation changes its working methods or aims, for example in order to develop and deal with new situations or markets.
90 of 97
Transformational leadership
Where new leadership such as a new CEO brings about change with the purpose of improving business performance.
91 of 97
Management of change
The process of organising and introducing new methods of working within a business.
92 of 97
Business continuity plan
Shows how a business will operate after a serious incident and how it expects to return to normal in the quickest time possible.
93 of 97
Risk Assessment
Identifying and evaluating the potential risks that may be involved in an activity that a business proposes to undertake, ensuring compliance with health and safety legislation.
94 of 97
Risk Mitigation Plans
Identify, assess and prioritise risks, and plan responses to deal with the impact of these risks on the operation of the business.
95 of 97
Scenario planning
A strategic planning method designed to explore uncertainties, learn how to protect the business from their worst consequences and prepare how to exploit any opportunities that might present themselves.
96 of 97
Succession Planning
Identifying and developing people who have the potential to occupy key roles in a business in the future.
97 of 97

Other cards in this set

Card 2

Front

The objectives of a department within a business.

Back

Departmental and functional objectives

Card 3

Front

A brief statement, written by the business, describing its purpose and objectives, designed to encapsulate its present operations.

Back

Preview of the back of card 3

Card 4

Front

A target of or outcome for a business that allows it to achieve its aims.

Back

Preview of the back of card 4

Card 5

Front

acronym for the attributes of a good objective: Specific, Measurable, Agreed, Realistic and Time specific.

Back

Preview of the back of card 5
View more cards

Comments

No comments have yet been made

Similar Business resources:

See all Business resources »See all Theme 3 resources »