ALL BON related Vocab (real & possible)

Above the Line (ATL) Promotion

the use of mass media (such as television, magazines, national newspapers, and radio) for advertising of a product or service. Established over 20 years ago and hosting 5 music festival events annually, BON is likely utilizing aspects of this type of promotion.

Advertising

the main form of promotion, used to shape and develop brand awareness and foster customer perceptions, knowledge, and attitudes towards a firm's products or services, such as BON's music concerts and music festivals. It communicates marketing messages in a persuasive and/or informative way.

Agents

an independent person or company appointed and authorized to act on behalf of another person in business and legal dealings. BON could work with these to hire their temporary workers (line 6) and music performers.

Bank Loans

a fixed amount of money borrowed from a bank with regular fixed repayments, including interest payments, over a defined period. These are generally offered by banks against some security or collateral from the borrower. The COVID-19 pandemic is likely to have caused major cash flow issues for BON, possibly necessitating external finance such as this.

Below the Line (BTL) Promotion

the use of non-mass media promotional activities. Examples for BON include special discounts for large groups attending their concerts and music festivals, social media marketing (SMM), and targeted search engine marketing.

Board of Directors (BOD)

an elected group of senor executives to represent the interest of shareholders. They act as the governing body that oversees the operations and strategic direction of the company. They meet at regular intervals (at board meetings) to discuss the make decisions about company policies and practices, such as BON's expansion strategies (line 6)

Brand

a distinguishing name, symbol, image, or trademark of a product or organization, e.g., the BON name. As an intangible asset, it differentiates the product or organization from competing products and firms in the market.

Brand Awareness

the extent to which a brand name is recognized or well-known to its potential market audience. Given the company was founded in 2001, there will be recognition of the BON brand amongst music festival goers.

Brand Loyalty

the degree to which customers consistently repurchase the same brand of a product over time rather than buying from rival firms. Strong, this, exists when customers are committed to a certain brand and make repeat purchases time and time again, e.g., the same people return to BON's music concerts and festivals year after year. Marketing strategies designed to cultivate repeat customers can give BON a competitive advantage in the industry.

Break-even

this exists when a firm's total sales revenue equals its total costs (TR=TC). This means the business does not earn any profit nor does it make a loss. This is a common objective for new businesses, as they can then strive for profits. Rising costs can be a challenge for BON as its level of sales needed to overcome costs will increase.

Business Functions

the various types of work carried out in a business. In larger organizations, people and work are often divided into departments which carry out certain tasks related to that area, e.g., tasks relating to human resources, finance, production, administration and so forth. These tasks might be carried out most efficiently by organizing a business into these departments.

Business Owner

the legal proprietor of a business organization. They can be individuals or groups such as shareholders of BON, with legal rights to the assets of the organization, including any profits generated from its operations.

Business Plan

a written document detailing how an organization sets out to achieve its objectives and the strategies to achieve these goals. It is prepared by the owner(s) and describes the market, sales strategy, operations, financial forecasts, and staffing needs of the business. BON's may include policies and procedures for dealing with its music events, such as human resource needs, marketing strategies, and operations management strategies.

Capital Expenditure

a use of finance, referring to the spending of a business on acquiring, maintaining, and/or upgrading its non-current assets. This represents a financial investment in the business, e.g., the purchase of capital equipment for BON's head office.

Carbon Emissions

the greenhouse gases emitted to the Earth's atmosphere due to human actions and business operations, such as power to run BON's music festivals. The long-term impacts of this include climate change and global warming.

Carbon Footprint

a measure of the total greenhouse gas emissions caused by business activity. It can be attributed to an individual, product organization, or event (such as music festivals). It is measured by the amount of carbon dioxide (CO2) produced through the burning of fossil fuels.

Career Prospects

the likelihood or probability of a person's future success in a certain job or profession. Such opportunities within the workplace are an important factor in staff recruitment and retention. The seasonal nature of BON's business means that there are few, if any, career opportunities for temporary workers (line 6).

Cash Flow

the movement of cash into (mostly from income and capital injections) and out of (mostly purchases and expenses) a business. Effective cash flow management becomes vital for a business such as BON that only has cash inflows for 4 months in the year (May to August)

Cash Inflow

the movement of cash into an organization, such as from the sale of goods (such as merchandise, food, and drinks sold at the music concerts and festivals) and services (mainly ticket sales). It can also come in the form of bank overdrafts, loans, and crowd-funding income.

Cash Outflow

the movement of cash out of an organization, such as payment of wages (to temporary workers and freelancers) and salaries (for full-time, permanent employees), rental payments to the five farm owners (line 8), and taxes to the government.

Climate Change

an increase in the average temperature of the earth driven by human induced emissions of greenhouse gases, and the resulting and extensive shifts in weather patterns across the world. It is caused by events such as music festivals which generate huge volumes of waste. It also causes extreme weather conditions so can have major consequences for outdoor events such as music festivals.

Communication

the transfer or exchange of information, ideas, or messages from one party to another. Internally it takes place with BON as an organization, e.g., employees interacting with their line managers. Externally it takes place between BON and outside individuals and organizations, e.g., farm owners, suppliers, freelancers, and local communities

Competition

the rivalry within an industry, such as organizers of large music festivals like Sziget (Hungary), Tomorrowland (Belgium), and Glastonbury (UK). They may offer products of better quality, more competitive prices, and/or have lower costs. BON may have little or no control over the activities of them as these are external stakeholders.

Competitive Advantage

any edge (degree of superiority) that a firm has over its rivals, allowing it to generate greater sales and/or profit margins. Fore example, brand loyalty and superior marketing campaigns can give BON this over other organizers of music festivals.

Competitive Price (Price Competitiveness)

a pricing method that entails BON setting the price of its tickets at the same or similar level as its main competitors. Typically this pricing method is used by businesses selling similar products, although the services they provide can differ markedly

Coordination

a main function of management. For BON, this refers to the process of overseeing and managing all aspects of its music concerts and festivals. This can include the management of human, capital, and financial resources in order to meet organizational goals. Line managers are responsible for routine tasks and activities.

Corporate Social Responsibility (CSR)

responsible business behavior towards the individuals and societies, e.g., consumers, suppliers, employees, and local communities. It also involves a business being responsible for the natural environment in which it operates. Hence, it involves organizations like BON monitoring and ensuring their compliance with the ethical standards of society, e.g., noise and pollution levels at its music festivals.

Cost-plus Pricing

a pricing method that adds a mark-up to the cost of production of a product, ensuring the firm earns a profit margin. It is important for BON to determine its average cost of production (lines 9-10) in order to charge a suitable price (depending on its desired or target profit margin)

Creditors

individuals or other businesses to whom money is owed. This is because BON may have used trade credit from its suppliers (for credit purchases and outstanding bills) and/or loan capital (such as bank overdrafts or bank loans).

Crowdfunding

a way of raising finance by asking a large number of individuals each for a small amount of money to finance a new business or project. This is the opposite of the traditional method of borrowing a large sum of money from a small number of lenders or financiers. It may serve as a viable source of finance for BON to support relatively new and lesser-known music performers.

Customer Base

the total number of individuals who purchase goods and services from a business. The amount of supporters is important because it is the customers who ultimately help the business to earn money, grow, and to thrive. BON's consists of those who attend its music festivals, irrespective of demographics such as age or income level.

Customer Loyalty

the degree to which customers consistently repurchase products from the same business. They also choose the goods and services of the business over its competitors. Marketing strategies designed to cultivate them can give organizations a competitive advantage. BON's are those who repeatedly attend its music festivals.

Customer Satisfaction

a measure of the degree of customer contentment with regards to indicators such as the quality of the firm's products and its services. Data used to measure it includes customer satisfaction surveys and ratings or reviews on social media. Such feedback includes customer surveys and ratings or reviews on social media. These can help BON determine how best to improve or change its product offerings, including music artists, performers, and bands at its music events. It could also include feedback about the food an beverage offerings at its music festivals.

Economic Sustainability

the context of the case study refers to the ability of BON to generate sufficient revenue and manage costs effectively in the long term, while also contributing positively to the economic well-being of its stakeholders, e.g., BON's shareholders and the local communities in which it operates. It is about effective financial planning and management.

Economies of Scale

the cost-saving benefits enjoyed by an organization due to its larger scale of operation. It is shown by a fall in average cost of production following an increase in output.

Energy-efficient production methods

This refers to methods of lowering energy consumption by using less energy to achieve the same amount of output. Examples include the use of solar power (line 50) and energy-efficient LED light bulbs for BON's music festivals.

Entrepreneurship

This person bears the financial risks of starting and managing a new business or a commercial venture, such as running music festivals in Europe. They can develop new products or service ideas or find a new way of offering an existing product. S/he organizes factors of production to produce goods and/or services and assumes the risks and rewards of running the business.

Environmental issues

in a STEEPLE analysis, these refer to the ecological aspects of business activity that can have positive as well as negative impacts on organizations. It is one of the three pillars in the triple bottom line (along with social and economic sustainability) referring to the ability of BON to maintain the use of its renewable and non-renewable resources for future generations.

Ethical objectives

the moral principles that guide business decision-making. They are the beliefs of what society considers to be morally right or wrong. These goals can come from internal pressures (such as the desire of management to implement ethical business behavior, such as labor practices at BON) or from external pressures (such as environmental sustainability practices). They are shaped by societal norms and expectations of business practices that are deemed to be fair to society as a whole.

External investors

stakeholders who provide external sources of finance to an organization. Examples include financial lenders (such as banks) and business angels. For BON they are interested in the company's financial performance, especially its profitability and level of gearing.

External stakeholders

These are individuals or other organizations that are not part of the business but have a direct interest in its operations. Examples for BON include customers (music festival attendees), suppliers (such as the farmers who rent their land to BON), freelancers, competitors, financiers, local communities, pressure groups, and the government.

Extrinsic motivation

This category of motivation occurs when people participate in a task or activity because of the tangible benefits and rewards associated with doing so, such as pay, financial benefits, recognition, and praise for music performers at BON's festivals.

Financial performance

This refers to how well a business is performing financially as reflected in its final accounts (balance sheet and profit and loss account). A ratio analysis is often conducted to assess the financial performance of a business.

Financial motivation

This refers to the use of monetary payments to reward and/or motivate people in organizations. Examples for BON include salaries and fringe benefits (for permanent employees), wages (for temporary employees), commission (for agents), and possibly bonuses (for freelancers).

Fixed costs

costs which do not change with the level of output or sales. Examples for BON include advertising, insurance, management salaries, loan repayments, and rent (paid to the five farmland owners).

Green credentials

the credibility of a business in terms of its ecological sustainability (attempts to protect the planet), which will also have a direct impact on its economic sustainability. For example, a business which actively engages with the three Rs (reduce, reuse, and recycle) is likely to have better ones than firms that do not. The three Rs is a simple framework that can be applied across the board to businesses of all sizes in all industries. Consumers and businesses increasingly consider these when deciding who they will do business with. Therefore, it is increasingly challenging for organizations to ignore business ethics, sustainability issues and considering the environmental impacts of their operations. Sustainability is of growing importance to customers and governments around the world.

Health and safety training

This refers to specific training that ensures BON's workers are able to carry out their jobs carefully without risks to their physical wellbeing or harm to others. Managers have a responsibility to make sure the business has a safe and healthy working environment, especially in job roles with high-risk activities such as running outdoor music festivals. It also helps to improve labor productivity as staff know what to do, in a safe and sensible manner. A lack of this will cost BON money due to staff absences (lost productivity, sick pay, and even compensation claims).

Human resource management

the development of people and overall workforce planning. It includes the recruitment, selection, dismissal, training, and development of employees. They are in charge of developing the skills, experiences, and talents of the workforce. A strategic plan is a long-term plan to ensure that the labor force within the business has the correct skills and expertise to carry out its role within the business so that it achieves the business objectives. This is particularly important given the seasonal nature of BON in running its musical festival from May to August (line 12) but also with permanent employees throughout the year (lines 6 - 7).

Informal communication

communication that takes place through social conversations and gossip, rather than through official lines. In the context of BON, this could take place between the temporary employees, permanent staff, and freelancers.

Infrastructure

the physical structures and facilities needed for the operations of a business. Examples for BON include telecommunications, electricity (power networks), and transportation access to its music festivals.

Internal stakeholders

These are individuals or other organizations that are part of the business, so have a direct interest in its operations and affairs. Examples for BON include employees, managers, directors, and shareholders.

Internal sources of finance

This refers to the various methods by which an organization funds its operations without the use of third-party (external) finance. Examples for BON could include the sale of tickets for its music festivals, merchandise sales, and retained profits.

Intrinsic motivation

This category of motivation exists when people engage in a task or activity out of their own desire (such as the enjoyment of being a music artist or performer), rather than due to extrinsic reasons (such as pay, financial benefits, and praise).

Job production

Also known as customized production, this production method is used to make unique or one-off products for the specific requirements of customers. Each music festival is an example of this type of production, with its different set up artists, bands, and performers catering to audiences and fans of different music genres.

Leadership

the art of influencing, inspiring, and motivating others to accomplish a common goal. It plays a key role in an organization and involves setting a clear vision and direction for others to follow. It is integral to the success of running music concerts and festivals, given the huge scale of operations, staffing, and attendees at these events.

Liquidity

This refers to the ability of a business to meet its short-term debts and liabilities without causing disruptions or incurring excessive costs. It involves BON monitoring the cash flow of the business to ensure it can meet its current obligations, including bills, overdrafts, and other short-term liabilities. Seasonality, in particular, can cause cash flow challenges for BON, given the absence of sales revenues between the months of September and April.

Management

this encompasses several roles which include planning, commanding, controlling, coordinating, and organizing human and capital resources to achieve organizational objectives. At BON, they focus on problem solving and decision-making so that the company's goals can be achieved within a set time frame.

Market development

the growth strategy in Ansoff's matrix where a business sells its existing products in new markets, i.e., the products are the same, but sold to a new group of customers. For BON, this could include expanding its music festivals into new geographic markets or expanding its portfolio of festivals by catering to different music genres or niche audiences.

Market gap (or market opportunity)

a business opportunity whereby something that customers need is identified but it is not currently available. This is likely to be a product that is completely unique or addresses the existing needs of customers in a different market. For example, BON could host festivals dedicated to niche music genres such as indie rock, electronic experimental, or folk, as well as targeting festivals specific to families with young children. Identifying and catering for these in the market can lead to higher attendance and engagement at BON's events.

Market growth

This refers to the increase in the size of a market or industry over time. It can be measured in several ways including an increase in sales revenue or the number of customers in a particular market. It is typically associated with an increase in the level of consumer spending in a given market, such as the increase in attendees at music festivals in the post-COVID era.

Market research

the process of gathering and interpreting information regarding the thinking patterns and buying habits of customers. For example, it can help BON gain insights into the preferences, tastes, and behaviors of its target audience. By conducting surveys, interviews, and focus groups, BON can gather feedback on the types of music, performers, and experiences that attendees desire.

Marketing

the management process of identifying, anticipating, and satisfying consumers' requirements in a profitable way. It involves BON meeting the needs and desires of its customers by focusing on ensuring that the product (music festivals), price, place (distribution channels), and promotional methods are effective in encouraging sales of tickets to its music events.

Marketing mix

the key components of marketing a physical good: product, price, promotion, place, physical evidence, and process. All aspects of it applies to BON for the successful running of its music festivals.

Marketing strategy

This refers to the management process of formulating a firm's marketing goals and activities to increase sales and to achieve a sustainable competitive advantage. BON's should be drawn from market research and focus on all aspects of the marketing mix in order to achieve its strategic goals.

Mass market

an unsegmented market for a good or service, i.e., the product is aimed at or appeals to all customers in the market, irrespective of population demographics. BON caters to a broad audience of festival goers by organizing music festivals that appeal to a wide range of music enthusiasts. Successful music festivals will attract large numbers of attendees, representing different demographics, interests, and preferences.

Mission statement

This official declaration of a business refers to its overall goal and its purpose. Although BON's is not provided in the pre-release statement, it forms the foundation for setting the aims and objectives of the business.

Motivation

the desire, effort, and willingness to complete a task or to achieve something. It can be extrinsic (such as pay and financial rewards for BON's 60 permanent employees) or intrinsic (such as pride, self-esteem, or altruism - the desire to help others). Many music festivals rely on volunteers, including those with medical training who serve as first responders and coordinate emergency services. These volunteers participate not only to assist others but also to enjoy the atmosphere associated with outdoor music events.

Non-financial motivational methods

methods used to reward and/or motivate people without the use of finances. Examples for BON could include job satisfaction, job enlargement, job enrichment, teamworking, and career advancement.

Objectives

the short to medium term goals of an organization, such as survival, expansion, revenue maximization, increased profits, and increased market share.

Operational objective (tactical objective)

This is a short-term organizational goal that is in line with the organization's long-term goals. They are specific targets for the day-to-day activities and tasks necessary to execute BON's music festivals efficiently, such as resource utilization. Departments or divisions of an organization tend to set their own tactical objectives.

Operations management

using an organization's resources (labor, capital, and finance) to provide goods and/or services. This business includes BON overseeing the planning, coordination, and execution of various activities and resources necessary to organize and run successful music festivals.

Opportunities

In a SWOT analysis, this refers to changes in the external business environment that create optimistic prospects for a business. For BON this could include market growth in the post-COVID era, adoption of digital technologies, and strategic partnerships (such as collaborating with music artists, influencers, sponsors, local communities, and other key stakeholder groups).

Overheads (expenses)

the ongoing costs of running a business. They are not directly linked to the level of production, or the service being provided, but are still vital to the firm's operations. Examples include the cost of office rents (for BON's headquarters), salaries of administrative staff, office equipment and supplies, legal fees, accounting fees, advertising, and utility bills.

Pressure groups

external stakeholder groups that exist to influence and persuade organizations and governments to act in socially responsible ways. Such advocacy groups could include those focused on environmental conservation and sustainability by exerting pressure on BON to adopt eco-friendly practices and reduce its environmental impact.

Price

the value of a good or service that is paid for by the customer. It will usually cover the costs of production, allowing the business to earn a profit margin. Ticket prices for BON's music festivals are likely to be high due to the peak summer season when demand is high.

Pricing methods

This refers to the pricing strategies that a business uses to sell its goods and/or services. Examples for BON could include cost-plus, premium pricing, competitive pricing, and dynamic pricing. Note: Although the last two methods are both HL only, application of any relevant tool, theory, or term from the syllabus will be awarded according in the exams.

Profit

the financial surplus from sales revenue after all production costs have been deducted. It is a fundamental objective of most private sector organizations. BON's shareholders will expect a return on their investment so the company will need to make money. In its most simplistic form, it is calculated by using the formula: Sales revenue - Total costs.

Promotion

In the context of marketing, it is part of the marketing mix related to the methods of communicating marketing messages to potential and existing customers, usually with the intention of selling a firm's products. Methods include the use of advertising, branding, sales promotion, and public relations. It plays a crucial role in attracting attendees, enhancing brand visibility, and influencing ticket sales for BON's music festivals.

Qualitative research

the collection of primary and/or secondary market research data and information based on attitudes, beliefs, and opinions. It is about finding out what people think and why they think it. It may be important for BON in understanding the preferences, motivations, and experiences of attendees at its music festivals industry in order to enhance customer engagement in the future. However, the research can be subjective, so is open to a high degree of interpretation.

Recruitment

the process of hiring suitable workers for job roles within an organization. It starts with identifying the need for a new employee, followed by defining the job and the appropriate person for it, attracting several suitable candidates, interviewing them, and finally selecting the best person for the job. This applies to both BON's temporary and permanent employees (line 6).

Recycling

a physical good sold by a business, such as the bamboo plates and cutlery (line 40) which can be collected, broken down, processed, and reused to make new something new or be used again. It helps to save resources in the long-term and is designed to work well with sustainability, waste management systems, and circular business models.

Renewable energy sources

natural resources, such as solar power and wind energy, that replenish themselves through natural reproduction processes. They replace the resources that have been depleted by usage in production and consumption. Using these resources can help BON to improve its green credentials and reduce costs in the long term.

Revenue expenditure

the money needed for the day-to-day running of a business, including expenses such as wages, rent, marketing, insurance, and utility bills. It is a key reason why BON needs sufficient sources of finance.

Revenue streams

This refers to the money or income coming into the business from a particular activity over a period of time. Examples for BON could include ticket sales, merchandise, sponsorships, and revenues from the sale of food and beverages sold at its music festivals.

Risks

a situation with unknown outcomes which could damage the financial health and viability of a business. Some, with a high degree of uncertainty, can cause a financial loss and possibly threaten the survival of an organization. For BON, this included the COVID-19 pandemic which caused liquidity problems for the company. Competition in the industry, green credentials, and evolving societal expectations about sustainability are existing challenges for BON.

Salaries

a fixed amount of money paid on a periodic basis, usually per month, to full-time or permanent staff. Hence, these represent a fixed cost to an organization. They create a sense of security as employees know how much they will be paid each month (unlike wages or commission), although do not necessarily create any incentive to work harder.

Sales

the income of a business received from customer purchases of its goods and/or services. It is calculated by multiplying the selling price of the product by the quantity sold. BON's mainly come from selling tickets to its music festivals. Additional sources come from merchandise.

Secondary market research

information collected from second-hand sources (which already exist), e.g., government statistics, the news media, and independent market research reports, all of which are easily accessible to the public. It can offer insights into consumer preferences and demographics related to music festivals. This information can help BON to tailor its music festival offerings to enhance attendee satisfaction and build customer loyalty.

Set-up-costs

These are the initial investment costs incurred by a business when establishing a new operation or when launching a new product or service, such as a specific music concert or festival. Examples for BON include costs associated with acquiring or leasing physical farmland (to host the music events) and purchasing machinery, equipment, and other tangible assets needed for the music festivals.

Services

intangible (non-tangible) products provided by organizations, such as BON's music concerts and festivals. Freelancers (like music performers, music composers, choreographers, videographers, marketers, and publicists) and suppliers also provide their services to BON.

Share capital

a source of finance, raised by selling shares in a company to shareholders (who become part-owners of the company). It is the most important source of finance for public limited companies like BON.

Social media

any form of online platform (such as websites and applications) that enable users to create and share interactive content or to participate in online social networking. This provides BON with direct channels to engage with its target audience, including festival goers, music fans, and potential attendees, as well as possible sponsors and vendors.

Sources of finance

the various methods by which an organization obtains its money. They can be split into internal (such as retained profit) and external (such as bank loans, leasing, and share capital raised on the stock exchange from the general public).

Sponsors

A person or organization that pays for or contributes to the costs of an event in return for exclusive advertising exposure at events such as BON's music festivals.

Staff retention rate

the percentage of staff who remain employed by a business over a given time period, usually one year. It is calculated by deducting the number of leavers from the total number of employees in a year, expressed as a percentage of the workforce that has remained within the business. A low rate implies low employee motivation and a lack of staff loyalty. BON is likely to have a relatively high turnover rate (i.e., a low staff retention rate) due to the seasonal nature of the business and the number of temporary employees hired its music festivals.

Stakeholders

the individuals and/or other organizations that have a direct interest in the operations and activities of the business in question. They include internal (such as employees, managers, directors, and shareholders) and external (such as customers or festival goers, suppliers, the local community, pressure groups, and the government).

Strategic objective

the long-term goals that guide the overall direction and growth of BON in the music festivals industry. They involve broader decisions and initiatives made by the directors and are aimed at positioning the organization for future success. BON's could include growth (expansion), market leadership, sustainability objectives, profit maximization, and improving the corporate image of the organization.

Strategic plan

This is an organization's proposal of its business strategy, outlining its strategic direction and including the necessary resources to pursue the strategy. As a management tool, it starts with strategic analysis (an examination of its current position in the market), followed by strategic choice (the possible options through which the firm can pursue its strategy) and ending in strategic implementation (deciding how to get to where the firm wants to be).

Strategic priority

the ranking of strategic objectives by their level of importance to the organization at any given time. Subsequently, operational (or tactical) planning and resource allocation (including budgets) are based on these. For BON, this could be expansion (line 6) in the European music festivals industry.

Subcontractors

a third-party individual or firm hired by the main contractor of a project to help complete a project. They specialize in performing and completing part of (or in some cases all of) the responsibilities assigned to them, in a timely and cost-effective way. They can be hired by BON to handle various aspects of event logistics and setup of the 60 stages (line 15) at its music festivals.