theme 1 flashcards business alevel

 Flashcard #1 \n**Term:**

Brand

\n**Definition:**

A symbol, logo or design that is recognisable and distinguishes a product from competitors.

Advantage: Strong brands can foster customer loyalty, allowing firms to charge premium prices. Disadvantage: A poor brand reputation can negatively impact sales and customer perceptions.

Advantage: Brands can create a significant competitive advantage in markets. Disadvantage: Building a brand requires substantial time and marketing costs.

**Flashcard #2** \n**Term:**

Competition

\n**Definition:**

The rivalry among sellers trying to achieve goals such as increasing profits, market share, and sales volume.

Advantage: Encourages innovation, pushing businesses to improve products and services. Disadvantage: It may lead to price wars, which can erode profit margins.

Advantage: Increased competition can benefit consumers through better quality and lower prices. Disadvantage: Small businesses may struggle to survive in highly competitive industries.

**Flashcard #3** \n**Term:**

Competitive market

\n**Definition:**

When there are many rivals selling similar products.

Advantage: Provides consumers with a variety of options at competitive prices. Disadvantage: It can be difficult for new entrants to establish themselves in such a saturated market.

Advantage: Market efficiency is improved as businesses strive to meet customer needs. Disadvantage: Businesses may face constant pressure to lower prices, impacting profitability.

**Flashcard #4** \n**Term:**

Competitor

\n**Definition:**

A rival business operating in the same market offering similar goods or services.

Advantage: Competitors can motivate businesses to innovate and improve their offerings. Disadvantage: Intense competition can lead to reduced profitability for all players in the market.

Advantage: Competitive analysis helps businesses identify their unique advantages. Disadvantage: Organizations may redirect resources to compete specifically against rivals at the expense of customer satisfaction.

**Flashcard #5** \n**Term:**

Direct competition

\n**Definition:**

Businesses produce similar products that appeal to the same group of customers.

Advantage: Clear benchmarking opportunities help businesses gauge performance. Disadvantage: The competition can be very cutthroat, leading to financial stress for businesses.

Advantage: Increases consumer awareness and market efficiency. Disadvantage: Competition as a direct threat can discourage new investments.

**Flashcard #6** \n**Term:**

Dynamic market

\n**Definition:**

A market that is subject to rapid/continuous change.

Advantage: Offers businesses opportunities to innovate and capture new trends quickly. Disadvantage: High risk due to unpredictability of consumer preferences.

Advantage: Allows for rapid response to changes and adaptability. Disadvantage: Businesses may incur frequent costs related to adaptation and market research.

**Flashcard #7** \n**Term:**

Indirect competition

\n**Definition:**

Different businesses make or sell products that are not in direct competition but compete for the same customer experience.

Advantage: Diversifies consumer choices and improves consumer satisfaction. Disadvantage: It can make understanding market position more complex for businesses.

Advantage: Encourages creative solutions and alternatives in the marketplace. Disadvantage: May dilute brand identity among consumers.

**Flashcard #8** \n**Term:**

Innovation

\n**Definition:**

The creation, development and implementation of a new product, process or service.

Advantage: Drives growth and allows businesses to stay competitive. Disadvantage: High research and development costs can be a barrier to entry.

Advantage: Enhances customer satisfaction through novel solutions. Disadvantage: Innovation risks may not guarantee market acceptance.

**Flashcard #9** \n**Term:**

Market

\n**Definition:**

Where buyers and sellers interact.

Advantage: Creates a platform for commerce, facilitating exchanges. Disadvantage: Market fluctuations can be unpredictable, impacting stability.

Advantage: Encourages healthy competition which can benefit consumers. Disadvantage: Vulnerable to monopolies and exploitation if not regulated.

**Flashcard #10** \n**Term:**

Market growth

\n**Definition:**

An increase in demand/sales for a particular product/service.

Advantage: Provides new opportunities for business expansion and profits. Disadvantage: Rapid growth can lead to operational challenges and inefficiencies.

Advantage: Attracts investors seeking profitable ventures. Disadvantage: Can entice competitors to enter the market, increasing competition.

**Flashcard #11** \n**Term:**

Market share

\n**Definition:**

The % of the total market a business has in terms of volume or value.

Advantage: A higher market share can lead to economies of scale. Disadvantage: Heavy focus on market share can divert attention from customer satisfaction.

Advantage: Indicates a strong brand presence and competitiveness. Disadvantage: Pursuing market share may lead to unsustainable pricing and tactics.

**Flashcard #12** \n**Term:**

Market size

\n**Definition:**

The total amount of sales/customers in a market measured by value/volume.

Advantage: Helps businesses and investors identify potential for sales and revenue. Disadvantage: Larger markets can attract more competitors, complicating entry.

Advantage: Aids strategic planning and forecasting. Disadvantage: Market estimates can be difficult to obtain accurately.

**Flashcard #13** \n**Term:**

Mass market

\n**Definition:**

A large unsegmented market where mass appeal products are on sale.

Advantage: Businesses reach a larger audience quickly. Disadvantage: Risk of being overshadowed by larger competitors with more resources.

Advantage: Higher production volumes can reduce costs per unit. Disadvantage: Limited ability for product differentiation can lead to lower margins.

**Flashcard #14** \n**Term:**

Niche market

\n**Definition:**

A specialist area of the market/ subset of the market where consumers have specific needs and wants.

Advantage: Allows for tailored products and services, leading to higher customer satisfaction. Disadvantage: Smaller markets may limit growth potential.

Advantage: Less competition as the focus is on specialized offerings. Disadvantage: Vulnerability to market changes or trends impacting demand.

**Flashcard #15** \n**Term:**

Online retailing

\n**Definition:**

Selling goods and services on the internet.

Advantage: Expands market reach beyond geographic limitations. Disadvantage: High competition in online spaces can make differentiation difficult.

Advantage: Lower overhead costs compared to physical stores. Disadvantage: Security concerns may deter customers from online purchases.

**Flashcard #16** \n**Term:**

Product innovation

\n**Definition:**

The development/creation of products not previously available.

Advantage: Can lead to market leadership and first-mover advantage. Disadvantage: Significant investment in R&D can result in high financial risk.

Advantage: Enhances consumer interest and brand visibility. Disadvantage: Failure to achieve consumer acceptance can lead to financial losses.

**Flashcard #17** \n**Term:**

Sales volume

\n**Definition:**

The quantity of a good or service sold within a period of time.

Advantage: Higher sales volumes can lead to economies of scale. Disadvantage: High volume sales at low prices may not cover costs effectively.

Advantage: Indicates strong market demand and acceptance. Disadvantage: Fluctuations in sales volume can create instability in cash flow.

**Flashcard #18** \n**Term:**

Uncertainty

\n**Definition:**

The inability to predict or a lack of knowledge about future events and outcomes.

Advantage: Awareness of uncertainty can lead businesses to develop contingency plans. Disadvantage: High levels of uncertainty can cause paralysis in decision-making.

Advantage: Can drive innovation as businesses seek new solutions to emerging challenges. Disadvantage: Uncertainty can deter investment, slowing economic growth.

**Flashcard #19** \n**Term:**

Biased questions

\n**Definition:**

Where the questions do not produce findings that give a true reflection of the views of the target audience on the product or service.

Advantage: Can be used strategically to frame responses in a favorable light. Disadvantage: Generates unreliable data, misleading business decisions.

Advantage: May highlight specific aspects the business seeks to emphasize. Disadvantage: Risk of damaging market research credibility.

**Flashcard #20** \n**Term:**

Consumer behaviour

\n**Definition:**

How consumers make decisions about how they choose and use products or services.

Advantage: Understanding consumer behavior can lead to better-targeted marketing strategies. Disadvantage: Consumer behavior can be unpredictable and varies by demographics.

Advantage: Enhanced product design and user experience can improve satisfaction. Disadvantage: Requires continuous research to keep up with changes in behavior.

**Flashcard #21** \n**Term:**

Databases

\n**Definition:**

An organised collection of data stored electronically with instant access, searching and sorting facilities.

Advantage: Facilitates efficient management of large amounts of data. Disadvantage: Database management can require significant financial and technical resources.

Advantage: Enables better decision-making through data analytics. Disadvantage: Security risks related to data protection and privacy may arise.

**Flashcard #22** \n**Term:**

Face-to-face survey

\n**Definition:**

A research method used where the interviewer communicates directly with the respondent using a questionnaire.

Advantage: Allows for in-depth inquiry and follow-up questions. Disadvantage: Time-consuming and potentially expensive compared to other methods.

Advantage: Can yield high response rates due to personal interaction. Disadvantage: Interviewer bias may influence responses.

**Flashcard #23** \n**Term:**

Focus group

\n**Definition:**

A group of people who participate in a discussion as part of market research to give feedback about a product or service.

Advantage: Provides qualitative insights that can inform product development. Disadvantage: Groupthink may hinder honest feedback.

Advantage: Facilitates dynamic discussions that can generate new ideas. Disadvantage: May not represent wider consumer opinions, reducing generalizability.

**Flashcard #24** \n**Term:**

Government data

\n**Definition:**

Government publications that a business can use such as the census of the population.

Advantage: Offers reliable and comprehensive data that can save time and resources. Disadvantage: Data may not be specific enough for niche market analysis.

Advantage: Can help businesses comply with legal standards and regulations. Disadvantage: Government data might be outdated or not reflect current market conditions.

**Flashcard #25** \n**Term:**

Interview bias

\n**Definition:**

Where the opinion of the interviewer interferes with the judgements of the interviewee.

Advantage: Can be used to steer interviews in a desired direction. Disadvantage: Results in skewed data which can alter findings and conclusions.

Advantage: May highlight the interviewer's insights if approached properly. Disadvantage: Reduces the reliability of collected information.

**Flashcard #26** \n**Term:**

Market orientation

\n**Definition:**

When a business’s products/services are based around the needs and wants of the customer.

Advantage: Increases customer satisfaction and loyalty. Disadvantage: May lead to higher costs associated with research and product adaptation.

Advantage: Helps businesses stay competitive in volatile markets. Disadvantage: Risk of neglecting innovation if focused solely on current customer preferences.

**Flashcard #27** \n**Term:**

Market reports

\n**Definition:**

A document that contains information, stats, research and facts on a chosen field.

Advantage: Informs strategic decision-making with up-to-date data. Disadvantage: Reports can become outdated quickly in fast-paced industries.

Advantage: Useful for assessing market potential and risks. Disadvantage: May be expensive to acquire or require subscriptions.

**Flashcard #28** \n**Term:**

Market research

\n**Definition:**

Gathering, presenting and analysing information about products/customers.

Advantage: Provides insights that can guide product development and marketing strategies. Disadvantage: Can be costly and time-consuming for businesses.

Advantage: Helps identify customer needs effectively. Disadvantage: Results from market research can be biased or misinterpreted.

**Flashcard #29** \n**Term:**

Market segmentation

\n**Definition:**

Dividing a whole market into particular customer groups that have similar characteristics.

Advantage: Enables targeted marketing efforts, leading to increased sales. Disadvantage: Segmenting can be complex and expensive to implement effectively.

Advantage: Improves customer satisfaction by tailoring products to group needs. Disadvantage: May overlook potential customers in other segments.

**Flashcard #30** \n**Term:**

Market segments

\n**Definition:**

An identifiable group of individuals/a part of the market where consumers share one or more characteristic or need.

Advantage: Allows for focused marketing strategies leading to better conversion rates. Disadvantage: Misidentification of segments can lead to wasteful spending and ineffective campaigns.

Advantage: Can help in understanding and predicting customer behavior. Disadvantage: Over-segmentation may result in missing out on broader opportunities.

**Flashcard #31** \n**Term:**

Observations

\n**Definition:**

Where market researchers watch the behaviour of customers.

Advantage: Provides firsthand insights into customer interactions and preferences. Disadvantage: Can be time-intensive and require significant resources.

Advantage: Helps in understanding actual behavior rather than self-reported behavior. Disadvantage: Observer bias may affect the results of the study.

**Flashcard #32** \n**Term:**

Primary market research

\n**Definition:**

Obtaining data first hand by the business to match the specific needs of the business.

Advantage: Customized data specific to the business goals and context. Disadvantage: Can be expensive and labor-intensive to gather.

Advantage: Offers the ability to ask specific questions tailored to research objectives. Disadvantage: Time constraints may limit the ability to conduct thorough research.

**Flashcard #33** \n**Term:**

Product orientation

\n**Definition:**

When a business prioritises a product’s design quality or performance rather than meeting customer preferences.

Advantage: High product quality may lead to strong market reputation and loyalty. Disadvantage: Risks ignoring market needs and trends, leading to poor sales.

Advantage: Simplifies product development without excessive market data. Disadvantage: Missed opportunities can occur if consumer preferences change.

**Flashcard #34** \n**Term:**

Qualitative research

\n**Definition:**

Market research collected relating to the opinions and beliefs of consumers.

Advantage: Provides in-depth understanding of consumer attitudes and motivations. Disadvantage: Subjectivity can lead to skewed interpretations of data.

Advantage: Helps identify emerging trends and customer desires. Disadvantage: Results are not easily quantifiable or generalizable.

**Flashcard #35** \n**Term:**

Quantitative research

\n**Definition:**

Numerical information gathered and can be presented and analysed using graphs, charts, tables etc.

Advantage: Provides measurable data that can be statistically analyzed for clear insights. Disadvantage: May miss the context behind the numbers, limiting understanding.

Advantage: Easier to compare and benchmark against competitors. Disadvantage: Requires meticulous data collection to ensure accuracy and reliability.

**Flashcard #36** \n**Term:**

Respondent bias

\n**Definition:**

When respondents respond inaccurately to a question for some reason.

Advantage: Awareness of this bias can lead to better survey design and questioning techniques. Disadvantage: Distorts research findings, leading to erroneous conclusions.

Advantage: Can be minimized with proper pre-screening practices. Disadvantage: Difficult to fully eliminate, impacting data credibility.

**Flashcard #37** \n**Term:**

Sample

\n**Definition:**

A small group of people who must represent a proportion of a total market.

Advantage: Cost-effective than surveying the entire population. Disadvantage: Can lead to sampling errors if not representative.

Advantage: Allows for quicker data collection and insights generation. Disadvantage: Misrepresentation can distort actual market perceptions.

**Flashcard #38** \n**Term:**

Secondary market research

\n**Definition:**

Data collected by another business or organisation but used by the business in question.

Advantage: Can save time and resources compared to primary research. Disadvantage: Data may not be specific to the current research needs.

Advantage: Often provides an extensive data set with historical context. Disadvantage: May suffer from accuracy issues or be out of date.

**Flashcard #39** \n**Term:**

Segmentation

\n**Definition:**

Dividing the market into groups of people with similar attributes or common characteristics.

Advantage: Facilitates targeted marketing and product development efforts. Disadvantage: Complex segmentation can lead to cost increases and complications.

Advantage: Improves advertising effectiveness through personalization. Disadvantage: Risks overlooking potential broader markets.

**Flashcard #40** \n**Term:**

Social networking

\n**Definition:**

A platform such as Facebook, X and You Tube, which can be used to market a businesses products/services.

Advantage: Provides direct engagement and interaction with consumers. Disadvantage: Negative feedback can spread quickly and damage brand reputation.

Advantage: Enables businesses to reach a wider audience effectively. Disadvantage: Requires constant engagement to remain relevant in users' feeds.

**Flashcard #41** \n**Term:**

Survey

\n**Definition:**

A method of (primary) research used to collect information.

Advantage: Can gather a large amount of data efficiently. Disadvantage: Responses can be superficial and lack depth.

Advantage: Structured design can simplify analysis of results. Disadvantage: Design faults can lead to biased data collection.

**Flashcard #42** \n**Term:**

Test marketing

\n**Definition:**

Trialling the product in a small area or to a limited number of users to assess the suitability of a product.

Advantage: Provides practical insight into consumer reactions before a full launch. Disadvantage: May not fully predict outcomes in larger markets.

Advantage: Helps identify potential flaws in products or marketing strategies. Disadvantage: Can be costly and resource-intensive for businesses.

**Flashcard #43** \n**Term:**

Trade publications

\n**Definition:**

Specialist magazines that look at current trends in the business world.

Advantage: Provides industry insights and benchmarks for businesses. Disadvantage: May present biased views based on the publisher's affiliations.

Advantage: Helps identify opportunities for networking within industries. Disadvantage: May not always be accessible to all businesses, limiting awareness.

**Flashcard #44** \n**Term:**

Added value

\n**Definition:**

The increase in value that a business creates when producing a product/service.

Advantage: Higher perceived value can lead to increased prices and margins. Disadvantage: Added value can require ongoing investment in product or service enhancements.

Advantage: Differentiation from competitors can lead to greater market share. Disadvantage: Businesses may become complacent if they rest on their laurels.

**Flashcard #45** \n**Term:**

Competitive advantage

\n**Definition:**

A feature of a business and/or its products that enable it to compete effectively with rival producers/products.

Advantage: Creates market positioning that is difficult for competitors to replicate. Disadvantage: Risk of competitive advantage diminishing over time without innovation.

Advantage: Can lead to higher sales and profitability. Disadvantage: May require significant resources to maintain over time.

**Flashcard #46** \n**Term:**

Differentiation

\n**Definition:**

Making products or services different or distinct from competing products.

Advantage: Specialization can attract specific customer segments. Disadvantage: It may increase production costs to create differentiated products.

Advantage: Helps to build brand loyalty and customer relationships. Disadvantage: Over-differentiation can lead to losing sight of the larger market.

**Flashcard #47** \n**Term:**

Market mapping

\n**Definition:**

A form of market positioning using a 2-dimensional diagram that plots products in a market.

Advantage: Visual representation of market positions helps in strategic decisions. Disadvantage: May oversimplify complex market realities.

Advantage: Identifies gaps in the market for potential opportunities. Disadvantage: Data integrity can be compromised if the source is unreliable.

**Flashcard #48** \n**Term:**

Market positioning

\n**Definition:**

An effort to influence consumer perception of a brand or product relative to competing brands.

Advantage: Establishing a strong position can build brand equity. Disadvantage: Mispositioning can lead to wasted marketing efforts.

Advantage: Informed positioning helps in effective communication with target audiences. Disadvantage: Maintaining position requires ongoing effort and adaptation.

**Flashcard #49** \n**Term:**

Product differentiation

\n**Definition:**

The act of distinguishing a product/service from competitors to make it more attractive to a particular target market.

Advantage: Can lead to a strong brand reputation and increased customer loyalty. Disadvantage: Building differentiation strategies can require significant resources.

Advantage: Attracts niche markets which can yield profitable sales. Disadvantage: Rapid market changes can make differentiation obsolete quickly.

**Flashcard #50** \n**Term:**

Complementary goods

\n**Definition:**

Products consumed/used together, so they are purchased together.

Advantage: Increases overall sales as customers buy more related items. Disadvantage: If one product fails, it can negatively affect sales of the complementary product.

Advantage: Synergy in marketing efforts can enhance branding of related products. Disadvantage: Dependence on a partner's product can be risky.

**Flashcard #51** \n**Term:**

Consumer income

\n**Definition:**

The money earned/received from work/investments.

Advantage: Higher consumer income usually leads to increased spending on goods. Disadvantage: Economic downturns can significantly affect consumer purchasing power.

Advantage: Allows for segmentation of markets based on income levels. Disadvantage: Differentiating products based on income can limit potential customer base.

**Flashcard #52** \n**Term:**

Demand

\n**Definition:**

The quantity of goods/services that a consumer is willing to buy at a given price and at a given time.

Advantage: High demand can drive production and revenues. Disadvantage: Overestimating demand can lead to excess inventory.

Advantage: Understanding demand allows for better forecasting and planning. Disadvantage: Demand can be influenced by factors beyond company control, like trends.

**Flashcard #53** \n**Term:**

Demographics

\n**Definition:**

The structure of the population such as age, gender and geographical distribution.

Advantage: Provides insights that can guide marketing and product strategies. Disadvantage: Demographic changes can require rapid shifts in business strategy.

Advantage: Helps businesses tailor offerings to specific consumer groups. Disadvantage: Data can quickly become outdated, requiring constant reevaluation.

**Flashcard #54** \n**Term:**

External shocks

\n**Definition:**

Factors beyond the control of a business.

Advantage: Forces companies to be flexible and innovative in their strategies. Disadvantage: Can lead to significant disruptions in operations and revenue.

Advantage: Presents unique opportunities for businesses to pivot and adapt. Disadvantage: Identifying preparation methods for shocks can be challenging.

**Flashcard #55** \n**Term:**

Seasonality

\n**Definition:**

When demand rises or falls at particular times of the year according to seasonal factors.

Advantage: Predictable demand patterns can aid in inventory and workforce management. Disadvantage: Off-season periods can lead to underutilization of resources.

Advantage: Allows for targeted marketing campaigns during peak seasons. Disadvantage: Seasonal fluctuations can impact cash flow stability.

**Flashcard #56** \n**Term:**

Substitutes

\n**Definition:**

Goods that can be bought as an alternative but perform the same function.

Advantage: Provides consumers with choices, which can enhance satisfaction. Disadvantage: Excessive reliance on substitutes can dilute brand loyalty.

Advantage: Can limit monopolistic behaviors as consumers have options. Disadvantage: If substitutes become cheaper, can harm a business’s sales and pricing strategy.

**Flashcard #57** \n**Term:**

Government subsidies

\n**Definition:**

A payment given to producers, usually to encourage production of a certain good.

Advantage: Stimulates growth in essential industries, promoting stability. Disadvantage: Can lead to inefficiencies if businesses depend too much on government support.

Advantage: Facilitates market entry for new players in critical sectors. Disadvantage: Taxpayer funding could become a contentious issue if perceived as wasteful.

**Flashcard #58** \n**Term:**

Indirect taxes

\n**Definition:**

Taxes imposed by the government on spending.

Advantage: Generates significant revenue for government projects. Disadvantage: Increases final consumer prices, which can reduce affordability.

Advantage: Can be used to discourage harmful products (e.g., tobacco). Disadvantage: Complexities in taxation can lead to confusion among consumers and businesses.

**Flashcard #59** \n**Term:**

Supply

\n**Definition:**

The amount that producers are willing/able to produce at a given price over a given period of time.

Advantage: Enables businesses to meet consumer demand efficiently. Disadvantage: Overproduction can lead to surplus and waste.

Advantage: A robust supply chain can enhance business resilience. Disadvantage: Supply chain disruptions can significantly impact operations.

**Flashcard #60** \n**Term:**

Equilibrium price

\n**Definition:**

The price where supply and demand are equal.

Advantage: Achieves market efficiency and optimal resource allocation. Disadvantage: Changes in demand can lead to fluctuations in prices.

Advantage: Signals to producers how much to supply. Disadvantage: Difficulties arise if external factors shift equilibrium suddenly.

**Flashcard #61** \n**Term:**

Non price factors

\n**Definition:**

Factors other than price affecting supply and demand.

Advantage: Offers businesses a broader understanding of market dynamics. Disadvantage: They can complicate pricing strategies due to their varying influences.

Advantage: Insight into non-price factors can lead to competitive advantage. Disadvantage: Requires ongoing research to adapt to changing factors.

**Flashcard #62** \n**Term:**

Shortage in markets

\n**Definition:**

Where demand exceeds supply.

Advantage: Can lead to increased prices, benefiting suppliers temporarily. Disadvantage: Customers may feel dissatisfaction or frustration due to unavailability.

Advantage: Indicates potential opportunities for market entry. Disadvantage: May attract competitors quickly responding to shortages.

**Flashcard #63** \n**Term:**

Surplus in markets

\n**Definition:**

Where supply exceeds demand.

Advantage: Can lower prices, benefiting consumers in the short term. Disadvantage: Excess inventory can lead to financial losses for businesses.

Advantage: Identifies inefficiencies that businesses can address. Disadvantage: Long-term surpluses can lead to market disturbances and imbalance.

**Flashcard #64** \n**Term:**

Luxury

\n**Definition:**

Goods that consumers like to buy if they can afford them.

Advantage: High profit margins due to premium pricing. Disadvantage: Vulnerable to economic downturns, leading to reduced demand.

Advantage: Appeals to affluent consumers, establishing brand exclusivity. Disadvantage: Requires significant investment in branding and marketing.

**Flashcard #65** \n**Term:**

Necessity

\n**Definition:**

Basic goods that consumers need to buy.

Advantage: Consistent demand regardless of economic conditions. Disadvantage: Low profit margins due to high competition.

Advantage: Steady cash flow sustains business operations. Disadvantage: Requires ongoing assessment of price elasticity to remain competitive.

**Flashcard #66** \n**Term:**

Price elastic

\n**Definition:**

Quantity demand is responsive to a change in price.

Advantage: Allows businesses to increase revenue through strategic pricing. Disadvantage: Risk of losing customers if prices rise too sharply.

Advantage: Better income prediction through demand elasticity understanding. Disadvantage: Markets can change, affecting historical price elasticities.

**Flashcard #67** \n**Term:**

Price elasticity of demand (PED)

\n**Definition:**

Measures the responsiveness of quantity demanded to a change in price.

Advantage: Helps businesses set competitive yet profitable pricing strategies. Disadvantage: Reliance on historical data may not predict future trends accurately.

Advantage: Can guide production and inventory decisions based on expected sales. Disadvantage: Variability in consumer response patterns may complicate predictions.

**Flashcard #68** \n**Term:**

Price Inelastic

\n**Definition:**

Quantity demanded for the product is less responsive proportionately to a change in price.

Advantage: Helps businesses maintain pricing power, increasing profit margins. Disadvantage: Consumers may seek alternatives if prices increase too much.

Advantage: Stable revenue during price fluctuations. Disadvantage: Limited opportunities for revenue growth through price increases.

**Flashcard #69** \n**Term:**

Income elasticity of demand (YED)

\n**Definition:**

Measures the responsiveness of changes in quantity demanded to changes in consumer income.

Advantage: Can inform businesses of potential market growth based on economic health. Disadvantage: Consumer preference changes may not correlate perfectly with income changes.

Advantage: Identifies which products or services can expect demand increases with rising income. Disadvantage: Limited insight for budget products that are less sensitive to income changes.

**Flashcard #70** \n**Term:**

Inferior good

\n**Definition:**

When incomes increase there is a decrease in quantity demanded.

Advantage: Stable demand during economic downturns as consumers may opt for less expensive options. Disadvantage: Demand can rapidly decline in prosperous economic times.

Advantage: Opportunity for differentiation in low-cost segments. Disadvantage: Reliance on economic conditions for sustainability can be precarious.

**Flashcard #71** \n**Term:**

Marketing mix

\n**Definition:**

A plan for using the right blend of product, price, promotion, and place to maximise sales.

Advantage: Provides a structured approach to developing strategies. Disadvantage: Can be rigid and may not adapt well to rapid market changes.

Advantage: Ensures a comprehensive strategy to reach target customers effectively. Disadvantage: Requires continual market analysis to remain relevant.

**Flashcard #72** \n**Term:**

Social trends

\n**Definition:**

Changing patterns in consumer behaviour reflected in changing demands.

Advantage: Monitoring trends can provide opportunities for innovation. Disadvantage: Rapid shifts may catch businesses off guard, risking market share.

Advantage: Helps businesses tailor marketing campaigns effectively. Disadvantage: Can lead to trends that quickly fade, impacting product viability.

**Flashcard #73** \n**Term:**

Aesthetics

\n**Definition:**

Relates to the appearance of a product.

Advantage: Strong aesthetics can create initial attraction and interest. Disadvantage: Overemphasis on appearance can overlook functionality or quality.

Advantage: Branding can enhance perception of product value. Disadvantage: Consumer preferences for aesthetics can be subjective and evolve.

**Flashcard #74** \n**Term:**

Cost (design mix)

\n**Definition:**

When the business focusses on being economically viable.

Advantage: Ensures long-term sustainability through cost management. Disadvantage: May lead to compromises on quality and functionality.

Advantage: Can enhance competitiveness through reduced prices. Disadvantage: Focusing solely on cost can undermine brand reputation.

**Flashcard #75** \n**Term:**

Design for recycling

\n**Definition:**

Producing products using materials that have been discarded as waste.

Advantage: Reduces environmental impact, appealing to eco-conscious consumers. Disadvantage: May increase production costs if recycling processes are not optimized.

Advantage: Can enhance brand reputation among sustainability-focused consumers. Disadvantage: Limited supply of quality recyclable materials can pose challenges.

**Flashcard #76** \n**Term:**

Design for reuse

\n**Definition:**

When a product is designed to allow for disassembly at the end of its life.

Advantage: Promotes sustainability and resource efficiency. Disadvantage: May increase initial manufacturing costs for businesses.

Advantage: Encourages customer loyalty by meeting sustainability goals. Disadvantage: Requires investment in educating consumers on reuse strategies.

**Flashcard #77** \n**Term:**

Design for waste minimisation

\n**Definition:**

Reducing the quantity of resources that are discarded in the production process.

Advantage: Cuts production costs by optimizing resource use. Disadvantage: Initial setup for waste reduction techniques can be resource-intensive.

Advantage: Enhances a company’s sustainable reputation. Disadvantage: Regulatory compliance can complicate waste minimization efforts.

**Flashcard #78** \n**Term:**

Design Mix

\n**Definition:**

The combination of factors needed in designing a product including Aesthetics, Function, Economic Manufacture.

Advantage: Balancing all aspects leads to well-rounded product development. Disadvantage: Achieving the perfect design mix may be difficult due to conflicting objectives.

Advantage: Can lead to greater customer satisfaction and loyalty. Disadvantage: May require ongoing investment in research and development.

**Flashcard #79** \n**Term:**

Ethical sourcing

\n**Definition:**

When a business buys materials that are produced with fair working conditions/pay.

Advantage: Enhances brand image and customer loyalty among ethical consumers. Disadvantage: Can come with higher costs compared to non-ethical sourcing.

Advantage: Reduces reputational risk linked to labor practices. Disadvantage: Limited availability of ethically sourced materials in some markets.

**Flashcard #80** \n**Term:**

Function

\n**Definition:**

Relates to the quality and reliability of a product.

Advantage: High product functionality can drive customer satisfaction and retention. Disadvantage: Overemphasis on function can result in neglecting aesthetics or user experience.

Advantage: Reliable products often lead to repeat sales and positive reviews. Disadvantage: Functional issues in products can cause costly recalls or reputation damage.

**Flashcard #81** \n**Term:**

Re Branding

\n**Definition:**

A strategy to develop a new identity for an established brand.

Advantage: Can revitalize a brand's image and reach new customers. Disadvantage: Significant investment in time and resources needed for a successful rebranding.

Advantage: Increases the brand's relevance in changing markets. Disadvantage: Risk of alienating existing customers who are loyal to the original brand.

**Flashcard #82** \n**Term:**

Resource depletion

\n**Definition:**

The using up of natural resources.

Advantage: Awareness leads to more sustainable practices and innovations. Disadvantage: Limits long-term viability of industries dependent on non-renewable resources.

Advantage: Can drive investments in alternative resources or technologies. Disadvantage: Organizations may face legal and regulatory challenges related to resource use.

**Flashcard #83** \n**Term:**

Advertising

\n**Definition:**

A paid form of communication to raise customer awareness.

Advantage: Can significantly boost brand visibility and sales if executed well. Disadvantage: High costs involved may not guarantee profitability.

Advantage: Can effectively communicate brand values and messages. Disadvantage: Consumer desensitization may reduce effectiveness over time.

**Flashcard #84** \n**Term:**

Customer loyalty

\n**Definition:**

Customers favouring a business over competitors when making a purchase.

Advantage: Leads to repeat sales and can lower marketing costs. Disadvantage: High customer loyalty can create complacency and hinder innovation.

Advantage: Loyal customers often provide valuable feedback and referrals. Disadvantage: May be risky if customer loyalty is tied to a specific product or service.

**Flashcard #85** \n**Term:**

Digital communications

\n**Definition:**

The electronic transfer of data.

Advantage: Enables quick and efficient communication with stakeholders. Disadvantage: Dependence on digital channels may lead to security vulnerabilities.

Advantage: Facilitates global reach and connectivity. Disadvantage: Requires continuous investment in technology to stay current.

**Flashcard #86** \n**Term:**

Direct marketing

\n**Definition:**

Where a business mails out leaflets or letters to households.

Advantage: Offers the ability to deliver personalized messages to target consumers. Disadvantage: Can be perceived as intrusive or spammy by recipients.

Advantage: Allows for measurable responses through targeted campaigns. Disadvantage: Legal regulations can limit direct marketing effectiveness.

**Flashcard #87** \n**Term:**

Emotional branding

\n**Definition:**

Creation of brands that appeal to customers' emotional nature.

Advantage: Builds strong connections with consumers leading to brand loyalty. Disadvantage: Risk of negative emotions affecting consumers' perceptions.

Advantage: Differentiates the brand through relatable narratives. Disadvantage: Requires ongoing effort to maintain emotional connections.

**Flashcard #88** \n**Term:**

Manufacture/corporate branding

\n**Definition:**

Brands created by the producers of goods and services.

Advantage: Strengthens overall brand identity and recognition. Disadvantage: Poor performance of one product can negatively impact the entire brand.

Advantage: Provides trust and reliability based on corporate reputation. Disadvantage: Can be challenging to create cohesion across varied products.

**Flashcard #89** \n**Term:**

Own brand

\n**Definition:**

Products manufactured for wholesalers or retailers by other businesses.

Advantage: Can lower costs by manufacturing in bulk. Disadvantage: Limited control over production quality and timelines.

Advantage: Typically higher profit margins compared to branded products. Disadvantage: Risk of consumer perception issues compared to established brands.

**Flashcard #90** \n**Term:**

Personal selling

\n**Definition:**

Direct communication between a salesperson and the customer.

Advantage: Provides customized experiences that can directly address customer needs. Disadvantage: Can be expensive and time-consuming compared to other marketing channels.

Advantage: Builds relationships and trust leading to customer retention. Disadvantage: Performance can vary significantly among salespeople, impacting effectiveness.

**Flashcard #91** \n**Term:**

Premium price

\n**Definition:**

Charging a higher price than competitors due to customer loyalty.

Advantage: High profit margins can lead to increased revenues. Disadvantage: Risks alienating price-sensitive customers.

Advantage: Enhances brand perception as a luxury or quality product. Disadvantage: Increased competition may arise as others attempt to mimic success.

**Flashcard #92** \n**Term:**

Product branding/Generic branding

\n**Definition:**

Products that only contain the name of the product category.

Advantage: Simplifies marketing and reduces costs associated with brand management. Disadvantage: Lack of brand recognition can make it harder to attract customers.

Advantage: Appeals to cost-conscious consumers seeking value. Disadvantage: Generic products often compete on price, eroding margins.

**Flashcard #93** \n**Term:**

Promotion

\n**Definition:**

The way a business creates demand for its product/service.

Advantage: Increases product awareness and sales quickly. Disadvantage: May result in short-term sales boosts but not sustainable long-term growth.

Advantage: Can be tailored to target specific consumer demographics. Disadvantage: Over-promotion may lead to consumer fatigue or skepticism.

**Flashcard #94** \n**Term:**

Public relations

\n**Definition:**

An organization’s attempt to communicate with interested parties.

Advantage: Builds brand credibility and trust through positive messaging. Disadvantage: Negative PR can damage reputation and consumer trust rapidly.

Advantage: Helps manage consumer perceptions of the brand. Disadvantage: Can be difficult to quantify the effectiveness of PR efforts.

**Flashcard #95** \n**Term:**

Sales promotions

\n**Definition:**

Methods of promoting products in the short term to boost sales.

Advantage: Quickly encourages consumer purchases and increases short-term sales. Disadvantage: Can erode brand value if used excessively.

Advantage: Attracts attention and generates excitement around products. Disadvantage: May lead to difficult recovery of sales once the promotion ends.

**Flashcard #96** \n**Term:**

Social media

\n**Definition:**

Websites and applications that enable users to participate in social networking.

Advantage: Direct interaction with customers aids in brand loyalty building. Disadvantage: Can expose brands to negative feedback that spreads quickly.

Advantage: Cost-effective marketing strategy with broad reach potential. Disadvantage: Requires ongoing engagement to maintain presence and relevance.

**Flashcard #97** \n**Term:**

Sponsorship

\n**Definition:**

Supporting another business or person in exchange for promotion.

Advantage: Can enhance brand visibility when aligning with popular figures/events. Disadvantage: Risk of negative association if the sponsored party faces controversies.

Advantage: Creates goodwill and community relationships. Disadvantage: Can require significant financial investment with uncertain returns.

**Flashcard #98** \n**Term:**

USP (Unique Selling Point)

\n**Definition:**

A feature that differentiates a product from its competitors.

Advantage: Clearly communicates what makes a product different, attracting targeted customers. Disadvantage: If not communicated effectively, it may not resonate with consumers.

Advantage: Helps brands carve out niche positions in crowded markets. Disadvantage: Over time, competitors may duplicate or undermine the USP.

**Flashcard #99** \n**Term:**

Viral marketing

\n**Definition:**

Encouraging customers to share information/adverts through social media.

Advantage: Can lead to low-cost, rapid spreads of brand messages. Disadvantage: Risks uncontrolled messaging and brand reputation if negatives arise.

Advantage: Engages customers in a creative way, enhancing excitement around products. Disadvantage: Unpredictable nature makes results difficult to forecast.

**Flashcard #100** \n**Term:**

Competitive pricing

\n**Definition:**

When a business sets a price similar to competitors.

Advantage: Can maintain or increase customer base by matching competitors. Disadvantage: May reduce profit margins if competitors engage in price wars.

Advantage: Helps a business remain competitive in saturated markets. Disadvantage: Reliant on competitors' pricing rather than innovation or differentiation.

**Flashcard #101** \n**Term:**

Cost plus pricing

\n**Definition:**

A method for setting prices by adding a mark-up percentage to the cost.

Advantage: Simple to calculate and implement in pricing strategy. Disadvantage: Fails to account for market demand and competitor pricing.

Advantage: Guarantees cost recovery with additional profit margin. Disadvantage: May not reflect the true value of the product to consumers.

**Flashcard #102** \n**Term:**

Penetration pricing

\n**Definition:**

Setting a low price initially to build market share.

Advantage: Attracts price-sensitive customers and builds volume quickly. Disadvantage: Low initial profits may not sustain business operations long-term.

Advantage: Creates opportunities to establish brand loyalty before price increases. Disadvantage: Competitors may respond with aggressive pricing strategies.

**Flashcard #103** \n**Term:**

Predatory pricing

\n**Definition:**

Setting a low price to force rivals out of the market.

Advantage: May temporarily capture market share from competitors. Disadvantage: Risk of legal ramifications for anti-competitive practices.

Advantage: Can lead to market domination if successful. Disadvantage: Not sustainable long-term, potentially damaging reputation.

**Flashcard #104** \n**Term:**

Price comparison websites

\n**Definition:**

Websites that compare the price of a product in different stores.

Advantage: Helps consumers find the best deals, enhancing customer satisfaction. Disadvantage: Can undermine retailers' pricing strategies by revealing lower prices.

Advantage: Enables businesses to understand competitive pricing and adjust strategies accordingly. Disadvantage: May incite pricing pressure among sellers competing for visibility.

**Flashcard #105** \n**Term:**

Price skimming

\n**Definition:**

Setting a high price at launch to recover initial costs.

Advantage: Quickly recoups development costs for innovative products. Disadvantage: High initial prices may limit market share early on.

Advantage: Creates exclusivity and appeal for high-end products. Disadvantage: Competitors may quickly imitate, eroding price advantages.

**Flashcard #106** \n**Term:**

Pricing strategy

\n**Definition:**

A method used by a business when deciding product price.

Advantage: Controls profit margins effectively through strategic planning. Disadvantage: Inflexibility can hinder responsiveness to market changes.

Advantage: Assists in achieving broader business goals and alignments. Disadvantage: Misalignment with consumer perception can lead to losses.

**Flashcard #107** \n**Term:**

Psychological pricing

\n**Definition:**

Tactics designed to appeal to a customer’s emotional response to prices.

Advantage: Effective for enhancing perceived value and attractiveness of products. Disadvantage: Changing consumer perceptions may limit effectiveness over time.

Advantage: Can drive impulse purchases based on emotional triggers. Disadvantage: Overreliance can lead to consumer skepticism toward pricing tactics.

**Flashcard #108** \n**Term:**

Channels of distribution

\n**Definition:**

Methods used to get products from manufacturer to consumer.

Advantage: Effective distribution ensures that products are available when needed. Disadvantage: Complexity in managing multiple distribution channels can arise.

Advantage: Can increase market reach and accessibility of products. Disadvantage: Inefficient channels can result in increased costs and lost sales.

**Flashcard #109** \n**Term:**

Distribution

\n**Definition:**

Getting products to the right place for customers.

Advantage: Efficient distribution enhances customer satisfaction and generates loyalty. Disadvantage: Poor distribution can lead to missed sales opportunities and brand damage.

Advantage: Directly impacts overall sales performance and profitability. Disadvantage: Failing to adapt distribution strategies can lead to obsolescence.

**Flashcard #110** \n**Term:**

Distribution channels

\n**Definition:**

Methods by which a product gets from manufacturer to consumer.

Advantage: Variety in channels allows businesses to tailor their approach for different markets. Disadvantage: Mismanagement of channels can dilute brand messaging.

Advantage: Can enhance product availability and visibility. Disadvantage: Managing multiple channels often increases operational complexity.

**Flashcard #111** \n**Term:**

Distribution strategy

\n**Definition:**

A plan to get a product or service to the customer.

Advantage: Provides a clear roadmap to maximize sales potential. Disadvantage: Requires ongoing analysis and adjustments to stay effective.

Advantage: Facilitates better planning for stock and logistics management. Disadvantage: Late adaptations can hinder responsiveness to competitive threats.

**Flashcard #112** \n**Term:**

Four stage distribution channel

\n**Definition:**

Manufacturer to wholesaler to retailer to consumer.

Advantage: Leverages expertise and infrastructure of wholesalers and retailers. Disadvantage: Increases the total cost of goods due to added margins.

Advantage: Efficiently reaches a wide market base through multiple touchpoints. Disadvantage: Can complicate the supply chain with added layers of communication.

**Flashcard #113** \n**Term:**

Online distribution/E-commerce

\n**Definition:**

Using electronic systems to sell goods and services.

Advantage: Expands market reach beyond geographical limitations. Disadvantage: High competition in online spaces can make differentiation difficult.

Advantage: Lower overhead costs compared to physical stores. Disadvantage: Security concerns may deter customers from online purchases.

**Flashcard #114** \n**Term:**

Place

\n**Definition:**

Where the product can be purchased.

Advantage: Convenient access enhances customer purchasing experience. Disadvantage: Poor placement can lead to limited visibility and sales.

Advantage: Strategic placement can impact brand awareness positively. Disadvantage: Frequent adjustments may be necessary to align with consumer preferences.

**Flashcard #115** \n**Term:**

Product

\n**Definition:**

A tangible item offered for sale.

Advantage: Clear definition of value proposition for consumers. Disadvantage: Managing product quality consistently can be challenging.

Advantage: Physical products can create tangible brand experiences. Disadvantage: High costs associated with product development and launches can be risky.

**Flashcard #116** \n**Term:**

Service

\n**Definition:**

The non-physical parts of our economy.

Advantage: Services can be tailored to meet specific customer needs. Disadvantage: Difficulty in measuring quality and performance consistently.

Advantage: Opportunity for differentiation and personalized experiences. Disadvantage: Services are often subject to variability in delivery.

**Flashcard #117** \n**Term:**

Three stage distribution channel

\n**Definition:**

Manufacturer to retailer to consumer.

Advantage: Reduces the need for wholesaler margins, benefiting manufacturers. Disadvantage: Limits reach compared to longer distribution networks.

Advantage: Provides direct connection between producers and consumers. Disadvantage: Requires additional marketing efforts by manufacturers to drive sales.

**Flashcard #118** \n**Term:**

Two stage distribution channel

\n**Definition:**

A direct marketing approach with no intermediary levels.

Advantage: Direct customer engagement leads to better feedback and relationship building. Disadvantage: Requires significant resources and commitment for customer management.

Advantage: Increases profit margins by eliminating middlemen. Disadvantage: Scalability can be challenging as the business grows.

**Flashcard #119** \n**Term:**

Boston matrix

\n**Definition:**

A method to analyse the product portfolio of a business.

Advantage: Provides a visual representation of product performance. Disadvantage: Oversimplifies complex market dynamics and may not include all factors.

Advantage: Aids decision-making for product development and marketing investments. Disadvantage: Results can vary and may not be reliable indicators of future success.

**Flashcard #120** \n**Term:**

Business to business (B2B)

\n**Definition:**

When a business promotes sales to other businesses.

Advantage: Often involves larger transaction values and more stable relationships. Disadvantage: Lengthy sales processes can strain cash flow and operations.

Advantage: Builds strategic partnerships that can enhance market position. Disadvantage: Highly competitive B2B markets require ongoing effort to maintain partnerships.

**Flashcard #121** \n**Term:**

Business to customer (B2C)

\n**Definition:**

A company targeting to sell its products to individual customers.

Advantage: Allows for direct interaction with consumers, enhancing brand loyalty. Disadvantage: Consumer demand can fluctuate unexpectedly impacting sales.

Advantage: Simplifies marketing campaigns tailored to consumers. Disadvantage: High competition can make standing out difficult.

**Flashcard #122** \n**Term:**

Consumer loyalty

\n**Definition:**

A preference for a product or brand based on experience and emotional attachment.

Advantage: Increases repeat purchases and reduces marketing costs. Disadvantage: High dependency on loyal customers can lead to vulnerability if preferences shift.

Advantage: Advocates often drive word-of-mouth marketing. Disadvantage: Loyalty programs can incur significant costs without guaranteed return.

**Flashcard #123** \n**Term:**

Extension strategy

\n**Definition:**

A plan to prevent the decline of a product’s sales.

Advantage: Can rejuvenate interest and prolong product lifecycle. Disadvantage: May divert resources from new product development efforts.

Advantage: Sustains market presence in periods of declining sales. Disadvantage: Risks consumer fatigue if tactics are overused or poorly executed.

**Flashcard #124** \n**Term:**

Marketing objective

\n**Definition:**

A goal the business aims to achieve through its marketing activities.

Advantage: Provides focus and direction for marketing strategies and campaigns. Disadvantage: Requires regular reevaluation as markets change and evolve.

Advantage: Improves accountability and measurement of marketing success. Disadvantage: Rigid objectives may limit exploration of emerging market opportunities.

**Flashcard #125** \n**Term:**

Marketing strategy

\n**Definition:**

The methods chosen to achieve marketing objectives.

Advantage: Guides businesses toward goal alignment and resource allocation. Disadvantage: High complexity can lead to difficulties in implementation and measurement.

Advantage: Assists with competitive analysis and positioning. Disadvantage: Requires ongoing research to remain relevant and successful.

**Flashcard #126** \n**Term:**

Portfolio analysis

\n**Definition:**

Considering each product in the context of its market position.

Advantage: Helps businesses identify strengths and weaknesses within their offerings. Disadvantage: Analysis can become outdated quickly as market dynamics change.

Advantage: Informs resource allocation for product development. Disadvantage: Complexity in measuring and interpreting market positions can arise.

**Flashcard #127** \n**Term:**

Product life cycle

\n**Definition:**

The stages a product goes through from introduction to decline.

Advantage: Provides a framework for managing product strategy effectively. Disadvantage: Relying solely on the cycle can lead to misjudgment of product performance.

Advantage: Aids in forecasting sales and revenue trends. Disadvantage: Factors influencing a lifecycle may vary greatly between products.

**Flashcard #128** \n**Term:**

Product portfolio

\n**Definition:**

The collection of items produced/sold by a business.

Advantage: Diversification spreads risk across multiple products. Disadvantage: May require extensive management and resources to maintain.

Advantage: Provides insights for strategic planning and development. Disadvantage: Balancing a varied portfolio may dilute brand identity.

**Flashcard #129** \n**Term:**

Collective bargaining

\n**Definition:**

Negotiation of wages/conditions of employment between employees and employer.

Advantage: Facilitates fair compensation and working conditions for employees. Disadvantage: Can lead to prolonged disputes and industrial action if negotiations fail.

Advantage: Strengthens the voice of employees, contributing to better workplace relations. Disadvantage: Risk of conflicts arising from differing interests between parties.

**Flashcard #130** \n**Term:**

Dismissal

\n**Definition:**

The termination of employment by an employer against the will of the employee.

Advantage: Allows businesses to eliminate underperforming employees. Disadvantage: Can lead to low morale among remaining employees.

Advantage: Facilitates restructuring and improvement of workforce quality. Disadvantage: May result in legal fallout if not handled in compliance with labor laws.

**Flashcard #131** \n**Term:**

Employer/employee relations

\n**Definition:**

The way a company’s management and its employees behave towards each other.

Advantage: Strong relations can lead to higher productivity and employee satisfaction. Disadvantage: Poor relations can lead to unresolved conflicts affecting performance.

Advantage: Positive relations can foster loyalty and retention among employees. Disadvantage: Requires ongoing efforts and adaptations to maintain healthy dynamics.

**Flashcard #132** \n**Term:**

Individual approach (employer/employee relations)

\n**Definition:**

When employers develop relationships with employees at an individual level.

Advantage: Personalized relationships can enhance employee satisfaction. Disadvantage: Can create disparities in treatment among employees.

Advantage: Encourages open communication and swift conflict resolution. Disadvantage: Requires significant resources and time to manage effectively.

**Flashcard #133** \n**Term:**

Multiskilling

\n**Definition:**

The process of increasing the skills of employees.

Advantage: Increases workforce flexibility and adaptability. Disadvantage: Initial training costs can be high and time-consuming.

Advantage: Enhances overall productivity and efficiency in the workplace. Disadvantage: While upskilling, current job responsibilities may be temporarily neglected.

**Flashcard #134** \n**Term:**

Part-time employees

\n**Definition:**

Workers that generally work a few hours or days a week.

Advantage: Reduces labor costs and increases scheduling flexibility. Disadvantage: May lead to reduced commitment and connection to the company culture.

Advantage: Provides businesses with the ability to scale labor needs based on demand. Disadvantage: Training and management of part-time workers can become complex.

**Flashcard #135** \n**Term:**

Redundancy

\n**Definition:**

When a business needs to reduce the size of its workforce.

Advantage: Helps streamline operations and reduce unnecessary costs. Disadvantage: Can have negative impacts on employee morale and company reputation.

Advantage: Allows businesses to refocus resources on critical areas. Disadvantage: Legal implications and potential compensation can strain finances.

**Flashcard #136** \n**Term:**

Staff as a cost

\n**Definition:**

A cost to businesses in terms of recruitment and training.

Advantage: Informs financial planning and budgeting for human resources. Disadvantage: Can lead to underinvestment in employee development.

Advantage: Helps highlight the importance of efficiency in workforce management. Disadvantage: Can create a perception of employees as liabilities rather than assets.

**Flashcard #137** \n**Term:**

Staff as an asset

\n**Definition:**

Employers recognize the input of employees as an important business resource.

Advantage: Encourages investment in training and development, enhancing workforce capability. Disadvantage: Potentially higher labor costs for businesses prioritizing employee development.

Advantage: Fosters a positive workplace culture and employee retention. Disadvantage: Risks associated with employee turnover remain significant.

**Flashcard #138** \n**Term:**

Temporary work

\n**Definition:**

A job position for a limited period of time.

Advantage: Provides flexibility to businesses in fluctuating markets. Disadvantage: May not foster long-term employee loyalty or commitment.

Advantage: Reduces costs associated with long-term employment benefits. Disadvantage: Can lead to inconsistency in work quality and training efficiency.

**Flashcard #139** \n**Term:**

Trade unions

\n**Definition:**

A workforce representative that acts to protect and improve working conditions.

Advantage: Provides collective bargaining power for workers. Disadvantage: Can lead to tensions between management and employees, affecting productivity.

Advantage: Promotes fair treatment and better working conditions. Disadvantage: Membership fees and costs may dissuade participation.

**Flashcard #140** \n**Term:**

External recruitment

\n**Definition:**

When the business looks to fill vacancies from outside.

Advantage: Brings in fresh ideas and perspectives to the organization. Disadvantage: Longer induction and training periods may be necessary.

Advantage: Reduces internal favoritism that can lead to a toxic workplace. Disadvantage: High costs associated with recruitment processes.

**Flashcard #141** \n**Term:**

Induction training

\n**Definition:**

Introductory training covering the company's background and policies.

Advantage: Helps new employees adapt quickly to company culture and processes. Disadvantage: May be viewed as time-consuming by experienced hires.

Advantage: Provides essential information for compliance and effective onboarding. Disadvantage: Failure to conduct thorough training can lead to early turnover.

**Flashcard #142** \n**Term:**

Internal recruitment

\n**Definition:**

Selecting employees from within the business to fill job vacancies.

Advantage: Improves employee motivation and retention. Disadvantage: Can lead to a lack of new ideas and perspectives entering the organization.

Advantage: Lower costs associated with recruitment and training. Disadvantage: Creates competition among current employees for promotions.

**Flashcard #143** \n**Term:**

Off the job training

\n**Definition:**

Training away from the normal job environment.

Advantage: Provides opportunities for specialized skills development. Disadvantage: Can be costly and reduce time spent on work tasks.

Advantage: Opportunities for networking and experiencing diverse learning environments. Disadvantage: Employees may feel disconnected from their primary roles during training.

**Flashcard #144** \n**Term:**

On-the-job training

\n**Definition:**

Learning/developing skills while working.

Advantage: Practical, hands-on training enhances skills quickly. Disadvantage: Inconsistent quality of training if not properly supervised.

Advantage: Cost-effective way to train employees in real work environments. Disadvantage: Risk of distractions that can hinder learning and productivity.

**Flashcard #145** \n**Term:**

Recruitment

\n**Definition:**

The process of finding and selecting workers.

Advantage: Effective recruitment leads to a strong, capable workforce. Disadvantage: Poor recruitment practices can lead to high turnover costs.

Advantage: Aligns skill sets with business needs for future success. Disadvantage: Can be resource-intensive and require significant time investments.

**Flashcard #146** \n**Term:**

Training

\n**Definition:**

The developing of a person, to enhance skills and knowledge.

Advantage: Improves employee performance and satisfaction. Disadvantage: Training costs can stretch budgets thin, leading to resource conflicts.

Advantage: Encourages a culture of continuous improvement within organizations. Disadvantage: May not yield immediate results or return on investment.

**Flashcard #147** \n**Term:**

Centralised structure

\n**Definition:**

Decisions are made at the top of hierarchy by senior management.

Advantage: Promotes coherence and clarity in decision-making. Disadvantage: Slower response times to market changes due to bureaucratic layers.

Advantage: Ensures strategic alignment across the organization. Disadvantage: Employee morale may suffer as they feel less empowered.

**Flashcard #148** \n**Term:**

Chain of command

\n**Definition:**

The way authority is organised in an organisation.

Advantage: Provides clarity of roles and responsibilities within the organization. Disadvantage: Can lead to delays in decision-making and communication breakdowns.

Advantage: Establishes clear lines of authority for efficient management. Disadvantage: Rigid chains may stifle creativity and innovation.

**Flashcard #149** \n**Term:**

Decentralised structure

\n**Definition:**

When branches have control to make their own decisions.

Advantage: Allows for more responsive decision-making in local markets. Disadvantage: Can lead to inconsistency in brand messaging and operational approaches.

Advantage: Empowers teams which can boost morale and engagement. Disadvantage: Risk of poor alignment with overall corporate strategies if not managed well.

**Flashcard #150** \n**Term:**

Flat organisational structure

\n**Definition:**

A structure with few layers and a wider span of control.

Advantage: Empowers employees and encourages communication. Disadvantage: Can lead to role confusion if responsibilities are not clearly defined.

Advantage: Faster decision-making processes due to reduced hierarchy. Disadvantage: Can overwhelm leaders with too many direct reports.

**Flashcard #151** \n**Term:**

Hierarchy

\n**Definition:**

The order or levels of responsibility in an organisation.

Advantage: Clear structure provides guidance on authority and accountability. Disadvantage: Can create a stagnant workplace culture if overly rigid.

Advantage: Helps to organize roles and improve efficiency. Disadvantage: Potential for delays in decision-making and communication overhead.

**Flashcard #152** \n**Term:**

Matrix organisational structure

\n**Definition:**

Organises employees from different disciplines into projects.

Advantage: Encourages collaboration and resource sharing between teams. Disadvantage: Complexity can lead to confusion over authority and responsibilities.

Advantage: Flexible approach to project management and skill utilization. Disadvantage: High potential for conflict if not properly managed.

**Flashcard #153** \n**Term:**

Organisation structure

\n**Definition:**

A diagram that shows who is answerable to whom in an organisation.

Advantage: Provides clarity regarding reporting relationships and roles. Disadvantage: Overly rigid structures can inhibit responsiveness to change.

Advantage: Aids in recruitment and training processes through clearer roles. Disadvantage: May become outdated in rapidly changing environments.

**Flashcard #154** \n**Term:**

Span of control

\n**Definition:**

The number of employees that a manager is responsible for.

Advantage: A wide span can promote independence and empower employees. Disadvantage: Too wide a span can lead to managerial overload.

Advantage: Narrow spans can enhance managerial oversight and guidance. Disadvantage: Creates potential bottlenecks in decision-making.

**Flashcard #155** \n**Term:**

Tall organisational structure

\n**Definition:**

One with many layers and a narrow span of control.

Advantage: Allows for specialized management at different levels. Disadvantage: Can lead to bureaucracy that slows decision-making.

Advantage: More opportunities for upward mobility among employees. Disadvantage: Communication can break down at layers, limiting effectiveness.

**Flashcard #156** \n**Term:**

Bonus

\n**Definition:**

A sum of money added to an employee’s wages as a reward for performance.

Advantage: Can motivate employees to achieve higher performance standards. Disadvantage: May lead to unhealthy competition among employees if not managed properly.

Advantage: Promotes a results-oriented culture within the organization. Disadvantage: Reliance on bonuses can lead to short-term thinking and neglect longer-term goals.

**Flashcard #157** \n**Term:**

Commission

\n**Definition:**

A payment to a worker based on a percentage of sales.

Advantage: Directly ties employee compensation to performance, encouraging high sales. Disadvantage: May negatively affect teamwork as individuals focus on personal gains.

Advantage: Can lead to increased motivation and drive among sales personnel. Disadvantage: Fluctuations in demand can create income instability for employees.

**Flashcard #158** \n**Term:**

Consultation

\n**Definition:**

Employee feedback is sought when making business decisions.

Advantage: Encourages employee involvement and ownership of decisions. Disadvantage: Time-consuming process may slow down decision-making.

Advantage: Can lead to more informed and effective decisions. Disadvantage: Employees may feel frustrated if their input is not acted upon.

**Flashcard #159** \n**Term:**

Delegation

\n**Definition:**

Authority passed from superior to subordinate.

Advantage: Empowers employees to take responsibility, leading to increased motivation. Disadvantage: Risk of miscommunication and different work styles affecting outcomes.

Advantage: Frees up management time for strategic activities. Disadvantage: Oversight is needed to ensure work is done correctly.

**Flashcard #160** \n**Term:**

Empowerment

\n**Definition:**

Giving official authority to employees to make decisions.

Advantage: Boosts employee morale and engagement through ownership. Disadvantage: Requires trust in employees and can lead to inconsistent decision-making.

Advantage: Fosters creativity and innovation as employees feel valued. Disadvantage: Managers may need to invest significant time in training empowered employees.

**Flashcard #161** \n**Term:**

Financial incentives

\n**Definition:**

Monetary rewards to improve staff motivation.

Advantage: Provides tangible rewards that can drive performance. Disadvantage: May breed entitlement if not managed correctly.

Advantage: Can significantly improve employee productivity and accountability. Disadvantage: Risks overlooking non-financial motivators that could be effective.

**Flashcard #162** \n**Term:**

Flexible workforce

\n**Definition:**

Employees have choice over how/when they work.

Advantage: Increases employee satisfaction and work-life balance. Disadvantage: Productivity can be inconsistent if not properly managed.

Advantage: Can lead to reduced costs associated with hiring full-time staff. Disadvantage: May complicate organization and coordination of teams.

**Flashcard #163** \n**Term:**

Flexible working

\n**Definition:**

Offering different working hours/pattern of working.

Advantage: Attracts a wider pool of talent seeking work-life balance. Disadvantage: Some managers may struggle with overseeing flexible arrangements effectively.

Advantage: Can lead to greater employee retention and satisfaction. Disadvantage: Not all roles may be suited for flexible working conditions.

**Flashcard #164** \n**Term:**

Job enlargement

\n**Definition:**

Giving an employee more work of a similar nature.

Advantage: Reduces monotony and enhances job satisfaction. Disadvantage: May lead to an increase in workload without additional compensation.

Advantage: Can improve skills and training experiences for employees. Disadvantage: Risk of overloading employees, impacting morale and productivity.

**Flashcard #165** \n**Term:**

Job enrichment

\n**Definition:**

Giving employees greater responsibility and recognition.

Advantage: Enhances employee motivation and job satisfaction levels. Disadvantage: Requires careful implementation to avoid confusion over responsibilities.

Advantage: Can lead to improved performance outcomes and retention. Disadvantage: Not all employees may respond positively to increased responsibility.

**Flashcard #166** \n**Term:**

Job rotation

\n**Definition:**

The changing of jobs or tasks.

Advantage: Increases skill sets and keeps work interesting. Disadvantage: Can disrupt workflow and require additional training.

Advantage: Promotes versatility in the workforce. Disadvantage: Employees may feel unsettled with frequent changes in their roles.

**Flashcard #167** \n**Term:**

Maslow's hierarchy of needs

\n**Definition:**

The order of people’s needs, starting with basic human needs.

Advantage: Provides a useful framework for understanding employee motivations. Disadvantage: May oversimplify human needs and motivations which are complex.

Advantage: Helpful for developing effective employee reward systems. Disadvantage: Not all employees will fit neatly into the hierarchy.

**Flashcard #168** \n**Term:**

Mayo's human relations theory

\n**Definition:**

Motivation improves when employees feel more involved.

Advantage: Emphasizes the importance of worker morale and social interactions. Disadvantage: May overlook critical economic and pragmatic factors affecting performance.

Advantage: Suggests methods to enhance workplace relationships for better results. Disadvantage: The effectiveness of social needs can vary greatly between individuals.

**Flashcard #169** \n**Term:**

Motivation

\n**Definition:**

The reason for people’s actions, willingness, and goals.

Advantage: Understanding motivation can lead to higher productivity in the workplace. Disadvantage: Difficult to address motivation as it varies across individuals and situations.

Advantage: Effective motivation strategies can improve employee engagement. Disadvantage: Overemphasis might lead to burnout and stress among workers.

**Flashcard #170** \n**Term:**

Non-financial methods of motivation

\n**Definition:**

Ways of encouraging employees without monetary rewards.

Advantage: Cost-effective solutions to improve employee satisfaction. Disadvantage: May not be as impactful as financial incentives for some employees.

Advantage: Encourages a more holistic approach to workplace culture. Disadvantage: Effectiveness can be challenging to quantify or gauge.

**Flashcard #171** \n**Term:**

Non-financial techniques

\n**Definition:**

Ways of encouraging employees without monetary rewards.

Advantage: Fosters a supportive work environment and culture. Disadvantage: May be perceived as inadequate for high-performing employees expecting rewards.

Advantage: Cost-effective strategies can enhance workplace satisfaction. Disadvantage: Requires creativity and consistent execution to remain effective

Flashcard #1* \n**Term:**

Performance-related pay

\n**Definition:**

A financial reward to employees whose work meets standard.

Advantage: Direct incentive for employees to improve performance. Disadvantage: Overemphasis on performance metrics can lead to unhealthy competition.

Advantage: Can foster a culture of accountability and high achievement. Disadvantage: Risks of demotivation if standards are seen as unrealistic.

**Flashcard #2** \n**Term:**

Piece rate

\n**Definition:**

A payment system where employees are paid for every item produced.

Advantage: Can significantly motivate production and efficiency. Disadvantage: Quality may be compromised as workers focus on quantity.

Advantage: Eases cost control by paying based on output. Disadvantage: Can create variability in income for employees, leading to dissatisfaction.

**Flashcard #3** \n**Term:**

Profit sharing

\n**Definition:**

A form of financial incentive where part of the profit is shared.

Advantage: Aligns employee goals with business success, promoting teamwork. Disadvantage: May not provide immediate reward, leading to short-term focus.

Advantage: Can enhance organizational commitment and motivation. Disadvantage: Profit sharing can be perceived as unfair if not well-distributed.

**Flashcard #4** \n**Term:**

Taylor's scientific management

\n**Definition:**

Suggested a job could be broken into constituent parts.

Advantage: Increases efficiency by optimizing task performance. Disadvantage: Can lead to monotonous work, reducing employee satisfaction.

Advantage: Clear task definitions help improve training and onboarding. Disadvantage: Overemphasis on productivity can neglect employee well-being.

**Flashcard #5** \n**Term:**

Team working

\n**Definition:**

Organising people into working groups with a common aim.

Advantage: Encourages collaboration, drawing on diverse skills and ideas. Disadvantage: Team conflicts can arise, impacting productivity and morale.

Advantage: Can lead to improved problem solving through collective effort. Disadvantage: Reliance on group dynamics can lead to inefficiencies or slower decisions.

**Flashcard #6** \n**Term:**

Working conditions

\n**Definition:**

The physical surroundings and atmosphere of the workplace.

Advantage: Good working conditions can enhance employee productivity and satisfaction. Disadvantage: Poor conditions can lead to high employee turnover and absenteeism.

Advantage: Safe and healthy workplaces promote employee engagement. Disadvantage: Need for continual investment to maintain improved standards.

**Flashcard #7** \n**Term:**

Autocratic leadership

\n**Definition:**

A style where decision-making is kept with managers.

Advantage: Quick decision-making can improve efficiency in urgent situations. Disadvantage: May lead to low employee morale and lack of engagement.

Advantage: Clear direction can be provided to employees. Disadvantage: Risks stifling creativity and innovation from team members.

**Flashcard #8** \n**Term:**

Democratic leadership

\n**Definition:**

A leadership style where group members participate in decision-making.

Advantage: Employees feel valued and engaged, leading to higher morale. Disadvantage: Decision-making can be slow and cumbersome due to too many opinions.

Advantage: Can foster creativity and innovation through diverse input. Disadvantage: Not all situations allow for democratic processes to be effective.

**Flashcard #9** \n**Term:**

Laissez-faire

\n**Definition:**

A leadership style where employees make their own decisions.

Advantage: Allows for high degree of autonomy which can foster innovation. Disadvantage: Risk of lack of direction and clarity leading to poor performance.

Advantage: Suitable for highly skilled teams who thrive on independence. Disadvantage: Inconsistent results due to varying levels of employee motivation.

**Flashcard #10** \n**Term:**

Leadership

\n**Definition:**

Having a vision and providing direction.

Advantage: Good leadership can inspire teams and drive success. Disadvantage: Poor leadership can result in lack of direction and demotivation.

Advantage: Effective leaders build strong organizational cultures. Disadvantage: Leadership changes can disrupt team dynamics and operations.

**Flashcard #11** \n**Term:**

Management

\n**Definition:**

The day-to-day organisation of the business.

Advantage: Ensures efficient use of resources to achieve goals. Disadvantage: Can become overly bureaucratic, slowing down decision-making.

Advantage: Good management provides structure and reliability. Disadvantage: Over-management may inhibit employee creativity and initiative.

**Flashcard #12** \n**Term:**

Paternalistic leaders

\n**Definition:**

Leaders that take the welfare of employees into account.

Advantage: Builds loyalty and trust among employees, enhancing morale. Disadvantage: Can create dependency, limiting employee initiative.

Advantage: Creates a supportive environment for employees. Disadvantage: Risk of becoming too involved in personal aspects of employees' lives, leading to issues.

**Flashcard #13** \n**Term:**

Entrepreneur

\n**Definition:**

Someone who sets up and runs a business taking on financial risks.

Advantage: Drives innovation and economic growth through new ideas. Disadvantage: High uncertainty and risk of failure associated with starting a new business.

Advantage: Creates job opportunities and contributes to community development. Disadvantage: Requires significant investment of time, resources, and effort.

**Flashcard #14** \n**Term:**

Entrepreneurship

\n**Definition:**

The activity of setting up a business and taking on risks.

Advantage: Promotes creativity and innovation within the economy. Disadvantage: High levels of stress and burnout can occur among entrepreneurs.

Advantage: Can lead to substantial financial rewards if successful. Disadvantage: Often involves uncertainty and unpredictability in outcomes.

**Flashcard #15** \n**Term:**

Resilience

\n**Definition:**

The ability to recover from difficulties.

Advantage: Enables businesses to adjust to changing environments and challenges. Disadvantage: Continuous resilience requirements can drain resources and morale.

Advantage: Fosters long-term sustainability strategies. Disadvantage: May develop a culture of fear if not addressed and supported well.

**Flashcard #16** \n**Term:**

Risk

\n**Definition:**

Probabilities of outcomes are known or considered.

Advantage: Informed risk-taking can lead to innovation and growth opportunities. Disadvantage: Poor risk management can lead to financial losses and failures.

Advantage: Risk assessment provides clarity and focus on strategic objectives. Disadvantage: Over-analysis can lead to paralysis in decision-making.

**Flashcard #17** \n**Term:**

Entrepreneurial characteristics

\n**Definition:**

Qualities or traits demonstrated by entrepreneurs.

Advantage: Often lead to successful business ventures and innovations. Disadvantage: Characteristics such as risk aversion can hinder growth.

Advantage: Allows for adaptability and quick decision-making. Disadvantage: May create challenges in team dynamics if not balanced with other traits.

**Flashcard #18** \n**Term:**

Entrepreneurial motive

\n**Definition:**

Factors that drive a person to start a business.

Advantage: Strong motives lead to persistence and commitment to business goals. Disadvantage: Motivation may wane if external factors shift or if setbacks occur.

Advantage: Variety of motives can lead to diverse business approaches. Disadvantage: Misalignment of motives among co-founders can lead to conflict.

**Flashcard #19** \n**Term:**

Ethical stance

\n**Definition:**

In support of a moral belief.

Advantage: Builds brand reputation and customer loyalty through trustworthiness. Disadvantage: Ethical decisions may limit profit opportunities in competitive markets.

Advantage: Can lead to improved employee morale and engagement. Disadvantage: Ethical considerations may complicate decision-making processes requiring balance between profit and principles.

**Flashcard #20** \n**Term:**

Home working

\n**Definition:**

Setting up a business from home.

Advantage: Lower overhead costs and flexibility in work arrangement. Disadvantage: May lack professional separation from personal life leading to distractions.

Advantage: Simplified setup and reduced logistical challenges. Disadvantage: Isolation can affect collaboration and communication with others.

**Flashcard #21** \n**Term:**

Independence

\n**Definition:**

A desire to be one’s own boss.

Advantage: Freedom to make decisions and set one's hours. Disadvantage: Financial insecurity can be a major concern when running a business independently.

Advantage: Allows for creativity in business approach and offerings. Disadvantage: Loneliness and lack of support from ownership can be challenging.

**Flashcard #22** \n**Term:**

Profit Satisficing

\n**Definition:**

Making enough profit to satisfy the business owner.

Advantage: Balances profit goals and personal lifestyle preferences. Disadvantage: May lead to insufficient growth or market competitiveness in the long run.

Advantage: Reduces pressure on business owners, promoting personal satisfaction. Disadvantage: Short-term focus can ignore longer-term strategic planning and sustainability.

**Flashcard #23** \n**Term:**

Social entrepreneurship

\n**Definition:**

Setting up a business with concern for social issues.

Advantage: Addresses societal needs while generating revenue. Disadvantage: May struggle to attain sufficient funding for operations.

Advantage: Fulfills social missions, appealing to conscious consumers. Disadvantage: Balancing social goals with business sustainability can be challenging.

**Flashcard #24** \n**Term:**

Business objective

\n**Definition:**

A goal set by the business to help achieve its aim/mission.

Advantage: Clear objectives provide focus and motivation for staff. Disadvantage: Overly rigid objectives can limit adaptability and innovation.

Advantage: Helps measure success and alignment with mission. Disadvantage: Failure to achieve objectives can lead to decreased morale.

**Flashcard #25** \n**Term:**

Cost efficiency

\n**Definition:**

Minimising costs when producing a product.

Advantage: Helps maximize profit margins and business sustainability. Disadvantage: Risk of compromising quality for cost savings.

Advantage: Enables competitive pricing strategies in the market. Disadvantage: Constant pressure to reduce costs can lead to worker dissatisfaction.

**Flashcard #26** \n**Term:**

Customer satisfaction

\n**Definition:**

Measurement of how satisfied a customer is with their purchase.

Advantage: High satisfaction leads to repeat business and referrals. Disadvantage: Measuring customer satisfaction can be complex and subjective.

Advantage: Provides valuable feedback for business improvement. Disadvantage: Rapid changes in customer preferences can make satisfaction difficult to maintain.

**Flashcard #27** \n**Term:**

Employee welfare

\n**Definition:**

Facilities and benefits provided by a business for its employees.

Advantage: Improves employee loyalty and productivity. Disadvantage: Can incur additional costs for the organization.

Advantage: Attracts and retains top talent in the job market. Disadvantage: Requires ongoing assessment to ensure programs remain relevant.

**Flashcard #28** \n**Term:**

Objective

\n**Definition:**

A goal set by the business to help achieve its aim.

Advantage: Provides accountability and benchmarks for performance. Disadvantage: Rigid objectives may discourage creative problem-solving.

Advantage: Helps align resources to achieve defined goals. Disadvantage: Failure to achieve objectives can demotivate staff.

**Flashcard #29** \n**Term:**

Profit maximisation

\n**Definition:**

When the difference between sales revenue and cost is greatest.

Advantage: Drives business growth and wealth generation. Disadvantage: Overemphasis on profits may compromise ethical standards.

Advantage: Sustains investor confidence through strong financial performance. Disadvantage: Focusing only on short-term profit can ignore long-term sustainability and growth.

**Flashcard #30** \n**Term:**

Sales maximisation

\n**Definition:**

An attempt to sell as much as possible in a given time period.

Advantage: Increases market share and brand visibility. Disadvantage: Can erode profit margins if sales are prioritized over pricing.

Advantage: Drives higher revenue in the short term. Disadvantage: May lead to neglect of cost management and product quality.

**Flashcard #31** \n**Term:**

Social objectives

\n**Definition:**

A goal to benefit the community.

Advantage: Contributes to corporate social responsibility and enhances brand image. Disadvantage: May limit focus on profit generation and shareholder value.

Advantage: Creates goodwill and loyalty among consumers. Disadvantage: Requires resources that may detract from core business functions.

**Flashcard #32** \n**Term:**

Survival

\n**Definition:**

A short-term objective that aims to keep the business running.

Advantage: Essential focus during tough economic times or crises. Disadvantage: May require sacrificing longer-term strategic plans.

Advantage: Provides a safety net that can help stabilize operations. Disadvantage: Persistent focus on survival can hinder growth and innovation.

**Flashcard #33** \n**Term:**

Franchise

\n**Definition:**

A business buys the right to trade using an existing firm’s model.

Advantage: Lower risk compared to starting a new business from scratch. Disadvantage: Limited control over operational processes and branding.

Advantage: Established brand recognition can speed up customer acquisition. Disadvantage: Incurs franchise fees and profit-sharing obligations reducing overall profits.

**Flashcard #34** \n**Term:**

Franchising

\n**Definition:**

A business operator allows others to trade under its name.

Advantage: Rapid market expansion with lower capital investment by franchisers. Disadvantage: Can lead to inconsistent brand experience if franchisees do not adhere to standards.

Advantage: Franchisees contribute local knowledge and networks. Disadvantage: Risk of franchisees undermining the brand through poor practices.

**Flashcard #35** \n**Term:**

Lifestyle business

\n**Definition:**

A business set up with a set level of income for a particular lifestyle.

Advantage: Provides personal satisfaction and work-life balance. Disadvantage: Growth may be stunted if focused solely on personal needs.

Advantage: Flexibility in business operations and goals. Disadvantage: Often lacks the drive for aggressive marketing or expansion strategies.

**Flashcard #36** \n**Term:**

Partnership

\n**Definition:**

A type of business owned by two or more people.

Advantage: Shared resources and skills can enhance business capabilities. Disadvantage: Conflicts may arise from differing opinions and management styles.

Advantage: Potential for higher capital investment than sole proprietorships. Disadvantage: Unlimited liability risks if the business incurs debts.

**Flashcard #37** \n**Term:**

Private limited company

\n**Definition:**

A business run by a family with limited liability.

Advantage: Owners have limited liability protecting personal assets. Disadvantage: Can face limitations on raising capital through share sales.

Advantage: More privacy used compared to public limited companies. Disadvantage: Restrictions on the transferability of shares can reduce liquidity.

**Flashcard #38** \n**Term:**

Public limited company

\n**Definition:**

A business whose shares are publicly traded.

Advantage: Greater access to capital markets for raising funds. Disadvantage: Significant regulatory scrutiny and reporting requirements.

Advantage: Increased brand visibility through stock market presence. Disadvantage: Shareholder demands may lead to short-term focus rather than long-term strategy.

**Flashcard #39** \n**Term:**

Social enterprise

\n**Definition:**

A business with aims that benefit society and is not for profit.

Advantage: Focus on community can drive strong consumer loyalty. Disadvantage: May struggle to achieve sustainability and consistent revenue generation.

Advantage: Addresses social issues effectively while promoting brand values. Disadvantage: May face higher operational costs related to social missions.

**Flashcard #40** \n**Term:**

Sole trader

\n**Definition:**

A business owned by one person with unlimited liability.

Advantage: Simple to set up and manage independently. Disadvantage: Unlimited liability poses a risk to personal assets.

Advantage: Full control over decision-making and profits. Disadvantage: Financial and operational burdens fall entirely on the owner.

**Flashcard #41** \n**Term:**

Stock market flotation

\n**Definition:**

When a business sells shares publicly for the first time.

Advantage: Raises significant funds for expansion and investment. Disadvantage: Comes with high costs and regulatory requirements.

Advantage: Increased visibility and credibility in the market. Disadvantage: Vulnerability to market fluctuations and shareholder pressure.

**Flashcard #42** \n**Term:**

Opportunity cost

\n**Definition:**

The next best alternative forgone when making a decision.

Advantage: Encourages better decision-making by considering all options. Disadvantage: Can complicate decision processes by highlighting potential losses.

Advantage: Promotes strategic thinking and prioritization in resource allocation. Disadvantage: Difficult to quantify for all types of decisions.

**Flashcard #43** \n**Term:**

Trade-off

\n**Definition:**

Having more of one thing leads to less of another.

Advantage: Encourages optimal decision-making by evaluating options. Disadvantage: May lead to dissatisfaction if not managed appropriately.

Advantage: Can help organizations balance competing priorities effectively. Disadvantage: Requires in-depth analysis to determine the best path forward.

**Flashcard #44** \n**Term:**

Leader

\n**Definition:**

A person who inspires and motivates others.

Advantage: Strong leadership can drive team performance and morale. Disadvantage: Poor leadership can lead to confusion and low employee morale.

Advantage: Effective leaders can create a vision that aligns their team. Disadvantage: Leadership styles that clash with team preferences can create friction.