Business Operations, Marketing, Finance, and Human Resources Practice Flashcards

These 70 vocabulary-style flashcards cover the core concepts of Operations, Marketing, Finance, and Human Resources management as outlined in the lecture notes.

Cost Leadership

A strategy involving aiming to have the lowest costs in order to be price-competitive in the market.

Good/service differentiation

A strategy used to gain a competitive advantage by distinguishing products in some way from competitors.

Transformed Resources

Inputs that are changed or converted during the operations process, consisting of materials, information, and customers.

Transforming Resources

Inputs that perform or carry out the transformation processes into outputs, specifically human resources and facilities.

Volume

A component of the 4 Vs referring to how much of a product or service is made.

Variety

A component of the 4 Vs referring to the range of different products or services offered by a business.

Visibility (Customer Contact)

The degree to which customers can see or experience the operations process during production.

Gantt Chart

A bar chart that visually maps out tasks over time, displaying when and how long each task will take to complete.

Critical Path Analysis (CPA)

A scheduling method that shows the shortest length of time it takes to complete ALL tasks necessary in the production of the product.

Computer-Aided Design (CAD)

Technology used to design products digitally.

Computer-Aided Manufacturing (CAM)

Technology used to automate production processes.

Lean Production

A cost-based competition strategy focused on minimising waste while maintaining quality.

Warranties

A promise made by a business that they will correct any defects in the goods they produce or in the services they deliver.

Corporate Social Responsibility (CSR)

Open and accountable business actions based on respect for broader society, involving doing more than just complying with laws.

FIFO (First-In, First-Out)

An inventory management method where the oldest stock is sold or used first and newest stock remains in inventory.

LIFO (Last-In, First-Out)

An inventory management method where the newest stock is sold or used first; not allowed under Australian accounting standards.

Just-in-Time (JIT)

An inventory management approach which ensures that the exact amount of stock will arrive only as they are needed in the operation process.

Quality Control (QC)

A reactive quality management strategy involving inspections at various stages of production to identify and fix defects.

Quality Assurance (QA)

A quality management strategy involving a system to ensure production meets a predetermined set of minimum quality standards to achieve 'right first time' results.

Total Quality Management (TQM)

A holistic approach in which quality is a commitment and a responsibility of every employee in the business.

Niche Market

A narrowly selected target market segment.

Psychological Factors

Internal influences affecting a consumer's buying behavior, including perception, motives, attitudes, and personality.

Sugging

A deceptive marketing practice where a business pretends to conduct market research but is actually trying to sell a product.

SWOT Analysis

The identification and analysis of the internal strengths and weaknesses of a business, and the external opportunities and threats.

Introduction Stage

The product life cycle phase where a product is launched into the market and initial marketing builds awareness.

Maturity Stage

The product life cycle phase where sales growth slows as the product is accepted by most potential buyers and competition increases.

Market Share

A business's share of total industry or market sales for a particular period.

Primary Data

Information collected firsthand by a business for a specific purpose, such as surveys, interviews, or focus groups.

Secondary Data

Information that has been previously collected and published by others, such as government reports or industry publications.

SMART Rule

A framework for marketing objectives ensuring they are Specific, Measurable, Achievable, Relevant, and Time-bound.

Profitability

A financial objective involving the ability of a business to maximise its profits.

Liquidity

The extent to which a business can meet its financial commitments in the short term, being less than $12$ months.

Solvency

The extent to which a business can meet its financial commitments in the longer term, being more than $12$ months.

Retained Earnings

Internal funds sourced from profits generated by a business that are reinvested rather than distributed to owners.

Overdraft

A short-term debt source providing a line of credit that covers transactions if a bank account balance drops below zero.

Commercial Bills

Short-term debt instruments ordering the payment of a certain sum of money at a fixed future date, usually for amounts over $\$100,000$.

Factoring

The selling of accounts receivable for a discounted price to a finance company to raise funds immediately.

Mortgage

A secured loan used to purchase property where the lender uses the property as security.

Debentures

Debt securities issued by a company to the public for a fixed period at a fixed interest rate, secured by the company's assets.

Unsecured Notes

A form of debt security issued by a company that does not offer any security to the holders and typically carries higher interest rates.

Ordinary Shares

The most commonly traded shares in Australia, representing equity ownership in public companies.

Current Ratio

$CA/CL$; a ratio measuring a business's ability to pay short-term debts using its current assets.

Debt to Equity Ratio

$\frac{\text{Total Liabilities}}{\text{Total Equity}}$; a ratio measuring a business's financial leverage and solvency.

Gross Profit Ratio

$\frac{\text{Gross Profit}}{\text{Sales}}$; a ratio calculating the share of revenue kept as gross profit.

Net Profit Ratio

$\frac{\text{Net Profit}}{\text{Sales}}$; a ratio measuring how much revenue is retained as net profit after all expenses.

Return on Equity Ratio

$\frac{\text{Net Profit}}{\text{Total Equity}}$; a ratio calculating the return owners receive for their investment.

Expense Ratio

$\frac{\text{Total Expenses}}{\text{Sales}}$; a ratio measuring the proportion of revenue used to cover operating expenses.

Accounts Receivable Turnover Ratio

$\frac{\text{Sales}}{\text{Accounts Receivable}}$; a ratio measuring the effectiveness of a firm's credit policy.

Normalised Earnings

Earnings adjusted to remove one-off or volatile items that affect profitability to provide a clearer financial picture.

Capitalising Expenses

The accounting practice of treating an expense as an asset on the balance sheet rather than an expense on the income statement.

Sale and Lease-back

The process of selling an owned non-current asset to a lessor and then leasing it back to increase liquidity.

Cost Centres

Departments within a business that manage essential costs and track expenses to assist in budgeting.

Forward Exchange Contract

A derivative contract to exchange one currency for another at an agreed exchange rate on a future date.

Acquisition

The HR process of attracting and recruiting the right staff to undertake business activities.

Development

The HR process of improving the skills, abilities, and knowledge of staff through training and professional development.

Maintenance

The HR process focused on retaining staff and managing their wellbeing, working conditions, and environment.

Separation

The process where an employee leaves a business, which may be voluntary or involuntary.

Involuntary Redundancy

A situation where an employee's role is no longer needed by the employer, resulting in the employee being retrenched.

Summary Dismissal

An instant form of dismissal for employees involved in gross or serious misconduct, such as theft.

Staff Turnover

The rate at which employees leave a business, serving as an indicator of employee satisfaction.

Job Design

The number, kind, and variety of tasks a worker is expected to carry out, aligning roles with organizational goals.

Autocratic Leadership Style

A management style where an individual makes decisions without significant input or participation from subordinates.

Democratic Leadership Style

A consultative management approach that encourages workers to be involved in the decision-making process.

Work Health and Safety (WHS)

A legal influence focused on ensuring a safe and healthy work environment, governed by the Work Health and Safety Act 2011 (NSW).

National Employment Standards (NES)

Twelve minimum employment entitlements provided to all employees in Australia, including maximum weekly hours and annual leave.

Better Off Overall Test (BOOT)

A test used by the Fair Work Commission to ensure employees under an enterprise agreement are better off than under the relevant award.

Conciliation

A dispute resolution process where a third party helps two other parties reach an agreement.

Arbitration

A dispute resolution process where a third party hears both sides and makes a legally binding decision.

Payment in Advance

An international payment method where the exporter receives payment before arranging the delivery of goods.

Letter of Credit

A commitment by the importer's bank to pay the exporter once documents proving shipment are presented.