CIMA E2 High-Yield Vocabulary Flashcards

High-yield vocabulary flashcards derived strictly from CIMA E2 exam recognition topics, covering strategic position, digital transformation, management theories, team roles, performance control, project management, and ethical principles.

Porter's Five Forces

A framework used to assess competitive forces and the attractiveness of an industry, consisting of bargaining power of buyers, bargaining power of suppliers, threat of new entrants, threat of substitutes, and competitive rivalry.

Buyer Power

The pressure customers can exert on business margins, which is high when there are large-volume customers, low switching costs, many alternative suppliers, or customers able to pressure prices and terms.

Supplier Power

The influence suppliers have over prices and terms, which is high when there are few suppliers, specialist inputs, high switching costs, or high dependence on a supplier.

Threat of New Entrants

The likelihood of new competitors entering a market, which increases with low entry barriers, low capital requirements, limited regulation, and weak customer loyalty.

Substitute

A different product or service that satisfies the same underlying customer need in a different way.

Competitive Rivalry

Intensity of competition among existing firms offering similar products, which is strong when there are many existing competitors, low differentiation, slow market growth, high fixed costs, or frequent price competition.

Cost Leadership

A generic strategy based on competing on low cost across a broad market.

Differentiation

A generic strategy based on offering distinctive or superior value across a broad market.

Cost Focus

A generic strategy based on competing on low cost within a narrow market segment.

Differentiation Focus

A generic strategy based on offering distinctive or specialist value to a narrow market segment.

Inbound Logistics

A primary activity in Porter's Value Chain concerned with receiving, storing, and handling inputs before production.

Operations

A primary activity in Porter's Value Chain involving activities that transform inputs into the final product or service.

Outbound Logistics

A primary activity in Porter's Value Chain involving storing and distributing finished products to customers.

Procurement

A support activity in Porter's Value Chain concerned with acquiring inputs and resources.

Threshold Resources

The minimum resources required for an organisation to compete in a market.

Threshold Competencies

The minimum activities and capabilities required to meet customer requirements and compete.

Core Competencies

Distinctive capabilities that contribute to competitive advantage and are difficult for competitors to imitate.

Business Ecosystem

A network of interconnected organisations and participants that collectively create and deliver value.

Ecosystem Orchestrator

An entity that coordinates participants and helps shape how a business ecosystem creates and captures value.

Platform Provider

An entity that provides the platform or environment through which ecosystem participants connect, interact, or transact.

Volume (Big Data)

One of the four Vs of Big Data, referring to the quantity or amount of data.

Velocity (Big Data)

One of the four Vs of Big Data, referring to the speed at which data is generated, received, and processed.

Variety (Big Data)

One of the four Vs of Big Data, referring to the different types, formats, and sources of data.

Veracity (Big Data)

One of the four Vs of Big Data, referring to the reliability, accuracy, and trustworthiness of data.

Blockchain

A distributed ledger technology that creates shared, tamper-resistant records of transactions.

Digital Disruption

Significant market or business-model change caused by digital technologies and digitally enabled competitors.

Industry 4.0

The integration of digital technologies with physical operations, including connected, intelligent, and increasingly autonomous systems.

Fusion (Industry 4.0)

The merging of digital/cyber systems with physical systems and operations.

Artificial Intelligence

Technology enabling systems to perform tasks associated with human intelligence, such as reasoning, prediction, or decision support.

Machine Learning

A form of AI in which systems learn patterns from data and improve predictions or decisions without being explicitly programmed for every case.

Maslow's Hierarchy of Needs

A motivation theory comprising five levels: physiological, safety, social, esteem, and self-actualisation.

Self-Actualisation

The desire to realise one's potential, develop, and achieve personal fulfilment.

Herzberg's Two-Factor Theory

A motivation theory asserting that hygiene factors (e.g., pay, working conditions) prevent dissatisfaction, while motivators (e.g., achievement, recognition) create satisfaction and motivation.

McGregor Theory X

The management assumption that employees dislike work, avoid responsibility, and require close control.

McGregor Theory Y

The management assumption that employees can enjoy work, self-direct, accept responsibility, and be creative.

Mayo's Human Relations Approach

A management approach emphasising social relationships, informal groups, and attention to employees.

Burns and Stalker

Theorists associated with the contingency approach and the distinction between mechanistic and organic organisational forms.

Trist and Bamforth

Theorists associated with the socio-technical systems approach, which focuses on jointly optimising people/social systems and technology/technical systems.

Tuckman's Team Development Stages

The model of team evolution comprising forming, storming, norming, performing, and adjourning.

Belbin's Plant

A creative, imaginative team member who generates original ideas and solutions.

Belbin's Shaper

A driven and challenging team member who pushes the team forward, applies pressure, and maintains momentum.

Belbin's Monitor Evaluator

A logical, objective, and analytical team member who evaluates ideas and options.

Belbin's Completer Finisher

A detail-focused team member who checks work, identifies errors, and ensures completion.

Belbin's Implementer

A practical team member who turns ideas and decisions into workable actions.

Belbin's Teamworker

A cooperative team member who supports others and promotes harmony.

Belbin's Resource Investigator

An outgoing team member who explores opportunities and develops external contacts.

Belbin's Co-ordinator

A mature team member who clarifies goals, delegates effectively, and draws contributions from others.

Belbin's Specialist

A team member who provides in-depth knowledge or technical expertise in a narrow area.

Mendelow's Stakeholder Matrix

A matrix mapping stakeholder power against stakeholder interest to categorize management approaches (minimal effort, keep informed, keep satisfied, manage closely).

Reciprocity (Cialdini)

A principle of persuasion where people feel an obligation to return a favour or concession.

Scarcity (Cialdini)

A principle of persuasion where people value something more when it is limited or difficult to obtain.

Social Proof (Cialdini)

A principle of persuasion where people are influenced by observing what others are doing.

Authority (Cialdini)

A principle of persuasion where people are more likely to comply with credible experts or authority figures.

Psychological Contract

The unwritten expectations and perceived obligations between an employee and employer.

Delegation

Giving another person authority and responsibility to perform a task while the delegating manager retains ultimate accountability.

360-Degree Feedback

Performance feedback collected from multiple directions, potentially including managers, peers, subordinates, and others.

Upward Appraisal

Performance feedback provided by subordinates about a manager.

Balanced Scorecard

A strategic performance management framework evaluated across four perspectives: financial, customer, internal business processes, and innovation and learning.

Clan Control

Control achieved through shared values, culture, norms, and socialisation rather than mainly formal rules or output targets.

Cultural Iceberg

The concept that visible cultural features sit above deeper values, beliefs, and assumptions that influence behaviour.

PERT Expected Time Formula

The formula used in project management calculated as $\frac{\text{Optimistic} + 4 \times \text{Most likely} + \text{Pessimistic}}{6}$.

Float

The amount of time an activity can be delayed without delaying the project or relevant subsequent timing.

Critical Activity

An activity with no available float, where delaying it delays the project unless corrective action is taken.

Critical Path

The sequence of critical activities that determines the shortest possible project duration.

Earliest Event Time (EET)

The earliest time that an event or activity can start or finish in project planning.

Latest Event Time (LET)

The latest time an event can occur without delaying overall project completion.

Scope Creep

Uncontrolled or gradual expansion of project scope beyond what was originally agreed.

Slippage

A delay in the project or an activity compared with the planned schedule.

Milestone

A significant project event, achievement, or checkpoint.

Control Gate

A formal review point at which progress is assessed and approval may be required before proceeding.

TARA Risk Responses

A project risk management framework representing Transfer (shifting impact), Avoid (changing plans), Reduce (lowering probability/impact), and Accept (monitoring without action).

Integrity (CIMA)

Being straightforward and honest in professional and business relationships.

Objectivity (CIMA)

Not allowing bias, conflicts of interest, or undue influence to override professional judgement.

Professional Competence and Due Care (CIMA)

Maintaining appropriate knowledge and skill and acting diligently in accordance with applicable standards.

Confidentiality (CIMA)

Respecting confidential information and not disclosing or using it improperly without authority.

Professional Behaviour (CIMA)

Complying with relevant laws and regulations and avoiding conduct that discredits the profession.