Business

external stakeholders

outside: suppliers, customers, government, banks, community

internal stakeholders

inside: owners, employees

shareholder concept

the focus is on rewarding owners as much as possible

stakeholder

person or group with an interest in a business (who affects or is affected by it)

stakeholder concept

holds that it is better in the long run to treat all stakeholders well

stakeholder conflict

business activity impacts stakeholders in different ways (good & bad)

stakeholder management

the process of building good relationships with stakeholders

stakeholder mapping

the process of considering stakeholders’ relative interest and power

business cycle

four stages: boom, recession, slump, recovery/upswing

cartel

multiple businesses collude to limit competition, fix prices, or exploit consumers

demand

the quantity of a product a customer is willing to buy at a particular price

employment practices

the way businesses treat their employees, from hiring to the end

environmental audit

independent assessment of a business’s impact on the environment

gig economy

labor market where short-term contracts of freelance work is common

GDP

the financial value (measured by price) of all the products produced in a country

inflation

steady rise in the price of products and the decrease in the value of money

infrastructure

physical and organizational elements required for society to operate well

innovation

development of new ideas into new products or production methods

inventories

raw materials and other items necessary for production (and finished goods)

macroeconomics

the study of how overall economies behave

market failure

when a market does not work, and resources are not allocated correctly

microeconomics

the study of how individuals and businesses affect an economy

migration

a movement of people between regions or countries, with the intent of settling

nationalization

the government takes control of a private sector business

pressure group

a group of people with common interests, organized to influence

privatization

the government sells one of its organizations to the private sector

regulation

the enforcement of legal principles or rules

STEEPLE

social, technological, economic, environmental, political, legal, ethical factors

supply

quantity of a product a producer is willing to produce at a particular price

unemployment

the % of able, employable workers in a country that are not employed

urbanization

the movement of people from the countryside to the cities

wage levels

how much workers are paid

working conditions

contextual factors that affect an employee’s work-related experience

business size

can be measured by revenue, employees, assets, shares, locations, etc.

conglomerate diversification

when a business joins another in a different sector

diseconomy of scale

occurs when unit costs increase as production increases

economy of scale

occurs when unit costs fall as production increases

external growth

business expands by buying or joining another business; aka: integration

horizontal integration

business joins another at the same stage of the production process

internal growth

business expands through its existing operations; aka: organic growth

joint venture

when businesses collaborate on a project, but do not formally merge

merger

combining of two or more businesses into a single business; aka: M&A

takeover

a party acquires complete control of a business by buying more than 50%

turnover

here, turnover simply means the business’s revenue (different from HR turnover)

vertical integration

business joins another at a different stage of the production process