995 terms
Absence Management
Strategies to reduce employee absences: monitoring absence patterns, addressing underlying causes, disciplinary procedur...
Understanding markets and customers
absenteeism
Rate of employees being absent from work (illness, personal issues, disengagement).
Analysing human resource performance
Accounting Rate of Return (ARR)
An investment appraisal method that expresses the average annual profit from an investment as a percentage of the initia...
Making financial decisions: improving cash flow and profits
Accounts Receivable (Trade Credit)
Amount customers owe for goods/services already delivered.
Understanding different business forms
Acid Test Ratio
(Liquid Capital Ratio).
Setting financial objectives
Acquisition
Buying existing business/company to gain control.
Analysing financial performance
Adding Value
The process of increasing the worth or usefulness of a product or service beyond its basic function, allowing businesses...
Setting marketing objectives
Advertising
A form of paid communication used to promote products, services, or brands to target audiences through various media (TV...
Advertising (Demand Factor)
Paid promotional communication affecting consumer demand by raising awareness, creating desire, or persuading purchase.
Advertising (Marketing)
Paid communication promoting products/brands to target audiences through media.
Aesthetics (Design)
Visual appeal and appearance of a product.
Alternative Strategies
Different strategic approaches to achieve objectives.
Angel Investor
(see Business Angel in 1.5).
Ansoff Matrix (Strategic)
A strategic growth matrix plotting products (new/existing) against markets (new/existing) to identify four growth strategies.
Strategic direction: choosing which markets to compete in and what products to offer
Ansoff's Matrix
Strategic tool showing growth strategies based on product/market combinations.
Anticipation (Risk)
Recognizing potential future threats/opportunities and preparing responses.
Understanding the nature and purpose of business
Appendices:
All 7 accounting ratios (with formulas), Quantitative skills, Transferable skills.
Appreciation (Currency)
Increase in currency value relative to another.
AQA Section 3.3/3.4 Global Terms:
Globalisation, FDI, MNCs, Trading blocs, Glocalisation, Offshoring, Outsourcing, Global marketing, Cultural adaptation, ...
AQA Section 3.3/3.5 Key Terms:
Ansoff's Matrix (4 strategies), Boston Matrix (4 quadrants), Porter's Five Forces (5 forces), Porter's Strategic Matrix,...
ASEAN
(Association of Southeast Asian Nations).
Asset Finance
Borrowing to purchase specific assets (equipment, vehicles, property).
Autocratic Leadership
Leadership style where leader makes decisions with little/no employee input.
Understanding management, leadership and decision making
automation
Using technology/machines for tasks traditionally done by humans.
Assessing greater use of digital technology
B2B Marketing
Business-to-Business marketing — promoting products or services sold from one business to another rather than to individ...
B2C Marketing
Business-to-Consumer marketing — promoting products or services directly to individual end consumers.
Balance of Payments
Account recording all economic transactions between country and rest of world.
balance sheet
(Statement of Financial Position).
Analysing the existing internal position of a business to assess strengths and weaknesses: financial ratio analysis
Bank Loan
Money borrowed from bank to be repaid with interest over agreed period.
Barriers to Entrepreneurship
Obstacles preventing business creation: lack of capital, insufficient skills, risk aversion, family obligations, market ...
Barriers to Trade
Obstacles reducing international trade: tariffs (taxes), quotas (quantity limits), regulations, local content requiremen...
Batch Production
Manufacturing specified quantity of identical products in groups.
Benefit (Government)
Financial support provided to eligible individuals: unemployment benefits, disability support, family allowances.
Bias (in Research)
Systematic errors that distort research results, causing them to deviate from the true picture.
Bonus
Lump sum additional payment to employees based on performance, company profits, or achievements.
Bootstrapping
Starting/growing business with minimal external funding; relying on: personal savings, revenue reinvestment, free resour...
Boston Matrix
A tool for managing your product portfolio — which products to invest in, maintain, or drop.
Making marketing decisions: using the marketing mix
Bottleneck
Process step limiting overall production capacity.
Brand Recognition
The extent to which consumers can identify and recall a brand from its name, logo, design, or other distinguishing featu...
Brand/Branding
The identity and reputation of a product or company, comprising name, logo, design, values, and customer perception.
Branding Strategy
Plan for creating, building, and managing a brand identity.
Break-Even Analysis
Technique determining minimum sales needed to cover all costs.
Break-Even Chart
Graph showing relationship between sales volume, costs, revenue, profit.
Break-Even Point
The exact number of sales needed to cover all costs — neither profit nor loss.
budget
Financial plan allocating resources for specific period (usually year).
Budgetary Control
Monitoring actual performance against budgets; taking corrective actions.
Budgeting
Process of creating budgets; planning financial resources.
buffer stock
Spare inventory held to buffer against demand variations/supply disruptions.
Making operational decisions to improve performance: managing inventory and supply chains
Business Angel
Individual investor providing capital to startups in exchange for equity.
Business Continuity
Plans/processes ensuring organization continues operating during disruptions.
Business Creation
Process of starting new business from concept to launch.
Business Culture Transfer
The process by which an MNC spreads its management practices, values, and working culture from its home country to its i...
Making human resource decisions: improving organisational design and managing the human resource flow
Business Cycle
Alternating periods of economic expansion and contraction.
Understanding that businesses operate within an external environment
Business Cycle (Global)
Economic fluctuations affecting multiple countries.
Business Efficiency
Achieving maximum output from a given level of inputs; producing goods or services at minimum cost without sacrificing q...
Business Environment
External factors affecting business: market conditions, competition, regulations, technology, economics, society.
Business Ethics
The application of moral principles to business decisions and behaviour, addressing what is right and wrong in commercia...
Understanding management decision making
Business Failure
When a business is unable to continue trading, typically because it cannot pay its debts (insolvency) or because it is n...
Business Objectives
Goals/targets business aims to achieve.
Business Plan
Formal document detailing: business concept, market analysis, financial projections, operations plan, management structu...
Business Start-Up
The process of creating and launching a new business venture from the initial idea through to becoming operational.
Business Strategy
Long-term plan achieving business objectives.
capacity
Maximum production level in period.
Analysing operational performance
capacity utilisation
Percentage of available capacity actually used.
Capital
Funds invested in business; financial resources.
Capital Equipment
Assets used long-term in business operations: machinery, vehicles, buildings, computers.
Capital Flows
Movement of investment money between countries.
Capital-Intensive
A production method or business that relies heavily on machinery, equipment, and technology rather than labour to produc...
Making operational decisions to improve performance: increasing efficiency and productivity
Cash Budget
Financial plan showing anticipated cash inflows/outflows.
Cash Conversion Cycle
Time from cash outlay for materials to cash receipt from sales.
Cash Cow (Boston Matrix)
Product with high market share in low-growth market.
Cash Position
Actual amount of cash available to business.
Cash-Flow
Movement of money in/out of business.
Cash-Flow Forecast
Projection of future cash movements over period (monthly, quarterly).
Cash-Flow Forecast: Variables
Key factors changing cash-flow: sales volume, payment terms, seasonal variation, supplier payments, capital spending, lo...
Cash-Flow Problems
Insufficient cash to meet obligations despite profitability.
Cell Production
(Cellular Manufacturing).
Centralised Organisation
Structure where decision-making is concentrated at senior management level.
Chain of Command
Line of authority showing who reports to whom in an organization.
Setting human resource objectives
change management
The structured process of planning, implementing, and embedding change within an organisation to minimise disruption and...
Managing change
Characteristics (Entrepreneurial)
Personal qualities of successful entrepreneurs: vision, risk tolerance, determination, creativity, resilience, adaptabil...
Child Labour
Employment of children under legal working age in unacceptable conditions.
collective bargaining
Negotiation between employer and employee representatives (unions) regarding wages, conditions, benefits.
Making human resource decisions: improving employer-employee relations
Colonial History
Historical period of colonization; establishing control over territories.
commission
Payment to employees based on sales achieved (percentage of sales value).
Making human resource decisions: improving motivation and engagement
Comparative Advantage
Economic principle that countries benefit from specializing in products with lowest opportunity cost.
competition
The rivalry between businesses offering similar products/services to the same market.
Competition (as Barrier)
Intense market competition making startup success difficult.
Competition Policy
Government regulations promoting fair competition, preventing monopolies/unfair practices.
competitive advantage
The unique advantage a business has over rivals that enables it to outperform them and generate superior returns.
Strategic positioning: choosing how to compete
Competitive Environment
Overall market conditions and competitive pressures.
Competitive Position
Where business stands relative to competitors.
Competitive Pricing
Setting prices at similar levels to competitors.
competitive strategy
Approach to competing effectively.
Analysing the external environment to assess opportunities and threats: the competitive environment
Competitiveness (Global)
Ability to compete in global markets.
Competitor Actions (Demand Factor)
Competitor pricing, promotion, product, distribution affecting demand.
Complementary Goods
Products that are purchased and used together.
Consultation
Management seeking employee input on decisions affecting them.
Consumer Behaviour
The study of how individuals make decisions to spend their available resources (time, money, effort) on consumption-rela...
Consumer Income
Money available to consumers to spend on products/services.
Consumer Prices Index (CPI)
Measure of average price changes for consumer goods/services.
Consumer Protection
Laws safeguarding consumers: product safety, honest information, rights to redress.
Consumer Spending
Total expenditure by households on goods/services.
Consumers (Global)
Customers in markets worldwide; increasingly interconnected through: travel, internet, media, global brands.
Context (Global Business)
External environment affecting global business.
Contingency Plan
Backup plan if primary plan fails.
Continuous Improvement
(Kaizen).
contribution
How much each unit sold contributes towards covering fixed costs (and then profit).
Contribution Margin
Contribution as percentage of sales price.
Control (Quality)
Inspection/testing during/after production ensuring standards.
Setting operational objectives
Convergence (Consumer)
Tendency of consumer preferences becoming similar globally.
Core Competencies
The unique combination of skills, capabilities, and resources that give a business a sustainable competitive advantage and are difficult for rivals to replicate.
Corporate Aims
General, broad business direction; aspirational statements.
Corporate Culture
Values, beliefs, behaviors characteristic of organization.
Corporate Objectives
Specific, measurable targets business aims to achieve.
Corporate Social Responsibility (CSR)
Business responsibility to stakeholders beyond profit maximization.
Corporate Strategy
Overall long-term plan achieving corporate objectives.
Corporate Timescale
The time horizon over which a business makes its strategic and financial decisions, ranging from short-term (weeks to mo...
Cost (Design Element)
Production cost considerations in design.
Cost Behaviour
How costs change with activity levels.
Cost Categories
Classification of business costs.
Cost Competitiveness
Competing through lower costs than competitors.
Cost Efficiency
Business objective minimizing costs while maintaining quality.
Cost Leadership Strategy
Competing by having lowest production costs, enabling low prices.
Cost of Production
Expenses incurred making products: materials, direct labor, manufacturing overhead.
Cost Plus Pricing
Pricing strategy adding fixed markup percentage to unit production costs.
Cost Push Inflation
Inflation caused by rising production costs (materials, labor, energy).
Cost-Benefit Analysis
Systematic evaluation comparing benefits and costs of decision/project.
Cost-Plus Pricing
(covered in 1.3).
Costs (Types)
**Fixed costs:** unchanged by activity (rent, salaries, insurance). **Variable costs:** change with activity (materials,...
Craft Skill
Specialized skill developed through training and experience.
Creative Thinking
Generating novel ideas/solutions to problems.
Critical Appraisal
Critical evaluation; identifying strengths and weaknesses.
Critical AQA 3.3/3.5 terms included:
- ✓ Ansoff's Matrix (all 4 strategies).
Critical Path Analysis (CPA)
A project management technique that identifies the longest sequence of dependent activities (the critical path) in a pro...
Cross-Border Trade
Buying/selling across country borders.
Crowdfunding
Raising capital through small contributions from many people, typically via online platforms.
Cultural Adaptation
Modifying business approach to align with local culture.
Cultural Difference
Variations in values, behaviors, communication styles between cultures.
Cultural Diversity
Existence of multiple cultures within organization/market.
Currency
Medium of exchange; money of country.
Currency Exchange
Trading one currency for another at market rate.
Currency Risk
Uncertainty from exchange rate fluctuations.
Current Assets
Business assets convertible to cash within 12 months.
Current Liabilities
Business obligations due within 12 months.
current ratio
Liquidity measure comparing current assets to current liabilities.
Customer Loyalty
The tendency of consumers to repeatedly purchase from the same business and resist switching to competitors.
Customer Needs (Global)
What customers want globally; varying by country/culture.
Customer Satisfaction
Business objective ensuring customers receive value and are content.
Damping Effect
Reduction in shock transmission between countries.
Days Sales Outstanding (DSO)
Average time to collect payment from customers.
Debt Finance
Raising capital through borrowing; must repay with interest.
Debt Management
Strategies for managing business borrowing.
Decentralised Organisation
Structure where decision-making is distributed to lower management/staff levels.
Decision
Choice between alternatives; selecting one option from options.
Decision Making
Process of choosing between alternatives.
decision tree
A quantitative decision-making tool that maps out possible options, their probabilities, and expected outcomes in a tree...
Decision-Making Technique
Systematic method assisting decision-making.
Default Risk
Risk of debtor inability to repay debt.
Defensive Strategy
Strategy protecting existing position against threats.
Making financial decisions: sources of finance
Deflation
Sustained decrease in general price level.
delayering
Removing one or more layers of middle management from the organisational hierarchy to flatten the structure and improve communication and speed.
delegation
Assigning tasks/responsibility to employees with appropriate authority.
Demand
Quantity of a product consumers are willing and able to buy at different prices in a given time period.
Demand Changes (Forecasting)
Factors affecting demand forecasts: consumer trends, economic factors, competitor actions, seasonality, marketing.
Demand Curve
Graphical representation showing relationship between price and quantity demanded.
Demand-Pull Inflation
Inflation from high demand exceeding supply ("too much money chasing too few goods").
Democratic Leadership
Leadership style seeking employee input in decisions.
Demographics
Statistical characteristics of human populations including age, gender, income, education, occupation, family size, ethn...
Demographics (as Demand Factor)
Population characteristics (age, gender, income, education, family size) affecting demand.
Dependent Economy
Economy heavily reliant on specific products/markets/countries.
Depreciation
Reduction in asset value over time due to use, wear, age, obsolescence.
Depreciation (Currency)
Decrease in currency value relative to another.
Derivative Markets
Markets trading financial instruments (futures, options, swaps) derived from underlying assets.
Design Mix
Three key elements of product design: **Function** (what it does), **Aesthetics** (how it looks), **Cost** (price to pro...
Developing Country
Country with lower income, less industrialized, often lower HDI.
Development
Process of economic, social, technological progress.
Development Index (Human)
(HDI).
differentiation
Making product/business distinctly different from competitors.
Differentiation (Global)
Making product unique in global markets.
Differentiation (Marketing)
Making products distinctly different from competitors through unique features, quality, design, service, or brand.
Differentiation Strategy
Competing through unique, valued product features.
Digital Technology in Business
The use of digital tools — automation, e-commerce, big data, AI, and data mining — to transform business operations and strategy.
Assessing globalisation and internationalisation
Direction (Global)
Toward what global markets business aims.
Direction (Strategic)
Where business is heading; long-term path.
Discount Rate
Percentage applied to future cash flows to calculate present value.
Discounted Cash Flow (DCF)
A technique that adjusts future cash flows to their present value by applying a discount rate, reflecting the principle ...
diseconomies of scale
The increase in average (unit) cost that occurs when a business becomes too large to manage efficiently.
Assessing a change in scale
Disintegration (Trade)
Reduction in international trade/integration.
Dismissal
Termination of employment due to employee misconduct or poor performance.
Disposable Income
The amount of money households have available to spend or save after direct taxes (income tax and National Insurance) ha...
Distinctive Capability
Unique organizational strengths difficult for competitors to copy.
Distribution (Global)
Getting products to customers across countries.
Distribution Channel
Path product takes from producer to consumer.
Divergence
Difference/separation increasing over time.
diversification
Business moving into different products/markets beyond current focus.
Diversification (Ansoff)
Ansoff's Matrix strategy: entering new products and new markets.
Diversification Benefits
Advantages of operating in multiple markets/products.
dividend
Distribution of profits to shareholders.
Divisional Structure
Organization divided into semi-autonomous divisions by: product, geography, market, customer type.
Dog (Boston Matrix)
Product with low market share in low-growth market.
Domestic Market
Home country market where business primarily operates.
Downsizing (Staffing)
Reducing workforce size to cut costs or restructure.
Dumping
Selling products at prices below domestic prices in foreign markets.
Dynamic Capability
Organization's ability to adapt, change, improve over time.
Dynamic Market
A market that is constantly changing due to innovation, new competitors, changing consumer preferences, or technological...
Earliest Start Time (EST)
In Critical Path Analysis, the earliest possible time at which an activity can begin, based on when all preceding activi...
Earnings
Profit; bottom-line income after expenses.
economic growth
Increase in real GDP; expansion of economy.
Analysing the external environment to assess opportunities and threats: economic change
Economic Integration
Process of countries becoming economically linked through: trade agreements, shared markets, monetary union.
Economic Interdependence
Countries' economies mutually dependent on each other.
Making marketing decisions: segmentation, targeting, positioning
Economic Uncertainty
Unpredictability in economic conditions; difficulty forecasting.
Economic Value Added (EVA)
Profit exceeding cost of capital; true economic profit.
Economic Variables (Demand Factor)
Macro-economic factors affecting demand: GDP growth, unemployment, inflation, interest rates, exchange rates.
Economics
Study of how societies manage scarce resources.
economies of scale
The reduction in average (unit) cost as output increases, because fixed costs are spread over more units and greater scale brings operational efficiencies.
Economies of Scale (Global)
Cost advantages from large-scale production/operations globally.
Effectiveness
Achieving objectives; doing right things.
efficiency
Achieving output with minimum resources.
Efficiency (HR)
Productivity of employees measured by: output per hour worked, cost per unit produced, turnaround time.
Efficiency Ratios
Financial ratios measuring how effectively a business manages its assets and liabilities: receivables days, payables days, and inventory turnover.
Elastic Demand
A situation where the percentage change in quantity demanded is greater than the percentage change in price (PED > 1 in ...
Elasticity (Economics)
Sensitivity of quantity demanded/supplied to price changes.
Elkington's Triple Bottom Line
A framework measuring business performance on three dimensions: Profit (financial), People (social), and Planet (environmental).
emerging economy
Country moving from developing toward developed status.
Emissions
Discharge of substances into environment; typically refers to greenhouse gases.
Emotional Branding
Creating brands that connect with customers' emotions and values rather than just product features.
Employee Welfare
A business objective focused on the physical, mental, and financial wellbeing of employees beyond minimum legal requirem...
Employer-Employee Relationship
Interaction and agreement between employer and employee.
Employment (Global)
Jobs worldwide; increasingly mobile with globalization.
Employment Contract
Legal agreement between employer and employee outlining: job role, salary, hours, rights, responsibilities, conditions.
Employment Flexibility
(see Flexible workforce - 1.4).
Employment Level
Total number of people working in economy/sector.
Employment Protection
Laws protecting employee rights: minimum wage, working hours, discrimination protection, health/safety, dismissal proced...
Employment Rights
Protections employees have: fair treatment, safe conditions, minimum wage, non-discrimination, contractual protection.
Empowerment (HR)
Giving employees authority and responsibility to make decisions affecting their work.
Endorsement (Celebrity)
Using famous person to promote product/brand.
Entrepreneur
Individual creating/running business, assuming financial risk for potential reward.
Entrepreneurial Characteristics
See Characteristics (Entrepreneurial) above.
Entrepreneurial Skills
Abilities supporting business success: business planning, financial management, marketing, leadership, problem-solving, ...
Entrepreneurship
Process of creating/running business ventures.
Entry Mode
Method of entering foreign market.
Environmental Factor
External element affecting environment: climate, resources, pollution, sustainability.
Environmental Impact
Effects of business on natural environment: emissions, waste, resource use, pollution.
Environmental Protection
Laws/policies preventing environmental damage: pollution control, resource conservation, waste management, climate regul...
Environmental Scanning
Monitoring external environment for opportunities/threats.
Environmental Standards
Requirements for acceptable environmental performance: emissions limits, waste handling, energy efficiency.
Equity Finance
Raising capital through selling ownership shares.
Ethical Sourcing (Product)
Ensuring products are produced ethically: fair wages, safe conditions, environmental protection, no exploitation.
Ethical Stance
The moral position or set of values that guides a business's decision-making, particularly regarding issues such as the ...
Ethics (Global Business)
Moral principles guiding global business conduct.
Ethnocentric Approach
A global marketing strategy in which the home country's marketing approach is applied uniformly in all international mar...
EU
(European Union).
Evidence-Based Decision
A decision made by systematically gathering and analysing relevant data and research before choosing a course of action,...
Exchange Gain/Loss
Profit/loss from currency exchange rate changes.
exchange rate
Price of one currency in terms of another.
Exclusion (Trade)
Preventing market access; trade barrier effect.
Experience Curve
Concept that costs decrease as volume increases (learning effect).
export
Selling goods/services to foreign countries.
Exporter
Business selling goods/services to foreign markets.
Extension Strategies
Methods to extend product life cycle in maturity/decline stages. **Product extension:** modify product (new features, fl...
External Economies of Scale
Cost advantages that arise from the growth of the whole industry or cluster of businesses in a region, benefiting all fi...
external finance
Capital raised from outside sources: banks (loans), investors (equity), governments (grants), organizations (crowd fundi...
External Growth (Mergers and Takeovers)
Growth achieved by combining with or acquiring another business, rather than growing from within.
External Influences (Production)
Outside factors affecting production: supplier availability, energy prices, labor availability, regulations, technology ...
External Recruitment
Hiring new employees from outside the organization through: job advertisements, recruitment agencies, universities, netw...
External Shock
Unexpected external event affecting economy/business: oil price spike, natural disaster, war, pandemic, financial crisis...
External Shocks
Unexpected, sudden events affecting supply or demand.
External Stakeholder
An individual or group outside the organisation who has an interest in or is affected by its activities. Includes custom...
Externality (Environmental)
External cost/benefit not reflected in market price.
extrapolation
Using an established trend (from historical data or a line of best fit) to forecast future values by extending the trend...
Failure (Business)
Business ceasing operations; unable to continue.
Failure Rate
Percentage of products/services failing to meet standards.
fair trade
Trade practice ensuring fair prices, conditions for producers (especially in developing countries).
Family Funding
Capital from family members for business.
Fashion/Tastes/Preferences
Consumer preferences and desires for certain products changing over time.
Fashion/Trends (Marketing)
Changing consumer preferences for styles, designs, and products.
Favoritism
Showing preference/bias for certain parties.
FDI
(Foreign Direct Investment).
Financial Contagion
Rapid spread of financial crisis from one country/market to others.
Financial Forecast
Projection of future financial performance.
Financial Hardship
Situation where business has insufficient funds to meet obligations.
Financial Incentive
Money-based rewards motivating performance: salary increases, bonus, commission, profit share, pay rises.
Financial Leverage
Using debt financing to increase returns on equity.
Financial Market (Global)
Worldwide system trading financial instruments: stocks, bonds, currencies, derivatives.
Financial Motive
Drive to earn money/profit.
Financial Objectives
Specific financial targets; profitability, growth, returns goals.
Financial Position
Overall financial health of business at point in time.
financial ratio
Relationship between financial figures measuring performance/position.
Financial Services
Banking, investment, insurance, payment services.
Financial Statements
Documents reporting financial position/performance: balance sheet, income statement, cash-flow statement.
First Mover Advantage
The competitive benefits gained by being the first to enter a market or launch a new product, including brand recognition and customer loyalty.
fiscal policy
Government use of taxation and spending to influence economy.
Five Forces (Porter)
Framework analyzing competitive intensity.
Fixed Assets
Long-term business assets lasting >1 year: property, equipment, vehicles, technology.
Fixed Costs
Expenses unchanged by production/sales volume.
Fixed Exchange Rate
Official government set exchange rate (not market determined).
Flat Structure
Organization with few hierarchy levels; many employees report to one manager.
Flexible Hours
Employment arrangement allowing employees to vary working hours around core times.
flexible organisation
An organisation that adapts its structure, workforce, and operations quickly in response to changing business conditions.
Flexible Workforce
Employment practices using varied staffing arrangements.
flexible working
Various arrangements allowing employees flexibility: part-time, flexible hours, job-sharing, homeworking, compressed wee...
Floating Exchange Rate
Market-determined exchange rate; fluctuates based on supply/demand.
Flotation
(Stock Market - see 1.5).
Flow (Capital)
Movement of investment money; direction and quantity.
Flow (Trade)
Direction and quantity of goods/services traded between countries.
Flow Production
(Continuous Production).
Focus Group
Small group (8-12) of target customers/employees discussing topics under moderation.
focus strategy
Competing by serving specific market segment well.
Forecasting (Production)
Predicting future production needs based on: demand forecasts, inventory levels, supplier lead times.
Forecasting (Sales)
Predicting future sales based on: historical data, market analysis, trends, competitor actions, planned marketing.
Foreign Exchange
Trading currencies; market where currencies exchange.
Foreign Exchange Reserve
Currency/assets held by central bank for: paying international debts, stabilizing currency, intervention capacity.
Formal Training
Structured, planned training programs: induction, on-the-job, off-the-job, apprenticeships, courses.
Forward Integration
Vertical integration moving toward customer; acquiring downstream business.
Franchise (Global)
Business model where franchisor licenses business to franchisee in foreign country.
Franchise/Franchising
Business model where franchisee operates business using franchisor's brand/systems for fee/royalty.
free trade
International trade without barriers (tariffs, quotas, restrictions).
Friends Funding
Capital from friends for business.
FTZ
(Free Trade Zone).
Full Integration
Complete merging of operations/systems.
Function (Design)
What a product does; its purpose and how well it performs its intended task.
Function (Job)
Main purpose and responsibilities of a job role.
Functional Strategy
Plan for specific business function (HR, marketing, operations, finance).
Funding
Providing financial resources for business.
Gap Analysis
Identifying difference between current position and desired position (goal).
GDP
(Gross Domestic Product).
GDP Per Capita
GDP divided by population; average income per person.
Gearing Ratio
Measure of financial leverage; proportion of borrowing vs equity.
Geocentric Approach
A global marketing strategy that treats the world as a single market, developing standardised products and marketing tha...
Geopolitics
Politics influenced by geography; competition for resources and power.
Gilts
UK government bonds; low-risk investment paying interest.
Global Brand
Brand recognized/valued worldwide.
Global Business
Business operating in multiple countries; international scope.
Global Competition
Competition at worldwide level.
Global Finance
Financial management at global level.
Global Marketing Strategy
Plan for marketing products/services globally.
Global Markets
Worldwide customer base for products/services.
Global Mindset
Perspective valuing global understanding, diversity, complexity.
Global Niche Market
A small but globally distributed segment of consumers with very specific needs that can be served profitably across mult...
Global Strategy
Corporate strategy for international/global operations.
Global Supply Chain
Network of suppliers, manufacturers, distributors spanning multiple countries.
globalisation
The increasing integration of the world's economies through trade, investment, migration, and the free flow of information and technology.
Glocalisation
Global marketing strategy adapted to local markets.
Goodwill
(Intangible Asset).
Government Grants
Non-repayable funding from government for specified purposes: research, training, regional development, environmental in...
Government Incentive
Financial/non-financial support from government attracting business.
Government Spending
Expenditure by government on goods, services, wages, benefits, infrastructure.
Grading/Classification (Products)
Sorting products by quality, size, or standards.
Grievance Procedure
Formal process for employees to raise complaints about treatment, conditions, or management.
Gross Domestic Product (GDP)
Total value of goods/services produced in country in period.
Gross National Income (GNI)
Total income earned by country residents/companies; includes income earned abroad.
gross profit
Sales minus cost of goods sold (direct production costs).
Gross Profit Margin
Gross profit as percentage of revenue.
Growth
Increase in business size measured by: revenue, profit, market share, employee count, asset value.
Growth (Economic)
Increase in economic output; real GDP growth.
Growth (Market)
Expansion of market size; increasing total sales.
Growth Objective
Strategic goal to increase business size/revenue.
Growth Potential
Future opportunity for market/business expansion.
Growth Rate
Percentage increase in economic/market measure over period.
Growth Vector
Direction of growth strategy; how business will expand.
Guest Workers
Foreign nationals working temporarily in another country.
hard HRM
An approach treating employees primarily as a cost to be managed and controlled to meet business objectives.
HDI
(Human Development Index - already covered).
Health and Safety
Protection of people from work-related harm.
Hedge/Hedging
Strategy reducing financial risk.
hierarchy
Arrangement of positions/people by authority level.
Hierarchy (Global Organization)
Reporting structure across multiple countries; global organization design.
hierarchy of needs
(Maslow - see 1.4).
Hire Purchase
Arrangement to use asset while paying for it in installments.
Historical Budgeting
Setting budgets based on previous year's actual figures, adjusted for expected changes.
Home Working (Entrepreneurship)
Running business from home.
Homeworking
Employment arrangement where employees work from home (full-time or part-time).
horizontal integration
Merging with competitor at same supply chain level.
Host Country
Country where foreign business operates.
Human Development
Progress in human wellbeing; life expectancy, education, income.
Human Resources (HR)
Department managing: recruitment, training, compensation, performance, employee relations, legal compliance.
Human-Intensive
Business/process relying heavily on human labor.
Hygiene Factors (Herzberg)
Job factors that prevent dissatisfaction but don't motivate.
ICT (HR Management)
Use of technology in HR: HR systems (payroll, records), recruitment tools, training platforms, performance monitoring, e...
ICT (Information and Communication Technology)
Technology enabling global communication, data processing, business operations.
ICT and Market Research
Use of Information and Communication Technology to gather and analyze market data.
Idea Generation
Process of creating new business concepts.
Identifying Customer Needs and Wants
Market research process to discover what customers require (needs - essential products) and desire (wants - preferred pr...
Idle Capacity
Unused production capacity; output below potential.
Implementation
Putting strategy/plan into action; executing decisions.
Import
Buying goods/services from foreign countries.
Importer
Business purchasing goods/services from foreign suppliers.
Incentive
Motivation/reward encouraging specific behavior/outcome.
Income (Global)
Money earned by individuals/organizations/countries.
Income Distribution
How income is divided among population.
Income Elasticity of Demand (YED)
Measure of how demand changes when consumer income changes.
Income Level
Amount of money earned by individual/family/country.
income statement
(Profit & Loss Account).
Incorporation (Company)
Legal process establishing company as separate legal entity.
Independence (Economic)
Country's ability to function economically without dependence on others.
Independence (Motive)
Desire to work for oneself, control own decisions, be own boss.
Index (Economic)
Measure tracking economic variable over time.
Indexation
Automatic adjustment of value based on index (e.g., wage indexation to inflation).
Indicated Risk
Risk suggested/shown by analysis/information.
Indirect Tax
Tax paid indirectly through intermediary; typically on products.
Indirect Taxes (Supply Factor)
Taxes on products paid by producers (e.g., excise duty, VAT).
Induction Training
Initial training for new employees.
Industry
Group of businesses producing similar products/services.
Inelastic Demand
A situation where the percentage change in quantity demanded is less than the percentage change in price (PED < 1 in abs...
Inequality
Unequal distribution of resources, income, opportunity.
inflation
Sustained increase in general price level.
Inflation (Global)
Worldwide general price increase.
Inflation Rate
Percentage increase in price level year-over-year.
Informal Authority
Power/influence held due to: expertise, respect, personality rather than official position.
Informal Finance
Funding outside formal banking system: family, friends, saving groups, private investors.
Informal Training
Learning through: mentoring, shadowing, observation, experience, peer learning.
Infrastructure
Basic physical systems: roads, electricity, water, communications, ports.
Inherent Risk
Risk existing in situation before controls/mitigation.
innovation
Introduction of new ideas, products, services, or ways of doing business that create value.
Assessing innovation
Innovation (Entrepreneurial)
Creating new products, services, processes, business models.
Innovation (Product and Process)
The development and successful commercial application of new ideas — product innovation creates new offerings, process innovation improves how things are made or delivered.
Inorganic Growth
Growth through acquisition, merger, takeover.
Input
Resource/material entering production process.
Insolvency
Inability to pay debts when due.
Inspection
(Quality - already covered).
Inspection (Quality)
Examination of products to ensure they meet standards before delivery to customers.
Integration
Combining organizations/functions; merger of entities.
Integrity (Leadership)
Quality of being honest, principled, consistent in values and actions.
Intended Strategy
Plan developed based on deliberate analysis and decision-making.
Interdependence (Economic)
Countries' economies mutually dependent.
Interest
Cost of borrowing; paid by borrower to lender.
Interest (Financial)
Cost of borrowing money; paid to lenders.
Interest Coverage Ratio
Ability to service debt from profits.
interest rate
Cost of borrowing; return on savings.
Interest Rate (Global)
Borrowing cost influenced by: central bank policy, risk, inflation expectations.
Interest Rate Change
Increase/decrease in borrowing costs.
Intermediary
Organization between producer and consumer.
Internal Analysis
Evaluation of organization's internal resources/capabilities.
Internal Communication
Sharing information/messages within organization.
Internal Economies of Scale
Cost advantages that arise from growth within a particular business, reducing average unit costs as output expands.
internal finance
Capital raised from within organization: owner's capital, retained profits, asset sales.
Internal Recruitment
Hiring new employees from existing workforce through: internal advertisement, promotion, transfer.
Internal Stakeholder
An individual or group within the organisation who has a direct interest in its activities and decisions. Includes emplo...
International
Between or among nations; across borders.
International Trade
Exchange of goods/services between countries.
Internet
Global communication network enabling worldwide connectivity.
Intervention (Government)
Government action affecting economy: regulation, taxation, spending, subsidies.
Interview (Recruitment)
Face-to-face or video conversation between interviewer and job candidate assessing: qualifications, skills, personality,...
Interviewer Bias
Subjective judgment in interviews affecting fairness.
intrapreneurship
Entrepreneurial behaviour and innovation by employees within a large organisation, acting as if they own the project they are developing.
inventory
(Stock).
Inventory Holding Costs
Costs of keeping inventory: storage, insurance, obsolescence, deterioration, financing.
inventory turnover
How many times inventory is sold/replaced per period.
Investigative Marketing
Researching market/customers before major business decisions.
Investment
Purchasing assets expecting future returns: financial (stocks, bonds), physical (equipment, property), business (equity ...
Investment (Foreign)
Buying assets in foreign country.
investment appraisal
A set of financial techniques used to evaluate whether a capital investment project is financially worthwhile, comparing...
Analysing strategic options: investment appraisal
Investment Appraisal (Strategic)
Financial techniques used to assess whether a capital investment project is financially worthwhile: Payback, ARR, and NPV.
Investment Return
Profit/gain from investment.
Invoice Factoring
Selling unpaid invoices to factor at discount to get immediate cash.
Jargon (Business)
Specialized language/terminology used in business.
Job Creation
Employment opportunity generation.
Job Enlargement
Expanding job scope horizontally; adding more tasks at same level.
job enrichment
Enhancing job vertically; adding responsibility, autonomy, challenge.
Job Production
Manufacturing custom products one at a time or in small quantities.
job rotation
Systematically moving employees between different roles/departments.
Job Share
Two part-time employees splitting one full-time position.
Jobbing
See Job Production.
Joint Venture
Partnership between companies/individuals for specific project/business.
Just in Time (JIT)
A lean production approach where materials and components are ordered and delivered just as they are needed in the produ...
Kaizen
(Continuous Improvement).
Kaizen (Continuous Improvement)
A Japanese management philosophy of continuous, incremental improvement involving all employees at every level of the business.
Kaizen Events
Focused improvement activities over short period (days/weeks).
Key Account
Major customer providing significant revenue.
Key Personnel
Employees whose skills, knowledge, relationships, or leadership are so critical to business operations that their depart...
Kick-Starter
(funding).
Knowledge Economy
Economy based on knowledge/information rather than manufacturing.
knowledge management
Systematic approach capturing, storing, sharing organizational knowledge.
Knowledge Transfer
Sharing knowledge from one entity/country to another.
Kotter and Schlesinger — Resistance to Change
Four reasons employees resist change: self-interest, misunderstanding, different assessment, and low tolerance for change.
Labor Cost
Expense of employing workers; wages, benefits, training, administration.
Labor Force
Total employed/unemployed people available for work.
Labor Migration
Movement of workers between countries seeking employment.
Labor Standard
Rules/norms for working conditions: wages, hours, safety, rights.
Labor-Intensive
(already covered - see 1.4).
Labour (HR Context)
Workforce; people employed to do work.
Labour Costs
Expenses related to employees: wages, salaries, benefits, training, recruitment, compliance.
Labour Exploitation
The practice of treating workers unfairly or unethically — including paying very low wages, enforcing excessive working ...
labour intensive
Business/process requiring large workforce relative to capital/technology.
Labour Market
Market where labor (employees) is traded for wages.
labour productivity
Output produced per unit of labor (typically per employee per hour).
labour turnover
Rate of employees leaving organization.
laissez-faire
(Economic - already covered).
Laissez-Faire (Economic Policy)
Minimal government intervention in economy.
Laissez-Faire Leadership
Leadership style giving employees maximum freedom and minimal direction.
Language Barrier
Communication difficulty from using different languages.
Large-Scale Production
Manufacturing at high volume; mass production.
Last-Mover Advantage
Benefit of entering market late after pioneers.
Latest Finish Time (LFT)
In Critical Path Analysis, the latest time at which an activity can be completed without delaying the overall project co...
Law (Business)
Legal rules governing business: company law, employment law, contract law, consumer protection, competition law.
Layoff
Temporary or permanent employee separation from employment.
leadership
Directing and inspiring people toward goals.
Leadership Style
Approach to directing and influencing people.
Leading Edge
Forefront of innovation/technology; most advanced.
lean production
Production system eliminating waste; maximizing value.
Learning (Employee)
Acquisition of knowledge and skills through: training, experience, observation, practice.
Learning Curve
Efficiency improvement as people gain experience doing task.
Learning Organization
Organization systematically learning from experience, improving capability.
Lease
Arrangement to use asset for set period paying regular fees.
Leasing
Renting equipment/property rather than buying.
Legal Control
Government use of laws to regulate business behavior.
legal environment
Laws and regulations affecting business operations.
Analysing the external environment to assess opportunities and threats: political and legal change
Legal System
Framework of laws, courts, enforcement governing society/business.
Legislation
Laws enacted by government regulating business/society.
Legislation (Employment)
Laws regulating employment: employment contracts, minimum wage, working hours, health/safety, discrimination, data prote...
Lewin's force field analysis
A model identifying driving forces (pushing for change) and restraining forces (resisting change) to assess whether change is feasible.
licensing
Granting right to use intellectual property/brand/technology.
Lifestyle Business
Business primarily providing income for owner rather than seeking growth/profit maximization.
Limited Company
Legal structure where business is separate legal entity from owners.
limited liability
Legal structure protecting personal assets from business debts.
Line Management
Management structure where authority flows down line from senior to junior levels.
Line of Best Fit
A straight line drawn on a scatter graph that best represents the trend of the data, minimising the overall distance bet...
liquidity
Ability to meet short-term financial obligations; having cash/convertible assets available.
Liquidity (Global)
Availability of cash/liquid assets; ability to meet obligations.
Liquidity Ratio
Financial ratio measuring ability to pay short-term debts.
Literacy
Ability to read and write.
Litigation
Legal dispute resolution through court process.
Loan Covenants
Conditions/restrictions imposed by lender in loan agreement.
Loans
Borrowing arrangement; money provided to be repaid with interest.
Lobbying
Advocating interests to policymakers.
Local Business
Company primarily serving local market; limited geographic scope.
Local Content Requirement
Regulation requiring business to source specific percentage locally.
Local Economy
Economic activity in specific geographic area (city, region, country).
Localisation
Adapting product/service for local market.
Logo
Graphic symbol/design representing brand.
Long-Term
Extended time period; typically years (3+ years).
Long-Term Objectives
Goals spanning multiple years (typically 3+ years).
Long-Termism
A focus on sustainable long-term business outcomes over short-term financial metrics, prioritising investment in people,...
Look-Alike
Product imitating established brand without being identical.
Loss Leader
Product sold at loss to attract customers/drive traffic.
Low-Cost
Operating with minimum costs; competing on price.
Loyalty
Repeat purchase/support; customer returning to business.
Luxury
High-end products/services targeting affluent customers.
M&A
(Mergers and Acquisitions).
Machine Maintenance
Regular servicing of equipment to prevent breakdown.
Machinery
Equipment used in production.
Macroeconomic
Large-scale economic factors affecting overall economy.
Man-Hours
Labor time measurement; employee hours worked.
management
Running/controlling business operations achieving objectives.
Management Structure
Organizational hierarchy showing reporting relationships.
Management Style
Approach to directing employees.
Management vs Leadership
Management refers to the process of planning, organising, and controlling resources to achieve objectives. Leadership re...
Manufacturing
Producing goods through processing/assembly.
Margin
Difference between selling price and cost; profit.
margin of safety
How many extra sales you have above break-even — your cushion against disaster.
Market
Interaction of supply and demand determining prices and quantities of goods/services traded.
Market Access
Ability to enter/operate in market.
market capitalisation
The total market value of all a company's issued shares: Share Price multiplied by Number of Shares in Issue.
Market Diversification
Expanding into different geographic/customer markets.
Market Economy
Economy where price/supply-demand determine allocation.
Market Entry
Entering new geographic/product market.
Market Equilibrium
Point where quantity supplied equals quantity demanded at a particular price.
Market Failure
Market inefficiency; not producing socially optimal outcome.
market growth
Expansion of total market size measured by sales value or units sold.
market mapping
Visual representation showing competitors' positions based on two chosen characteristics (e.g., price vs quality, luxury...
Market Opportunity
Gap/need in market addressable by new business.
Market Orientation
Business approach prioritizing customer needs and wants above all else.
market penetration
(Ansoff).
Market Position
Where business stands in market relative to competitors.
Market Positioning
Strategy of placing a product/brand in consumers' minds relative to competitors.
Market Power
The ability of a business with a large market share to influence prices, terms of trade, or competitive conditions in it...
Market Rates (Finance)
Typical interest rates, fees, terms offered in financial market for different types of borrowing.
Market Research
Investigating market/customers to inform decisions.
Market Saturation
Market where existing supply meets/exceeds demand; limited growth opportunity.
Market Segmentation
Division of a market into distinct groups of consumers with similar characteristics, needs, or behaviors.
market share
Percentage of total market sales/units held by business.
market size
Total value or volume of products sold in market.
Market Structure
Characteristics of market affecting competition.
marketing mix
Four elements of marketing strategy (4Ps):.
Marketing Objectives
Specific, measurable goals set by the marketing function that support the overall corporate objectives of the business.
Marketplace
Location/platform where buying/selling occurs.
Markup
Amount added to cost to determine selling price.
Maslow (Hierarchy of Needs)
Abraham Maslow's motivational theory proposing that human needs exist in a hierarchy of five levels: physiological, safe...
Mass Market
Large segment of the population willing to buy a standardized product.
Mass Production
Manufacturing large quantities of identical products using standardized processes.
Master Brand
Umbrella brand covering multiple products/lines.
Material
Tangible substance used in production.
Materials Handling
Moving/storing materials in production.
matrix structure
Organization structure combining functional and project-based reporting.
Mature Market
Market at peak/declining phase; established, limited growth.
Maximum Stock Level
Highest inventory quantity before ordering more.
Mayo (Human Relations Theory)
Elton Mayo's theory that social factors and group dynamics are the primary drivers of worker motivation, rather than pay...
Measurement
Quantifying variables for analysis/evaluation.
Media
Channels for communication/marketing: TV, radio, print, digital, social.
Mentoring
Experienced person (mentor) guiding less-experienced person (mentee) on job, career, development.
Mentoring (Entrepreneurship)
Experienced entrepreneur/professional guiding startup founder.
Merchant Banks
Financial institutions providing: corporate finance, investment services, advisory to businesses.
merger
Combination of two companies into single entity.
Metric
Measurable standard for evaluation.
Mexico
Country in North America; significant trading relationship with US/Canada (NAFTA/USMCA).
Micro-Finance
Small loans to individuals/micro-businesses often in developing countries.
Microeconomic
Small-scale economic factors affecting individual/firm.
Middle Income
Income level between low and high income countries.
migration
Movement of people from one place/country to another for residence/work.
Analysing the external environment to assess opportunities and threats: social and technological
Military
Armed forces; government military presence.
Minimum Stock Level
Lowest inventory quantity; triggers reordering.
Minimum Viable Product (MVP)
Simplest version of product with essential features enabling customer feedback.
Minimum Wage
Lowest legally allowed wage employers pay workers.
Mission Statement
Concise statement of organization's purpose/values/long-term direction.
MNC
(Multinational Corporation).
Mobile (Labor)
Ability of workers to move between jobs/locations.
Model
Simplified representation of real situation.
Modernization
Updating/improving to current standards/technology.
monetary policy
Central bank action controlling money supply/interest rates to influence economy.
Money
Medium of exchange; currency for transactions.
Monopoly
Single supplier of product/service; no competition.
Monopoly Power
Ability to control price due to lack of competition.
Moral
Right vs. wrong; ethical standards.
Mortgage
Long-term loan for property purchase, secured by property.
Mortgages
Long-term loans for property purchase.
Most Favored Nation (MFN)
Trade status granting best treatment offered to any country.
motivation
Drive/willingness of employees to work toward goals with effort/commitment.
Motivation (Entrepreneurial)
Reasons individuals start businesses.
Motivation Theory (Overview)
Frameworks explaining what drives employee behavior/performance.
Motivator
Factor encouraging action/performance.
Motivator (Herzberg)
Factors causing genuine satisfaction and motivation in work.
Movement (Capital)
Flow of investment money between countries/markets.
Moving Average
A smoothing technique used in time-series analysis that calculates the average of a set number of consecutive data point...
Multi-Skilling
Training employees to perform multiple different job roles.
multinational
Operating across multiple nations.
Multinational Corporation (MNC)
(already covered).
NAFTA
North American Free Trade Agreement — a trade agreement between the USA, Canada, and Mexico (now replaced by USMCA in 20...
National Minimum Wage
Lowest legal wage employers must pay employees.
Natural Monopoly
Industry where single supplier most efficient (high infrastructure cost).
Negotiation
Process of discussing with others to reach agreement.
Net Cash-Flow
Money actually entering minus leaving business.
Net Present Value (NPV)
An investment appraisal method that discounts all future cash flows back to their present value using a discount rate, t...
net profit
(Profit for the Year).
Net Profit Margin
Net profit as percentage of revenue.
Network Diagram
A diagram used in Critical Path Analysis that maps all activities in a project showing their sequence and dependencies, ...
New Business
Startup; newly created business venture.
New Technology (Supply Factor)
Technological advances increasing productivity and efficiency.
Niche Market
Small segment of consumers with specific, often specialist needs underserved by mass-market competitors.
niche marketing
Marketing strategy targeting small, specific segments with specialized needs.
Non-Current Assets
Long-term business assets held >12 months.
Non-Current Liabilities
Obligations due >12 months.
Non-Financial Incentive
Motivation methods not involving money: recognition, development opportunities, autonomy, flexible working, interesting ...
Non-Financial Motive
Non-monetary reasons for entrepreneurship: independence, ethical values, social impact, achievement, flexibility, family...
Objectives
Specific, measurable targets to be achieved.
Obsolescence
Products becoming out-of-date/unusable before sale.
Off-the-Job Training
Training that takes place away from the normal work environment, in a dedicated training centre, college, or external ve...
Offer for Sale
Public method of selling company shares on stock exchange.
Offshoring
Relocating business functions or production to another country to take advantage of lower costs, favourable regulations,...
Offshoring and Reshoring
Offshoring moves business activities to lower-cost countries abroad; reshoring brings them back to the home country.
Oligopoly
Market dominated by few large suppliers.
On-the-Job Training
Training that takes place while the employee is performing their normal work duties, typically under the guidance of a m...
online business
A business that primarily operates via the internet, selling products or services online rather than through physical pr...
Online Distribution
Selling and delivering products via internet/e-commerce.
Online Retailing
Selling products to consumers via internet/e-commerce platforms rather than physical stores.
operating profit
Profit from normal business operations (excluding interest/tax).
Operating Profit Margin
Operating profit as percentage of revenue.
Operational Efficiency
Achieving goals with minimum resources; effectiveness of operations.
operational objective
Short-term target for daily/weekly operations.
Operations
Day-to-day activities transforming inputs to outputs.
Operations Management
Directing resources to produce goods/services efficiently.
Opportunity
Favorable situation offering potential benefit/growth.
opportunity cost
Benefit foregone by choosing one option over another.
Optimism (Entrepreneurial)
Tendency to expect positive outcomes; characteristic of entrepreneurs.
Optimization
Making something as effective/efficient as possible.
organic growth
Growth achieved by a business from within, through increasing sales, expanding capacity, or developing new products using its own resources.
Organisational Change
Any significant alteration to the structure, culture, processes, systems, or strategy of an organisation.
Organization Structure
Formal arrangement of positions, reporting relationships, authority.
Organizational Culture
(already covered - see 3.4).
outsourcing
Over-Capacity
Production capacity exceeding market demand.
overdraft
Arrangement allowing account to go negative to agreed limit.
Overhead
Indirect production costs not directly tied to product: factory rent, utilities, depreciation, supervision.
Overseas Market
Market in different country from home base.
overtrading
When a business expands faster than its financial resources can support, leading to cash flow problems despite being profitable.
Owner's Capital
Money invested by owner/shareholders in business.
P2P Lending
(Peer-to-Peer).
Part-Time Worker
Employee working fewer hours than standard full-time (typically <35 hours/week).
partnership
Business structure of 2+ individuals owning jointly.
Partnership Finance
Funding structure for partnerships; capital from partners, loans against personal assets.
Paternalistic Leadership
Leadership style combining authority with caring/benevolence toward employees.
Pay (Compensation)
Remuneration employees receive: salary (fixed annual), wages (hourly), bonus, commission, benefits.
payables
(Accounts Payable).
payback period
Time required to recover initial investment from cash flows.
Payroll (HR)
List of employees and their salaries/wages.
PED Interpretation
Understanding what PED values mean for business: If PED = -0.5 (inelastic), 10% price rise → only 5% demand fall (revenu...
Peer-to-Peer Funding
(see P2P Lending).
penetration pricing
Pricing strategy setting a deliberately low initial price to gain market share quickly, then raising the price once the ...
Performance Indicator
Measurable metric assessing business/individual performance.
Performance Measurement
Systematic assessment of business/individual performance.
Performance-Related Pay (PRP)
Compensation varying based on individual/team performance measures.
person culture
An organisational culture where individuals prioritise their own interests and expertise over the organisation's needs. ...
Managing organisational culture
Personal Savings
Individual's accumulated money used for business capital.
PESTLE Analysis
A framework for scanning everything outside the business that could affect it.
Physical Resources
Tangible assets for business operations: buildings, equipment, vehicles, materials, technology.
Piecework
Payment system paying per unit produced/completed work.
Plan
Formal document outlining how to achieve objectives.
Planning
Process of deciding future actions to achieve objectives.
PLC (Public Limited Company)
Company publicly traded on stock exchange.
political environment
Government systems, policies, stability affecting business.
Political Stability
The degree to which a country's government and political institutions are reliable, predictable, and free from sudden up...
Polycentric Approach
A global marketing strategy that adapts products, pricing, promotion, and distribution significantly to each local marke...
Porter's five forces
A strategic framework analysing five competitive forces that determine industry profitability and attractiveness.
Porter's generic strategies
Three strategies for achieving competitive advantage: Cost Leadership, Differentiation, and Focus (niche).
Porter's Strategic Matrix
(Generic Strategies).
power culture
An organisational culture centred on one or a few powerful individuals at the centre of a web of influence, who make mos...
Predatory Pricing
Pricing strategy setting prices very low — often below cost — with the deliberate intent of driving competitors out of t...
Preference Shares
Class of shares with priority over ordinary shares for dividends/asset distribution.
Pressure Group
An organised group of people that campaigns to influence business behaviour, government policy, or public opinion on a p...
Price (Market)
Monetary value of a product/service.
Price Change Consequences
Effects of price movements on supply, demand, and market equilibrium.
Price Comparison Sites
Websites (Confused.com, MoneySuperMarket) comparing prices of competitors.
Price Control
Government regulation of prices; setting maximum or minimum prices.
Price Elasticity of Demand (PED)
Measure of how sensitive quantity demanded is to price changes.
Price Fixing
Illegal practice where competitors agree on prices.
Price Regulation
Government control of prices; typically maximum/minimum.
Price Sensitivity
Degree to which demand changes with price.
price skimming
Pricing strategy setting a high initial price when launching a new product, then gradually reducing it over time as comp...
Price Taker
Business with no control over price; must accept market price.
Pricing Strategy
Method for setting prices to achieve business objectives.
primary research
Original data collected directly from sources for a specific purpose.
Primary Research: Qualitative
Non-numerical primary research focusing on understanding reasons, motivations, experiences.
Primary Research: Quantitative
Numerical primary research measuring how many, how often, attitudes using numbers.
Private Equity
Investment in private (non-public) companies by PE firms.
Private Limited Company (Ltd)
A business structure where the company is a separate legal entity from its owners, shareholders have limited liability, ...
Private Placement
Sale of shares/securities to limited number of investors privately rather than public offering.
Problem-Solving (Entrepreneurial)
Identifying/addressing business challenges creatively.
Product Design
Process of developing product features, appearance, and function to meet customer needs and competitive requirements.
product development
Product Differentiation
Strategy of making a product distinct and different from competitors through features, quality, design, service, or bran...
Product Labelling
Information required or chosen to be displayed on a product's packaging, including ingredients, country of origin, nutri...
product life cycle
A model showing the stages a product passes through from development to withdrawal: development, introduction, growth, maturity, decline.
Product Life Cycle Extension
Strategies to extend product life beyond maturity stage.
Product Orientation
Business approach prioritizing what the company wants to make/sell based on production capability.
Product Orientation (see 1.1)
Business approach prioritizing what company can produce.
Product Portfolio
Range of all products/brands a company offers.
productivity
A measure of output per unit of input, showing how efficiently resources are being used to produce goods or services.
Profit and Loss Account
(see Income Statement).
Profit Maximisation
Business objective making highest possible profit.
Profit Reinvestment
Plowing back company profits into business rather than distributing to shareholders.
Profit Satisficing
Business objective earning sufficient profit while pursuing other goals.
Profit Share
Arrangement where employees receive portion of company profits.
Profit vs Cash
The distinction between profit (an accounting measure of revenue minus costs over a period) and cash (the actual money a...
profitability
Ability to generate profit; degree of profit earned.
Promotion
Communication activities persuading customers to buy.
Property (Finance)
Real estate asset; valuable collateral for loans.
Prospectus
Formal document issued by company offering securities.
protectionism
Government policies that restrict international trade to protect domestic industries from foreign competition.
Psychological Pricing
Setting prices using psychological principles to influence perception.
Public Company
(see PLC).
Pull Factor
An attractive condition in a foreign market that draws a business toward international expansion.
Purchasing Power
Ability to buy goods/services; determined by income and price levels.
Push Factor
A domestic market condition that motivates a business to expand internationally by making continued domestic operation l...
Qualifications (Employee)
Formal credentials demonstrating knowledge/skills: degrees, diplomas, certifications, licenses.
qualitative data
Non-numerical information providing description, understanding, and context.
quality assurance
Processes preventing defects before/during production (proactive).
Making operational decisions to improve performance: improving quality
Quality Circles
Small employee groups meeting regularly to identify/solve quality problems.
quality control
Inspection/testing to identify defects (reactive).
Quality Management
Systematic approach ensuring products/services meet standards consistently.
quantitative data
Numerical information that can be measured and analyzed statistically.
Question Mark (Boston Matrix)
Product with low market share in high-growth market.
Quotas (Trade)
Limit on quantity of imports allowed.
Ratio Analysis
Examining financial statement ratios for insights.
receivables
Money owed to company by customers for goods/services delivered.
Recession
Economic contraction; negative growth, rising unemployment, falling demand.
recruitment
Process of finding and hiring new employees.
Recruitment and Selection
Combined process of attracting and choosing best candidates.
Recruitment Costs
Expenses associated with hiring: advertising, agency fees, interview time, training.
Recycle/Recycling
(see Waste Minimisation).
redundancy
Termination of employment because job no longer needed (not employee fault).
Regulated Industry
Business sector with government price/conduct regulation.
Regulation
Government rules controlling business behavior.
Regulation (Business)
Laws/rules governing business operations: company law, employment law, environmental, health/safety, consumer protection...
Regulatory Body
Government agency enforcing regulations.
Regulatory Compliance
Meeting regulatory requirements; following rules/standards set by government.
Reorder Level
Inventory quantity triggering new order placement.
Reorder Quantity
(Economic Order Quantity).
Resilience (Entrepreneurial)
Ability to recover from setbacks; persistence despite difficulties.
resistance to change
The tendency of individuals and groups within an organisation to oppose or slow down the implementation of change, often...
Resource Allocation
Distributing limited resources (budget, equipment, labor, time) across activities/projects.
Resource Depletion
The using up of natural resources (e.g. fossil fuels, rare minerals, forests) faster than they can be replenished, often...
Resource Efficiency
Using resources (materials, energy, labor, capital) productively with minimum waste.
Resource Management
Planning/controlling business resources to achieve objectives.
Retained Earnings/Profit
Profits kept in business rather than distributed to shareholders.
Retention (Employee)
Keeping valuable employees in organization.
Retrenchment Strategy
Strategy reducing business scope/operations; cutting back.
Return on Capital Employed (ROCE)
Profitability relative to capital invested.
Return on Equity (ROE)
Profitability relative to shareholder investment.
Return on Investment (ROI)
Profit made on investment relative to cost.
Returns
Profit/gains realized from investment/capital employed.
revenue
Income from selling products/services.
Rewards (Employee)
Recognition for performance/contribution: pay, bonus, promotion, praise, development.
risk
Probability of negative outcome with quantifiable consequences.
Risk (in Business)
Probability of a known or identifiable event occurring with measurable consequences.
Risk Assessment
Systematic process identifying and evaluating risks.
Risk Management
Systematic approach minimizing negative impact of risks.
Risk Spreading
Diversifying investments/activities reducing total risk.
Risk Taking
Willingness to accept probability of loss for potential gain.
role culture
An organisational culture characterised by formal rules, procedures, and clearly defined roles. Decision-making follows ...
Safety (Workplace - already covered)
Protecting employees from harm.
Safety (Workplace)
Protection of employees from harm: health/safety regulations, training, equipment, hazard elimination.
Safety Standards
Requirements ensuring workplace safety: equipment standards, procedures, training, protective equipment.
Salary
Fixed annual payment to employee divided into regular (usually monthly) payments.
Sale of Assets
Selling business assets for cash.
Sales Forecast
Prediction of future sales volume/value.
Sales Maximisation
Business objective increasing sales volume/revenue (rather than profit).
Sales Revenue
Income from product/service sales.
sales volume
Quantity of products sold in period.
Sample Size
Number of units/people selected for research study.
Satisficing
Making satisfactory decision rather than optimal.
Saturated Market
A market in which demand has been largely met and there is little room for further growth, typically characterised by in...
Scarcity
Limited availability of resources relative to demand.
Scatter Graph
A type of graph that plots two variables against each other to identify whether a correlation (relationship) exists betw...
Scenario Planning
Developing alternative future scenarios and responses.
Scheduling
Planning when tasks/production occurs.
Seasonality
Fluctuation in demand for products at specific times of year.
secondary research
Existing data previously collected by others for different purposes, now analyzed for new purposes.
Secured Loan
Loan backed by collateral (asset) lender can claim if unpaid.
Securities
Financial instruments representing value: stocks, bonds, derivatives.
Seed Funding
Initial capital to develop business idea to viable stage.
Selection
Process of choosing best candidate(s) from applicants.
Self-Employment
Working for oneself rather than employer.
Semi-Fixed Costs
Costs with both fixed and variable components.
Semi-Variable Cost
(see Semi-Fixed Costs - 2.2).
Sensitivity Analysis
Examining how changes in key variables affect outcomes/decisions.
Setup Costs
(Changeover Costs).
share capital
Equity finance from investors purchasing company shares.
share price
The market price at which a single share in a company can be bought or sold on the stock exchange, reflecting investor e...
shareholder
Individual/organization owning shares in company.
Shareholder Approach
A management philosophy, associated with Milton Friedman, that argues a business's primary duty is to maximise financial...
Shares
Units of ownership in company.
Shift Work
Employment arrangement working different time periods (early, late, night shifts).
short-term finance
Borrowing for immediate needs, repaid <1 year.
Short-Term Objective
Goal achieving within 1 year; operational/tactical targets.
Short-Termism
A focus on immediate or near-term results at the expense of long-term sustainability and investment, often driven by pre...
Shortage
Situation where quantity demanded exceeds quantity supplied at a given price.
Simple Payback
An investment appraisal method that calculates how long it takes for the cumulative cash inflows from an investment to r...
Single Process
Manufacturing step producing product start-to-finish.
Situation Analysis
Comprehensive assessment of current business position.
Skill (Employee)
Ability to perform specific tasks/activities effectively learned through training/experience.
Skill Shortage
A situation where the supply of workers with specific skills falls short of the demand from employers, driving up wages ...
Skilled Worker
Employee with advanced technical abilities requiring significant training/experience.
social enterprise
A business that trades primarily to achieve social, environmental or community objectives, reinvesting profits into its mission.
Social Entrepreneurship
Creating business to address social/environmental problems; profit secondary to impact.
Social Media (Marketing)
Using social platforms (Facebook, Instagram, Twitter, TikTok) for promotion, customer engagement, brand building.
Social Networking (Demand Factor)
Social media influence on consumer preferences and demand.
Social Networking (Market Research)
Using social media platforms to gather customer opinions, preferences, feedback, and behaviors.
Social Objective
Business goal benefiting society/environment beyond profit.
Social Responsibility (Employee)
Company obligations to employees beyond legal minimum: fair wages, safe conditions, development, consultation.
soft HRM
An approach treating employees as valued assets, focusing on development, motivation and engagement.
Soft Loan
Loan with favorable terms: low/no interest, long repayment period, flexible conditions.
Soft Skills
Transferable interpersonal/communication abilities: teamwork, communication, problem-solving, leadership, adaptability.
sole trader
Individual owning/operating business alone.
Solvency
Long-term ability to meet all financial obligations.
span of control
Number of subordinates reporting directly to one manager.
Spare Capacity
Unused production capacity available for growth.
Sponsorship
Business pays to be associated with events, teams, individuals, or causes.
Sponsorship (Entrepreneurship)
Support/backing from established business/individual for new venture.
Stability
Maintaining current position; not growing or shrinking.
Staff as Asset
Viewing employees as valuable resources generating return on investment.
Staff as Cost
Treating employees as expenses to minimize.
stakeholder
Individual/group affected by or affecting business.
Understanding the role and importance of stakeholders
Stakeholder Approach
A management philosophy that argues businesses should be run for the benefit of all stakeholders — employees, customers,...
Stakeholder Conflict
Disagreement between stakeholders with different interests.
Stakeholder Mapping (Power-Interest Matrix)
A framework plotting stakeholders by power and interest to determine the best management approach for each group.
Statement of Comprehensive Income
Statement of Financial Position
(see Balance Sheet).
Stock Control
The process of managing inventory levels to ensure the business has enough stock to meet demand while minimising holding...
Stock Exchange
Market where company shares are traded.
Stock Market
Exchange where company shares are traded.
Stock Market Flotation
Process of company offering shares publicly on stock exchange; becoming PLC.
Stock Turnover
(Inventory Turnover - already covered).
Stock Valuation
(Inventory Valuation).
Straight Piecework
Piecework system with single rate per unit (no variation).
Strategic Choice
Selecting strategy from alternatives.
Strategic Decision
Long-term, major-impact decision affecting business direction.
Strategic Group
Competitors with similar strategies and target markets.
Strategic Intent
Long-term direction and aspiration; where business wants to be.
Strategic Management
Process of developing, implementing, evaluating strategy.
Strategic Objective
Long-term (3+ year) goal driving business direction.
Strategic Planning
Process of developing long-term strategy.
Strategic Position
Where business stands strategically relative to objectives and competition.
Strategic Response
Business reaction to external changes/opportunities/threats.
strategy
Long-term plan achieving objectives.
Mission, corporate objectives, functional objectives and strategy
Strength (Internal)
(see Strengths - SWOT).
Strengths
(SWOT).
Structural Change
Fundamental shifts in the composition of an economy, such as the decline of manufacturing and rise of services, often dr...
Subjective Decision
A decision based on personal judgement, intuition, experience, or values rather than objective data or systematic analys...
Subordinated Debt
Loan repaid only after senior debt in bankruptcy.
Subsidies (Supply Factor)
Government financial support to producers reducing production costs.
Subsidy
Government payment supporting producers/consumers.
Substitute Goods
Products that can replace each other in satisfying customer needs.
Substitutes
(Porter's Five Forces).
Success (Business)
Achievement of business objectives; sustainable profitable operation.
Succession Planning
The process of identifying and developing internal employees to fill key leadership or specialist positions in the futur...
Supervisory Role
Management position overseeing daily operations/team.
Supplier Relationship Management
Building/maintaining effective supplier partnerships.
Supply
Quantity of a product producers are willing and able to provide at different prices in a given time period.
Supply and Demand Diagram
Graph showing supply curve (upward-sloping) and demand curve (downward-sloping) intersecting at equilibrium point.
supply chain
Network of organizations/processes producing/delivering product from materials to customer.
Supply Chain Ethics
The application of ethical standards throughout the entire supply chain — from raw material extraction to final product ...
Supply Curve
Graphical representation showing relationship between price and quantity supplied.
Support (Entrepreneurial)
Assistance for entrepreneurs: funding, mentoring, advice, networks, training, incubators.
Surplus
Excess supply relative to demand at current price.
Surplus Cash
Excess money beyond operational needs.
Survival (Business Objective)
A short-term business objective focused on generating enough revenue to cover costs and continue operating, particularly...
Sustainability (Product)
Designing and producing products minimizing environmental impact: reduced materials, recyclable packaging, ethical sourc...
Sustainable Production
Manufacturing minimizing environmental/social impact.
SWOT analysis
A strategic framework assessing a business's internal Strengths and Weaknesses, and external Opportunities and Threats.
Syndicated Loan
Large loan arranged by group of lenders reducing individual risk.
synergy
The principle that combined businesses create more value together than they would separately — 'the whole is greater than the sum of its parts.'
Tactical Decision
Short-term, operational-level decision.
Tactical Objective
Medium-term (1-3 year) goal supporting strategic objectives.
takeover
Acquiring control of business through purchasing shares/assets.
Talent Management
Strategic process identifying, developing, retaining high-potential employees.
Tall Structure
Organization with many hierarchy levels; narrow span of control.
Tannenbaum-Schmidt Continuum
A model showing leadership styles on a spectrum from fully autocratic to fully democratic.
Taper Integration
Operating at multiple supply chain levels but not fully controlling all.
Targeted Growth
Growth focused on specific segments/markets/products.
Tariff
Tax on imports, making foreign goods more expensive.
task culture
An organisational culture focused on completing projects and achieving specific outcomes. Teams are formed around tasks,...
Tax
Mandatory payment to government by individuals/businesses.
Tax Relief
Reduction in taxes; temporary or permanent.
Tax Revenue
Money paid by businesses and individuals to governments through various taxes (corporation tax, income tax, VAT, etc.), ...
Taylor (Scientific Management)
Frederick Taylor's theory that worker productivity can be maximised by scientifically analysing tasks, selecting the bes...
Team Building
Activities/approaches improving team cohesion, communication, trust.
team working
Employees working together toward shared goals.
technological change
Advances in technology affecting business.
Technology (Production)
Tools, equipment, processes used in production.
Technology Innovation
Using technology advances to create competitive advantage.
Technology Transfer
Sharing technology knowledge/capabilities between countries/organizations.
Temporary Worker
Employee hired for fixed period (project duration, seasonal, covering absence).
Term Loan
Fixed-term loan repaid in regular installments over set period.
Termination
Ending of employment relationship.
Threat
Threat of New Entrants
Time-Series Analysis
Statistical method analyzing data over time to identify trends/patterns.
total float
In Critical Path Analysis, the amount of time an activity can be delayed without delaying the overall project completion...
Managing strategic implementation
Total Quality Management (TQM)
Comprehensive approach making quality responsibility of all employees.
Trade
Exchange of goods/services between parties/countries.
Trade Barriers
Obstacles to international trade: tariffs, quotas, regulations, transport costs.
trade credit
Arrangement to purchase goods/services on credit; payment due later (typically 30-90 days).
Trade Liberalisation
The removal or reduction of trade barriers (tariffs, quotas, regulations) between countries to facilitate freer internat...
trade union
Organization representing employee interests in negotiations with employers.
Trade-Off
Accepting less of one thing to gain more of another.
Trading Bloc
Group of countries with reduced trade barriers among themselves.
training
Systematic development of employee knowledge and skills.
Training Cost
Expense of developing employee skills: trainer fees, course fees, time away from work, materials.
Transfer Pricing
When a multinational company sets the price for sales between its own subsidiaries in different countries — often to move profit to low-tax countries.
Transformational Leadership
A leadership style in which leaders inspire and motivate followers to achieve extraordinary outcomes by articulating a c...
Translation Issue
Problems arising when marketing materials, product names, slogans, or instructions are translated into another language ...
Transnational Company
A company that operates in multiple countries but does not identify with a single home country — managing its operations...
Turnaround Strategy
Plan to restore business from poor performance to viability.
uncertainty
Business conditions where outcomes unpredictable; probabilities unknown.
Uncertainty (in Business)
Situation where outcomes cannot be predicted with certainty because variables are unknown or unmeasurable.
Uncontrollable Factors
External factors business cannot influence: economic conditions, competitor actions, natural disasters, regulation, tech...
Under-Capacity
Production capacity below available maximum.
Underutilisation
(Under-utilization).
Unemployment
Percentage of labor force without work/actively seeking.
Unfair Dismissal
Termination of employment without fair/legal process.
Unique Selling Point (USP)
Distinctive feature(s) or benefit(s) of a product/service that differentiates it from competitors and appeals to target ...
Unique Selling Proposition (USP)
(already covered - see 1.3).
unit cost
Cost per item produced.
unlimited liability
Legal responsibility for all business debts with no limit.
Unsecured Loan
Loan without collateral backing.
Unskilled Worker
Employee without specialized training; performs basic tasks.
Valuation
Determining business/asset worth.
Variable Costs
Expenses changing with production/sales volume.
variance analysis
The process of comparing actual financial results with budgeted (planned) figures to identify variances, understand thei...
venture capital
Investment in early-stage businesses with growth potential.
vertical integration
Growth by acquiring businesses at different stages of the same supply chain — forward (towards customers) or backward (towards suppliers).
viral marketing
Marketing content designed to spread rapidly through social sharing, creating massive reach with minimal cost.
Vision
(Strategic).
Vision (Entrepreneurial)
Clear picture of future desired state; long-term direction.
Wage
Hourly payment to employee (or daily/piecework).
Wage Inflation
Rapid increase in wage levels.
Warrant
Security giving right (not obligation) to buy company shares at set price within period.
Waste
Discarded materials, inefficiency, rework, excess capacity.
Waste Disposal
The management and disposal of by-products, damaged goods, and obsolete materials generated by business activities, in a...
Waste Minimisation
Reducing waste in production/operations.
Waste Minimisation (Product)
Designing products and processes to reduce waste: less packaging, recyclable materials, efficient production, design for...
Weakness
Win-Win Strategy
Approach benefiting multiple stakeholders; mutually beneficial.
Work Study
Analyzing work methods to improve efficiency.
Workforce Flexibility
(see Flexible Workforce - 1.4).
working capital
Current assets minus current liabilities; funds for day-to-day operations.
Working Capital Management
Strategies optimizing current assets/liabilities for operational efficiency.
Working Conditions
Physical/environmental factors affecting employees: hours, safety, environment, tools/equipment.
works council
Representative group of employees discussing workplace matters with management.
World Economy
Global economic system; interconnected markets, trade, finance.
Write-Off
Removing asset from books when deemed worthless.
Zero-Based Budgeting
Building budgets from zero; justifying each expense without reference to previous budgets.
Zero-Hours Contract
Employment agreement with no guaranteed hours; employee available as needed.
Zero-Sum
Situation where gain for one equals loss for another.
7Ps (Extended Marketing Mix)
The seven elements of the marketing mix for services: Product, Price, Promotion, Place, People, Process, Physical Environment.