A-Level Business Flashcards

A complete set of vocabulary flashcards covering Market & Ethics, Macroeconomics, Strategic Management, Organizational Structure, Communication & HRM, Marketing, Operations, and Financial Statements based on the lecture notes.

Collusion

A secret agreement between businesses to stop competing and instead fix prices or divide markets to the detriment of consumers.

Social audit

A report assessing how a business's activities impact society.

Demographic

Indicators related to population structure, such as age, gender, income, and education.

Globalisation

The process by which goods, capital, and people move more freely worldwide, making countries more interdependent.

Information technology (IT)

Electronic technology used to collect, store, process, and transmit information.

Protectionism

A policy that places barriers such as tariffs and quotas on imports to protect domestic producers.

Tariff

A tax imposed on goods entering the country from abroad.

Quota

A physical limit on the quantity of goods that can be imported.

Voluntary export limits

An agreement where an exporting country limits the number of goods it sends to another country to avoid formal tariffs or quotas.

Free international trade

Trading between countries without barriers such as taxes or quotas.

Greenwashing

When a company falsely or excessively promotes itself as being environmentally friendly.

Environmental audit

An assessment to check how a business's activities affect the environment.

Sustainability

Meeting the needs of the present without compromising the ability of future generations to meet their own needs.

Green consumerism

The trend of consumers choosing to buy environmentally friendly and sustainable products.

Market failure

A situation where the market fails to allocate resources in the most efficient or socially optimal way.

External costs

Indirect costs incurred by third parties or society due to the actions of a producer or consumer.

Macroeconomic objectives

Government objectives to maintain overall economic stability, such as growth, low inflation, and employment.

Economic growth

The process where an economy's productive capacity increases and real GDP grows.

Gross domestic product (GDP)

The market value of all goods and services produced within a country's borders in one year.

Real GDP

GDP adjusted for the effects of inflation, showing changes in actual production volume.

Recession

An economic decline characterized by at least two consecutive quarters of falling real GDP.

Business investment

Spending money on equipment, technology, and research to increase future profits and production capacity.

Labour productivity

A measure of the average amount of output produced by one worker in a specific period of time.

Business cycle

The pattern of economic fluctuations through stages of growth, peak, recession, and recovery.

Fiscal policy

The use of government taxation and spending to influence the economy.

Budget deficit

A situation where government spending exceeds its tax revenue.

Budget surplus

A situation where government tax revenue exceeds its spending.

Monetary policy

The use of interest rates and money supply by the central bank to influence the economy.

Supply-side policies

Measures designed to increase production, productivity, and competitiveness over the long term.

Strategic management

The process of setting long-term goals, developing a strategy, and implementing and monitoring it.

Strategic analysis

The process of researching internal capabilities and the external environment before choosing a strategy.

Strategic choice

Choosing the most suitable strategy among potential options based on strategic analysis.

Strategic implementation

Turning the chosen strategy into reality by allocating resources and exercising control.

Transformational leadership

Leadership that provides vision and inspiration to guide an organization through change.

Change management

The management of transitioning an organization from its current state to a new state in a planned manner.

Business process re-engineering

Fundamental redesign of work processes to achieve dramatic improvements in efficiency.

Project groups

Temporary teams bringing together people from different professional backgrounds to solve specific problems or achieve goals.

Project champion

A key supporter who communicates the importance of a project and drives the team forward.

Contingency plan

A backup plan prepared for unforeseen negative circumstances.

Crisis management

The process of handling sudden, dangerous situations with minimal damage.

Continuity planning

Preparation to ensure core business operations continue even after a disaster or crisis.

Organisational structure

The formal arrangement of how authority, duties, responsibilities, and reporting lines are distributed within an organization.

Functional structure

An organizational structure that divides employees into departments based on professional areas like marketing, finance, and HR.

Functional manager

A manager who oversees a single professional department or functional area.

Hierarchical structure

A structure with many management tiers where commands pass from the top down.

Level of hierarchy

A stage in an organizational structure containing jobs with equal authority and status.

Divisional organisational structure

A structure divided into independent units based on products, markets, or geographical regions.

Delayering

Reducing the number of middle management levels to Create a flatter organizational structure.

Matrix structure

A structure where employees belong to both a functional department and a project team, reporting to two different managers.

Delegation

The process where a manager transfers some of their tasks and decision-making authority to subordinates.

Accountability

The obligation to report and take responsibility for the results of assigned work.

Control

Measuring performance and checking whether it aligns with plans and standards.

Authority

The formal right to make decisions and give tasks to others.

Centralisation

The concentration of important decision-making power at the top management level or central office.

Decentralisation

Transferring decision-making authority to branches or lower-level managers.

Line managers

Managers with the formal authority to directly manage and command employees in core operations.

Staff managers

Managers who provide professional advice and support but do not have the power to give direct commands to line employees.

Communication methods

Channels for transmitting information, such as email, meetings, phone, and reports.

Visual communication

Transmitting information through images, graphs, and diagrams.

Information overload

The difficulty in prioritizing information and making decisions due to receiving an excessive amount of data.

Vertical communication

Communication between people at different levels of the organization.

Horizontal communication

Communication between employees or managers at the same level.

Informal communication

Verbal exchanges, rumors, and free communication outside of formal official channels.

Informal leader

A person who has influence over and is recognized by the group despite having no official management title.

Emotional intelligence (EI)

The ability to recognize and manage one's own emotions as well as the emotions of others.

Emotional quotient (EQ)

An indicator used to measure emotional intelligence.

Hard HRM

An approach that treats employees as a cost and aims to maximize work for the lowest possible cost.

Soft HRM

An approach that views employees as valuable assets to be developed and motivated.

Full-time employment contract

A contract to work the full weekly working hours.

Permanent employment contract

An ongoing contract without a fixed end date, continuing until the employee leaves or is terminated.

Temporary contract

A short-term work contract valid for a specific period.

Part-time contract

A contract to work fewer hours than a full-time position.

Zero-hours contract

A contract that does not guarantee working hours; employees are called in whenever work is available.

Gig economy

A labor market characterized by prevalence of short-term contracts or freelance work instead of permanent jobs.

Flexible employment contract

A contract allowing flexible arrangements for work hours, location, and organization.

Flexitime arrangement

A system where employees can choose their start and end times within certain limits.

Home working

Working from home via the internet without going to an office.

Annualised hours contract

A contract where total yearly hours are set and then distributed based on seasonal demand.

Job sharing

An arrangement where two people share the time and responsibilities of one full-time job.

Management by objectives (MBO)

A management method where managers and employees jointly set goals and evaluate results.

Price elasticity of demand (PED)

A measure of how strongly demand quantity changes when price changes. Formula: $\frac{\%\, \text{change in demand}}{\%\, \text{change in price}}$

Income elasticity of demand

A measure of how the demand for a good changes when consumer income changes.

Inferior good

A good for which demand decreases as income rises, and demand increases as income falls.

Promotional elasticity of demand

A measure of how sales change relative to changes in advertising expenditures.

Seasonal fluctuations

Predictable patterns of sales increases and decreases during specific seasons or months of the year.

Cyclical fluctuations

Long-term fluctuations in sales that depend on the overall economic cycle.

Random fluctuations

Sales changes caused by sudden, unpredictable events.

Sales force composite

A method of forecasting company sales by aggregating individual regional forecasts from the sales team.

Qualitative sales forecasting

Forecasting sales based on experience, opinions, and expert judgment rather than just numerical data.

Delphi method

A forecasting method that involves collecting and refining opinions from experts individually until a consensus is reached.

Jury of experts

A forecasting method where managers and specialists discuss and predict future sales and trends.

Marketing plan

A written plan outlining marketing objectives, strategies, and the actions needed to implement them.

Economic collaboration

Cooperation between countries to promote trade and economic relations.

Free-trade agreements

Contracts between countries to reduce or eliminate trade barriers like tariffs and quotas.

International marketing

Promoting and selling goods and services in foreign markets.

BRICS

A group of rapidly developing economies: Brazil, Russia, India, China, and South Africa.

Pan-global marketing

Viewing the entire world as one market and selling the same product using the same strategy.

Global localisation

Adapting a global product or brand to fit local culture and consumer preferences (Glocalization).

Optimal location

The most suitable business location characterized by low costs, high profit, and high efficiency.

Quantitative factors

Measurable financial factors such as rent, wages, and transport costs.