Business studies Theme 2

Research & Development

Research into new products or processes and developing the idea that are generated from research

Innovation

The act of creating new products or processes

E-Commerce

Using the internet to carry out business transactions

Merger

When two or more businesses join together to operate as one business

Takeover

When one business buys another business and incorporates in into their own business

Public Limited Company

An incorporated business that can sell shares to the public (also known as PLC)

Multinational

A business with operations in more that one country (also known as a multinational corporation or MNC)

Assets

Items owned by a business, such as premises, equipment and stock

Interest

The cost of borrowing or a percentage of the amount of money borrowed that must be repaid in addition to the original amount borrowed

Secured

Guaranteed, because if the business fails to pay back the money the bank can take the asset and sell it

Dividends

A percentage of a business's profits that is paid to shareholders as a reward for their investment in the business

Stock Market Flotation

The process of changing a business to a Public Limited Company (PLC) by issuing shares for sale on a stock exchange

Stock Exchange

A place where shares in PLCs can be bought and sold

Degree of competition

The number and size of businesses competing in a particular market

Market share

The proportion of sales in a market that are taken by one business

Culture

Th general attitudes, behaviour and beliefs of a business and its workforce

Retrenchment

When a business downsizes the scale of its operations by reducing the number of employees or closing less profitable branches

Organisational Structure

The way in which the workforce is organised, usually a hierarchy with people reporting to managers all the way up to the chief executive officer (CEO)

Product portfolio

The range of goods and services offered by any one business

Globalisation

When businesses operate on an international scale and gain international influence or power

Imports

The flow of goods and services into a country from another country

Exports

The flow of goods and services out of a country to another country

Domestically

At home within a businesses home country

Tariff

A tax imposed on imports or exports

Protectionist measure

An action taken by the government to reduce the flow of imports into the country

Trading bloc

A group of countries that agree to act together to promote trade between themselves

Localise

Adapt to suit the local area and its needs, particularly in terms of culture, language or geographical location

Ethics

moral principals or standards that guide the behaviour of a person or business

Stakeholder

anyone who has an interest in the activities of a business, such as its workers, its suppliers, its directors, the local community and the government

Trade-off

A balance between two different or opposing objectives, such as making a profit and spending money on ethical activities that will enhance the business's reputation

Profit margin

The proportion of revenue leftover after costs have been deducted

Green audit

A detailed review of a businesses impact on the environment, either conducted by the business itself or by an independent organisation

Sustainability

Acting to ensure that natural resources are used responsibly to protect the environment for future generations

Finite resource

(also known as non-renewable resource) a resource that does not renew itself quickly enough to meet societies consumption of that resource, such as oil and natural gas

Pressure group

A group of people who join together to try to influence government policy or business policy for a particular cause

Boycott

Refusing to by from or interact with a particular business or organisation

Viral marketing

Using online channels, such as video-sharing or social media sites, to spread a campaign message by encouraging people to share it with their friends

Lobbying

Trying to influence the government or other organisations

Marketing mix

The four p's of marketing, which are Product, Price, Promotion, Place

Aesthetics

The visual attractiveness of something

Viable

Capable of working or succeeding

Product portfolio

The range of goods and services offered by anyone business

Economies of scale

A situation where average costs (of production, distribution and sales for example) fall as a business increases the amount of product that it produces, distributes and sells

Maximise

Increase to the greatest possible amount or make the most of something

Unique Selling Point (USP)

Something that makes a product stand out from its competitors

Mass market

A large market where customers have similar needs and characteristics

Generic

A characteristic relating to an entire group, not specific

Niche market

A small market where customers have very specific needs and characteristics

Discounted

No longer produced and sold

Emotive language

Language intended to affect people at an emotional level, usually using adjectives such as crazy, cutting edge or cool.

Medium

The way in which something can be communicated (media is the plural of medium)

Sales promotion

A short-term special offer, usually in form of a discount, used by a business to attract customers to buy a product or service.

Stock

The products held by a business in a shop or warehouse for sale to customers

Pressure group

A group of people who join together to try to influence government policy or business policy for a particular cause

Viral advertising

Advertising using social networking to increase sales or boost brand awareness

E-commerce

Using the internet to carry out business transactions

M-Commerce

using mobile technologies, such as smartphones and tablets, to carry out business transactions

Retailing

Selling products or services to customers - in this case, in a physical shop

E-tailing

Retailing to customers the internet, such as through an e-commerce website

Markup

The amount of money added to the cost price of a product or service to make the final retail price

Third-party platform

An e-commerce website or service that is run by an unrelated business

Integrated marketing mix

A marketing mix that has a theme with the elements all supporting each other

Patent

A legal protection of invention, design or idea, meaning that it is illegal for another company to copy it

Bespoke

Designed and made for an individual customer

Automation

Using machinery or robotics to do jobs instead of using people to do them

Profit margin

The proportion of revenue left over after costs have been deducted

Economies of scale

A situation where average costs (of production, distribution and sales for example) fall as a business increases the amount of product that it produces, distributes and sells

Downtime

Time when a person or machine is not producing anything

Standardised

When every example of a product is exactly he same as the others

Cost per unit

How much it costs to make each product or service, taking into consideration all of the variables

Supply chain management (SCM)

The management of the flow of goods and resources through the production process

Key Words Definition

Procurement

The process of managing a businesses major purchases from raw materials to delivery vans

Variable cost

Costs paid by a business that change depending on how many products or services the business sells

Fluctuate

rise or fall in number or amount

Logistic

The organisation and management within a business of the transport of raw materials and goods

Perishable

Likely to go out of date and go off quickly

Quality mark

A standard of quality given to a business that is accredited by a professional body

Competitive advantage

An advantage a business has over its rivals that is unique and sustainable

E-tailing

Retailing to customers the internet, such as through an e-commerce website

Retailing

Selling products or services to customers - in this case, in a physical shop

Transaction

The act of buying or selling something

Quantitative

Concerning the quantity or amount of something that can be measured in numbers

Metric

A standard of measurement

Qualitative

Concerning the quality of something, that cannot be measured in numbers

Differentiate

Show that something (in this case, a product) is different from similar things

Cost of sales

The direct costs of purchasing raw materials and manufacturing finished products

Profit margin

A measure of profitability calculated as a percentage of revenue

Inflation

The general increase in prices over time

Variable

A quantity used in a calculation or some measurable piece of information

Infographic

A graphic representation of information to make it interesting and easy to understand

Demographic

Relating to the structure of population

Qualitative data

Concerning the quality of something that cannot be measured in numbers

Layers

In an organisational structure, this means the levels of job roles in the business, from the highest-paid directors to the most junior members of staff

Span of control

The number of employees that are managed by a manager. If a person manages three employees, their span of control is three

Accountability

Being responsible for something and being held responsible for it and its outcomes For example, a manager Is often held accountable for the actions of their staff

Jargon

Technical or obscure words or terms used by a particular group of people that may not be understood by everyone

Freelancer

Someone who is self-employed and contracted by businesses to work for them

Roles

These are the different jobs within a business. For example, roles at a restaurant might include head chef, chef, kitchen assistant an so on

Responsibilities

These are the things that someone is required to do in order to fulfill their role in the business. For example at a restaurant , responsibility for the role of head chef might be to create the restaurants menu