Business Studies – Operations, Marketing, Finance & HR Vocabulary

Vocabulary flashcards covering key terms from operations, marketing, finance and human resources to aid exam preparation.

Operations Management

Business processes that convert inputs into outputs through a transformation process.

Strategic Role (Operations)

Long-term decisions in operations that influence all key business functions and competitive positioning.

Cost Leadership

A strategy aimed at having the lowest possible production and selling costs in an industry.

Product Differentiation

Strategy of distinguishing goods or services from competitors through unique features or quality.

Standardised Goods

Mass-produced items of uniform quality, usually made on an assembly line.

Customised Goods

Products tailored to meet specific customer needs and preferences.

Fast-Moving Consumer Goods (FMCG)

High-volume, perishable products that require short lead times and rigorous quality control.

Just-In-Time (JIT)

Inventory system ensuring inputs arrive exactly when needed, minimising stock-holding costs.

Supply Chain

The network of suppliers and logistics involved in sourcing inputs and delivering outputs.

Global Web

A supply chain assembled from worldwide suppliers chosen for lowest cost and highest reliability.

Technology (Operations)

Innovative devices, machinery or software applied to improve operational efficiency.

Quality

Extent to which goods are well-designed, well-made and fit for purpose; for services, delivered competence.

Quality Expectations

Consumer-driven standards that influence product design, creation and delivery.

Cost-Based Competition

Rivalry based on achieving cost advantages through break-even analysis and efficiency.

Environmental Sustainability

Operations practices that meet present resource needs without compromising future generations.

Corporate Social Responsibility (CSR)

Business actions that respect people, society and the environment beyond legal compliance.

Triple Bottom Line

Measuring business success by financial, social and environmental performance.

Transformed Resources

Inputs that are converted during production, such as materials, information and customers.

Transforming Resources

Inputs that enable change, namely human resources and facilities.

Volume Flexibility

Ability of operations to adjust output quickly to meet demand changes.

Mix Flexibility

Capability to produce a variety of goods or services.

Visibility (Customer Contact)

Degree to which customers are involved or observe the production process.

Sequencing

Determining the order of activities in the operations process.

Scheduling

Determining the time each production activity will take.

Gantt Chart

Bar chart used to plan and track tasks against time in a project.

Critical Path Analysis (CPA)

Scheduling method identifying the shortest time to complete all tasks by mapping dependencies.

Task Design

Classifying job activities so employees can perform tasks efficiently; linked to skills audits.

Process Layout

Factory arrangement where machines performing similar functions are grouped together.

Product Layout

Equipment arranged in sequence of tasks to suit high-volume, standardised production.

Fixed Position Layout

Layout where the product stays stationary and resources come to it (e.g., shipbuilding).

Office Layout

Design of desk and workspace areas to promote smooth workflow in service operations.

Monitoring (Operations)

Measuring actual performance using KPIs against planned performance.

Control (Operations)

Taking corrective action when KPIs deviate from targets.

Improvement

Systematic reduction of inefficiencies and elimination of bottlenecks.

Bottleneck

A stage in production that slows overall processing speed.

Customer Service

How well a business meets or exceeds customer expectations throughout operations.

Warranty

Promise to repair or replace defective goods or services within a stated period.

Performance Objectives

Targets for quality, speed, dependability, flexibility, customisation and cost in operations.

Dependability

Consistency and reliability of a product’s performance over time.

New Product Design & Development

Process of creating goods or services to meet identified customer needs and technological advances.

Supply Chain Management (SCM)

Integration of the flow of supplies through inputs, transformation and outputs.

Logistics

Planning and movement of materials, storage and distribution to customers.

E-Commerce

Buying and selling goods or services via the internet.

B2B

Business-to-business electronic transactions.

B2C

Business-to-consumer electronic transactions.

E-Procurement

Online systems giving suppliers direct access to a firm’s purchasing requirements.

Global Sourcing

Purchasing inputs from the most cost-effective location worldwide.

Outsourcing

Use of external providers to perform business activities formerly done in-house.

Leading-Edge Technology

Most advanced or innovative technology available at a given time.

Established Technology

Widely used, proven technology such as CAD or CAM.

Inventory

Stock of raw materials, work-in-progress and finished goods held by a business.

LIFO (Last-In-First-Out)

Inventory method where the most recently purchased items are assumed sold first.

FIFO (First-In-First-Out)

Inventory method where oldest stock is assumed sold first; common for perishables.

Just-In-Time (JIT)

System that ensures materials arrive exactly when needed to reduce holding costs.

Financial Costs (Change)

Expenditures related to implementing change—new equipment, redundancy, retraining, re-layout.

Redundancy Payments

Compensation to employees whose roles become unnecessary.

Retraining

Providing employees new skills to adapt to organisational changes or technologies.

Inertia

Psychological resistance of staff or management to organisational change.

Economies of Scale

Cost advantages gained from larger-scale production lowering unit costs.

Scanning and Learning

Continual analysis of global best practice to drive improvement.

Research and Development (R&D)

Activities aimed at innovating products or processes for competitive advantage.

Quality Management

Processes ensuring product consistency, reliability, safety and fitness for purpose.

Quality Control

Inspection of products at various stages to detect defects; reactive approach.

Quality Assurance

Systematic processes to build quality into production; proactive approach.

Continuous Improvement

Ongoing commitment to making incremental enhancements in processes.

Total Quality Management (TQM)

Whole-of-business approach focused on quality across all functions and employees.

Benchmarking

Comparing performance against industry best practice to set improvement targets.

Employee Empowerment

Giving workers authority to make decisions that affect their work quality.

Customer Orientation

Business philosophy placing customer needs at the centre of activities.

Production Approach

Marketing focus on mass production and product availability rather than customer needs.

Sales Approach

Emphasis on aggressive selling and advertising to overcome competition.

Marketing Approach

Identifying and satisfying customer needs through research and integrated strategies.

Relationship Marketing

Strategies aimed at building long-term customer loyalty and repeat business.

Resource Market

Market where factors of production such as land, labour and capital are traded.

Industrial Market

Market for goods and services used in producing other products.

Intermediate Market

Businesses that buy goods to resell or rent, e.g., wholesalers.

Mass Market

Market for products appealing to the majority of consumers.

Niche Market

Narrow, specialised segment of a larger market.

Psychological Factors

Internal influences on buying behaviour such as perception, motives and attitudes.

Sociocultural Factors

Influences from peers, family, culture and social class on consumer decisions.

Economic Factors

Consumer purchasing power and willingness to spend linked to economic conditions.

Government Factors

Laws, regulations and policies affecting consumer spending and marketing.

Deceptive & Misleading Advertising

False or exaggerated promotional claims violating consumer law.

Bait and Switch

Advertising a low-priced item to attract customers, then pressuring purchase of higher-priced goods.

Price Discrimination

Charging different customers different prices for the same product without cost justification.

Implied Conditions

Unwritten terms guaranteeing goods are of acceptable quality and fit for purpose.

Sugging

Selling under the guise of a survey; an unethical marketing practice.

SWOT Analysis

Assessment of internal strengths/weaknesses and external opportunities/threats.

Product Life Cycle

Stages of introduction, growth, maturity and post-maturity through which a product passes.

Primary Data

Original information collected first-hand for a specific research purpose.

Secondary Data

Pre-existing information gathered for other purposes but usable in research.

SMART Objectives

Goals that are Specific, Measurable, Achievable, Realistic and Timed.

Target Market

Specific group of customers a business aims its marketing efforts at.

Market Segmentation

Dividing a market into distinct subsets of consumers with common needs.

Product Positioning

Creating a distinct image of a product in consumers’ minds relative to competitors.

Branding

Use of name, term, symbol or design to identify and differentiate a product.

Packaging

Physical container or wrapping of a product designed for protection and promotion.

Cost-Plus Pricing

Setting price by adding a fixed margin to the cost of production.

Price Skimming

Charging a high initial price then lowering it over time.

Penetration Pricing

Setting a low price to quickly gain market share.