Core 1 Definitions

Business

An organisation or enterprising operation engaged in commercial, industrial or professional activities.

Private Sector

The part of the economy owned by individuals and groups of individuals.

Public Sector

The part of the economy where production is organised by the state or government.

Voluntary

The Part of the economy that consists of non-profit organisations.

Profit

Difference between total costs and total revenue of a business.

Internal environmental factors

Influences on work performance from within an organisation.

External Factors

Things that will affect a business from outside the business that it does not have control over.

Mission statement

Sets out the scope and purpose of an organisation.

Vision statement

Looks to the future and where an organisation will be if it fulfils its mission.

Mixed economy

economic decisions are made partly by the government and partly through the market.

Public Private Partnership (PPP)

Public and private organisations work together on projects

Race to the bottom

Businesses producing tenders for contracts offer the lowest costs/prices in order to win the contract

Chain of command

Different lines of authority inside a business, usually from top to bottom

Layers

Number of different levels of staffing identified in an organisational structure

Span of control

Number of employees that report to a manager

Centralisation

A relatively large number of decisions are taken by managers at the top level of the organisation

Decentralisation

A relatively large number of decisions are taken lower down the organisation at the level of units of operation

Corporate Social Responsibility (CSR)

the awareness, acceptance and management of the wider implications of corporate decisions in society

Aim

A large goal that a business intends to achieve

Objective

A precise and measurable step to complete the goals set by a business

Key Performance Indicators (KPI’s)

targets set for individuals and departments that are measured by various metrics

Strategy

Direction and guidance for a business’s aims and objectives

Servicescape

Term used to focus on the physical environment in which customers interact with an organisation

Governance

The process of directing and controlling the actions and affairs of an organisation

Corporate Governance

Sets out a framework to distribute the rewards from the growth of the organisation, mostly in the form of profits

Stakeholder

An individual or group who has an interest in the company

Audit

An examination of a businesses financial records and confirmation of their accuracy which can be completed both internally and externally

whistle-blower

A person working for an organisation who tells others outside the organisation about bad behaviour and possible harm that is taking place

Direct discrimination

When a person is treated less favourably than others because of a protected characteristic

Indirect discrimination

When a policy or practice is applied equally to everyone but it has a negative effect on people who share a protected characteristic

Cyber attack

An individual or organisation tries to gain access to damage or interfere with the running of a computer system

Organisational culture

The expectations and practices that guide and inform the actions of the individuals who work for a business

Organisational values

Main core beliefs of a business, they act as guiding principles that provide a business with purpose and direction and set the tone for its relationships with stakeholders

Hybrid working

When employees spend some time working at home and some in an office