Business > Theme 1 Definitions > Flashcards

Theme 1 Definitions Flashcards

(94 cards)

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1
Q

Niche market

A

A smaller segment of a larger market, targeting a specific need/want of customers

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2
Q

Mass market

A

A large unsegmented market where mass appeal products are sold

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3
Q

Volume of sales

A

Quantity of products sold

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4
Q

Market value

A

Total amount spent by customers

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5
Q

Market size

A

Total of all the sales of all the producers in the market

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6
Q

Market share

A

The proportion (%) of a market that is taken by a business, product or brand

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7
Q

Branding

A

When a business gives products a name, symbol or any other sign in order to distinguish it from those of competitors

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8
Q

Dynamic market

A

A market that is changing, it can grow, shrink, fragment or disappear

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9
Q

Supply

A

The amount of goods which a supplier will offer to the market at a given price

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10
Q

Demand

A

The amount of goods that consumers are willing and able to purchase at a given price

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11
Q

Market research

A

Gathering, presenting and analysing information about about the market and consumption of goods/services

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12
Q

Market research (primary)

A

Collecting new data that didn’t exist before the collection and is specific to that business

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13
Q

Market research (secondary)

A

Collecting data that already exists

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14
Q

PED

A

How sensitive demand is to a change in price

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15
Q

YED

A

How sensitive demand is to a change in consumer income

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16
Q

Product orientated

A

When a business prioritises the product (quality/performance) over the customer’s preferences

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17
Q

Market orientated

A

When a business bases its products around needs/wants/preferences of the customer

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18
Q

Competition

A

When 2+ businesses independently supply goods to the same consumer group

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19
Q

Direct competition

A

Businesses produce similar products to the same group of consumers

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20
Q

Indirect competition

A

When different businesses make or sell products that are not in direct competition but compete for the same expenditure

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21
Q

Function

A

A good must be fit to do it’s role

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22
Q

Aesthetics

A

How the good appears and looks

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23
Q

Cost

A

How much the good costs to PRODUCE (DO NOT TALK ABOUT PRICE)!!!!!!

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24
Q

Price system

A

How a business will price a good

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25
Penetration pricing
Low entry price to get consumers to switch
26
Cost plus pricing
Including a mark up in the overall total cost
27
Competitive pricing
Pricing based off and in line with competitors prices
28
Price skimming
High entry price
29
Psychological pricing
Pricing a good or service at e.g. 99p
30
Predatory pricing
Aims to eliminate competition form the market
31
Direct selling
Selling a good or service straight and directly from the producer
32
Indirect selling
Selling using 3rd party
33
Distribution
Process of getting the right product to the consumer in the right place.
34
Direct distribution
Consumer purchases product from you online in a store or by other means that are from you
35
Indirect distribution
Consumer purchases the product from a wholesaler, retailer or another 3rd party/middleman.
36
Marketing strategy
Methods used to achieve a marketing objective
37
Boston matrix
Method used to analyse the product portfolio of a business and contains stars, cash cows, problem children/question marks and dogs
38
Stars
Make a lot of sales and experience intense growth
39
Question marks/problem children
Sit in a growing market but have low market share
40
Cash cows
In low growth markets but high market share
41
Dogs
Low growth market with low market share
42
Recruitment
Process of finding and hiring the best qualified candidate
43
Job description
Describes the role and what it entails
44
Person specification
Outlines what is needed in order to fulfill the role
45
Hierarchy
Order/levels of responsibility in an organisation from lowest to highest
46
Chain of command
The way authority and power is organised in an organisation
47
Span of control
Number of people someone is directly responsible for
48
Centralised decision making
Decisions are made at the centre of the structure
49
Decentralised decision making
Decisions are made throughout the structure and away from the centre
50
Staff as asset
Valuing employee welfare and caring for it
51
Staff as a cost
Treating staff as just another wage and looking to minimise it
52
Flexible workforce
Employees have choice over how/when they work with agreement from firm
53
Dismissal
Unfair reasons or you have done something wrong to be put in that place
54
Redundancy
The work is no longer there to be completed
55
Individual approach
Individually bargaining for more pay etc
56
Collective bargaining
Using a trade union or representation to argue for more pay etc for the workforce under that union
57
Internal recruitment
Done within the business
58
External recruitment
Recruiting someone from outside the firm
59
Training
Training is the process of increasing the knowledge and skills of workers so that they are better able to perform their job
60
Induction training
New employee is familiarised with the company and its background, policies, health and safety procedures
61
On the job training
Done in the workplace by the employer
62
Off the job training
This is done away from the place of work
63
Organisational structure
How a business is arranged
64
Tall structure
Many layers and narrow span of control for each manager
65
Flat structure
Not many layers and a wide span of control for each manager
66
Matrix structure
Organises employees from different roles into teams
67
Taylor
Believes that money is the greatest motivator for employees, more pay is more work
68
Mayo
Communication and relationships are the key to motivated employees, as well as involvement
69
Maslow
Hierarchy of needs with basic human needs at bottom and self actualisation at top
70
Herzberg
Hygiene and motivational factors.
71
Financial incentives
Incentives that use money to boost employee motivation or performance etc
72
Non-financial techniques/incentives
Incentives that don’t use money directly, e.g. bonuses, in order to boost employee motivation and performance etc
73
Leadership
Having vision, sharing that vision with other and providing direction
74
Management
About the day to day organisation of the business including staffing
75
Entrepreneur
A person who sets up/runs a business, combining the 4 factors of production, despite the risks.
76
Intrapreneur
Someone who acts like an entrepreneur, but works within an organisation
77
Profit maximisation
Making the most profit as is possible (Financial)
78
Profit satisfaction
Making enough profit to satisfy the needs of the business owner (Financial)
79
Ethical stance
The morally right thing to do (Non-financial)
80
Social enterprise
Run for the benefit of society (Non-financial)
81
Independence
Being able to be your own boss and have control over your work life (Non-financial)
82
Home working
Being able to work from your own home instead of an office etc (Non-financial)
83
Sole trader
Owned by one person who has unlimited liability
84
Partnership
Owned by two or more people
85
Franchise
A business operator allows others to trade under its name for a fee
86
Lifestyle business
Aim of making no more than a set level of income from which to fund and enjoy a particular lifestyle
87
Private limited company (LTD)
Shares are transferred privately from one to another, between people who know each other.
88
Public limited company (PLC)
Shares are bought & sold on the stock exchange.
89
Stock market flotation
When a company goes public by selling on the SE
90
Limited liability
The shareholder can only lose what they invest
91
Unlimited liability
The business owner must cover all the debts owed by the business
92
Online business
When a business solely operates online and has few to zero physical stores
93
Opportunity cost
The next best alternative forgone when making a decision
94
Trade-off
A situation in which the benefits of one option are reduced in return for increased benefit of another option
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