Introduction to Business Management

Flashcards covering key vocabulary and concepts related to business management and organizational structures.

Business

An organization that creates wealth and success by providing goods or services in exchange for payment.

Risk

The uncertainty associated with any decision, which can be predicted but not eliminated.

Tactical Decisions

Short to medium-term decisions made on a day-to-day basis, such as ordering stock.

Strategic Decisions

Long-term decisions that determine the overall objectives and plans of a business.

Opportunity Costs

The cost of the next best alternative that is foregone when a decision is made.

Factors of Production

The resources required by businesses to produce goods or services.

Goods

Tangible products that can be physically bought and used multiple times.

Services

Intangible offerings that can only be used once, such as transportation.

Adding Value

The process by which businesses improve the worth of their inputs to make a profit.

Business Functions

The main functional departments in a business, typically including Finance, Marketing, Operations, and HR.

Interrelationship of Functions

The way different business departments interact to achieve common objectives.

Primary Sector

The part of the economy involved in the extraction of natural resources, such as farming and fishing.

Secondary Sector

The industrial sector that manufactures and processes products from raw materials.

Tertiary Sector

The segment of the economy that provides services to consumers and businesses.

Entrepreneurship

The process of identifying and developing opportunities to create value through innovation.

Intrapreneurship

Innovation and opportunity development within an existing organization.

Public Sector

Organizations owned and operated by the government.

Sole Trader

An individual who owns and operates their business, bearing unlimited liability.

Partnership

A business owned by two or more individuals, with shared liability and responsibilities.

Deed of Partnership

A legal agreement outlining the roles, responsibilities, and profit-sharing among partners.

Companies

Businesses owned by shareholders, offering limited liability and separate legal identity.

Social Enterprises

Businesses aimed at achieving social objectives while generating revenue.

Cooperatives

For-profit social enterprises owned and run by their members for mutual benefit.

NGOs

Non-profit organizations that operate independently of government, often focusing on social causes.

Ethics

Moral principles that govern the behavior of individuals and organizations.

Vision Statement

A statement outlining an organization's aspirations for the future.

Mission Statement

The fundamental purpose and values of an organization.

SMART Objectives

Specific, Measurable, Achievable, Relevant, and Time-bound targets to guide organizational efforts.

SWOT Analysis

A strategic planning tool used to identify strengths, weaknesses, opportunities, and threats.

CSR (Corporate Social Responsibility)

The practice of incorporating ethical considerations and social accountability into business operations.

Stakeholders

Individuals or groups with an interest in the performance and activities of a business.

STEEPLE Analysis

An analytical framework assessing Social, Technological, Economic, Environmental, Political, Legal, and Ethical factors affecting a business.

Economies of Scale

Cost advantages that a business obtains due to scale of operation.

Diseconomies of Scale

Increased per-unit costs arising as a company grows beyond an efficient level.

Internal Growth

Expansion achieved through utilizing a company's existing resources.

External Growth

Growth through mergers, acquisitions, joint ventures, or partnerships.

Franchising

A method of business expansion where a business (franchisor) grants others (franchisees) the rights to operate using its brand and systems.

Globalization

The process by which businesses develop international influence or operate on a global scale.

Multinational Corporation (MNC)

A corporation with operations in multiple countries.

Leadership Styles

Different approaches to leading and managing a team, such as autocratic, paternalistic, democratic, and laissez-faire.

Motivation

The internal and external factors that stimulate desire and energy in individuals to be continually interested in and committed to a task.