AICE BUS MIDTERM

Work–life balance

The extent to which employees are able to balance work responsibilities with personal life.

Societal marketing

A marketing approach that considers customer needs, business goals, and long-term social welfare.

Asset-led marketing

Marketing strategy based on a firm’s existing strengths and resources rather than market demand.

Unfair dismissal

Termination of employment without a valid reason or without following proper procedure.

Marketing objectives

Specific, measurable goals a business wants to achieve through marketing.

Marketing strategy

A long-term plan showing how marketing objectives will be achieved.

Market growth

The increase in total demand or sales within a market over time.

Market orientation

A business focus on identifying and meeting customer needs.

Product orientation

A focus on producing high-quality products rather than responding to customer demand.

Niche marketing

Targeting a small, specific segment of a market.

Mass marketing

Selling the same product to the whole market.

Market segment

A group of customers with similar characteristics or needs.

Supply and demand

The relationship between the quantity producers supply and consumers demand at different prices.

Equilibrium

The price at which supply equals demand.

Equality policy

A policy ensuring equal treatment and opportunities for all employees.

Diversity policy

A policy promoting workforce variety in gender, ethnicity, age, and background.

Redundancy

Job loss due to a business no longer needing the role.

Market share

A firm’s percentage of total market sales.

Market size

The total sales value or volume of a market.

Direct competitor

A business offering similar products to the same target market.

USP (Unique Selling Point)

A feature that differentiates a product from competitors.

Maslow’s hierarchy of needs

A theory stating human needs progress from basic to self-actualization.

Vroom’s expectancy theory

Motivation depends on expected outcomes and rewards.

McClelland’s theory

Motivation driven by need for achievement, affiliation, or power.

Test marketing

Launching a product in a small area to assess demand.

Social enterprise

A business that reinvests profits to achieve social objectives.

Mixed economy

An economy with both private and public sector involvement.

Command economy

An economy controlled by the government.

Sole trader

A business owned and run by one person.

Partnership

A business owned by two or more people.

Shareholders

Owners of a company who hold shares.

Stakeholders

Individuals or groups with an interest in a business.

Private limited company

A company whose shares are privately owned and not publicly traded.

Legal personality

A company’s ability to exist independently from its owners.

Mission statement

A statement outlining a business’s purpose.

Vision statement

A statement describing long-term goals.

Corporate aims

Overall long-term objectives of a business.

Tata Nano

An example of low-cost product strategy targeting price-sensitive consumers.

Emotional intelligence (EI)

The ability to understand and manage emotions.

Democratic leadership

Leadership style involving employee participation.

Autocratic leadership

Leadership style where decisions are made by one leader.

Laissez-faire leadership

Leadership style with minimal management control.

CSR (Corporate Social Responsibility)

Business actions benefiting society beyond profit.

MBO (Management by Objectives)

Setting targets agreed by managers and employees.

Memorandum of Association

Document outlining a company’s relationship with shareholders.

Articles of Association

Document outlining internal company rules.

Public limited company

A company whose shares can be sold to the public.

Entrepreneur

An individual who takes risks to start a business.

Added value

The difference between selling price and cost of inputs.

Creating value

Increasing worth through production or service.

Capital goods

Man-made goods used to produce other goods.

Consumer goods

Goods purchased for personal use.

Primary sector

Extraction of natural resources.

Secondary sector

Manufacturing and processing.

Tertiary sector

Service provision.

Market share formula

Firm sales ÷ total market sales × 100.

Decision-making framework stages

Identify problem, analyze options, choose solution.

Customer focus

Prioritizing customer needs.

Social focus

Considering social impact of decisions.

Stakeholder concept

Considering interests of all stakeholder groups.

Capital employed

Total resources invested in a business.

Market capitalization

Total value of a company’s shares.

Employment contract

A legal agreement between employer and employee.

Labor turnover

The rate employees leave a business.

Induction training

Training given to new employees.

On-the-job training

Training while working.

Employee appraisal

Formal performance assessment.

Employee evaluation

Review of employee effectiveness.

Product differentiation

Making products distinct from competitors.

Consumer profile

Description of a typical customer.

Demographics

Population characteristics such as age and income.

Theory X

Assumption employees dislike work.

Theory Y

Assumption employees are self-motivated.

Advantages of small businesses

Flexibility and close customer relationships.

Disadvantages of small businesses

Limited finance and economies of scale.