SSE

Vocabulary flashcards covering break-even analysis, recruitment, communication barriers, market research, distribution, specialization, market entry, and financing concepts from the SSE notes.

Break-even chart

A graph showing fixed costs, total costs, total revenue, and the break-even point where costs equal revenue.

Total costs

The sum of fixed costs and variable costs at a given level of output.

Total revenue

Income from selling goods, calculated as price per unit multiplied by quantity sold.

Fixed costs

Costs that do not vary with output, such as rent or salaries.

Break-even output

The quantity of output at which total revenue equals total costs, resulting in zero profit.

Currency depreciation

A drop in the value of a country’s currency relative to others, affecting export prices and import costs.

Import tariff

A tax imposed on imported goods, raising their price in the domestic market.

Quotas

Limits on the quantity of goods that can be imported into a country.

Internal recruitment

Hiring for vacancies from within the organization.

External recruitment

Hiring for vacancies from outside the organization.

Advantage of internal recruitment

Quicker and cheaper hiring due to fewer advertisements and screening requirements.

Disadvantage of internal recruitment

Fewer new ideas and external perspectives entering the business.

Barrier to communication

An obstacle that reduces the effectiveness of sending or receiving a message.

Medium (communication)

The channel used to send a message (e.g., email, meeting, poster).

Sender

The person who originates the message.

Receiver

The person for whom the message is intended.

Primary market research

New data collected firsthand to answer a specific market question.

Secondary market research

Data collected from existing sources such as reports or studies.

Bias in primary market research

Potential bias in data collection if interviewers influence responses.

Direct selling via website

Selling products directly to customers online, bypassing retailers.

Selling to retailers

Distributing products through large sports retailers in bulk.

Specialisation

Focusing production on specific tasks or processes to improve efficiency.

Advantages of specialisation

Increased efficiency and higher output per worker.

Job rotation

Moving workers between tasks to broaden skills and reduce monotony.

Bulk orders

Large-volume orders from retailers that reduce per-unit costs.

Market entry strategy

Plan for entering a new market, including distribution and research considerations.

Financing options for expansion

Ways to raise funds for expansion, such as bank loans or share issues.