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...

Setting marketing objectives

Advertising (Demand Factor)

Paid promotional communication affecting consumer demand by raising awareness, creating desire, or persuading purchase.

Setting marketing objectives

Advertising (Marketing)

Paid communication promoting products/brands to target audiences through media.

Setting marketing objectives

Aesthetics (Design)

Visual appeal and appearance of a product.

Setting marketing objectives

Alternative Strategies

Different strategic approaches to achieve objectives.

Analysing financial performance

Angel Investor

(see Business Angel in 1.5).

Understanding different business forms

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.

Understanding markets and customers

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.

Analysing financial performance

Appreciation (Currency)

Increase in currency value relative to another.

Analysing financial performance

AQA Section 3.3/3.4 Global Terms:

Globalisation, FDI, MNCs, Trading blocs, Glocalisation, Offshoring, Outsourcing, Global marketing, Cultural adaptation, ...

Analysing financial performance

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,...

Analysing financial performance

ASEAN

(Association of Southeast Asian Nations).

Understanding markets and customers

Asset Finance

Borrowing to purchase specific assets (equipment, vehicles, property).

Understanding different business forms

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...

Understanding markets and customers

B2C Marketing

Business-to-Consumer marketing — promoting products or services directly to individual end consumers.

Understanding markets and customers

Balance of Payments

Account recording all economic transactions between country and rest of world.

Understanding markets and customers

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.

Understanding different business forms

Barriers to Entrepreneurship

Obstacles preventing business creation: lack of capital, insufficient skills, risk aversion, family obligations, market ...

Setting financial objectives

Barriers to Trade

Obstacles reducing international trade: tariffs (taxes), quotas (quantity limits), regulations, local content requiremen...

Making financial decisions: improving cash flow and profits

Batch Production

Manufacturing specified quantity of identical products in groups.

Setting financial objectives

Benefit (Government)

Financial support provided to eligible individuals: unemployment benefits, disability support, family allowances.

Analysing financial performance

Bias (in Research)

Systematic errors that distort research results, causing them to deviate from the true picture.

Setting marketing objectives

Bonus

Lump sum additional payment to employees based on performance, company profits, or achievements.

Understanding markets and customers

Bootstrapping

Starting/growing business with minimal external funding; relying on: personal savings, revenue reinvestment, free resour...

Understanding different business forms

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.

Setting financial objectives

Brand Recognition

The extent to which consumers can identify and recall a brand from its name, logo, design, or other distinguishing featu...

Understanding markets and customers

Brand/Branding

The identity and reputation of a product or company, comprising name, logo, design, values, and customer perception.

Setting marketing objectives

Branding Strategy

Plan for creating, building, and managing a brand identity.

Setting marketing objectives

Break-Even Analysis

Technique determining minimum sales needed to cover all costs.

Setting financial objectives

Break-Even Chart

Graph showing relationship between sales volume, costs, revenue, profit.

Setting financial objectives

Break-Even Point

The exact number of sales needed to cover all costs — neither profit nor loss.

Setting financial objectives

budget

Financial plan allocating resources for specific period (usually year).

Analysing financial performance

Budgetary Control

Monitoring actual performance against budgets; taking corrective actions.

Setting financial objectives

Budgeting

Process of creating budgets; planning financial resources.

Setting financial objectives

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.

Understanding the nature and purpose of business

Business Continuity

Plans/processes ensuring organization continues operating during disruptions.

Setting financial objectives

Business Creation

Process of starting new business from concept to launch.

Understanding the nature and purpose of business

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.

Understanding that businesses operate within an external environment

Business Efficiency

Achieving maximum output from a given level of inputs; producing goods or services at minimum cost without sacrificing q...

Making human resource decisions: improving organisational design and managing the human resource flow

Business Environment

External factors affecting business: market conditions, competition, regulations, technology, economics, society.

Analysing financial performance

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...

Analysing financial performance

Business Objectives

Goals/targets business aims to achieve.

Understanding the nature and purpose of business

Business Plan

Formal document detailing: business concept, market analysis, financial projections, operations plan, management structu...

Understanding the nature and purpose of business

Business Start-Up

The process of creating and launching a new business venture from the initial idea through to becoming operational.

Understanding that businesses operate within an external environment

Business Strategy

Long-term plan achieving business objectives.

Analysing financial performance

capacity

Maximum production level in period.

Analysing operational performance

capacity utilisation

Percentage of available capacity actually used.

Analysing operational performance

Capital

Funds invested in business; financial resources.

Understanding the nature and purpose of business

Capital Equipment

Assets used long-term in business operations: machinery, vehicles, buildings, computers.

Understanding different business forms

Capital Flows

Movement of investment money between countries.

Understanding markets and customers

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.

Setting financial objectives

Cash Conversion Cycle

Time from cash outlay for materials to cash receipt from sales.

Setting financial objectives

Cash Cow (Boston Matrix)

Product with high market share in low-growth market.

Understanding markets and customers

Cash Position

Actual amount of cash available to business.

Setting financial objectives

Cash-Flow

Movement of money in/out of business.

Setting financial objectives

Cash-Flow Forecast

Projection of future cash movements over period (monthly, quarterly).

Setting financial objectives

Cash-Flow Forecast: Variables

Key factors changing cash-flow: sales volume, payment terms, seasonal variation, supplier payments, capital spending, lo...

Setting financial objectives

Cash-Flow Problems

Insufficient cash to meet obligations despite profitability.

Setting financial objectives

Cell Production

(Cellular Manufacturing).

Setting financial objectives

Centralised Organisation

Structure where decision-making is concentrated at senior management level.

Understanding markets and customers

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...

Understanding the nature and purpose of business

Child Labour

Employment of children under legal working age in unacceptable conditions.

Understanding markets and customers

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.

Understanding markets and customers

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.

Understanding markets and customers

competition

The rivalry between businesses offering similar products/services to the same market.

Understanding that businesses operate within an external environment

Competition (as Barrier)

Intense market competition making startup success difficult.

Setting financial objectives

Competition Policy

Government regulations promoting fair competition, preventing monopolies/unfair practices.

Analysing financial performance

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.

Analysing financial performance

Competitive Position

Where business stands relative to competitors.

Analysing financial performance

Competitive Pricing

Setting prices at similar levels to competitors.

Setting marketing objectives

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.

Understanding markets and customers

Competitor Actions (Demand Factor)

Competitor pricing, promotion, product, distribution affecting demand.

Setting financial objectives

Complementary Goods

Products that are purchased and used together.

Setting marketing objectives

Consultation

Management seeking employee input on decisions affecting them.

Understanding markets and customers

Consumer Behaviour

The study of how individuals make decisions to spend their available resources (time, money, effort) on consumption-rela...

Understanding markets and customers

Consumer Income

Money available to consumers to spend on products/services.

Setting marketing objectives

Consumer Prices Index (CPI)

Measure of average price changes for consumer goods/services.

Analysing financial performance

Consumer Protection

Laws safeguarding consumers: product safety, honest information, rights to redress.

Analysing financial performance

Consumer Spending

Total expenditure by households on goods/services.

Analysing financial performance

Consumers (Global)

Customers in markets worldwide; increasingly interconnected through: travel, internet, media, global brands.

Understanding markets and customers

Context (Global Business)

External environment affecting global business.

Understanding markets and customers

Contingency Plan

Backup plan if primary plan fails.

Understanding the nature and purpose of business

Continuous Improvement

(Kaizen).

Setting financial objectives

contribution

How much each unit sold contributes towards covering fixed costs (and then profit).

Analysing financial performance

Contribution Margin

Contribution as percentage of sales price.

Setting financial objectives

Control (Quality)

Inspection/testing during/after production ensuring standards.

Setting operational objectives

Convergence (Consumer)

Tendency of consumer preferences becoming similar globally.

Understanding markets and customers

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.

Analysing the existing internal position of a business to assess strengths and weaknesses: financial ratio analysis

Corporate Aims

General, broad business direction; aspirational statements.

Analysing financial performance

Corporate Culture

Values, beliefs, behaviors characteristic of organization.

Analysing financial performance

Corporate Objectives

Specific, measurable targets business aims to achieve.

Analysing financial performance

Corporate Social Responsibility (CSR)

Business responsibility to stakeholders beyond profit maximization.

Analysing financial performance

Corporate Strategy

Overall long-term plan achieving corporate objectives.

Analysing financial performance

Corporate Timescale

The time horizon over which a business makes its strategic and financial decisions, ranging from short-term (weeks to mo...

Understanding management decision making

Cost (Design Element)

Production cost considerations in design.

Setting marketing objectives

Cost Behaviour

How costs change with activity levels.

Setting financial objectives

Cost Categories

Classification of business costs.

Setting financial objectives

Cost Competitiveness

Competing through lower costs than competitors.

Understanding markets and customers

Cost Efficiency

Business objective minimizing costs while maintaining quality.

Understanding the nature and purpose of business

Cost Leadership Strategy

Competing by having lowest production costs, enabling low prices.

Understanding management, leadership and decision making

Cost of Production

Expenses incurred making products: materials, direct labor, manufacturing overhead.

Setting financial objectives

Cost Plus Pricing

Pricing strategy adding fixed markup percentage to unit production costs.

Setting marketing objectives

Cost Push Inflation

Inflation caused by rising production costs (materials, labor, energy).

Understanding that businesses operate within an external environment

Cost-Benefit Analysis

Systematic evaluation comparing benefits and costs of decision/project.

Analysing financial performance

Cost-Plus Pricing

(covered in 1.3).

Setting financial objectives

Costs (Types)

**Fixed costs:** unchanged by activity (rent, salaries, insurance). **Variable costs:** change with activity (materials,...

Setting financial objectives

Craft Skill

Specialized skill developed through training and experience.

Understanding markets and customers

Creative Thinking

Generating novel ideas/solutions to problems.

Understanding the nature and purpose of business

Critical Appraisal

Critical evaluation; identifying strengths and weaknesses.

Analysing financial performance

Critical AQA 3.3/3.5 terms included:

- ✓ Ansoff's Matrix (all 4 strategies).

Making financial decisions: improving cash flow and profits

Critical Path Analysis (CPA)

A project management technique that identifies the longest sequence of dependent activities (the critical path) in a pro...

Understanding management, leadership and decision making

Cross-Border Trade

Buying/selling across country borders.

Understanding markets and customers

Crowdfunding

Raising capital through small contributions from many people, typically via online platforms.

Setting financial objectives

Cultural Adaptation

Modifying business approach to align with local culture.

Understanding markets and customers

Cultural Difference

Variations in values, behaviors, communication styles between cultures.

Understanding markets and customers

Cultural Diversity

Existence of multiple cultures within organization/market.

Understanding markets and customers

Currency

Medium of exchange; money of country.

Understanding markets and customers

Currency Exchange

Trading one currency for another at market rate.

Analysing financial performance

Currency Risk

Uncertainty from exchange rate fluctuations.

Understanding markets and customers

Current Assets

Business assets convertible to cash within 12 months.

Setting financial objectives

Current Liabilities

Business obligations due within 12 months.

Setting financial objectives

current ratio

Liquidity measure comparing current assets to current liabilities.

Analysing the existing internal position of a business to assess strengths and weaknesses: financial ratio analysis

Customer Loyalty

The tendency of consumers to repeatedly purchase from the same business and resist switching to competitors.

Setting marketing objectives

Customer Needs (Global)

What customers want globally; varying by country/culture.

Understanding markets and customers

Customer Satisfaction

Business objective ensuring customers receive value and are content.

Understanding the nature and purpose of business

Damping Effect

Reduction in shock transmission between countries.

Understanding markets and customers

Days Sales Outstanding (DSO)

Average time to collect payment from customers.

Setting financial objectives

Debt Finance

Raising capital through borrowing; must repay with interest.

Understanding different business forms

Debt Management

Strategies for managing business borrowing.

Setting financial objectives

Decentralised Organisation

Structure where decision-making is distributed to lower management/staff levels.

Understanding markets and customers

Decision

Choice between alternatives; selecting one option from options.

Analysing financial performance

Decision Making

Process of choosing between alternatives.

Analysing financial performance

decision tree

A quantitative decision-making tool that maps out possible options, their probabilities, and expected outcomes in a tree...

Understanding management decision making

Decision-Making Technique

Systematic method assisting decision-making.

Analysing financial performance

Default Risk

Risk of debtor inability to repay debt.

Understanding markets and customers

Defensive Strategy

Strategy protecting existing position against threats.

Making financial decisions: sources of finance

Deflation

Sustained decrease in general price level.

Analysing financial performance

delayering

Removing one or more layers of middle management from the organisational hierarchy to flatten the structure and improve communication and speed.

Managing change

delegation

Assigning tasks/responsibility to employees with appropriate authority.

Making human resource decisions: improving organisational design and managing the human resource flow

Demand

Quantity of a product consumers are willing and able to buy at different prices in a given time period.

Setting marketing objectives

Demand Changes (Forecasting)

Factors affecting demand forecasts: consumer trends, economic factors, competitor actions, seasonality, marketing.

Setting financial objectives

Demand Curve

Graphical representation showing relationship between price and quantity demanded.

Setting marketing objectives

Demand-Pull Inflation

Inflation from high demand exceeding supply ("too much money chasing too few goods").

Understanding that businesses operate within an external environment

Democratic Leadership

Leadership style seeking employee input in decisions.

Understanding management, leadership and decision making

Demographics

Statistical characteristics of human populations including age, gender, income, education, occupation, family size, ethn...

Setting marketing objectives

Demographics (as Demand Factor)

Population characteristics (age, gender, income, education, family size) affecting demand.

Setting marketing objectives

Dependent Economy

Economy heavily reliant on specific products/markets/countries.

Understanding markets and customers

Depreciation

Reduction in asset value over time due to use, wear, age, obsolescence.

Setting financial objectives

Depreciation (Currency)

Decrease in currency value relative to another.

Analysing financial performance

Derivative Markets

Markets trading financial instruments (futures, options, swaps) derived from underlying assets.

Understanding markets and customers

Design Mix

Three key elements of product design: **Function** (what it does), **Aesthetics** (how it looks), **Cost** (price to pro...

Setting marketing objectives

Developing Country

Country with lower income, less industrialized, often lower HDI.

Understanding markets and customers

Development

Process of economic, social, technological progress.

Understanding markets and customers

Development Index (Human)

(HDI).

Understanding markets and customers

differentiation

Making product/business distinctly different from competitors.

Strategic positioning: choosing how to compete

Differentiation (Global)

Making product unique in global markets.

Understanding markets and customers

Differentiation (Marketing)

Making products distinctly different from competitors through unique features, quality, design, service, or brand.

Setting marketing objectives

Differentiation Strategy

Competing through unique, valued product features.

Making financial decisions: sources of finance

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.

Understanding markets and customers

Direction (Strategic)

Where business is heading; long-term path.

Making financial decisions: sources of finance

Discount Rate

Percentage applied to future cash flows to calculate present value.

Understanding different business forms

Discounted Cash Flow (DCF)

A technique that adjusts future cash flows to their present value by applying a discount rate, reflecting the principle ...

Making financial decisions: improving cash flow and profits

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.

Understanding markets and customers

Dismissal

Termination of employment due to employee misconduct or poor performance.

Understanding markets and customers

Disposable Income

The amount of money households have available to spend or save after direct taxes (income tax and National Insurance) ha...

Making marketing decisions: using the marketing mix

Distinctive Capability

Unique organizational strengths difficult for competitors to copy.

Making financial decisions: sources of finance

Distribution (Global)

Getting products to customers across countries.

Understanding markets and customers

Distribution Channel

Path product takes from producer to consumer.

Setting marketing objectives

Divergence

Difference/separation increasing over time.

Understanding markets and customers

diversification

Business moving into different products/markets beyond current focus.

Strategic direction: choosing which markets to compete in and what products to offer

Diversification (Ansoff)

Ansoff's Matrix strategy: entering new products and new markets.

Understanding markets and customers

Diversification Benefits

Advantages of operating in multiple markets/products.

Making financial decisions: sources of finance

dividend

Distribution of profits to shareholders.

Understanding different business forms

Divisional Structure

Organization divided into semi-autonomous divisions by: product, geography, market, customer type.

Making financial decisions: sources of finance

Dog (Boston Matrix)

Product with low market share in low-growth market.

Understanding markets and customers

Domestic Market

Home country market where business primarily operates.

Understanding markets and customers

Downsizing (Staffing)

Reducing workforce size to cut costs or restructure.

Understanding markets and customers

Dumping

Selling products at prices below domestic prices in foreign markets.

Understanding markets and customers

Dynamic Capability

Organization's ability to adapt, change, improve over time.

Making financial decisions: sources of finance

Dynamic Market

A market that is constantly changing due to innovation, new competitors, changing consumer preferences, or technological...

Setting marketing objectives

Earliest Start Time (EST)

In Critical Path Analysis, the earliest possible time at which an activity can begin, based on when all preceding activi...

Understanding management, leadership and decision making

Earnings

Profit; bottom-line income after expenses.

Setting financial objectives

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.

Understanding markets and customers

Economic Interdependence

Countries' economies mutually dependent on each other.

Making marketing decisions: segmentation, targeting, positioning

Economic Uncertainty

Unpredictability in economic conditions; difficulty forecasting.

Analysing financial performance

Economic Value Added (EVA)

Profit exceeding cost of capital; true economic profit.

Making financial decisions: sources of finance

Economic Variables (Demand Factor)

Macro-economic factors affecting demand: GDP growth, unemployment, inflation, interest rates, exchange rates.

Setting financial objectives

Economics

Study of how societies manage scarce resources.

Analysing financial performance

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.

Assessing a change in scale

Economies of Scale (Global)

Cost advantages from large-scale production/operations globally.

Making marketing decisions: segmentation, targeting, positioning

Effectiveness

Achieving objectives; doing right things.

Making marketing decisions: segmentation, targeting, positioning

efficiency

Achieving output with minimum resources.

Making operational decisions to improve performance: increasing efficiency and productivity

Efficiency (HR)

Productivity of employees measured by: output per hour worked, cost per unit produced, turnaround time.

Understanding markets and customers

Efficiency Ratios

Financial ratios measuring how effectively a business manages its assets and liabilities: receivables days, payables days, and inventory turnover.

Analysing the existing internal position of a business to assess strengths and weaknesses: financial ratio analysis

Elastic Demand

A situation where the percentage change in quantity demanded is greater than the percentage change in price (PED > 1 in ...

Understanding that businesses operate within an external environment

Elasticity (Economics)

Sensitivity of quantity demanded/supplied to price changes.

Analysing financial performance

Elkington's Triple Bottom Line

A framework measuring business performance on three dimensions: Profit (financial), People (social), and Planet (environmental).

Analysing the existing internal position of a business to assess strengths and weaknesses: financial ratio analysis

emerging economy

Country moving from developing toward developed status.

Assessing globalisation and internationalisation

Emissions

Discharge of substances into environment; typically refers to greenhouse gases.

Making marketing decisions: segmentation, targeting, positioning

Emotional Branding

Creating brands that connect with customers' emotions and values rather than just product features.

Setting marketing objectives

Employee Welfare

A business objective focused on the physical, mental, and financial wellbeing of employees beyond minimum legal requirem...

Understanding that businesses operate within an external environment

Employer-Employee Relationship

Interaction and agreement between employer and employee.

Understanding markets and customers

Employment (Global)

Jobs worldwide; increasingly mobile with globalization.

Making marketing decisions: segmentation, targeting, positioning

Employment Contract

Legal agreement between employer and employee outlining: job role, salary, hours, rights, responsibilities, conditions.

Understanding markets and customers

Employment Flexibility

(see Flexible workforce - 1.4).

Setting financial objectives

Employment Level

Total number of people working in economy/sector.

Analysing financial performance

Employment Protection

Laws protecting employee rights: minimum wage, working hours, discrimination protection, health/safety, dismissal proced...

Analysing financial performance

Employment Rights

Protections employees have: fair treatment, safe conditions, minimum wage, non-discrimination, contractual protection.

Analysing financial performance

Empowerment (HR)

Giving employees authority and responsibility to make decisions affecting their work.

Setting human resource objectives

Endorsement (Celebrity)

Using famous person to promote product/brand.

Making marketing decisions: segmentation, targeting, positioning

Entrepreneur

Individual creating/running business, assuming financial risk for potential reward.

Understanding the nature and purpose of business

Entrepreneurial Characteristics

See Characteristics (Entrepreneurial) above.

Understanding the nature and purpose of business

Entrepreneurial Skills

Abilities supporting business success: business planning, financial management, marketing, leadership, problem-solving, ...

Understanding the nature and purpose of business

Entrepreneurship

Process of creating/running business ventures.

Understanding the nature and purpose of business

Entry Mode

Method of entering foreign market.

Making marketing decisions: segmentation, targeting, positioning

Environmental Factor

External element affecting environment: climate, resources, pollution, sustainability.

Making marketing decisions: segmentation, targeting, positioning

Environmental Impact

Effects of business on natural environment: emissions, waste, resource use, pollution.

Analysing financial performance

Environmental Protection

Laws/policies preventing environmental damage: pollution control, resource conservation, waste management, climate regul...

Analysing financial performance

Environmental Scanning

Monitoring external environment for opportunities/threats.

Making financial decisions: sources of finance

Environmental Standards

Requirements for acceptable environmental performance: emissions limits, waste handling, energy efficiency.

Analysing financial performance

Equity Finance

Raising capital through selling ownership shares.

Understanding different business forms

Ethical Sourcing (Product)

Ensuring products are produced ethically: fair wages, safe conditions, environmental protection, no exploitation.

Setting marketing objectives

Ethical Stance

The moral position or set of values that guides a business's decision-making, particularly regarding issues such as the ...

Understanding that businesses operate within an external environment

Ethics (Global Business)

Moral principles guiding global business conduct.

Making marketing decisions: segmentation, targeting, positioning

Ethnocentric Approach

A global marketing strategy in which the home country's marketing approach is applied uniformly in all international mar...

Making marketing decisions: using the marketing mix

EU

(European Union).

Making marketing decisions: segmentation, targeting, positioning

Evidence-Based Decision

A decision made by systematically gathering and analysing relevant data and research before choosing a course of action,...

Understanding management decision making

Exchange Gain/Loss

Profit/loss from currency exchange rate changes.

Making marketing decisions: segmentation, targeting, positioning

exchange rate

Price of one currency in terms of another.

Analysing the external environment to assess opportunities and threats: economic change

Exclusion (Trade)

Preventing market access; trade barrier effect.

Making marketing decisions: segmentation, targeting, positioning

Experience Curve

Concept that costs decrease as volume increases (learning effect).

Making financial decisions: sources of finance

export

Selling goods/services to foreign countries.

Assessing globalisation and internationalisation

Exporter

Business selling goods/services to foreign markets.

Making marketing decisions: segmentation, targeting, positioning

Extension Strategies

Methods to extend product life cycle in maturity/decline stages. **Product extension:** modify product (new features, fl...

Understanding markets and customers

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...

Understanding that businesses operate within an external environment

external finance

Capital raised from outside sources: banks (loans), investors (equity), governments (grants), organizations (crowd fundi...

Making financial decisions: sources of finance

External Growth (Mergers and Takeovers)

Growth achieved by combining with or acquiring another business, rather than growing from within.

Assessing a change in scale

External Influences (Production)

Outside factors affecting production: supplier availability, energy prices, labor availability, regulations, technology ...

Setting financial objectives

External Recruitment

Hiring new employees from outside the organization through: job advertisements, recruitment agencies, universities, netw...

Setting human resource objectives

External Shock

Unexpected external event affecting economy/business: oil price spike, natural disaster, war, pandemic, financial crisis...

Analysing financial performance

External Shocks

Unexpected, sudden events affecting supply or demand.

Setting marketing objectives

External Stakeholder

An individual or group outside the organisation who has an interest in or is affected by its activities. Includes custom...

Understanding management decision making

Externality (Environmental)

External cost/benefit not reflected in market price.

Making marketing decisions: segmentation, targeting, positioning

extrapolation

Using an established trend (from historical data or a line of best fit) to forecast future values by extending the trend...

Understanding markets and customers

Failure (Business)

Business ceasing operations; unable to continue.

Understanding the nature and purpose of business

Failure Rate

Percentage of products/services failing to meet standards.

Setting financial objectives

fair trade

Trade practice ensuring fair prices, conditions for producers (especially in developing countries).

Understanding that businesses operate within an external environment

Family Funding

Capital from family members for business.

Understanding different business forms

Fashion/Tastes/Preferences

Consumer preferences and desires for certain products changing over time.

Setting marketing objectives

Fashion/Trends (Marketing)

Changing consumer preferences for styles, designs, and products.

Understanding markets and customers

Favoritism

Showing preference/bias for certain parties.

Making marketing decisions: segmentation, targeting, positioning

FDI

(Foreign Direct Investment).

Making marketing decisions: segmentation, targeting, positioning

Financial Contagion

Rapid spread of financial crisis from one country/market to others.

Making marketing decisions: segmentation, targeting, positioning

Financial Forecast

Projection of future financial performance.

Making financial decisions: sources of finance

Financial Hardship

Situation where business has insufficient funds to meet obligations.

Setting financial objectives

Financial Incentive

Money-based rewards motivating performance: salary increases, bonus, commission, profit share, pay rises.

Understanding the nature and purpose of business

Financial Leverage

Using debt financing to increase returns on equity.

Setting financial objectives

Financial Market (Global)

Worldwide system trading financial instruments: stocks, bonds, currencies, derivatives.

Making marketing decisions: segmentation, targeting, positioning

Financial Motive

Drive to earn money/profit.

Understanding the nature and purpose of business

Financial Objectives

Specific financial targets; profitability, growth, returns goals.

Making financial decisions: sources of finance

Financial Position

Overall financial health of business at point in time.

Setting financial objectives

financial ratio

Relationship between financial figures measuring performance/position.

Analysing the existing internal position of a business to assess strengths and weaknesses: financial ratio analysis

Financial Services

Banking, investment, insurance, payment services.

Making marketing decisions: segmentation, targeting, positioning

Financial Statements

Documents reporting financial position/performance: balance sheet, income statement, cash-flow statement.

Setting financial objectives

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.

Strategic direction: choosing which markets to compete in and what products to offer

fiscal policy

Government use of taxation and spending to influence economy.

Analysing the external environment to assess opportunities and threats: economic change

Five Forces (Porter)

Framework analyzing competitive intensity.

Making financial decisions: sources of finance

Fixed Assets

Long-term business assets lasting >1 year: property, equipment, vehicles, technology.

Understanding different business forms

Fixed Costs

Expenses unchanged by production/sales volume.

Setting financial objectives

Fixed Exchange Rate

Official government set exchange rate (not market determined).

Analysing financial performance

Flat Structure

Organization with few hierarchy levels; many employees report to one manager.

Understanding markets and customers

Flexible Hours

Employment arrangement allowing employees to vary working hours around core times.

Understanding markets and customers

flexible organisation

An organisation that adapts its structure, workforce, and operations quickly in response to changing business conditions.

Managing change

Flexible Workforce

Employment practices using varied staffing arrangements.

Understanding markets and customers

flexible working

Various arrangements allowing employees flexibility: part-time, flexible hours, job-sharing, homeworking, compressed wee...

Making human resource decisions: improving motivation and engagement

Floating Exchange Rate

Market-determined exchange rate; fluctuates based on supply/demand.

Analysing financial performance

Flotation

(Stock Market - see 1.5).

Understanding different business forms

Flow (Capital)

Movement of investment money; direction and quantity.

Making marketing decisions: segmentation, targeting, positioning

Flow (Trade)

Direction and quantity of goods/services traded between countries.

Making marketing decisions: segmentation, targeting, positioning

Flow Production

(Continuous Production).

Setting financial objectives

Focus Group

Small group (8-12) of target customers/employees discussing topics under moderation.

Understanding markets and customers

focus strategy

Competing by serving specific market segment well.

Strategic positioning: choosing how to compete

Forecasting (Production)

Predicting future production needs based on: demand forecasts, inventory levels, supplier lead times.

Setting financial objectives

Forecasting (Sales)

Predicting future sales based on: historical data, market analysis, trends, competitor actions, planned marketing.

Setting financial objectives

Foreign Exchange

Trading currencies; market where currencies exchange.

Analysing financial performance

Foreign Exchange Reserve

Currency/assets held by central bank for: paying international debts, stabilizing currency, intervention capacity.

Making marketing decisions: segmentation, targeting, positioning

Formal Training

Structured, planned training programs: induction, on-the-job, off-the-job, apprenticeships, courses.

Setting human resource objectives

Forward Integration

Vertical integration moving toward customer; acquiring downstream business.

Making financial decisions: sources of finance

Franchise (Global)

Business model where franchisor licenses business to franchisee in foreign country.

Making marketing decisions: segmentation, targeting, positioning

Franchise/Franchising

Business model where franchisee operates business using franchisor's brand/systems for fee/royalty.

Understanding the nature and purpose of business

free trade

International trade without barriers (tariffs, quotas, restrictions).

Analysing the external environment to assess opportunities and threats: economic change

Friends Funding

Capital from friends for business.

Understanding different business forms

FTZ

(Free Trade Zone).

Making marketing decisions: segmentation, targeting, positioning

Full Integration

Complete merging of operations/systems.

Making marketing decisions: segmentation, targeting, positioning

Function (Design)

What a product does; its purpose and how well it performs its intended task.

Understanding markets and customers

Function (Job)

Main purpose and responsibilities of a job role.

Understanding markets and customers

Functional Strategy

Plan for specific business function (HR, marketing, operations, finance).

Making financial decisions: sources of finance

Funding

Providing financial resources for business.

Understanding different business forms

Gap Analysis

Identifying difference between current position and desired position (goal).

Making financial decisions: sources of finance

GDP

(Gross Domestic Product).

Analysing the external environment to assess opportunities and threats: economic change

GDP Per Capita

GDP divided by population; average income per person.

Making marketing decisions: segmentation, targeting, positioning

Gearing Ratio

Measure of financial leverage; proportion of borrowing vs equity.

Setting financial objectives

Geocentric Approach

A global marketing strategy that treats the world as a single market, developing standardised products and marketing tha...

Making marketing decisions: using the marketing mix

Geopolitics

Politics influenced by geography; competition for resources and power.

Making marketing decisions: segmentation, targeting, positioning

Gilts

UK government bonds; low-risk investment paying interest.

Understanding different business forms

Global Brand

Brand recognized/valued worldwide.

Making marketing decisions: segmentation, targeting, positioning

Global Business

Business operating in multiple countries; international scope.

Making marketing decisions: segmentation, targeting, positioning

Global Competition

Competition at worldwide level.

Making marketing decisions: segmentation, targeting, positioning

Global Finance

Financial management at global level.

Making marketing decisions: segmentation, targeting, positioning

Global Marketing Strategy

Plan for marketing products/services globally.

Making marketing decisions: segmentation, targeting, positioning

Global Markets

Worldwide customer base for products/services.

Making marketing decisions: segmentation, targeting, positioning

Global Mindset

Perspective valuing global understanding, diversity, complexity.

Making marketing decisions: segmentation, targeting, positioning

Global Niche Market

A small but globally distributed segment of consumers with very specific needs that can be served profitably across mult...

Making marketing decisions: using the marketing mix

Global Strategy

Corporate strategy for international/global operations.

Making financial decisions: sources of finance

Global Supply Chain

Network of suppliers, manufacturers, distributors spanning multiple countries.

Making operational decisions to improve performance: increasing efficiency and productivity

globalisation

The increasing integration of the world's economies through trade, investment, migration, and the free flow of information and technology.

Assessing globalisation and internationalisation

Glocalisation

Global marketing strategy adapted to local markets.

Understanding markets and customers

Goodwill

(Intangible Asset).

Setting financial objectives

Government Grants

Non-repayable funding from government for specified purposes: research, training, regional development, environmental in...

Understanding different business forms

Government Incentive

Financial/non-financial support from government attracting business.

Making marketing decisions: segmentation, targeting, positioning

Government Spending

Expenditure by government on goods, services, wages, benefits, infrastructure.

Analysing financial performance

Grading/Classification (Products)

Sorting products by quality, size, or standards.

Understanding markets and customers

Grievance Procedure

Formal process for employees to raise complaints about treatment, conditions, or management.

Understanding markets and customers

Gross Domestic Product (GDP)

Total value of goods/services produced in country in period.

Analysing financial performance

Gross National Income (GNI)

Total income earned by country residents/companies; includes income earned abroad.

Making marketing decisions: segmentation, targeting, positioning

gross profit

Sales minus cost of goods sold (direct production costs).

Setting financial objectives

Gross Profit Margin

Gross profit as percentage of revenue.

Setting financial objectives

Growth

Increase in business size measured by: revenue, profit, market share, employee count, asset value.

Making financial decisions: sources of finance

Growth (Economic)

Increase in economic output; real GDP growth.

Making marketing decisions: segmentation, targeting, positioning

Growth (Market)

Expansion of market size; increasing total sales.

Making marketing decisions: segmentation, targeting, positioning

Growth Objective

Strategic goal to increase business size/revenue.

Understanding the nature and purpose of business

Growth Potential

Future opportunity for market/business expansion.

Making marketing decisions: segmentation, targeting, positioning

Growth Rate

Percentage increase in economic/market measure over period.

Making marketing decisions: segmentation, targeting, positioning

Growth Vector

Direction of growth strategy; how business will expand.

Making financial decisions: sources of finance

Guest Workers

Foreign nationals working temporarily in another country.

Making marketing decisions: segmentation, targeting, positioning

hard HRM

An approach treating employees primarily as a cost to be managed and controlled to meet business objectives.

Setting human resource objectives

HDI

(Human Development Index - already covered).

Making marketing decisions: segmentation, targeting, positioning

Health and Safety

Protection of people from work-related harm.

Analysing financial performance

Hedge/Hedging

Strategy reducing financial risk.

Making marketing decisions: segmentation, targeting, positioning

hierarchy

Arrangement of positions/people by authority level.

Making human resource decisions: improving organisational design and managing the human resource flow

Hierarchy (Global Organization)

Reporting structure across multiple countries; global organization design.

Making marketing decisions: segmentation, targeting, positioning

hierarchy of needs

(Maslow - see 1.4).

Making human resource decisions: improving motivation and engagement

Hire Purchase

Arrangement to use asset while paying for it in installments.

Understanding different business forms

Historical Budgeting

Setting budgets based on previous year's actual figures, adjusted for expected changes.

Setting financial objectives

Home Working (Entrepreneurship)

Running business from home.

Understanding the nature and purpose of business

Homeworking

Employment arrangement where employees work from home (full-time or part-time).

Understanding markets and customers

horizontal integration

Merging with competitor at same supply chain level.

Assessing a change in scale

Host Country

Country where foreign business operates.

Making marketing decisions: segmentation, targeting, positioning

Human Development

Progress in human wellbeing; life expectancy, education, income.

Making marketing decisions: segmentation, targeting, positioning

Human Resources (HR)

Department managing: recruitment, training, compensation, performance, employee relations, legal compliance.

Setting human resource objectives

Human-Intensive

Business/process relying heavily on human labor.

Analysing financial performance

Hygiene Factors (Herzberg)

Job factors that prevent dissatisfaction but don't motivate.

Making human resource decisions: improving organisational design and managing the human resource flow

ICT (HR Management)

Use of technology in HR: HR systems (payroll, records), recruitment tools, training platforms, performance monitoring, e...

Setting human resource objectives

ICT (Information and Communication Technology)

Technology enabling global communication, data processing, business operations.

Making marketing decisions: segmentation, targeting, positioning

ICT and Market Research

Use of Information and Communication Technology to gather and analyze market data.

Setting marketing objectives

Idea Generation

Process of creating new business concepts.

Understanding the nature and purpose of business

Identifying Customer Needs and Wants

Market research process to discover what customers require (needs - essential products) and desire (wants - preferred pr...

Setting marketing objectives

Idle Capacity

Unused production capacity; output below potential.

Setting operational objectives

Implementation

Putting strategy/plan into action; executing decisions.

Making financial decisions: sources of finance

Import

Buying goods/services from foreign countries.

Making marketing decisions: segmentation, targeting, positioning

Importer

Business purchasing goods/services from foreign suppliers.

Making marketing decisions: segmentation, targeting, positioning

Incentive

Motivation/reward encouraging specific behavior/outcome.

Making marketing decisions: segmentation, targeting, positioning

Income (Global)

Money earned by individuals/organizations/countries.

Making marketing decisions: segmentation, targeting, positioning

Income Distribution

How income is divided among population.

Making marketing decisions: segmentation, targeting, positioning

Income Elasticity of Demand (YED)

Measure of how demand changes when consumer income changes.

Setting marketing objectives

Income Level

Amount of money earned by individual/family/country.

Making marketing decisions: segmentation, targeting, positioning

income statement

(Profit & Loss Account).

Analysing the existing internal position of a business to assess strengths and weaknesses: financial ratio analysis

Incorporation (Company)

Legal process establishing company as separate legal entity.

Making marketing decisions: segmentation, targeting, positioning

Independence (Economic)

Country's ability to function economically without dependence on others.

Making marketing decisions: segmentation, targeting, positioning

Independence (Motive)

Desire to work for oneself, control own decisions, be own boss.

Understanding the nature and purpose of business

Index (Economic)

Measure tracking economic variable over time.

Making marketing decisions: segmentation, targeting, positioning

Indexation

Automatic adjustment of value based on index (e.g., wage indexation to inflation).

Making marketing decisions: segmentation, targeting, positioning

Indicated Risk

Risk suggested/shown by analysis/information.

Making marketing decisions: segmentation, targeting, positioning

Indirect Tax

Tax paid indirectly through intermediary; typically on products.

Making marketing decisions: segmentation, targeting, positioning

Indirect Taxes (Supply Factor)

Taxes on products paid by producers (e.g., excise duty, VAT).

Setting marketing objectives

Induction Training

Initial training for new employees.

Setting human resource objectives

Industry

Group of businesses producing similar products/services.

Making marketing decisions: segmentation, targeting, positioning

Inelastic Demand

A situation where the percentage change in quantity demanded is less than the percentage change in price (PED < 1 in abs...

Understanding that businesses operate within an external environment

Inequality

Unequal distribution of resources, income, opportunity.

Making operational decisions to improve performance: increasing efficiency and productivity

inflation

Sustained increase in general price level.

Analysing the external environment to assess opportunities and threats: economic change

Inflation (Global)

Worldwide general price increase.

Understanding that businesses operate within an external environment

Inflation Rate

Percentage increase in price level year-over-year.

Understanding that businesses operate within an external environment

Informal Authority

Power/influence held due to: expertise, respect, personality rather than official position.

Understanding markets and customers

Informal Finance

Funding outside formal banking system: family, friends, saving groups, private investors.

Understanding different business forms

Informal Training

Learning through: mentoring, shadowing, observation, experience, peer learning.

Setting human resource objectives

Infrastructure

Basic physical systems: roads, electricity, water, communications, ports.

Making marketing decisions: segmentation, targeting, positioning

Inherent Risk

Risk existing in situation before controls/mitigation.

Making marketing decisions: segmentation, targeting, positioning

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.

Understanding the nature and purpose of business

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.

Assessing innovation

Inorganic Growth

Growth through acquisition, merger, takeover.

Making financial decisions: sources of finance

Input

Resource/material entering production process.

Making marketing decisions: segmentation, targeting, positioning

Insolvency

Inability to pay debts when due.

Setting financial objectives

Inspection

(Quality - already covered).

Analysing financial performance

Inspection (Quality)

Examination of products to ensure they meet standards before delivery to customers.

Setting operational objectives

Integration

Combining organizations/functions; merger of entities.

Making financial decisions: sources of finance

Integrity (Leadership)

Quality of being honest, principled, consistent in values and actions.

Understanding management, leadership and decision making

Intended Strategy

Plan developed based on deliberate analysis and decision-making.

Making financial decisions: sources of finance

Interdependence (Economic)

Countries' economies mutually dependent.

Making marketing decisions: segmentation, targeting, positioning

Interest

Cost of borrowing; paid by borrower to lender.

Understanding different business forms

Interest (Financial)

Cost of borrowing money; paid to lenders.

Understanding markets and customers

Interest Coverage Ratio

Ability to service debt from profits.

Setting financial objectives

interest rate

Cost of borrowing; return on savings.

Understanding that businesses operate within an external environment

Interest Rate (Global)

Borrowing cost influenced by: central bank policy, risk, inflation expectations.

Making marketing decisions: using the marketing mix

Interest Rate Change

Increase/decrease in borrowing costs.

Analysing financial performance

Intermediary

Organization between producer and consumer.

Making marketing decisions: using the marketing mix

Internal Analysis

Evaluation of organization's internal resources/capabilities.

Making financial decisions: sources of finance

Internal Communication

Sharing information/messages within organization.

Making financial decisions: sources of finance

Internal Economies of Scale

Cost advantages that arise from growth within a particular business, reducing average unit costs as output expands.

Understanding that businesses operate within an external environment

internal finance

Capital raised from within organization: owner's capital, retained profits, asset sales.

Making financial decisions: sources of finance

Internal Recruitment

Hiring new employees from existing workforce through: internal advertisement, promotion, transfer.

Setting human resource objectives

Internal Stakeholder

An individual or group within the organisation who has a direct interest in its activities and decisions. Includes emplo...

Understanding management decision making

International

Between or among nations; across borders.

Making marketing decisions: using the marketing mix

International Trade

Exchange of goods/services between countries.

Analysing financial performance

Internet

Global communication network enabling worldwide connectivity.

Making marketing decisions: using the marketing mix

Intervention (Government)

Government action affecting economy: regulation, taxation, spending, subsidies.

Making marketing decisions: using the marketing mix

Interview (Recruitment)

Face-to-face or video conversation between interviewer and job candidate assessing: qualifications, skills, personality,...

Setting human resource objectives

Interviewer Bias

Subjective judgment in interviews affecting fairness.

Understanding markets and customers

intrapreneurship

Entrepreneurial behaviour and innovation by employees within a large organisation, acting as if they own the project they are developing.

Assessing innovation

inventory

(Stock).

Making operational decisions to improve performance: managing inventory and supply chains

Inventory Holding Costs

Costs of keeping inventory: storage, insurance, obsolescence, deterioration, financing.

Setting operational objectives

inventory turnover

How many times inventory is sold/replaced per period.

Analysing the existing internal position of a business to assess strengths and weaknesses: financial ratio analysis

Investigative Marketing

Researching market/customers before major business decisions.

Making financial decisions: sources of finance

Investment

Purchasing assets expecting future returns: financial (stocks, bonds), physical (equipment, property), business (equity ...

Understanding different business forms

Investment (Foreign)

Buying assets in foreign country.

Making marketing decisions: using the marketing mix

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.

Analysing the existing internal position of a business to assess strengths and weaknesses: financial ratio analysis

Investment Return

Profit/gain from investment.

Making marketing decisions: using the marketing mix

Invoice Factoring

Selling unpaid invoices to factor at discount to get immediate cash.

Understanding different business forms

Jargon (Business)

Specialized language/terminology used in business.

Making marketing decisions: using the marketing mix

Job Creation

Employment opportunity generation.

Making marketing decisions: using the marketing mix

Job Enlargement

Expanding job scope horizontally; adding more tasks at same level.

Understanding markets and customers

job enrichment

Enhancing job vertically; adding responsibility, autonomy, challenge.

Making human resource decisions: improving motivation and engagement

Job Production

Manufacturing custom products one at a time or in small quantities.

Analysing financial performance

job rotation

Systematically moving employees between different roles/departments.

Making human resource decisions: improving motivation and engagement

Job Share

Two part-time employees splitting one full-time position.

Understanding markets and customers

Jobbing

See Job Production.

Analysing financial performance

Joint Venture

Partnership between companies/individuals for specific project/business.

Understanding the nature and purpose of 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...

Making operational decisions to improve performance: increasing efficiency and productivity

Kaizen

(Continuous Improvement).

Assessing innovation

Kaizen (Continuous Improvement)

A Japanese management philosophy of continuous, incremental improvement involving all employees at every level of the business.

Assessing a change in scale

Kaizen Events

Focused improvement activities over short period (days/weeks).

Analysing financial performance

Key Account

Major customer providing significant revenue.

Making marketing decisions: using the marketing mix

Key Personnel

Employees whose skills, knowledge, relationships, or leadership are so critical to business operations that their depart...

Understanding management decision making

Kick-Starter

(funding).

Understanding the nature and purpose of business

Knowledge Economy

Economy based on knowledge/information rather than manufacturing.

Making marketing decisions: using the marketing mix

knowledge management

Systematic approach capturing, storing, sharing organizational knowledge.

Managing change

Knowledge Transfer

Sharing knowledge from one entity/country to another.

Making marketing decisions: using the marketing mix

Kotter and Schlesinger — Resistance to Change

Four reasons employees resist change: self-interest, misunderstanding, different assessment, and low tolerance for change.

Managing change

Labor Cost

Expense of employing workers; wages, benefits, training, administration.

Making marketing decisions: using the marketing mix

Labor Force

Total employed/unemployed people available for work.

Making marketing decisions: using the marketing mix

Labor Migration

Movement of workers between countries seeking employment.

Making marketing decisions: using the marketing mix

Labor Standard

Rules/norms for working conditions: wages, hours, safety, rights.

Making marketing decisions: using the marketing mix

Labor-Intensive

(already covered - see 1.4).

Analysing financial performance

Labour (HR Context)

Workforce; people employed to do work.

Setting human resource objectives

Labour Costs

Expenses related to employees: wages, salaries, benefits, training, recruitment, compliance.

Understanding markets and customers

Labour Exploitation

The practice of treating workers unfairly or unethically — including paying very low wages, enforcing excessive working ...

Making human resource decisions: improving organisational design and managing the human resource flow

labour intensive

Business/process requiring large workforce relative to capital/technology.

Making operational decisions to improve performance: increasing efficiency and productivity

Labour Market

Market where labor (employees) is traded for wages.

Analysing financial performance

labour productivity

Output produced per unit of labor (typically per employee per hour).

Analysing operational performance

labour turnover

Rate of employees leaving organization.

Analysing human resource performance

laissez-faire

(Economic - already covered).

Understanding management, leadership and decision making

Laissez-Faire (Economic Policy)

Minimal government intervention in economy.

Understanding management decision making

Laissez-Faire Leadership

Leadership style giving employees maximum freedom and minimal direction.

Understanding management, leadership and decision making

Language Barrier

Communication difficulty from using different languages.

Making financial decisions: improving cash flow and profits

Large-Scale Production

Manufacturing at high volume; mass production.

Making marketing decisions: using the marketing mix

Last-Mover Advantage

Benefit of entering market late after pioneers.

Making marketing decisions: using the marketing mix

Latest Finish Time (LFT)

In Critical Path Analysis, the latest time at which an activity can be completed without delaying the overall project co...

Understanding management, leadership and decision making

Law (Business)

Legal rules governing business: company law, employment law, contract law, consumer protection, competition law.

Making marketing decisions: using the marketing mix

Layoff

Temporary or permanent employee separation from employment.

Making marketing decisions: using the marketing mix

leadership

Directing and inspiring people toward goals.

Understanding management, leadership and decision making

Leadership Style

Approach to directing and influencing people.

Understanding management, leadership and decision making

Leading Edge

Forefront of innovation/technology; most advanced.

Making marketing decisions: using the marketing mix

lean production

Production system eliminating waste; maximizing value.

Making operational decisions to improve performance: increasing efficiency and productivity

Learning (Employee)

Acquisition of knowledge and skills through: training, experience, observation, practice.

Understanding markets and customers

Learning Curve

Efficiency improvement as people gain experience doing task.

Making marketing decisions: using the marketing mix

Learning Organization

Organization systematically learning from experience, improving capability.

Making financial decisions: sources of finance

Lease

Arrangement to use asset for set period paying regular fees.

Understanding different business forms

Leasing

Renting equipment/property rather than buying.

Understanding markets and customers

Legal Control

Government use of laws to regulate business behavior.

Analysing financial performance

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.

Making marketing decisions: using the marketing mix

Legislation

Laws enacted by government regulating business/society.

Analysing financial performance

Legislation (Employment)

Laws regulating employment: employment contracts, minimum wage, working hours, health/safety, discrimination, data prote...

Understanding markets and customers

Lewin's force field analysis

A model identifying driving forces (pushing for change) and restraining forces (resisting change) to assess whether change is feasible.

Managing change

licensing

Granting right to use intellectual property/brand/technology.

Assessing globalisation and internationalisation

Lifestyle Business

Business primarily providing income for owner rather than seeking growth/profit maximization.

Understanding the nature and purpose of business

Limited Company

Legal structure where business is separate legal entity from owners.

Understanding different business forms

limited liability

Legal structure protecting personal assets from business debts.

Understanding different business forms

Line Management

Management structure where authority flows down line from senior to junior levels.

Understanding markets and customers

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...

Understanding management, leadership and decision making

liquidity

Ability to meet short-term financial obligations; having cash/convertible assets available.

Analysing the existing internal position of a business to assess strengths and weaknesses: financial ratio analysis

Liquidity (Global)

Availability of cash/liquid assets; ability to meet obligations.

Making financial decisions: improving cash flow and profits

Liquidity Ratio

Financial ratio measuring ability to pay short-term debts.

Setting financial objectives

Literacy

Ability to read and write.

Making marketing decisions: using the marketing mix

Litigation

Legal dispute resolution through court process.

Making marketing decisions: using the marketing mix

Loan Covenants

Conditions/restrictions imposed by lender in loan agreement.

Understanding different business forms

Loans

Borrowing arrangement; money provided to be repaid with interest.

Understanding different business forms

Lobbying

Advocating interests to policymakers.

Making marketing decisions: using the marketing mix

Local Business

Company primarily serving local market; limited geographic scope.

Making marketing decisions: using the marketing mix

Local Content Requirement

Regulation requiring business to source specific percentage locally.

Making marketing decisions: using the marketing mix

Local Economy

Economic activity in specific geographic area (city, region, country).

Making marketing decisions: using the marketing mix

Localisation

Adapting product/service for local market.

Making marketing decisions: using the marketing mix

Logo

Graphic symbol/design representing brand.

Making marketing decisions: using the marketing mix

Long-Term

Extended time period; typically years (3+ years).

Making marketing decisions: using the marketing mix

Long-Term Objectives

Goals spanning multiple years (typically 3+ years).

Making financial decisions: sources of finance

Long-Termism

A focus on sustainable long-term business outcomes over short-term financial metrics, prioritising investment in people,...

Understanding management decision making

Look-Alike

Product imitating established brand without being identical.

Making marketing decisions: using the marketing mix

Loss Leader

Product sold at loss to attract customers/drive traffic.

Making marketing decisions: using the marketing mix

Low-Cost

Operating with minimum costs; competing on price.

Making marketing decisions: using the marketing mix

Loyalty

Repeat purchase/support; customer returning to business.

Making marketing decisions: using the marketing mix

Luxury

High-end products/services targeting affluent customers.

Making marketing decisions: using the marketing mix

M&A

(Mergers and Acquisitions).

Making marketing decisions: using the marketing mix

Machine Maintenance

Regular servicing of equipment to prevent breakdown.

Analysing financial performance

Machinery

Equipment used in production.

Making marketing decisions: using the marketing mix

Macroeconomic

Large-scale economic factors affecting overall economy.

Making marketing decisions: using the marketing mix

Man-Hours

Labor time measurement; employee hours worked.

Analysing financial performance

management

Running/controlling business operations achieving objectives.

Understanding management, leadership and decision making

Management Structure

Organizational hierarchy showing reporting relationships.

Making financial decisions: sources of finance

Management Style

Approach to directing employees.

Understanding management, leadership and decision making

Management vs Leadership

Management refers to the process of planning, organising, and controlling resources to achieve objectives. Leadership re...

Understanding management, leadership and decision making

Manufacturing

Producing goods through processing/assembly.

Analysing financial performance

Margin

Difference between selling price and cost; profit.

Making marketing decisions: using the marketing mix

margin of safety

How many extra sales you have above break-even — your cushion against disaster.

Analysing financial performance

Market

Interaction of supply and demand determining prices and quantities of goods/services traded.

Setting marketing objectives

Market Access

Ability to enter/operate in market.

Making marketing decisions: using the marketing mix

market capitalisation

The total market value of all a company's issued shares: Share Price multiplied by Number of Shares in Issue.

Understanding different business forms

Market Diversification

Expanding into different geographic/customer markets.

Making financial decisions: sources of finance

Market Economy

Economy where price/supply-demand determine allocation.

Making marketing decisions: using the marketing mix

Market Entry

Entering new geographic/product market.

Making marketing decisions: using the marketing mix

Market Equilibrium

Point where quantity supplied equals quantity demanded at a particular price.

Setting marketing objectives

Market Failure

Market inefficiency; not producing socially optimal outcome.

Making marketing decisions: using the marketing mix

market growth

Expansion of total market size measured by sales value or units sold.

Setting marketing objectives

market mapping

Visual representation showing competitors' positions based on two chosen characteristics (e.g., price vs quality, luxury...

Making marketing decisions: segmentation, targeting, positioning

Market Opportunity

Gap/need in market addressable by new business.

Understanding the nature and purpose of business

Market Orientation

Business approach prioritizing customer needs and wants above all else.

Setting marketing objectives

market penetration

(Ansoff).

Strategic direction: choosing which markets to compete in and what products to offer

Market Position

Where business stands in market relative to competitors.

Making financial decisions: sources of finance

Market Positioning

Strategy of placing a product/brand in consumers' minds relative to competitors.

Setting marketing objectives

Market Power

The ability of a business with a large market share to influence prices, terms of trade, or competitive conditions in it...

Understanding that businesses operate within an external environment

Market Rates (Finance)

Typical interest rates, fees, terms offered in financial market for different types of borrowing.

Understanding different business forms

Market Research

Investigating market/customers to inform decisions.

Making marketing decisions: using the marketing mix

Market Saturation

Market where existing supply meets/exceeds demand; limited growth opportunity.

Understanding the nature and purpose of business

Market Segmentation

Division of a market into distinct groups of consumers with similar characteristics, needs, or behaviors.

Setting marketing objectives

market share

Percentage of total market sales/units held by business.

Setting marketing objectives

market size

Total value or volume of products sold in market.

Setting marketing objectives

Market Structure

Characteristics of market affecting competition.

Making marketing decisions: using the marketing mix

marketing mix

Four elements of marketing strategy (4Ps):.

Making marketing decisions: using the marketing mix

Marketing Objectives

Specific, measurable goals set by the marketing function that support the overall corporate objectives of the business.

Setting marketing objectives

Marketplace

Location/platform where buying/selling occurs.

Making marketing decisions: using the marketing mix

Markup

Amount added to cost to determine selling price.

Making marketing decisions: using the marketing mix

Maslow (Hierarchy of Needs)

Abraham Maslow's motivational theory proposing that human needs exist in a hierarchy of five levels: physiological, safe...

Making human resource decisions: improving organisational design and managing the human resource flow

Mass Market

Large segment of the population willing to buy a standardized product.

Setting marketing objectives

Mass Production

Manufacturing large quantities of identical products using standardized processes.

Understanding markets and customers

Master Brand

Umbrella brand covering multiple products/lines.

Making marketing decisions: using the marketing mix

Material

Tangible substance used in production.

Making marketing decisions: using the marketing mix

Materials Handling

Moving/storing materials in production.

Analysing financial performance

matrix structure

Organization structure combining functional and project-based reporting.

Making human resource decisions: improving organisational design and managing the human resource flow

Mature Market

Market at peak/declining phase; established, limited growth.

Making marketing decisions: using the marketing mix

Maximum Stock Level

Highest inventory quantity before ordering more.

Analysing financial performance

Mayo (Human Relations Theory)

Elton Mayo's theory that social factors and group dynamics are the primary drivers of worker motivation, rather than pay...

Making human resource decisions: improving organisational design and managing the human resource flow

Measurement

Quantifying variables for analysis/evaluation.

Making marketing decisions: using the marketing mix

Media

Channels for communication/marketing: TV, radio, print, digital, social.

Making marketing decisions: using the marketing mix

Mentoring

Experienced person (mentor) guiding less-experienced person (mentee) on job, career, development.

Understanding markets and customers

Mentoring (Entrepreneurship)

Experienced entrepreneur/professional guiding startup founder.

Understanding the nature and purpose of business

Merchant Banks

Financial institutions providing: corporate finance, investment services, advisory to businesses.

Understanding different business forms

merger

Combination of two companies into single entity.

Assessing a change in scale

Metric

Measurable standard for evaluation.

Making marketing decisions: using the marketing mix

Mexico

Country in North America; significant trading relationship with US/Canada (NAFTA/USMCA).

Making marketing decisions: using the marketing mix

Micro-Finance

Small loans to individuals/micro-businesses often in developing countries.

Understanding different business forms

Microeconomic

Small-scale economic factors affecting individual/firm.

Making marketing decisions: using the marketing mix

Middle Income

Income level between low and high income countries.

Making marketing decisions: using the marketing mix

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.

Making marketing decisions: using the marketing mix

Minimum Stock Level

Lowest inventory quantity; triggers reordering.

Analysing financial performance

Minimum Viable Product (MVP)

Simplest version of product with essential features enabling customer feedback.

Making marketing decisions: using the marketing mix

Minimum Wage

Lowest legally allowed wage employers pay workers.

Making marketing decisions: using the marketing mix

Mission Statement

Concise statement of organization's purpose/values/long-term direction.

Understanding the nature and purpose of business

MNC

(Multinational Corporation).

Making marketing decisions: using the marketing mix

Mobile (Labor)

Ability of workers to move between jobs/locations.

Making marketing decisions: using the marketing mix

Model

Simplified representation of real situation.

Making marketing decisions: using the marketing mix

Modernization

Updating/improving to current standards/technology.

Making marketing decisions: using the marketing mix

monetary policy

Central bank action controlling money supply/interest rates to influence economy.

Analysing the external environment to assess opportunities and threats: economic change

Money

Medium of exchange; currency for transactions.

Making marketing decisions: using the marketing mix

Monopoly

Single supplier of product/service; no competition.

Analysing financial performance

Monopoly Power

Ability to control price due to lack of competition.

Making marketing decisions: using the marketing mix

Moral

Right vs. wrong; ethical standards.

Making marketing decisions: using the marketing mix

Mortgage

Long-term loan for property purchase, secured by property.

Making marketing decisions: using the marketing mix

Mortgages

Long-term loans for property purchase.

Understanding different business forms

Most Favored Nation (MFN)

Trade status granting best treatment offered to any country.

Making marketing decisions: using the marketing mix

motivation

Drive/willingness of employees to work toward goals with effort/commitment.

Making human resource decisions: improving motivation and engagement

Motivation (Entrepreneurial)

Reasons individuals start businesses.

Making human resource decisions: improving organisational design and managing the human resource flow

Motivation Theory (Overview)

Frameworks explaining what drives employee behavior/performance.

Setting human resource objectives

Motivator

Factor encouraging action/performance.

Making marketing decisions: using the marketing mix

Motivator (Herzberg)

Factors causing genuine satisfaction and motivation in work.

Setting human resource objectives

Movement (Capital)

Flow of investment money between countries/markets.

Making marketing decisions: using the marketing mix

Moving Average

A smoothing technique used in time-series analysis that calculates the average of a set number of consecutive data point...

Understanding management, leadership and decision making

Multi-Skilling

Training employees to perform multiple different job roles.

Understanding markets and customers

multinational

Operating across multiple nations.

Assessing globalisation and internationalisation

Multinational Corporation (MNC)

(already covered).

Making marketing decisions: using the marketing mix

NAFTA

North American Free Trade Agreement — a trade agreement between the USA, Canada, and Mexico (now replaced by USMCA in 20...

Making marketing decisions: using the marketing mix

National Minimum Wage

Lowest legal wage employers must pay employees.

Analysing financial performance

Natural Monopoly

Industry where single supplier most efficient (high infrastructure cost).

Analysing financial performance

Negotiation

Process of discussing with others to reach agreement.

Making financial decisions: sources of finance

Net Cash-Flow

Money actually entering minus leaving business.

Setting financial objectives

Net Present Value (NPV)

An investment appraisal method that discounts all future cash flows back to their present value using a discount rate, t...

Making financial decisions: improving cash flow and profits

net profit

(Profit for the Year).

Setting financial objectives

Net Profit Margin

Net profit as percentage of revenue.

Setting financial objectives

Network Diagram

A diagram used in Critical Path Analysis that maps all activities in a project showing their sequence and dependencies, ...

Understanding management, leadership and decision making

New Business

Startup; newly created business venture.

Understanding the nature and purpose of business

New Technology (Supply Factor)

Technological advances increasing productivity and efficiency.

Setting marketing objectives

Niche Market

Small segment of consumers with specific, often specialist needs underserved by mass-market competitors.

Setting marketing objectives

niche marketing

Marketing strategy targeting small, specific segments with specialized needs.

Making marketing decisions: segmentation, targeting, positioning

Non-Current Assets

Long-term business assets held >12 months.

Understanding different business forms

Non-Current Liabilities

Obligations due >12 months.

Making financial decisions: sources of finance

Non-Financial Incentive

Motivation methods not involving money: recognition, development opportunities, autonomy, flexible working, interesting ...

Understanding markets and customers

Non-Financial Motive

Non-monetary reasons for entrepreneurship: independence, ethical values, social impact, achievement, flexibility, family...

Understanding the nature and purpose of business

Objectives

Specific, measurable targets to be achieved.

Making financial decisions: sources of finance

Obsolescence

Products becoming out-of-date/unusable before sale.

Analysing financial performance

Off-the-Job Training

Training that takes place away from the normal work environment, in a dedicated training centre, college, or external ve...

Making human resource decisions: improving organisational design and managing the human resource flow

Offer for Sale

Public method of selling company shares on stock exchange.

Understanding different business forms

Offshoring

Relocating business functions or production to another country to take advantage of lower costs, favourable regulations,...

Making marketing decisions: using the marketing mix

Offshoring and Reshoring

Offshoring moves business activities to lower-cost countries abroad; reshoring brings them back to the home country.

Assessing globalisation and internationalisation

Oligopoly

Market dominated by few large suppliers.

Analysing financial performance

On-the-Job Training

Training that takes place while the employee is performing their normal work duties, typically under the guidance of a m...

Making human resource decisions: improving organisational design and managing the human resource flow

online business

A business that primarily operates via the internet, selling products or services online rather than through physical pr...

Analysing the external environment to assess opportunities and threats: social and technological

Online Distribution

Selling and delivering products via internet/e-commerce.

Understanding markets and customers

Online Retailing

Selling products to consumers via internet/e-commerce platforms rather than physical stores.

Setting marketing objectives

operating profit

Profit from normal business operations (excluding interest/tax).

Setting financial objectives

Operating Profit Margin

Operating profit as percentage of revenue.

Setting financial objectives

Operational Efficiency

Achieving goals with minimum resources; effectiveness of operations.

Making financial decisions: sources of finance

operational objective

Short-term target for daily/weekly operations.

Setting operational objectives

Operations

Day-to-day activities transforming inputs to outputs.

Analysing financial performance

Operations Management

Directing resources to produce goods/services efficiently.

Analysing financial performance

Opportunity

Favorable situation offering potential benefit/growth.

Making financial decisions: sources of finance

opportunity cost

Benefit foregone by choosing one option over another.

Understanding management decision making

Optimism (Entrepreneurial)

Tendency to expect positive outcomes; characteristic of entrepreneurs.

Understanding the nature and purpose of business

Optimization

Making something as effective/efficient as possible.

Analysing financial performance

organic growth

Growth achieved by a business from within, through increasing sales, expanding capacity, or developing new products using its own resources.

Assessing a change in scale

Organisational Change

Any significant alteration to the structure, culture, processes, systems, or strategy of an organisation.

Understanding management decision making

Organization Structure

Formal arrangement of positions, reporting relationships, authority.

Making financial decisions: sources of finance

Organizational Culture

(already covered - see 3.4).

Making financial decisions: sources of finance

outsourcing

(already covered - see 1.4).

Making operational decisions to improve performance: managing inventory and supply chains

Over-Capacity

Production capacity exceeding market demand.

Analysing operational performance

overdraft

Arrangement allowing account to go negative to agreed limit.

Making financial decisions: sources of finance

Overhead

Indirect production costs not directly tied to product: factory rent, utilities, depreciation, supervision.

Analysing financial performance

Overseas Market

Market in different country from home base.

Making financial decisions: sources of finance

overtrading

When a business expands faster than its financial resources can support, leading to cash flow problems despite being profitable.

Assessing a change in scale

Owner's Capital

Money invested by owner/shareholders in business.

Understanding different business forms

P2P Lending

(Peer-to-Peer).

Understanding different business forms

Part-Time Worker

Employee working fewer hours than standard full-time (typically <35 hours/week).

Setting human resource objectives

partnership

Business structure of 2+ individuals owning jointly.

Understanding different business forms

Partnership Finance

Funding structure for partnerships; capital from partners, loans against personal assets.

Understanding different business forms

Paternalistic Leadership

Leadership style combining authority with caring/benevolence toward employees.

Understanding management, leadership and decision making

Pay (Compensation)

Remuneration employees receive: salary (fixed annual), wages (hourly), bonus, commission, benefits.

Setting human resource objectives

payables

(Accounts Payable).

Analysing financial performance

payback period

Time required to recover initial investment from cash flows.

Analysing strategic options: investment appraisal

Payroll (HR)

List of employees and their salaries/wages.

Setting human resource objectives

PED Interpretation

Understanding what PED values mean for business: If PED = -0.5 (inelastic), 10% price rise → only 5% demand fall (revenu...

Setting marketing objectives

Peer-to-Peer Funding

(see P2P Lending).

Understanding different business forms

penetration pricing

Pricing strategy setting a deliberately low initial price to gain market share quickly, then raising the price once the ...

Making marketing decisions: using the marketing mix

Performance Indicator

Measurable metric assessing business/individual performance.

Making financial decisions: sources of finance

Performance Measurement

Systematic assessment of business/individual performance.

Making financial decisions: sources of finance

Performance-Related Pay (PRP)

Compensation varying based on individual/team performance measures.

Setting human resource objectives

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.

Understanding the nature and purpose of business

PESTLE Analysis

A framework for scanning everything outside the business that could affect it.

Understanding that businesses operate within an external environment

Physical Resources

Tangible assets for business operations: buildings, equipment, vehicles, materials, technology.

Making financial decisions: sources of finance

Piecework

Payment system paying per unit produced/completed work.

Analysing human resource performance

Plan

Formal document outlining how to achieve objectives.

Making financial decisions: sources of finance

Planning

Process of deciding future actions to achieve objectives.

Making financial decisions: sources of finance

PLC (Public Limited Company)

Company publicly traded on stock exchange.

Understanding the nature and purpose of business

political environment

Government systems, policies, stability affecting business.

Analysing the external environment to assess opportunities and threats: political and legal change

Political Stability

The degree to which a country's government and political institutions are reliable, predictable, and free from sudden up...

Making marketing decisions: using the marketing mix

Polycentric Approach

A global marketing strategy that adapts products, pricing, promotion, and distribution significantly to each local marke...

Making marketing decisions: using the marketing mix

Porter's five forces

A strategic framework analysing five competitive forces that determine industry profitability and attractiveness.

Analysing the external environment to assess opportunities and threats: the competitive environment

Porter's generic strategies

Three strategies for achieving competitive advantage: Cost Leadership, Differentiation, and Focus (niche).

Strategic positioning: choosing how to compete

Porter's Strategic Matrix

(Generic Strategies).

Making financial decisions: sources of finance

power culture

An organisational culture centred on one or a few powerful individuals at the centre of a web of influence, who make mos...

Managing organisational culture

Predatory Pricing

Pricing strategy setting prices very low — often below cost — with the deliberate intent of driving competitors out of t...

Understanding markets and customers

Preference Shares

Class of shares with priority over ordinary shares for dividends/asset distribution.

Understanding that businesses operate within an external environment

Pressure Group

An organised group of people that campaigns to influence business behaviour, government policy, or public opinion on a p...

Making human resource decisions: improving organisational design and managing the human resource flow

Price (Market)

Monetary value of a product/service.

Setting marketing objectives

Price Change Consequences

Effects of price movements on supply, demand, and market equilibrium.

Setting marketing objectives

Price Comparison Sites

Websites (Confused.com, MoneySuperMarket) comparing prices of competitors.

Understanding markets and customers

Price Control

Government regulation of prices; setting maximum or minimum prices.

Analysing financial performance

Price Elasticity of Demand (PED)

Measure of how sensitive quantity demanded is to price changes.

Setting marketing objectives

Price Fixing

Illegal practice where competitors agree on prices.

Analysing financial performance

Price Regulation

Government control of prices; typically maximum/minimum.

Analysing financial performance

Price Sensitivity

Degree to which demand changes with price.

Making financial decisions: sources of finance

price skimming

Pricing strategy setting a high initial price when launching a new product, then gradually reducing it over time as comp...

Making marketing decisions: using the marketing mix

Price Taker

Business with no control over price; must accept market price.

Analysing financial performance

Pricing Strategy

Method for setting prices to achieve business objectives.

Understanding markets and customers

primary research

Original data collected directly from sources for a specific purpose.

Understanding markets and customers

Primary Research: Qualitative

Non-numerical primary research focusing on understanding reasons, motivations, experiences.

Setting marketing objectives

Primary Research: Quantitative

Numerical primary research measuring how many, how often, attitudes using numbers.

Setting marketing objectives

Private Equity

Investment in private (non-public) companies by PE firms.

Understanding that businesses operate within an external environment

Private Limited Company (Ltd)

A business structure where the company is a separate legal entity from its owners, shareholders have limited liability, ...

Understanding that businesses operate within an external environment

Private Placement

Sale of shares/securities to limited number of investors privately rather than public offering.

Understanding that businesses operate within an external environment

Problem-Solving (Entrepreneurial)

Identifying/addressing business challenges creatively.

Understanding the nature and purpose of business

Product Design

Process of developing product features, appearance, and function to meet customer needs and competitive requirements.

Understanding markets and customers

product development

(Ansoff).

Strategic direction: choosing which markets to compete in and what products to offer

Product Differentiation

Strategy of making a product distinct and different from competitors through features, quality, design, service, or bran...

Setting marketing objectives

Product Labelling

Information required or chosen to be displayed on a product's packaging, including ingredients, country of origin, nutri...

Making human resource decisions: improving organisational design and managing the human resource flow

product life cycle

A model showing the stages a product passes through from development to withdrawal: development, introduction, growth, maturity, decline.

Making marketing decisions: using the marketing mix

Product Life Cycle Extension

Strategies to extend product life beyond maturity stage.

Understanding markets and customers

Product Orientation

Business approach prioritizing what the company wants to make/sell based on production capability.

Setting marketing objectives

Product Orientation (see 1.1)

Business approach prioritizing what company can produce.

Understanding markets and customers

Product Portfolio

Range of all products/brands a company offers.

Understanding markets and customers

productivity

A measure of output per unit of input, showing how efficiently resources are being used to produce goods or services.

Making operational decisions to improve performance: increasing efficiency and productivity

Profit and Loss Account

(see Income Statement).

Setting financial objectives

Profit Maximisation

Business objective making highest possible profit.

Setting financial objectives

Profit Reinvestment

Plowing back company profits into business rather than distributing to shareholders.

Setting financial objectives

Profit Satisficing

Business objective earning sufficient profit while pursuing other goals.

Setting financial objectives

Profit Share

Arrangement where employees receive portion of company profits.

Setting financial objectives

Profit vs Cash

The distinction between profit (an accounting measure of revenue minus costs over a period) and cash (the actual money a...

Analysing financial performance

profitability

Ability to generate profit; degree of profit earned.

Making financial decisions: improving cash flow and profits

Promotion

Communication activities persuading customers to buy.

Understanding markets and customers

Property (Finance)

Real estate asset; valuable collateral for loans.

Understanding that businesses operate within an external environment

Prospectus

Formal document issued by company offering securities.

Understanding that businesses operate within an external environment

protectionism

Government policies that restrict international trade to protect domestic industries from foreign competition.

Analysing the external environment to assess opportunities and threats: economic change

Psychological Pricing

Setting prices using psychological principles to influence perception.

Understanding markets and customers

Public Company

(see PLC).

Understanding the nature and purpose of business

Pull Factor

An attractive condition in a foreign market that draws a business toward international expansion.

Making marketing decisions: using the marketing mix

Purchasing Power

Ability to buy goods/services; determined by income and price levels.

Analysing financial performance

Push Factor

A domestic market condition that motivates a business to expand internationally by making continued domestic operation l...

Making marketing decisions: using the marketing mix

Qualifications (Employee)

Formal credentials demonstrating knowledge/skills: degrees, diplomas, certifications, licenses.

Analysing human resource performance

qualitative data

Non-numerical information providing description, understanding, and context.

Understanding markets and customers

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.

Analysing operational performance

quality control

Inspection/testing to identify defects (reactive).

Making operational decisions to improve performance: improving quality

Quality Management

Systematic approach ensuring products/services meet standards consistently.

Analysing operational performance

quantitative data

Numerical information that can be measured and analyzed statistically.

Understanding markets and customers

Question Mark (Boston Matrix)

Product with low market share in high-growth market.

Understanding markets and customers

Quotas (Trade)

Limit on quantity of imports allowed.

Analysing financial performance

Ratio Analysis

Examining financial statement ratios for insights.

Setting financial objectives

receivables

Money owed to company by customers for goods/services delivered.

Analysing financial performance

Recession

Economic contraction; negative growth, rising unemployment, falling demand.

Analysing financial performance

recruitment

Process of finding and hiring new employees.

Making human resource decisions: improving organisational design and managing the human resource flow

Recruitment and Selection

Combined process of attracting and choosing best candidates.

Analysing human resource performance

Recruitment Costs

Expenses associated with hiring: advertising, agency fees, interview time, training.

Analysing human resource performance

Recycle/Recycling

(see Waste Minimisation).

Analysing financial performance

redundancy

Termination of employment because job no longer needed (not employee fault).

Making human resource decisions: improving organisational design and managing the human resource flow

Regulated Industry

Business sector with government price/conduct regulation.

Analysing financial performance

Regulation

Government rules controlling business behavior.

Analysing financial performance

Regulation (Business)

Laws/rules governing business operations: company law, employment law, environmental, health/safety, consumer protection...

Understanding the nature and purpose of business

Regulatory Body

Government agency enforcing regulations.

Analysing financial performance

Regulatory Compliance

Meeting regulatory requirements; following rules/standards set by government.

Analysing financial performance

Reorder Level

Inventory quantity triggering new order placement.

Analysing financial performance

Reorder Quantity

(Economic Order Quantity).

Analysing financial performance

Resilience (Entrepreneurial)

Ability to recover from setbacks; persistence despite difficulties.

Understanding the nature and purpose of business

resistance to change

The tendency of individuals and groups within an organisation to oppose or slow down the implementation of change, often...

Managing change

Resource Allocation

Distributing limited resources (budget, equipment, labor, time) across activities/projects.

Analysing financial performance

Resource Depletion

The using up of natural resources (e.g. fossil fuels, rare minerals, forests) faster than they can be replenished, often...

Understanding markets and customers

Resource Efficiency

Using resources (materials, energy, labor, capital) productively with minimum waste.

Analysing financial performance

Resource Management

Planning/controlling business resources to achieve objectives.

Analysing financial performance

Retained Earnings/Profit

Profits kept in business rather than distributed to shareholders.

Setting financial objectives

Retention (Employee)

Keeping valuable employees in organization.

Analysing human resource performance

Retrenchment Strategy

Strategy reducing business scope/operations; cutting back.

Making financial decisions: sources of finance

Return on Capital Employed (ROCE)

Profitability relative to capital invested.

Setting financial objectives

Return on Equity (ROE)

Profitability relative to shareholder investment.

Setting financial objectives

Return on Investment (ROI)

Profit made on investment relative to cost.

Understanding that businesses operate within an external environment

Returns

Profit/gains realized from investment/capital employed.

Setting financial objectives

revenue

Income from selling products/services.

Understanding the nature and purpose of business

Rewards (Employee)

Recognition for performance/contribution: pay, bonus, promotion, praise, development.

Analysing human resource performance

risk

Probability of negative outcome with quantifiable consequences.

Understanding management decision making

Risk (in Business)

Probability of a known or identifiable event occurring with measurable consequences.

Setting marketing objectives

Risk Assessment

Systematic process identifying and evaluating risks.

Making financial decisions: sources of finance

Risk Management

Systematic approach minimizing negative impact of risks.

Making financial decisions: sources of finance

Risk Spreading

Diversifying investments/activities reducing total risk.

Understanding the nature and purpose of business

Risk Taking

Willingness to accept probability of loss for potential gain.

Understanding the nature and purpose of business

role culture

An organisational culture characterised by formal rules, procedures, and clearly defined roles. Decision-making follows ...

Managing organisational culture

Safety (Workplace - already covered)

Protecting employees from harm.

Analysing financial performance

Safety (Workplace)

Protection of employees from harm: health/safety regulations, training, equipment, hazard elimination.

Analysing human resource performance

Safety Standards

Requirements ensuring workplace safety: equipment standards, procedures, training, protective equipment.

Analysing financial performance

Salary

Fixed annual payment to employee divided into regular (usually monthly) payments.

Analysing human resource performance

Sale of Assets

Selling business assets for cash.

Understanding that businesses operate within an external environment

Sales Forecast

Prediction of future sales volume/value.

Setting financial objectives

Sales Maximisation

Business objective increasing sales volume/revenue (rather than profit).

Understanding the nature and purpose of business

Sales Revenue

Income from product/service sales.

Setting financial objectives

sales volume

Quantity of products sold in period.

Setting marketing objectives

Sample Size

Number of units/people selected for research study.

Setting marketing objectives

Satisficing

Making satisfactory decision rather than optimal.

Making financial decisions: sources of finance

Saturated Market

A market in which demand has been largely met and there is little room for further growth, typically characterised by in...

Making marketing decisions: using the marketing mix

Scarcity

Limited availability of resources relative to demand.

Analysing financial performance

Scatter Graph

A type of graph that plots two variables against each other to identify whether a correlation (relationship) exists betw...

Understanding management, leadership and decision making

Scenario Planning

Developing alternative future scenarios and responses.

Making financial decisions: sources of finance

Scheduling

Planning when tasks/production occurs.

Analysing financial performance

Seasonality

Fluctuation in demand for products at specific times of year.

Setting marketing objectives

secondary research

Existing data previously collected by others for different purposes, now analyzed for new purposes.

Understanding markets and customers

Secured Loan

Loan backed by collateral (asset) lender can claim if unpaid.

Understanding that businesses operate within an external environment

Securities

Financial instruments representing value: stocks, bonds, derivatives.

Understanding that businesses operate within an external environment

Seed Funding

Initial capital to develop business idea to viable stage.

Understanding that businesses operate within an external environment

Selection

Process of choosing best candidate(s) from applicants.

Analysing human resource performance

Self-Employment

Working for oneself rather than employer.

Understanding the nature and purpose of business

Semi-Fixed Costs

Costs with both fixed and variable components.

Setting financial objectives

Semi-Variable Cost

(see Semi-Fixed Costs - 2.2).

Analysing financial performance

Sensitivity Analysis

Examining how changes in key variables affect outcomes/decisions.

Making financial decisions: sources of finance

Setup Costs

(Changeover Costs).

Analysing financial performance

share capital

Equity finance from investors purchasing company shares.

Making financial decisions: sources of finance

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...

Understanding different business forms

shareholder

Individual/organization owning shares in company.

Understanding different business forms

Shareholder Approach

A management philosophy, associated with Milton Friedman, that argues a business's primary duty is to maximise financial...

Understanding that businesses operate within an external environment

Shares

Units of ownership in company.

Understanding that businesses operate within an external environment

Shift Work

Employment arrangement working different time periods (early, late, night shifts).

Analysing human resource performance

short-term finance

Borrowing for immediate needs, repaid <1 year.

Making financial decisions: sources of finance

Short-Term Objective

Goal achieving within 1 year; operational/tactical targets.

Making financial decisions: sources of finance

Short-Termism

A focus on immediate or near-term results at the expense of long-term sustainability and investment, often driven by pre...

Understanding management decision making

Shortage

Situation where quantity demanded exceeds quantity supplied at a given price.

Setting marketing objectives

Simple Payback

An investment appraisal method that calculates how long it takes for the cumulative cash inflows from an investment to r...

Making financial decisions: improving cash flow and profits

Single Process

Manufacturing step producing product start-to-finish.

Analysing financial performance

Situation Analysis

Comprehensive assessment of current business position.

Making financial decisions: sources of finance

Skill (Employee)

Ability to perform specific tasks/activities effectively learned through training/experience.

Analysing human resource performance

Skill Shortage

A situation where the supply of workers with specific skills falls short of the demand from employers, driving up wages ...

Making marketing decisions: using the marketing mix

Skilled Worker

Employee with advanced technical abilities requiring significant training/experience.

Analysing human resource performance

social enterprise

A business that trades primarily to achieve social, environmental or community objectives, reinvesting profits into its mission.

Understanding the nature and purpose of business

Social Entrepreneurship

Creating business to address social/environmental problems; profit secondary to impact.

Understanding different business forms

Social Media (Marketing)

Using social platforms (Facebook, Instagram, Twitter, TikTok) for promotion, customer engagement, brand building.

Understanding markets and customers

Social Networking (Demand Factor)

Social media influence on consumer preferences and demand.

Setting marketing objectives

Social Networking (Market Research)

Using social media platforms to gather customer opinions, preferences, feedback, and behaviors.

Setting marketing objectives

Social Objective

Business goal benefiting society/environment beyond profit.

Understanding different business forms

Social Responsibility (Employee)

Company obligations to employees beyond legal minimum: fair wages, safe conditions, development, consultation.

Analysing human resource performance

soft HRM

An approach treating employees as valued assets, focusing on development, motivation and engagement.

Setting human resource objectives

Soft Loan

Loan with favorable terms: low/no interest, long repayment period, flexible conditions.

Understanding that businesses operate within an external environment

Soft Skills

Transferable interpersonal/communication abilities: teamwork, communication, problem-solving, leadership, adaptability.

Analysing human resource performance

sole trader

Individual owning/operating business alone.

Understanding different business forms

Solvency

Long-term ability to meet all financial obligations.

Setting financial objectives

span of control

Number of subordinates reporting directly to one manager.

Making human resource decisions: improving organisational design and managing the human resource flow

Spare Capacity

Unused production capacity available for growth.

Analysing operational performance

Sponsorship

Business pays to be associated with events, teams, individuals, or causes.

Understanding markets and customers

Sponsorship (Entrepreneurship)

Support/backing from established business/individual for new venture.

Understanding different business forms

Stability

Maintaining current position; not growing or shrinking.

Making financial decisions: sources of finance

Staff as Asset

Viewing employees as valuable resources generating return on investment.

Analysing human resource performance

Staff as Cost

Treating employees as expenses to minimize.

Analysing human resource performance

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,...

Understanding management decision making

Stakeholder Conflict

Disagreement between stakeholders with different interests.

Understanding management, leadership and decision making

Stakeholder Mapping (Power-Interest Matrix)

A framework plotting stakeholders by power and interest to determine the best management approach for each group.

Understanding the role and importance of stakeholders

Statement of Comprehensive Income

(see Income Statement).

Setting financial objectives

Statement of Financial Position

(see Balance Sheet).

Setting financial objectives

Stock Control

The process of managing inventory levels to ensure the business has enough stock to meet demand while minimising holding...

Making operational decisions to improve performance: increasing efficiency and productivity

Stock Exchange

Market where company shares are traded.

Understanding that businesses operate within an external environment

Stock Market

Exchange where company shares are traded.

Understanding different business forms

Stock Market Flotation

Process of company offering shares publicly on stock exchange; becoming PLC.

Understanding different business forms

Stock Turnover

(Inventory Turnover - already covered).

Analysing financial performance

Stock Valuation

(Inventory Valuation).

Setting financial objectives

Straight Piecework

Piecework system with single rate per unit (no variation).

Analysing human resource performance

Strategic Choice

Selecting strategy from alternatives.

Making financial decisions: sources of finance

Strategic Decision

Long-term, major-impact decision affecting business direction.

Making financial decisions: sources of finance

Strategic Group

Competitors with similar strategies and target markets.

Making financial decisions: sources of finance

Strategic Intent

Long-term direction and aspiration; where business wants to be.

Making financial decisions: sources of finance

Strategic Management

Process of developing, implementing, evaluating strategy.

Making financial decisions: sources of finance

Strategic Objective

Long-term (3+ year) goal driving business direction.

Making financial decisions: sources of finance

Strategic Planning

Process of developing long-term strategy.

Making financial decisions: sources of finance

Strategic Position

Where business stands strategically relative to objectives and competition.

Making financial decisions: sources of finance

Strategic Response

Business reaction to external changes/opportunities/threats.

Making financial decisions: sources of finance

strategy

Long-term plan achieving objectives.

Mission, corporate objectives, functional objectives and strategy

Strength (Internal)

(see Strengths - SWOT).

Making financial decisions: sources of finance

Strengths

(SWOT).

Making financial decisions: sources of finance

Structural Change

Fundamental shifts in the composition of an economy, such as the decline of manufacturing and rise of services, often dr...

Making marketing decisions: using the marketing mix

Subjective Decision

A decision based on personal judgement, intuition, experience, or values rather than objective data or systematic analys...

Understanding management decision making

Subordinated Debt

Loan repaid only after senior debt in bankruptcy.

Understanding that businesses operate within an external environment

Subsidies (Supply Factor)

Government financial support to producers reducing production costs.

Setting marketing objectives

Subsidy

Government payment supporting producers/consumers.

Analysing financial performance

Substitute Goods

Products that can replace each other in satisfying customer needs.

Setting marketing objectives

Substitutes

(Porter's Five Forces).

Making financial decisions: sources of finance

Success (Business)

Achievement of business objectives; sustainable profitable operation.

Understanding different business forms

Succession Planning

The process of identifying and developing internal employees to fill key leadership or specialist positions in the futur...

Understanding management decision making

Supervisory Role

Management position overseeing daily operations/team.

Analysing human resource performance

Supplier Relationship Management

Building/maintaining effective supplier partnerships.

Analysing financial performance

Supply

Quantity of a product producers are willing and able to provide at different prices in a given time period.

Setting marketing objectives

Supply and Demand Diagram

Graph showing supply curve (upward-sloping) and demand curve (downward-sloping) intersecting at equilibrium point.

Setting marketing objectives

supply chain

Network of organizations/processes producing/delivering product from materials to customer.

Making operational decisions to improve performance: managing inventory and supply chains

Supply Chain Ethics

The application of ethical standards throughout the entire supply chain — from raw material extraction to final product ...

Making operational decisions to improve performance: increasing efficiency and productivity

Supply Curve

Graphical representation showing relationship between price and quantity supplied.

Setting marketing objectives

Support (Entrepreneurial)

Assistance for entrepreneurs: funding, mentoring, advice, networks, training, incubators.

Understanding different business forms

Surplus

Excess supply relative to demand at current price.

Analysing financial performance

Surplus Cash

Excess money beyond operational needs.

Understanding that businesses operate within an external environment

Survival (Business Objective)

A short-term business objective focused on generating enough revenue to cover costs and continue operating, particularly...

Understanding that businesses operate within an external environment

Sustainability (Product)

Designing and producing products minimizing environmental impact: reduced materials, recyclable packaging, ethical sourc...

Understanding markets and customers

Sustainable Production

Manufacturing minimizing environmental/social impact.

Analysing financial performance

SWOT analysis

A strategic framework assessing a business's internal Strengths and Weaknesses, and external Opportunities and Threats.

Mission, corporate objectives, functional objectives and strategy

Syndicated Loan

Large loan arranged by group of lenders reducing individual risk.

Understanding that businesses operate within an external environment

synergy

The principle that combined businesses create more value together than they would separately — 'the whole is greater than the sum of its parts.'

Assessing a change in scale

Tactical Decision

Short-term, operational-level decision.

Making financial decisions: sources of finance

Tactical Objective

Medium-term (1-3 year) goal supporting strategic objectives.

Making financial decisions: sources of finance

takeover

Acquiring control of business through purchasing shares/assets.

Assessing a change in scale

Talent Management

Strategic process identifying, developing, retaining high-potential employees.

Analysing human resource performance

Tall Structure

Organization with many hierarchy levels; narrow span of control.

Analysing human resource performance

Tannenbaum-Schmidt Continuum

Taper Integration

Operating at multiple supply chain levels but not fully controlling all.

Making financial decisions: sources of finance

Targeted Growth

Growth focused on specific segments/markets/products.

Making financial decisions: sources of finance

Tariff

Tax on imports, making foreign goods more expensive.

Analysing financial performance

task culture

An organisational culture focused on completing projects and achieving specific outcomes. Teams are formed around tasks,...

Managing organisational culture

Tax

Mandatory payment to government by individuals/businesses.

Analysing financial performance

Tax Relief

Reduction in taxes; temporary or permanent.

Analysing financial performance

Tax Revenue

Money paid by businesses and individuals to governments through various taxes (corporation tax, income tax, VAT, etc.), ...

Making financial decisions: improving cash flow and profits

Taylor (Scientific Management)

Frederick Taylor's theory that worker productivity can be maximised by scientifically analysing tasks, selecting the bes...

Making human resource decisions: improving organisational design and managing the human resource flow

Team Building

Activities/approaches improving team cohesion, communication, trust.

Analysing human resource performance

team working

Employees working together toward shared goals.

Making human resource decisions: improving motivation and engagement

technological change

Advances in technology affecting business.

Analysing the external environment to assess opportunities and threats: social and technological

Technology (Production)

Tools, equipment, processes used in production.

Analysing financial performance

Technology Innovation

Using technology advances to create competitive advantage.

Making financial decisions: sources of finance

Technology Transfer

Sharing technology knowledge/capabilities between countries/organizations.

Analysing financial performance

Temporary Worker

Employee hired for fixed period (project duration, seasonal, covering absence).

Making human resource decisions: improving organisational design and managing the human resource flow

Term Loan

Fixed-term loan repaid in regular installments over set period.

Understanding that businesses operate within an external environment

Termination

Ending of employment relationship.

Making human resource decisions: improving organisational design and managing the human resource flow

Threat

(SWOT).

Making financial decisions: sources of finance

Threat of New Entrants

(Porter's Five Forces).

Making financial decisions: sources of finance

Time-Series Analysis

Statistical method analyzing data over time to identify trends/patterns.

Analysing financial performance

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.

Analysing operational performance

Trade

Exchange of goods/services between parties/countries.

Analysing financial performance

Trade Barriers

Obstacles to international trade: tariffs, quotas, regulations, transport costs.

Analysing financial performance

trade credit

Arrangement to purchase goods/services on credit; payment due later (typically 30-90 days).

Making financial decisions: improving cash flow and profits

Trade Liberalisation

The removal or reduction of trade barriers (tariffs, quotas, regulations) between countries to facilitate freer internat...

Making marketing decisions: using the marketing mix

trade union

Organization representing employee interests in negotiations with employers.

Making human resource decisions: improving employer-employee relations

Trade-Off

Accepting less of one thing to gain more of another.

Understanding different business forms

Trading Bloc

Group of countries with reduced trade barriers among themselves.

Analysing financial performance

training

Systematic development of employee knowledge and skills.

Setting human resource objectives

Training Cost

Expense of developing employee skills: trainer fees, course fees, time away from work, materials.

Making human resource decisions: improving organisational design and managing the human resource flow

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.

Making human resource decisions: improving organisational design and managing the human resource flow

Transformational Leadership

A leadership style in which leaders inspire and motivate followers to achieve extraordinary outcomes by articulating a c...

Understanding management decision making

Translation Issue

Problems arising when marketing materials, product names, slogans, or instructions are translated into another language ...

Making marketing decisions: using the marketing mix

Transnational Company

A company that operates in multiple countries but does not identify with a single home country — managing its operations...

Making marketing decisions: using the marketing mix

Turnaround Strategy

Plan to restore business from poor performance to viability.

Making financial decisions: sources of finance

uncertainty

Business conditions where outcomes unpredictable; probabilities unknown.

Understanding management decision making

Uncertainty (in Business)

Situation where outcomes cannot be predicted with certainty because variables are unknown or unmeasurable.

Setting marketing objectives

Uncontrollable Factors

External factors business cannot influence: economic conditions, competitor actions, natural disasters, regulation, tech...

Making financial decisions: sources of finance

Under-Capacity

Production capacity below available maximum.

Making operational decisions to improve performance: increasing efficiency and productivity

Underutilisation

(Under-utilization).

Analysing financial performance

Unemployment

Percentage of labor force without work/actively seeking.

Analysing financial performance

Unfair Dismissal

Termination of employment without fair/legal process.

Making human resource decisions: improving organisational design and managing the human resource flow

Unique Selling Point (USP)

Distinctive feature(s) or benefit(s) of a product/service that differentiates it from competitors and appeals to target ...

Setting marketing objectives

Unique Selling Proposition (USP)

(already covered - see 1.3).

Making financial decisions: sources of finance

unit cost

Cost per item produced.

Analysing operational performance

unlimited liability

Legal responsibility for all business debts with no limit.

Understanding different business forms

Unsecured Loan

Loan without collateral backing.

Understanding that businesses operate within an external environment

Unskilled Worker

Employee without specialized training; performs basic tasks.

Making human resource decisions: improving organisational design and managing the human resource flow

Valuation

Determining business/asset worth.

Understanding that businesses operate within an external environment

Variable Costs

Expenses changing with production/sales volume.

Setting financial objectives

variance analysis

The process of comparing actual financial results with budgeted (planned) figures to identify variances, understand thei...

Analysing financial performance

venture capital

Investment in early-stage businesses with growth potential.

Making financial decisions: sources of finance

vertical integration

Growth by acquiring businesses at different stages of the same supply chain — forward (towards customers) or backward (towards suppliers).

Assessing a change in scale

viral marketing

Marketing content designed to spread rapidly through social sharing, creating massive reach with minimal cost.

Making marketing decisions: using the marketing mix

Vision

(Strategic).

Making financial decisions: sources of finance