IB Business Management HL

Ansoff Matrix

Market Penetration, Market Development, Product Development, Product Diversification

Business Plan

a written statement of the business's goals and objectives, and the steps to be taken to achieve them.

Company/ Corporation

legal entity separate from its owners

Cooperative

A business that is owned by the members it serves and is managed in their interest.

Corporate Social Responsibility

business's concern for society's welfare

Decision Tree

shows conditions and actions graphically

Diversification

A strategy of increasing sales by introducing new products into new markets

Dividends

earnings distributed to stockholders

Economic Influences

Food choices based on supply and demand, price and availability

Economies of Scale

Cost advantages associated with large-scale production

Ethical Objectives

Pressure on business to have ethical manners, expected from the general public

External Growth

Business takes over or merges with another.

Fiscal Policy

Government policy that attempts to manage the economy by controlling taxing and spending.

Fishbone Diagram

visual model to clarify cause and effect relationships

Fixed Costs

costs that are the same no matter how many units of a good are produced

Force Field Analysis

analyzing the reasons for a problem as well as what is preventing the problem from being eliminated

Franchise

A legal agreement that gives an individual the right to market a company's products or services in a particular area.

Globalization

a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology.

Gross Domestic Product

The sum total of the value of all the goods and services produced in a nation

Horizontal Integration

Type of monopoly where a company buys out all of its competition. Ex. Rockefeller

Inorganic Growth

Expansion by merging with or taking over another business.

Internal Stakeholder

Stakeholders that work within the business.

Joint Venture

A partnership created by two or more companies for a specific purpose over a set period of time.

Merger

Combination of two or more companies into a single firm

Monetary Policy

changes in the money supply to fight recessions or inflations

Multinational Corporation

a large company that has operations in more than one country

Non-profit Organization

A business whose goal is to provide a service rather than to make a profit, such as the American Red Cross.

Operational Objectives

Deals with the day-to-day or short-term planning for delivery of a business process

Organic Growth

where a business grows naturally without merging or taking over other businesses

Pest Analysis

acronym for Political, Economic, Social and Technological factors, which are used to assess the market for a business or organizational unit.

Primary Sector

A part of an economy that is dominated by agriculture, including fishing and forestry.

Secondary Sector

the part of the economy that transforms raw materials into manufactured goods

Social Influences

The forces other people exert on one's buying behavior

Stakeholder

the people whose interests are affected by an organization's activities

SWOT Analysis

strengths, weaknesses, opportunities, threats

Vertical Integration

Practice where a single entity controls the entire process of a product, from the raw materials to distribution

Vision

A long-term strategy for attaining a goal

Unique Selling Point

A feature or function of a product that makes it different to any other on the market.

Appraisal

evaluation or estimation of worth

Arbitation

is a produre in which a neutral person or panel listens to both sides of a dispute and weighs the evendice and reaches a decision

Autocratic

absolute in power or authority

Centralization

The degree to which decision making is concentrated at a single point in an organization.

Chain of Command

hierarchy

Collective Bargaining

Process by which a union representing a group of workers negotiates with management for a contract

Conciliation

appeasement

De-layering

The removal of one or more layers from the organisational structure

Decentralization

Degree to which decision-making authority is given to lower levels in an organization's hierarchy.

Democratic

Ruled by the people

Dismissal

Termination of an employment contract due to incompetence or indiscipline

Empowerment

the delegation of power and authority to subordinates

Financial Rewards

Cash and non-cash rewards paid to workers which are often used to motivate workers to increase their efforts

Human Resource Management

the effective management of the formal relationship between the employer and employees

Labor Productivity

the quantity of goods and services that can be produced by one worker or by one hour of work

Labor Turnover

the number of workers who leave a firm each year

Laissez-faire

Hands off. No government intervention in business.

Levels of Hierarchy

The number of layers of management and supervision existing in an organisation

Maslow's Motivational Theory

hierarchy of needs

Offshoring

the relocation of business processes and services to a lower-cost foreign location

Organization Chart Types

hierarchy and matrix

Outsourcing

a decision by a corporation to turn over much of the responsibility for production to independent suppliers.

Paternalistic

use of work-center behavior coupled with protective employee centered concern

Pink's Motivational Theory

self-direction, mastering that skill, find purpose in their work

Redundancy

unnecessary repetition

Remuneration

payment for work done

Situational Leadership

Adjustment of a leadership style to specific situations to reflect employee needs.

Slow Downs

sales during offseason

Span of Control

Refers to the number of individuals who report to a supervisor.

Strike Action

the refusal to work (a form of industrial action -> a result of major industrial unrest such as pay disputes)

Taylor's Motivational Theory

workers are paid based on the amount of items they produce

Termination

end

Above-the-line Promotion

Promotion through advertising: TV, radio, internet, press, etc.

Advertising

A written or spoken media message designed to interest consumers in purchasing a product or service

Asset-led Marketing

bases strategy on the firm's existing strengths and assets instead of purely on what the customer wants.

Below-the-line Promotion

Promotion that is not a directly paid-for means of communication but based on short-term incentives to purchase

Boston Matrix

A model which analyses the product portfolio of a business into four categories (stars, cash cows, problem children and dogs)

Branding

The use of a trade name, symbol, logo or other device to differentiate a product or service

Differentiation

Making a product different from other similar products

Distribution Channels

the path through which products or services get to customers

Extension Strategy

A way of extending the product life cycle when it has reached maturity or saturation stage.

Guerilla Marketing

Focusing on low cost, creative strategies to reach the right people in a market area

Market Orientation

the tendency of an economic activity to locate close to its market

Market Research

organized effort to gather and interpret information about a market

Market Share

An organization's portion of the total industry (sector) sales in a specific market

Marketing

The promotion and selling of products or services

Marketing audit

a thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization

Marketing Mix

Product, Price, Place, Promotion

Marketing myopia

defining a business in terms of goods and services rather than in terms of the benefits customers seek

Marketing Plan

a written document that acts as a guidebook of marketing activities for the marketing manager

Mass Market

Developing products and promotions to please large groups of people

Moving Average

A forecast based on average past demand.

Niche Market

A small market for specialized products

Position Map

A diagram which illustrates the position of products in relation to each other and against variables such as price, quality, and target market.

Price Elasticity

a measure of the sensitivity of demand to changes in price

Price Inelasticity

People being sensitive to what a product's price is

Primary Research

research done firsthand for the first time

Product Life Cycle

introduction, growth, maturity, decline

Product Line

a group of closely related product items

Product Mix

all products that an organization sells

Product Portfolio

All the products a company has available at any one time

Product Range

the set of products made by a company