O Level Business Studies Flashcards

Vocabulary flashcards covering Understanding Business Activity, People in Business, and Marketing based on the lecture notes.

Opportunity Cost

The benefit of the next best alternative forgone when a choice is made.

Added Value

Calculated as $\text{selling price} - \text{cost of inputs}$; can be increased by improving branding, adding features, increasing efficiency, or providing excellent customer service.

Industrialization

The growth of secondary (manufacturing) industries in an economy.

Deindustrialization

The decline of the manufacturing sector and shift towards the tertiary (services) sector.

Entrepreneur

An individual who takes the risk of starting and managing a business.

Horizontal Integration

Merger with or takeover of a competitor in the same industry and at the same stage of production.

Forward Vertical Integration

Taking over a business at a later stage in the distribution/production chain (e.g., manufacturer taking over a retailer).

Backward Vertical Integration

Taking over a supplier business at an earlier stage in the production chain.

Conglomerate Integration

A merger between firms operating in completely different industries.

Internal Stakeholders

Groups within the business, such as owners/shareholders, managers, and employees, who have specific objectives like profit, status, or wages.

External Stakeholders

Groups outside the business, such as customers, suppliers, community, and government, who are affected by business decisions.

Physiological Needs

Level 1 of Maslow's Hierarchy of Needs, covering basic pay, food, and shelter.

Safety Needs

Level 2 of Maslow's Hierarchy of Needs, covering job security and a safe workplace.

Social Needs

Level 3 of Maslow's Hierarchy of Needs, covering teamwork and belonging.

Esteem Needs

Level 4 of Maslow's Hierarchy of Needs, covering recognition and responsibility.

Self-actualisation

Level 5 of Maslow's Hierarchy of Needs, covering creativity and promotion.

F.W. Taylor (Scientific Management)

A motivational theory stating money is the main motivator, using time and output measurement to set efficiency standards and piece-rate pay.

Hygiene Factors

Aspects of Herzberg's Two-Factor Theory (such as pay, working conditions, and security) that prevent dissatisfaction.

Motivators

Aspects of Herzberg's Two-Factor Theory (such as achievement, recognition, and responsibility) that create job satisfaction.

Quality Circle

Small groups of employees who meet to discuss work-related problems and solutions.

Resignation

When an employee chooses to leave their job voluntarily.

Retirement

When an employee stops working permanently after reaching a certain age.

Redundancy

Dismissal when a job no longer exists, which is not due to employee performance.

Oral Communication

Communication methods such as meetings, interviews, and phone calls that provide quick feedback but lack a permanent record.

Written Communication

Communication methods such as letters, reports, and memos that create a clear, permanent record but offer slower feedback.

Electronic Communication

Fast communication methods with wide reach, such as emails, social media, and intranet, carrying risks of information overload and security issues.

Visual Communication

Methods like diagrams, charts, and presentations that make complex data easy to understand but may oversimplify.

Marketing

Identifying and meeting customer needs profitably.

Demographic Segmentation

Segmenting a market based on age, gender, and income.

Geographic Segmentation

Segmenting a market based on location and climate.

Psychographic Segmentation

Segmenting a market based on lifestyle and values.

Behavioral Segmentation

Segmenting a market based on buying habits and brand loyalty.

Focus Groups

A primary market research method involving a small group discussion on a product to gain qualitative insight.

Observation (Market Research)

Watching consumer behavior directly to gain realistic data without questioning bias.

Test Market

Launching a product in a small area first to reduce risk and collect real sales data.

Consumer Survey

Asking customers directly to obtain direct feedback and wide coverage.

Random Sampling

A sampling method where every individual in the population has an equal chance of selection.

Quota Sampling

A sampling method where specific groups are chosen in direct proportion.

Stratified Sampling

A sampling method where the population is divided into sub-groups and random samples are taken from each.

Brand Image

The identity or reputation of a product in the consumer's mind.

Product Life Cycle (PLC)

The stages a product passes through: Development, Introduction, Growth, Maturity, and Decline.

Cost-plus Pricing

A pricing method where a profit margin is added directly to the cost of production.

Penetration Pricing

Setting a low price initially to enter a market.

Price Skimming

Setting a high price at launch and reducing it later.

Competitive Pricing

Setting product prices near rivals' prices.

Promotional Pricing

Offering temporary discounts to boost short-term sales.

Price Elasticity of Demand (PED)

The responsiveness of quantity demanded to a change in price.

Elastic Demand

Where $\text{PED} > 1$, meaning a small price change leads to a big change in demand (typical for luxuries).

Inelastic Demand

Where $\text{PED} < 1$, meaning demand is little affected by changes in price (typical for necessities).