Ultimate Guide - Business and Management (IB)

Business Organization

A structured system designed for coordinating people and resources to achieve specific goals.

Stakeholder

Any individual or group that can affect or is affected by the achievement of an organization's objectives.

Corporate Governance

The system by which companies are directed and controlled, including the mechanisms through which stakeholders influence managerial decision.

Organizational Culture

The shared values, beliefs, and norms that influence the way employees behave in an organization.

Human Resources Management (HRM)

The management of human resources in an organization, focusing on recruitment, training, performance management, and employee relations.

Recruitment

The process of identifying, attracting, interviewing, selecting, and hiring employees.

Performance Appraisal

The evaluation of employee performance to provide feedback and identify areas for improvement.

Training and Development

Programs designed to enhance the skills and knowledge of employees for better job performance.

Labor Relations

The relationship between management and the workforce, often involving negotiations over labor contracts.

Accountability

The obligation of an organization to account for its activities, accept responsibility, and disclose results.

Financial Accounting

The field of accounting focused on the summary, analysis, and reporting of financial transactions.

Managerial Accounting

The process of identifying, measuring, analyzing, and communicating financial information for internal use.

Balance Sheet

A financial statement that summarizes an organization's assets, liabilities, and equity at a specific point in time.

Income Statement

A financial report that shows the revenues and expenses over a period, leading to net income or loss.

Cash Flow Statement

A financial statement that provides aggregate data regarding all cash inflows and outflows during a specified period.

Budgeting

The process of creating a plan to spend an organization's resources, helping to allocate funds effectively.

Marketing Mix

The combination of product, price, promotion, and place strategies used to market a product or service.

Target Market

A specific group of consumers at which a company aims its products and services.

Brand Equity

The value added to a product by having a well-known brand name.

Market Research

The process of gathering, analyzing, and interpreting information about a market, including information about the target market and consumers.

Operations Management

The administration of business practices aimed at ensuring maximum efficiency within an organization.

Supply Chain Management

The management of the flow of goods and services and includes all processes that transform raw materials into final products.

Quality Control

The process of ensuring that products meet customer expectations and regulatory standards.

Customer Relationship Management (CRM)

Strategies and technologies that companies use to manage interactions with customers and potential customers.

SWOT Analysis

A strategic planning tool used to identify strengths, weaknesses, opportunities, and threats related to competition or project planning.

Corporate Social Responsibility (CSR)

A self-regulating business model that helps a company be socially accountable to itself, its stakeholders, and the public.

E-commerce

The buying and selling of goods or services using the internet.

Strategic Planning

The process of defining an organization's strategy or direction and making decisions on allocating resources to pursue that strategy.

Consumer Behavior

The study of individuals or groups and the processes they use to select, secure, use, and dispose of products.

Market Segmentation

The process of dividing a broad consumer or business market into sub-groups of consumers based on shared characteristics.

Business Ethics

The study of proper business policies and practices regarding potentially controversial subjects.

Outsourcing

The practice of hiring external firms to handle work normally performed within a company.

Merger and Acquisition

A general term that refers to the consolidation of companies or assets, with mergers being the combination of two firms, and acquisitions being the purchase of one firm by another.

Inventory Management

The supervision of non-capitalized assets, or inventory, and stock items.

Networking

The interaction with others to exchange information and develop professional or social contacts.

Corporate Strategy

An organization's overall plan for managing its business portfolio across its various markets and industries.

Social Media Marketing

The use of social media platforms to promote products and engage with customers.

Value Proposition

A promise of value to be delivered, communicated, and acknowledged; it explains why a customer should choose a product or service.

Business Model

A company's plan for making a profit, outlining the products or services it will sell, its target market, and any anticipated expenses.

Lean Management

A methodology that focuses on minimizing waste within manufacturing systems while simultaneously maximizing productivity.

Key Performance Indicator (KPI)

A measurable value that demonstrates how effectively a company is achieving its key business objectives.

Cloud Computing

The delivery of computing services over the internet, allowing for on-demand availability of computing resources.

Corporate Culture Change

The process of transforming an organization's culture to achieve better productivity and a more effective workforce.

Business Continuity Planning

The process of creating a strategy to ensure that critical business functions can continue during and after a significant disruption.

Return on Investment (ROI)

A financial metric used to evaluate the profitability of an investment by comparing its gain or loss relative to its cost.

Market Share

The portion of a market controlled by a particular company or product.

Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio.

Market Penetration

The percentage of a target market that consumes a particular product or service.

Franchise

A business model in which an individual or company (franchisee) is granted permission to operate a business under the name and business model of an established entity (franchisor).

Direct Selling

A marketing strategy that involves selling products directly to consumers, bypassing traditional retail channels.

Public Relations (PR)

The practice of managing the spread of information between an organization and the public.

Sales Promotion

A marketing tactic involving short-term incentives to encourage the purchase or sale of a product or service.

Digital Marketing

The use of digital channels to promote or market products and services to consumers and businesses.

Customer Feedback

Information provided by customers regarding their experiences with a product or service.

Pest Analysis

A strategic framework used to evaluate the Political, Economic, Social, and Technological factors that may impact an organization.

Incident Management

The process of managing an IT service interruption to restore normal service operation as quickly as possible.