Key Concepts in Business Operations and Management

Business Process

A set of tasks or activities that produce a specific outcome for a business.

Workflow

The sequence of steps involved in moving from one stage of a process to another.

Total Quality Management (TQM)

A continuous effort to improve products, services, and processes by focusing on customer satisfaction.

Six Sigma

A data-driven approach to process improvement that reduces defects and increases efficiency.

Inventory Management

The process of overseeing and controlling the stock of goods in a business.

FIFO (First In, First Out)

An inventory valuation method where the oldest stock is used or sold first.

LIFO (Last In, First Out)

An inventory valuation method where the newest stock is used or sold first.

Just-in-Time (JIT)

An inventory system that minimizes stock levels by receiving goods only when needed for production or sales.

Supply Chain

The entire process of producing and delivering a product or service, from raw materials to final sale.

Logistics

The coordination of transportation, storage, and distribution of goods.

Contract

A legally binding agreement between two or more parties.

Breach of Contract

A failure to fulfill the terms of a contract.

Remedies

Legal solutions available when a contract is breached.

Occupational Safety and Health Administration (OSHA)

A U.S. government agency that sets and enforces workplace safety standards.

Liability

Legal responsibility for one's actions or products.

Risk Assessment

The process of identifying and analyzing potential risks to minimize negative impacts.

Crisis Management

Strategies businesses use to respond to unexpected disruptions.

Contingency Plan

A backup plan in case of emergencies such as lawsuits, cyberattacks, or product recalls.

Corporate Social Responsibility (CSR)

A business's commitment to ethical practices, environmental sustainability, and social well-being.

Ethical Sourcing

Obtaining materials in a responsible and sustainable manner.

Fair Labor Standards Act (FLSA)

U.S. law that establishes minimum wage, overtime pay, and child labor standards.

Discrimination

Unfair treatment of employees or customers based on race, gender, age, or other factors.

Equal Employment Opportunity Commission (EEOC)

A federal agency that enforces laws against workplace discrimination.

Environmental Protection Agency (EPA)

A U.S. agency that enforces regulations to protect the environment.

Sustainability

Business practices that reduce environmental harm and ensure long-term resource availability.

General Data Protection Regulation (GDPR)

A European privacy law that protects personal data.

California Consumer Privacy Act (CCPA)

A U.S. law that protects the privacy of California residents' personal data.

Cybersecurity

Measures taken to protect a business's computer systems and data from attacks.

Data Breach

Unauthorized access to confidential data.

Automation

The use of technology to perform tasks without human intervention.

Artificial Intelligence (AI)

Technology that simulates human intelligence to automate processes.

Customer Service Standards

Guidelines that dictate how employees should interact with customers.

Federal Trade Commission (FTC)

A U.S. agency that protects consumers from deceptive business practices.

Consumer Protection Laws

Laws that ensure fair treatment and safety for consumers.

Product Liability

A manufacturer's legal responsibility for defects in its products.

Fraud

Intentional deception for financial or personal gain.

Dispute Resolution

The process of resolving conflicts between a business and a customer.

Customer Retention

Strategies businesses use to keep customers loyal and returning.