Unit 1 - Intro to Business Management

studied byStudied by 21 people
0.0(0)
get a hint
hint

What are the four business departments?

1 / 41

42 Terms

1

What are the four business departments?

  1. HR

  2. Finance and accounts

  3. Marketing

  4. Operations management or production

New cards
2

Primary sector

A section of an economy that extracts materials (minerals, oil, etc.) or harvests raw materials (farming, fishing, forestry, etc.) from the Earth.

New cards
3

Secondary sector

The area of economic activity that produces finished goods through manufacturing.

New cards
4

Tertiary sector

The area of economic activity that provides services.

E.g. banking, healthcare and restaurants

New cards
5

Quaternary sector

The area of economic activity that involves knowledge and the movement of information.

E.g. information technology services, consultancy, research and development

New cards
6

Production chain/chain of production

The steps through the different sectors that have to occur to turn raw materials into a consumer good that is marketed.

New cards
7

Private sector

The portion of an economy not owned or directed by the government.

New cards
8

Public sector

The portion of the economy controlled or owned by the government.

E.g. government services, schools, and state-owned businesses.

New cards
9

Goods

The products of a business that are tangible, meaning they have physical characteristics and can be measured.

New cards
10

Services

The products of a business that are intangible, meaning that they do not have physical characteristics; can be a service or a solution.

New cards
11

Sole trader

A business owned and run by one person; there is no legal separation between the owner and the business.

New cards
12

Partnership

A business owned and run by two or more people who share the responsibility for the business and the profits; there is no legal separation between the business and the owners.

New cards
13

Privately held company

A company that is privately owned and often has family or friends as the shareholders; the shares are not sold to the wider public and are not traded on a stock exchange.

New cards
14

Publicly held company

A company that is publicly owned and and has many shareholders who can buy and sell their shares through a stock exchange.

New cards
15

Social enterprise

Any organisation that has a social and/or environmental purpose at its core; it describes the primary purpose of a business, not its legal form.

New cards
16

For-profit social enterprise

A type of social enterprise that earns revenue and profits, but integrates social and/or environmental impact directly into its business model.

New cards
17

Cooperative

A business owned and operated by its members, who share the profits.

New cards
18

Non-profit social enterprise

A type of social enterprise that produces goods and services to meet human needs, but where any surpluses earned must, by law, be reinvested back into the business.

New cards
19

Non-governmental organization (NGO)

A type of non-profit social enterprise that often operates on a large scale, nationally or internationally. NGOs are not operated by governments, but may receive some funding from governments or cooperate with governments.

New cards
20

Vison statement

A philosophy, vision or set of principles which steers the direction and behaviour of an organization.

New cards
21

Mission statement

A statement that defines why the organization exists and includes the aims and its most important values. It may also share what they are currently doing to achieve their vision.

New cards
22

Business objectives

The specific, measurable targets that a business must meet to achieve the aims or long-term goals of the business.

New cards
23

Strategic objectives

The long-terms goals of a business that indicate how the business intends to fulfil its mission.

This usually includes performance goals. E.g. increasing market share or improving profitability.

New cards
24

Tactical objectives

Short to medium-term target that, if consistently met, will help a business reach its strategic goals.

New cards
25

SMART Objectives

'Specific', 'measureable', 'attainable', 'relevant' and 'time-sensitive' objectives for a business; these can be applied in all the business management functions.

New cards
26

Corporate social responsibility (CSR)

The view that businesses, rather than focusing solely on the increasing shareholder vale, should contribute to the economic, social and environmental wellbeing of society.

New cards
27

Stakeholder

Any individual or group that affects, or is affected by, an organization.

New cards
28

Internal stakeholder

An individual or group that affects, or is affected by, an organization and is directly involved inside the organization.

E.g. employees, managers or shareholders

New cards
29

External stakeholder

An individual or group that affects, or is affected by, an organization but who is not directly involved inside the organisation.

E.g. suppliers, customers, government, media or community.

New cards
30

Economy of scale

The decrease in per unit production cost as output on activity increases.

New cards
31

Diseconomy of scale

The increase in per unit production cost as output on activity increases.

New cards
32

Fixed costs

Costs that don’t change according to the amount of goods or services produced by the business.

New cards
33

Variable costs

Costs that increase or decrease according to the amount of goods or services produced.

New cards
34

Internal/organic growth

Expansion of a business with its own resources.

E.g. investment in new products or new sales channels or more stores to increase sales.

New cards
35

External growth

Expansion of a business by relying on external resources, typically with another organisation.

E.g. A joint venture with another company.

New cards
36

Merger

When two companies that are theoretically “equal” legally become one company.

New cards
37

Acquisition

When one company purchases the majority or all the shares of another company.

New cards
38

Takeover

It's the same thing as an acquisition, but the company being acquired doesn’t welcome it.

New cards
39

Joint venture

An organization created, owned and operated by two or more other organizations. It is legally distinct from the other organizations that created it.

New cards
40

Strategic alliance

A form of external growth where two or more businesses work together to achieve common objectives but do not create a new enterprise.

New cards
41

Franchising

A form of external growth where a franchisee buys the rights to use the name and business model of a franchisor. In return, the franchisee pays a fee and some percentage of revenue or profits to the franchisor.

New cards
42

Multinational corporation (MNC)

A company that operates in at least two countries, one of which is not the company's home country. They are generally very large.

New cards

Explore top notes

note Note
studied byStudied by 17 people
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 203 people
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 12 people
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 13 people
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 14 people
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 2871 people
Updated ... ago
4.9 Stars(26)
note Note
studied byStudied by 7 people
Updated ... ago
4.0 Stars(1)
note Note
studied byStudied by 12 people
Updated ... ago
5.0 Stars(1)

Explore top flashcards

flashcards Flashcard41 terms
studied byStudied by 2 people
Updated ... ago
5.0 Stars(1)
flashcards Flashcard50 terms
studied byStudied by 18 people
Updated ... ago
5.0 Stars(1)
flashcards Flashcard30 terms
studied byStudied by 7 people
Updated ... ago
5.0 Stars(1)
flashcards Flashcard125 terms
studied byStudied by 8 people
Updated ... ago
5.0 Stars(1)
flashcards Flashcard84 terms
studied byStudied by 2 people
Updated ... ago
5.0 Stars(1)
flashcards Flashcard20 terms
studied byStudied by 4 people
Updated ... ago
5.0 Stars(1)
flashcards Flashcard160 terms
studied byStudied by 13 people
Updated ... ago
5.0 Stars(1)
flashcards Flashcard26 terms
studied byStudied by 63 people
Updated ... ago
5.0 Stars(4)