Studied by 10 people
Adverse varience
When actual costs are higher than budget costs
Autocratic
When the manager makes all the decisions
Bank overdraft
The amount that can be overspent on a bank account (be overdrawn)
Blake mouton grid
The concern for people and production a manager has
Boston matrix
Product portfolio analysis of a business into 4 categories
Branding
how consumers recognise and identify with a product
Break-Even
The point when total sales is equal to total costs
Budget
Income and costs predicted over a period of time
Buffer inventory
Minimum amount of stock a business requires to operate
Capacity utilisation
The amount of total capacity is being used
Cash flow
Cash moving into and out of a business
Cash flow forecast
The projection of likely cash inflows and outflows
Competition
Other businesses that compete for a share in the same market
Competitiveness
The business' ability to offer a better product than its competitors (measured in customers)
Correlation
Relationship between two variables
Total Contribution
The difference between the total sales and total variable costs
Delegation
Where a responsibility or task is passed onto another employee in the business
Demand
Amount of a good or service that customers desire
Democratic
Leadership management when the manager involves the employees to make a decision
Distribution channel
How the business gets its products to the end consumer
Dividend
x
Elasticity of demand
Responsiveness of demand towards the change of price
Extrapolation
Using previous data to predict future data
Favourable variance
When the actual is higher than budgeted results
Fixed costs
Costs that do not vary with the level of output
Gross profit
Revenue - cost of sales
Hierarchy
The structures and levels of management and supervision within a business
Income elasticity of demand
The responsiveness of demand to a change of income
Inventory control
Process that ensures that the business has sufficient but not too much stock
Job design
The way which tasks are combined to form a job
Just-in-time
Method when inventory arrives just when it's needed
Labour productivity
Output produced per employee over a given time
Lean production
Methods of production where a business can reduce waste
Limited liability
Owners are only liable for the money they have invested
Margin of safety
Difference between actual level of output and break even
Market capitalisation
Margin of outstanding shares in a plc
Market growth
The percentage growth of a market over a period of time
Market research
planning, collecting and analysing data to make a market decision
Market segmentation
dividing a market into smaller segments according to e.g. needs so that a business can target specific customers.
Market share
a share of the total market that is owned by a particular business, product or brand
Marketing mix
Use of strategies to help a business reach its objectives, also known as the 7'ps (Place, people, process, product, price, physical and promotion)
Mass customisation
The ability to customise products for individuals on a large scale
Mass market
Targeting a product or service at all customers within a market, e.g. Coca-cola
A niche market
A segment of a larger market that can be targeted
Opportunity costs
The costs of making a decision that is measured by the benefits foregone of the next best alternative
Organisational structure
The way jobs and roles are organised within a business are structured
Penetration pricing
Strategy that lowers the price in order to gain a large market share
Price Elasticity of demand
The response of demand towards a change of the price of a product
Price skimming
Price strategy that involves setting a high price for a new product to take advantage of the customers that are prepared to pay
Primary research
Market research that involves collecting data that does not yet exist
Private limited company
A business owned and controlled by stakeholders whose shares CANNOT be publicly traded
Product life cycle
A common pattern of sales over time into the product's stages from its introduction to withdrawal
Product portfolio
Products and brands owned and operated by a business
Profit for the year
income and expenditure that is taken into account
Profitability
The generation of profit from activities
Public limited company
A business whose shares can be traded publicly on the stock exchange
Qualitative research
Research that concerns the collection of beliefs, intentions, opinions and research
Quality
When a product receives satisfaction from its customers
Quality assurance
the prevention of mistakes in order to get the production of a product right the first time
Quantitive research
Collecting data through statistics that can be research quantified
Sample
A subset of a certain amount
Sole trader
A one-man business with unlimited liability
Span
amount of employees who are under supervision of a manager
Spare capacity
How much a business can produce more with existing resources
Stakeholder
A person with specific interests of a business
Tannenbaum Schmitt continuum
A model that measures the amount of control of a manager compared to the amount of freedom an employee has (Watch your spelling)
Total costs
Total variable and fixed costs
Trade union
An organisation set up by employees to improve the working conditions
Unit costs
Average production costs per unit
Unlimited liability
Debt incurred by a business is not limited to the business. A sole trader risks losing personal assets
Variable costs
Costs directly in proportion to the business' output
Variance
The difference between the budget and the actual (could be favourable or adverse)
Venture capital
Specialists who invest to finance a launch, development, or expansion of a business
Waste
Cost of production section made of completed products or raw materials that could not be retained in production
Working capital
The available amount of money a business has
Works council
Employees and managers who meet up and discuss work related issues
Share capital
The total value of capital raised from shareholders by the issue of shares.
Mission Statement
a formal summary of the values of a company, organisation, or individual.
Vision statement
Vivid, guiding image of an organization's desired future
Corporate Decisions
Medium - long term goals to coordinate a business
Dividends
Profits that are paid to shareholders in proportion to the number of shares they own
Strategy
Long-term plan to achieve the business' vision attaining its corporate objectives
Tactics
Short-term specific actions which advance the strategy and achieve an end result
SWOT analysis
strengths, weaknesses, opportunities, threats
Balance Sheet
Financial statement of assets, liabilities and equity
Capital
Money invested into the business
Debentures
Long term loans other than mortgages
Income Statement
a financial statement showing the revenue and expenses for a fiscal period
Liquidity Ratios
measures of a businesses ability to pay debts in the short term
Gearing ratio
The relationship between internal and external sources of finance
Core competences
Unique abilities a business possesses in order to gain a competitive advantage
Innovation
New ideas to extend the life-cycle of a product or brand
Merger
Two or more firms agree to come together into one firm under one board of directors
Takeover
an act of taking control of a company by buying most of its shares
ROCE
Percentage of Net profits compared to the capital employed
differentiation strategy
Offering more benefits than rivals in the same industry
Competitive Advantage
an aspect that provides greater value for customers than competitors can in the market
economies of scale
Lower production costs as a result of larger volume of production
Vertical Integration
When a business joins another at different stages of production
Horizontal Integration
When two business join at the same stage of production
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Flashcard (50)