Video Study Notes: Key Vocabulary for Business Management 511

A set of vocabulary flashcards covering core concepts from the RGIT Business Management 511 study notes, including entrepreneurship, business forms, planning, environment analysis, CSR, governance, and strategy.

Business management

The process of coordinating planning, organizing, leading, and controlling an organization's resources to achieve its goals.

Needs and need satisfaction

The concept that human needs drive production and consumption; businesses satisfy needs by producing goods and services (Maslow’s hierarchy explains levels of needs).

Maslow's hierarchy of needs

A five-level model of human needs: physiological, safety, social, esteem, and self-actualization, arranged in a hierarchical order.

Factors of production

The resources used to produce goods and services: land, labor, capital, and entrepreneurship.

Free-market economy

An economic system where private individuals own resources and allocate them via supply and demand with limited government intervention.

Command economy

An economic system in which the state owns and controls the main resources and determines what to produce.

Socialism

An economic system where the means of production are owned or controlled by the state or community.

Mixed economy

An economy that combines private and public ownership and some government planning.

Entrepreneur

A person who identifies an opportunity, mobilizes resources, bears risks, and starts a new venture.

Entrepreneurial process

The sequence: identify opportunity, evaluate feasibility, develop a business plan, acquire resources, and launch/manage the venture.

Opportunity

A favorable set of circumstances that can be exploited to create value or profit.

Opportunity assessment plan

A concise plan detailing the product/service idea, market need, entrepreneur, resources, and capital requirements.

Feasibility

Practicality and viability of turning an opportunity into a successful venture given constraints and market conditions.

Business plan

A formal document outlining the business idea, market, operations, management, and financial projections; used to secure funding.

Franchise

An arrangement where the franchisor grants rights to use a brand and operating system to a franchisee.

Franchisee

The person or entity that buys the right to operate a franchise under the franchisor’s brand and system.

Franchisor

The company that grants the franchise rights and provides the business model and support.

Sole proprietorship

A business owned and run by one person with unlimited personal liability.

Partnership

A business owned by two or more people with shared responsibilities and liabilities.

Close Corporation (CC)

A small private company (1–10 members) with limited liability; name ends with CC.

Private Company (Pty) Ltd

A private company with up to 50 shareholders; shares not offered to the public; liability is limited.

Public Company

A larger company with shares offered to the public; usually many shareholders and regulated disclosure.

King IV

South Africa’s governance framework emphasizing outcomes-based governance, sustainability, and stakeholder value; apply and explain approach.

CSR (Corporate Social Responsibility)

A company’s voluntary actions addressing economic, social, and environmental impact for stakeholders.

Corporate governance

The system by which a company is directed and controlled, balancing accountability to shareholders and other stakeholders.

Stakeholders

Individuals or groups affected by a company’s actions (owners, employees, customers, suppliers, communities, etc.).

Porter’s Five Forces

A framework analyzing industry competitiveness: threat of new entrants, buyer power, supplier power, substitute products, and rivalry.

PESTEL

Macro-environment analysis: Political, Economic, Social, Technological, Environmental, Legal factors.

SWOT

A strategic tool listing Strengths, Weaknesses, Opportunities, and Threats.

Macro environment

External factors outside the firm that influence strategy (technology, economy, politics, society, etc.).

Micro environment

Internal factors under the firm’s control (mission, goals, management, resources).

Matrix organizational structure

An organizational design that blends functional and project-based groupings with multiple reporting lines.

Organising

The process of structuring resources and activities, assigning tasks, and establishing authority and relationships.

Leading

Motivating and guiding people to achieve organizational goals; involves leadership styles and emotional intelligence.

Controlling

Monitoring performance against standards and taking corrective actions to ensure goals are met.

Motivation

The process of energizing and directing behavior to meet needs and achieve goals.

Emotional intelligence

The ability to recognize, understand, and manage one’s own and others’ emotions to guide thinking and behavior.

Corporate sustainability

Managing economic, social, and environmental impacts to achieve long-term value for stakeholders.

Globalization

The increasing integration of economies, markets, and cultures across the world.

Digital platforms

Online platforms (e.g., Amazon, Uber) that connect buyers and sellers and can disrupt traditional markets.

Inventory control

Systems to manage stock levels (EOQ, MRP, JIT) to balance supply with demand.

Just-in-time (JIT)

An inventory philosophy that minimizes stock by receiving goods only as they are needed.

Total Quality Management (TQM)

A holistic approach to long-term success through customer satisfaction by improving processes and quality.

Budget

A financial plan outlining expected revenues and expenditures; used to control operations.

Strategic planning

Long-term planning to define goals, allocate resources, and shape the organization’s direction.

Tactical planning

Medium-term planning focused on how to achieve strategic goals within a year or less.

Operational planning

Short-term planning detailing day-to-day actions to implement strategies.

Integrated reporting

King III/IV concept of reporting on how an organization creates value across financial, social, and environmental aspects.

Sustainable development

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

Coca‑Cola CSR

A case example of corporate social responsibility programs focusing on community, water access, and governance.

Governance outcomes

The results King IV aims for: ethical culture, good performance, effective control, and legitimacy.

Opportunity assessment plan

A concise plan describing the opportunity, market need, entrepreneur, resources, and capital.

Feasibility study

An analysis to determine if an opportunity is viable given market and resource constraints.

Business management

The comprehensive process involving the coordination of planning, organizing, leading, and controlling an organization's resources (such as human, financial, physical, and informational assets) to efficiently and effectively achieve its established goals and objectives.

Needs and need satisfaction

A fundamental concept asserting that human needs are the primary drivers of economic activity, influencing both production and consumption behaviors. Businesses exist to satisfy these needs by producing and delivering goods and services, often categorized and understood through frameworks like Maslow's hierarchy of needs which outlines various levels of human requirements.

Maslow's hierarchy of needs

A psychological theory proposed by Abraham Maslow, presenting a five-level pyramid of human needs that individuals strive to satisfy in a hierarchical order: starting with basic physiological (food, water) and safety needs, progressing to social (belonging, love) and esteem (recognition, respect) needs, and culminating in self-actualization (achieving one's full potential).

Factors of production

The fundamental economic resources or inputs required to produce goods and services within an economy. These are typically categorized into four main components: land (natural resources), labor (human effort), capital (man-made resources like machinery and buildings), and entrepreneurship (the innovative spirit and risk-taking involved in combining the other factors).

Free-market economy

An economic system characterized by private ownership of the means of production and resources, where economic decisions regarding production and allocation are primarily determined by the forces of supply and demand in competitive markets. Government intervention is typically minimal, allowing for free trade and competition.

Command economy

An economic system where the central government or state makes all major decisions regarding the production and distribution of goods and services. The state owns and controls the vast majority of resources and industries, dictating what is produced, how it is produced, and for whom.

Socialism

An economic and political ideology advocating for social ownership or control of the means of production and distribution, rather than private ownership. This control can be exercised directly by the state, through public enterprises, or by workers' cooperatives and communities, often with the goal of achieving greater social equality and economic planning.

Mixed economy

An economic system that incorporates elements of both free-market capitalism and command socialism. It features a blend of private enterprise and public ownership, with varying degrees of government regulation, intervention, and planning to balance economic efficiency with social welfare goals.

Entrepreneur

An individual who not only identifies a new opportunity or market need but also takes the initiative to organize, manage, and bear the financial risks associated with starting a new business venture. This often involves innovation, combining resources, and creating value.

Entrepreneurial process

The structured sequence of steps an entrepreneur undertakes to transform an idea into a successful operating business. This typically includes identifying a viable opportunity, conducting a feasibility analysis, developing a comprehensive business plan, acquiring necessary resources (e.g., funding, human capital), and finally, launching and managing the new venture to achieve growth and profitability.

Opportunity

A favorable set of circumstances that presents itself in the market, allowing for the creation of new products, services, or business models that can generate value, satisfy unmet needs, or solve existing problems, thereby leading to profit or social benefit.

Opportunity assessment plan

A concise, high-level document that evaluates the attractiveness of a potential business opportunity. It systematically outlines the product or service idea, the specific market need it addresses, the entrepreneur's capabilities, the resources required (e.g., technology, personnel), and the estimated capital requirements, serving as an initial screening tool before a full business plan.

Feasibility

The practicality and financial viability of transforming a business opportunity into a successful commercial venture. It involves assessing whether the proposed idea is technologically possible, economically profitable, legally permissible, and operationally achievable within specific market conditions and resource constraints.

Business plan

A formal, comprehensive written document that provides a detailed roadmap for a new business venture or an existing business's strategic direction. It meticulously outlines the business concept, market analysis, operational structure, management team, marketing strategy, and detailed financial projections, serving as a crucial tool for internal guidance and for external stakeholders (like investors or lenders) to secure funding.

Franchise

A business arrangement where an established company (the franchisor) grants another party (the franchisee) the legal right to operate a business using the franchisor's proven business model, brand name, trademarks, and operating system in exchange for a fee and ongoing royalties. This allows for rapid expansion with standardized products and services.

Franchisee

The individual or entity that purchases the license and rights from a franchisor to open and operate a business under the established brand, adhering to the franchisor's specific operational procedures, marketing strategies, and product/service standards.

Franchisor

The original company or business owner that develops a successful business model, brand, and operating system, and then grants individuals or entities (franchisees) the rights to use these elements in exchange for initial fees and ongoing royalties, while also providing continuous support and training.

Sole proprietorship

The simplest and most common type of business ownership, where a single individual owns and operates the entire business. The owner has unlimited personal liability for all business debts and obligations, meaning their personal assets are not legally separate from the business's assets.

Partnership

A type of business organization where two or more individuals agree to share in the profits or losses of a business that they jointly own and operate. Partners typically share responsibilities, contribute capital, and often face shared personal liability for the partnership's debts, depending on the specific partnership structure (e.g., general vs. limited).

Close Corporation (CC)

In South African law, a Close Corporation (CC) was a legal entity designed for small, private businesses, typically with between 1 and 10 members. A key feature was that members enjoyed limited liability, meaning their personal assets were protected from business debts. While new CCs can no longer be registered, existing ones continue to operate, and their names traditionally end with 'CC'.

Private Company (Pty) Ltd

A type of company typically identified by '(Pty) Ltd' (Proprietary Limited) in its name, common in South Africa and other Commonwealth nations. It is characterized by having a limited number of shareholders (usually up to 50), whose shares are not offered for sale to the general public, and where the liability of its shareholders is limited to the amount unpaid on their shares, thus protecting personal assets.

Public Company

A type of company whose shares are openly offered and traded on a stock exchange to the general public. Public companies typically have a large number of shareholders, are subject to strict regulatory oversight and disclosure requirements (e.g., financial reporting), and their names often end with 'Ltd' (Limited) or 'Inc.' (Incorporated).

King IV

The fourth iteration of the King Report on Corporate Governance for South Africa, a leading, globally recognized framework. It promotes an outcomes-based approach to governance, focusing on achieving ethical culture, good performance, effective control, and legitimacy. Key principles include emphasizing corporate sustainability, ethical leadership, and creating value for all stakeholders, adhering to an 'apply and explain' rather than 'comply or explain' methodology.

CSR (Corporate Social Responsibility)

A business approach in which a company voluntarily commits to operating in an ethical and sustainable manner, taking responsibility for its impact on society and the environment. This involves considering the interests of all stakeholders (beyond just shareholders) and integrating social, environmental, and economic concerns into its business operations and decision-making.

Corporate governance

The system of rules, practices, and processes by which a company is directed and controlled. It essentially defines the distribution of rights and responsibilities among different participants in the corporation, such as the board of directors, managers, shareholders, and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs, aiming to ensure accountability, fairness, and transparency in a company's relationship with all its stakeholders.

Stakeholders

Any individual, group, or organization who can affect or be affected by an organization's actions, objectives, and policies. This broad category includes internal stakeholders like owners/shareholders, employees, and management, as well as external stakeholders such as customers, suppliers, creditors, government agencies, local communities, and the environment itself.

Porter’s Five Forces

A widely used strategic analytical framework developed by Michael Porter to understand the competitive intensity and attractiveness of an industry. It identifies and analyzes five competitive forces that shape every industry: the threat of new entrants, the bargaining power of buyers, the bargaining power of suppliers, the threat of substitute products or services, and the intensity of rivalry among existing competitors.

PESTEL

A strategic analytical tool used to assess the external macro-environmental factors that can influence an organization's operations and performance. It examines six key categories: Political (government policy, stability), Economic (inflation, growth rates), Social (demographics, culture), Technological (innovation, R&D), Environmental (climate change, regulations), and Legal (laws, regulations).

SWOT

A foundational strategic planning tool used to evaluate an organization's current position by identifying its internal Strengths and Weaknesses, as well as external Opportunities and Threats. This analysis helps in understanding competitive advantages, areas for improvement, and potential market conditions to inform strategic decision-making.

Macro environment

The larger, overarching external forces that impact all organizations within an economy or industry, often beyond the direct control of any single firm. These factors, typically analyzed using frameworks like PESTEL, include political, economic, social, technological, environmental, and legal dimensions, which can significantly influence an organization's strategic decisions and performance.

Micro environment

The internal factors that are within an organization's direct control and influence its ability to achieve its objectives. These include elements such as the company's mission, strategic goals, organizational culture, management structure, available resources (human, financial, technological), and internal capabilities.

Matrix organizational structure

An organizational design where employees report to two or more managers simultaneously: typically a functional manager (e.g., Head of Marketing) and a project or product manager. This structure blends traditional functional departments with project-based teams, aiming to combine the efficiency of specialization with the flexibility of project management, but can lead to complex reporting relationships.

Organising

One of the fundamental functions of management, involving the systematic process of structuring, allocating, and coordinating an organization's human, financial, physical, and informational resources. This includes assigning tasks and responsibilities, grouping activities into departments, delegating authority, and establishing reporting relationships to ensure the efficient execution of plans and achievement of goals.

Leading

A crucial management function focused on motivating, guiding, and influencing employees to work enthusiastically and effectively towards the achievement of organizational goals. This involves various leadership styles, effective communication, fostering teamwork, and often leveraging emotional intelligence to understand and manage both one's own and others' emotions.

Controlling

The management function that involves establishing performance standards, monitoring actual performance, comparing results against those standards, and taking corrective actions when deviations occur, all to ensure that organizational activities are carried out as planned and that goals are consistently achieved or exceeded.

Motivation

The internal or external forces that stimulate enthusiasm and persistence to pursue a certain course of action. In a business context, it refers to the process of energizing, directing, and sustaining effort in employees towards achieving organizational goals, often by satisfying individual needs and desires.

Emotional intelligence

The capacity to recognize, understand, and effectively manage one's own emotions, as well as to perceive, understand, and influence the emotions of others. This ability is crucial for effective leadership, communication, and interpersonal relationships, guiding thinking and behavior in diverse social situations.

Corporate sustainability

A business philosophy and approach that involves managing an organization's financial, social, and environmental impacts in a way that creates long-term value for all stakeholders. It seeks to balance profit generation with responsible resource management, social equity, and environmental protection, ensuring the business can thrive indefinitely without compromising future generations.

Globalization

The accelerated process of increasing interconnectedness and interdependence among countries worldwide, driven by technological advancements, reduced trade barriers, and increased flow of goods, services, capital, people, and ideas across national borders, leading to the integration of economies, markets, and cultures.

Digital platforms

Online technological infrastructures (like Amazon, Uber, Airbnb, or Facebook Marketplace) that facilitate interactions and transactions between two or more distinct groups of users, typically buyers and sellers. These platforms leverage technology to create networks and value, often disrupting traditional business models and markets by lowering transaction costs and expanding reach.

Inventory control

The processes and systems implemented by a business to manage the quantity of goods or materials it keeps in stock. The goal is to optimize inventory levels by balancing the costs of carrying inventory with the need to meet customer demand and production requirements, often utilizing methods such as Economic Order Quantity (EOQ), Material Requirements Planning (MRP), and Just-in-Time (JIT) systems.

Just-in-time (JIT)

A management philosophy and inventory strategy that strives to improve a business's return on investment by reducing in-process inventory and associated carrying costs. Inventory is received and parts are produced only when they are needed for production or to meet customer orders, minimizing waste, storage costs, and obsolescence.

Total Quality Management (TQM)

A comprehensive and continuous organizational management approach that emphasizes long-term success through customer satisfaction. It involves all members of an organization in improving processes, products, services, and the culture in which they work, focusing on quality from the initial design phase through delivery and after-sales service, to meet or exceed customer expectations.

Budget

A detailed financial plan that estimates an organization's expected revenues and expenditures over a specific future period (e.g., a fiscal year). It serves as a critical planning tool for resource allocation and a control mechanism for monitoring financial performance, helping management to track actual results against planned figures and take corrective actions.

Strategic planning

The highest level of organizational planning, focused on defining the long-term vision, mission, and overarching goals of an organization. This process involves analyzing the external and internal environments, formulating broad strategies for resource allocation, and establishing the overall direction that the organization will pursue over a period of usually three to five years or more.

Tactical planning

Medium-term planning that translates the broad strategic goals into more specific, actionable plans for various departments or functions within the organization. Tactical plans typically cover a timeframe of one to three years and detail how resources will be deployed and what specific actions will be taken to achieve the larger strategic objectives.

Operational planning

The most detailed level of planning, focusing on the short-term (daily, weekly, monthly) activities and processes required to implement tactical plans and achieve operational goals. This involves specifying day-to-day tasks, scheduling, resource allocation at the functional level, and setting concrete benchmarks to ensure efficient execution of strategies.