3.1: Keywords

break-even

when a business generates just enough revenue to cover its total costs

corporate aim

specific goal a corporation hopes to achieve

corporate objectives

objectives of a medium to large- sized business as a whole

departmental and functional objectives

objectives of a department within a business

hierarchy

order or levels of responsibility in an organisation

mission statement

brief statement written by the business describing its purpose and objectives

objective

target of a business that allows it to achieve its aims

shareholder

omebody who owns shares in a company or business

SMART

Specific, Measurable, Agreed, Realistic and Time specific

stakeholder

somebody who has invested money ni a business or has an important connection with it

vision

view of what the corporation wants to be like in the future

corporate strategy

plans and policies developed to meet a company's objectives

customer base

group of customers that make continual repeat purchases from a business

diversification

developing new products in new markets

market development

marketing of existing products in new markets

market penetration

using tactics such as the marketing mix to increase the growth of existing products in an existing market

portfolio analysis

method of categorising all the products of a firm to decide where each one fits within the strategic plans

product development

marketing new or modified products in existing markets

theoretical model

situation that could exist but doesn't really

external audit

audit of the external environment in which a business finds itself

flotation

sale of company shares to the public for the first time

internal audit

analysis of the business itself and how ti operates

strategic planning

process which involves making the vision for the future of a business easier to understand

SWOT analysis

analysis of the internal strengths and weaknesses of the business and the opportunities and threats presented by its external environment

trade association

organisation whose members are all involved in the same industry or trade

cartel

group of businesses that act together to reduce competition in a market

monopoly

market dominated by a single business

oligopoly

market dominated by a few large businesses

peer-to-peer lending (P2PL)

providing loans to individuals or businesses through online services that match lenders with borrowers

PESTLE analysis

analysis of the external political, economic, social, technological, legal and environmental factors affecting a business

predatory pricing

setting a low price to force rivals out of business

rivalry

competition that exists between businesses operating in the same market