Key Concepts in Business Studies and Marketing

Business

Organizations that produce goods/services to satisfy needs.

Value Addition

Enhancing raw materials to meet consumer demands.

Factors of Production

Resources needed: land, labour, capital, enterprise.

Added Value

Selling price minus cost of materials.

Opportunity Cost

Next best alternative forgone when making a choice.

Local Business

Serves goods/services to local population.

National Business

Operates within the domestic market.

Multinational Business

Operates in multiple countries.

Successful Business Traits

Understanding customer needs, efficient management.

Business Failure Reasons

Poor record keeping, lack of cash, management skills.

Entrepreneur

Individual who starts and runs a business.

Intrapreneur

Employee who innovates within a company.

Innovation

Creating new ideas or products.

Commitment

Dedication to achieving business goals.

Risk-taking

Willingness to invest in uncertain outcomes.

Economic Growth

Increase in a country's production of goods/services.

Employment Creation

Jobs generated through business activities.

Technological Change

Advancements that improve production processes.

Cash Shortages

Insufficient funds to meet business obligations.

Lean Production

Minimizing waste while maximizing productivity.

Market Changes

Shifts in competition, regulations, or consumer spending.

Business Expansion

Growth of a business into new markets.

Intrapreneurship

Creativity and innovation within existing businesses.

Business Plan

Document outlining business strategy and operations.

Executive Summary

Brief overview of the business plan.

Marketing Strategy

Plan for promoting and selling products.

Financial Forecast

Projected financial performance of the business.

Industrialisation Benefits

Increased GDP and job creation from manufacturing.

Deindustrialisation Consequences

Job losses and retraining needs in service sectors.

Limited Liability

Owners' financial responsibility limited to investment.

Private Limited Company

Company type protecting owners from personal liability.

Memorandum of Association

Document stating company's objectives and structure.

Articles of Association

Rules governing company's operations and management.

Cooperative Features

Member involvement in decision-making and profit sharing.

Joint Venture

Partnership to share costs and risks of projects.

Economic Sectors

Classification of business activities by industry type.

Tertiary Sector

Service industry, including healthcare and education.

Quaternary Sector

Knowledge-based services, such as IT and research.

Competitive Advantage

Unique edge over competitors in the market.

Original Thinkers

Innovators encouraged to remain within the business.

Social Cohesion

Strengthening community bonds and relationships.

Multinational Companies

Firms operating in multiple countries, impacting economies.

Job Opportunities

Employment openings in growing service industries.

Capital Shortages

Insufficient funds for business operations or expansion.

Decision-Making in Cooperatives

Consensus required among members for important choices.

Major Markets

Countries where businesses can effectively expand.

Social Enterprises

Organizations with social aims using ethical practices.

Limited Liability

Protection of owners' capital from business debts.

Changing Ownership

Transitioning from one business structure to another.

Sole Trader

Individual ownership with full control and responsibility.

Private Limited Company

Business structure limiting owner liability and sharing profits.

Measuring Business Size

Assessing business scale through various metrics.

Number of Employees

Count of workers to gauge business size.

Revenue

Total sales value used for industry comparisons.

Capital Employed

Total long-term finance available in a business.

Market Capitalisation

Current share price multiplied by total shares issued.

Market Share

Percentage of total industry sales attributed to a business.

Absolute Size

Business size assessed using multiple criteria.

Comparative Size

Business size compared against other entities.

Dynamic Entrepreneurs

Innovative individuals driving small business success.

Small Businesses

Firms with limited scale, often job creators.

Micro-Businesses

Very small firms, typically with few employees.

Business Risks

Potential issues arising from partnerships and management styles.

Legal Costs

Expenses incurred during ownership structure changes.

Profit Sharing

Distribution of earnings among multiple owners.

Competition Creation

Small businesses fostering rivalry with larger firms.

Insubstantial Measurement Problems

Limitations of using employee count for size assessment.

Monopoly

Market structure with a single seller.

Specialist goods

Products tailored for specific consumer needs.

Economies of scale

Cost advantages due to increased production.

Government assistance

Support provided to small businesses.

Loan guarantee scheme

Government backing for small business loans.

Small business advantages

Flexibility and personal customer relations.

Large business advantages

Ability to employ specialists and lower prices.

Small business disadvantages

Limited access to finance and high risks.

Large business disadvantages

Diseconomies of scale and management conflicts.

Family business

Owned and managed by family members.

Knowledge continuity

Passing business knowledge to the next generation.

Nepotism

Favoritism based on family relationships.

Business growth reasons

Increased profits and market share.

Internal growth

Expansion through existing operations.

Business objectives

Goals guiding business strategies and performance.

Profit maximisation

Aim to achieve the highest possible profit.

Profit satisficing

Achieving sufficient profit to satisfy stakeholders.

Corporate social responsibility (CSR)

Business commitment to ethical practices.

Triple bottom line

Focus on profit, social, and environmental goals.

Social enterprises

Businesses aiming for social and environmental impact.

Market share

A company's sales as a percentage of total sales.

Survival

The primary goal of many small businesses.

Shareholder value

Maximizing returns for company shareholders.

Public-sector businesses

Government-owned entities serving public interests.

Efficient service

Reliable public services like water and postal.

Economic development

Enhancing growth in underprivileged areas.

Employment creation

Generating jobs or preventing layoffs.

Financial targets

Goals set by government, not profit-driven.

Environmental standards

High benchmarks for ecological responsibility.

SMART objectives

Framework for setting effective goals.

Specific (S)

Clear and well-defined objectives.

Measurable (M)

Quantifiable criteria to track progress.

Achievable (A)

Realistic goals that can be accomplished.