Business

Business

Any profit-seeking organization that provides goods and services designed to satisfy customer's needs.

Revenue

The money that a company brings in through the sale of goods and services.

Value chain

A chain of companies involved in different steps of producing a good, from raw materials to final sales.

Profit

The money left over after all costs involved in doing business have been deducted from the revenue.

Competitive advantage

Some aspect of a product or company that makes it more appealing to its target customers.

Not-for-profit organization

Organizations that do not have a profit goal.

Microeconomics

The study of how consumers, businesses, and industries collectively determine the quantity of goods and services demanded and supplied.

Macroeconomics

The study of big picture issues in an economy, including competitive behavior among firms and government policies.

Scarcity

A condition where productive resources have finite supply.

Opportunity cost

The value of the most appealing alternative not chosen.

Free market

An economic system where individuals and businesses have the freedom to succeed or fail by their own efforts.

Entrepreneurship

The process of capturing problems and finding solutions that can become opportunities.

Causal logic

The selection of given means to achieve entrepreneurial goals.

Dynamic capabilities

Core competences that focus on adaptation to change in the environment.

SWOT analysis

A tool to summarize strengths, weaknesses, opportunities, and threats for an organization.

Marketing

The process of creating value for customers and building relationships to capture value back from them.

Customer perceived value (CPV)

The difference between a customer's evaluation of benefits and the costs of an offering.

Diversification

The process of increasing the range of products or markets served by an organization.

Glocalization

Conducting business according to both local and global considerations.

Human resources management

The function of planning how to obtain employees, oversee their training, evaluate them, and compensate them.

Maslow’s hierarchy of needs

A theory suggesting that basic needs must be satisfied before focusing on higher-level needs.

Global sourcing

Purchasing services and components from the most appropriate suppliers worldwide.

Wholly owned subsidiary

A company that is completely controlled by another company.

Innovation

The act of introducing something new or improving existing processes.

Product innovation

The creation of a new or improved product.

Process innovation

Making changes in the way a product is made or delivered.

Break-even analysis

A method for calculating the minimum sales volume needed at a given price to cover costs.

Stakeholder

Any individual or group that can affect or is affected by the achievement of an organization’s objectives.

Market segmentation

The process of dividing a broad consumer or business market into sub-groups based on shared characteristics.

Brand equity

The value that a brand adds to a product or service, based on consumer perception.

Supply Chain Management

The management of the flow of goods and services and includes all processes that transform raw materials into final products.

Corporate social responsibility (CSR)

A business model that helps a company be socially accountable to itself, its stakeholders, and the public.

Business Model

A plan for how a company creates, delivers, and captures value.

Target Market

A specific group of customers at which a company aims its products and services.

Value proposition

A promise of value to be delivered to the customer, highlighting the benefits of a product or service.

Customer relationship management (CRM)

A strategy for managing a company's interactions with current and potential customers.

Market share

The percentage of an industry's sales that a particular company controls.

What is entrepreneurship?

The process of capturing problems and finding solutions that can become opportunities.

What are dynamic capabilities?

Core competences that focus on adaptation to change in the environment.

What is SWOT analysis?

A tool to summarize strengths, weaknesses, opportunities, and threats for an organization.

What is marketing?

The process of creating value for customers and building relationships to capture value back from them.

What is customer perceived value (CPV)?

The difference between a customer's evaluation of benefits and the costs of an offering.

What is diversification?

The process of increasing the range of products or markets served by an organization.

What is glocalization?

Conducting business according to both local and global considerations.

What is human resources management?

The function of planning how to obtain employees, oversee their training, evaluate them, and compensate them.

What is Maslow’s hierarchy of needs?

A theory suggesting that basic needs must be satisfied before focusing on higher-level needs.

What is global sourcing?

Purchasing services and components from the most appropriate suppliers worldwide.

What is a business plan?

A formal statement outlining the goals, operational plans, and financial forecasts of a business.

What is financial management?

The planning, organizing, directing, and controlling of financial activities to achieve an organization’s goals.

What is market research?

The process of gathering, analyzing, and interpreting information about a market.

What is competitive analysis?

The assessment of competitors' strengths and weaknesses to inform strategic planning.

What is product development?

The series of steps taken to bring a new product to market.

What is a startup?

A newly established business, often in the early stages of development.

What is e-commerce?

Buying and selling goods and services over the internet.

What is intellectual property?

Creations of the mind, such as inventions, literary and artistic works, and symbols.

What is customer loyalty?

The commitment of customers to repurchase or continue using a brand.

What is cash flow?

The total amount of money being transferred into and out of a business.