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Business Edexcel AS + A2 Level WIP > All Keywords Theme 1 and 2 > Flashcards

All Keywords Theme 1 and 2 Flashcards

1
Q

Market Share

A

Proportion of a market that is held by a business, a product or a number of businesses or products. Expressed as a percentage calculated by sales / total sales x 100

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2
Q

Niche

A

A smaller segment of a larger market, usually with low output and revenue.

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3
Q

Differentiation

A

The extent to which consumers percieve a brand from being different to another

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4
Q

Qualitative Data

A

Non numerical data, often opinions and viewpoints usually gathered through surveys or questionnaires among other things

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5
Q

Marketing Objective

A

Targets the marketing department must achieve

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6
Q

Marketing Strategy

A

The medium to long term plan for meeting the marketing objective.

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7
Q

Sample

A

The selection of people used in a market research exercise.

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8
Q

Consumer Goods

A

Items bought and used by consumers usually in a mass market e.g bread.

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9
Q

Marketing

A

Targeting the right product/service to the right target market through the likes of price, promotion and place.

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10
Q

Dynamic Market

A

Fast moving markets that are constantly changing which can be sensitive to aspects leading to market changes

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11
Q

Economies of Scale

A

Factors that cause the cost per unit to fall due to an increase in the size of an enterprise

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12
Q

Secondary Research

A

Finding out information that has already been gathered by another entity e.g using government stats

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13
Q

Quantitative Research

A

Research using data gathering which allows for numerical analysis.

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14
Q

Mass Marketing

A

The attempt to appeal to an entire market with one large strategy.

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15
Q

Sample Bias

A

Where a sample result can be distorted due to the possibility of excluding possible customers

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16
Q

Asset led or Asset Bases

A

A business which considers both its strengths and weaknesseses aswell as their market needs.

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17
Q

Profit

A

The amount gained after revenue exceeds the total costs and expenses of a business

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18
Q

Market Size

A

The total possible customers a business could target.

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19
Q

Primary Research

A

Finding out information first hand.

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20
Q

Revenue

A

turnover - income

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21
Q

Demand

A

A measure of the level of interest consumers have in a product

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22
Q

Supply

A

Quantity of a product that producers are able to deliver at a point in time

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23
Q

Complementary Goods

A

Goods usually bought together e.g cereal and milk

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24
Q

Inferior goods

A

Cheaper alternative, doesn’t always mean a sub-standard product. Demand falls when income increases and vice versa e.g Asda Smartprice

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25
Q

Normal Goods

A

Goods for which demand increases when income rises

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26
Q

Substitute Goods

A

Goods that can be bought as an alternative whilst performing the same function

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27
Q

External Shock

A

Factors beyond a businesses control that can impact them e.g Iceland volcano was a shock to flights

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28
Q

Government Subsidary

A

A kind of grant from the government made available to certain businesses, often to increase jobs or encourage production of a certain product.

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29
Q

Centeris Paribus

A

Taking a situation at face value and that nothing will change

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30
Q

Disposable Income

A

The money consumers have left after all other financial commitments are met

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31
Q

Indirect Tax

A

Tax levied on goods and services rather than income and profits e.g VAT

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32
Q

Direct Tax

A

Tax levied on income and profits

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33
Q

Free Market

A

An economic system in which prices are determined by unrestricted competition between privately owned businesses

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34
Q

Market Equilibrium

A

Point where price and quantity meet. Suppliers sell for the right price for customers to have enough quantity to satisfy demand

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35
Q

Surplus

A

Not enough demand in regards to supply

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36
Q

Shortage of Goods

A

When prices are lower then the equilibrium and supply is low thus demand is high and cannot be fulfilled

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37
Q

Surplus of goods

A

Prices are higher than the equilibrium and supply is higher meaning demand is lower thus less demand

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38
Q

Added Value

A

The difference between price sold for and the total cost of making the product or service e.g bread may be made for 25p and sold for £1, Added Value is 75p

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39
Q

Direct Competition

A

Another company that offers the same product or service to the same market and customer base, with the goal being to increase their market share

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40
Q

Demographics

A

Population Data e.g Age, Ethnic Origin or Gender

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41
Q

Price

A

The amount a consumer pays for a good or service

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42
Q

Pricing Strategy

A

Plan for setting mid to long term pricing of a product or service

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43
Q

Loss Leader

A

Selling for below costs to gain more profitable business in the future

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44
Q

Price Sensitive

A

When demand for a product reacts sharply to a price change

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45
Q

Pricing Tactics

A

Short-term pricing responses to opportunities or threats

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46
Q

Promotional Hook

A

Promotional Techniques used to gain customers interest

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47
Q

Promotional Reach

A

Maximising the number of people exposed to media in a given time period

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48
Q

Emotional Branding

A

Practice of using the emotion of a consumer to build a brand

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49
Q

Generic Brand

A

Brand which becomes the name of a product e.g Hoover

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50
Q

Merchandising

A

Methods used at point of sale

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51
Q

Cost Plus Pricing

A

Cost-based strategy, calculated as the cost to produce plus a % mark up e.g production costs £1, markup is 40% it would be sold for £1.40

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52
Q

Penetration Pricing

A

Price set low to gain market share

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53
Q

Price Skimming

A

Initially set at a high price whilst a product has its new appeal to gain development costs back as soon as possible usually used in the tech market

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54
Q

Competitive Pricing

A

Price set at market level

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55
Q

Psychological Pricing

A

Using the consumers psychological price barrier e.g 2.99 instead of 3

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56
Q

Predatory Pricing

A

Setting a low price to force rivals out of business (Illegal but still happens)

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57
Q

Sustainability

A

An ability of something to be maintained or to sustain itself, taking what we need now

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58
Q

Ethical Sourcing

A

Using Materials, components and services that come from suppliers who respect the environment and treat their workforce fair e,g Fairtrade

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59
Q

Ergonomicss

A

Study of how people interact with their environment and the equipment they use

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60
Q

Waste Minimisation

A

Reducing the quantity of resources discarded in the process of production

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61
Q

Above the Line Promotion

A

Advertising in the media, often more expensive

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62
Q

Below the Line Promotion

A

Any form of promotion which doesn’t use media

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63
Q

Viral Marketing

A

Any strategy that encourages people to pass on a message

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64
Q

Distribution Channel

A

Route taken by a product from producer to consumer

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65
Q

Distribution

A

Delivery of goods from the producer to the consumer

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66
Q

Remuneration

A

Entire package of material rewards received by an employee e.g pay, pension, share options plus infringe benefits such as a company car

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67
Q

Outsourcing

A

Paying another business or individual to undertake a task which would otherwise be done by an employee

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68
Q

Labour Turnover

A

Number of staff leaving a company as a percentage of number employed

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69
Q

Subcontracting

A

Using another business to complete an aspect of operations e.g health and safety

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70
Q

Core Workers

A

Employees essential to the running of a business usually with high pay, high job security and good conditions

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71
Q

Zero Hour Contracts

A

Workers on demand with no commitment from the employer. Rate of duties is agreed weekly and may not work at all

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72
Q

Severence

A

The word for the ending of a contract of employment due to dismissal or redundancy

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73
Q

Redeployment

A

Moving an employee to a new job function because their department has been closed or they are not good enough for current post

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74
Q

Dismissal

A

Termination of an employees contract due to gross misconduct

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75
Q

Redundancy

A

Contract is terminated due to job no longer existing

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76
Q

Trade Union

A

Organisation representing the interests and goals of working people, member pay to join but receive help if they need it such as legal aid

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77
Q

Collective Bargaining

A

A group or body that represents employees and negotiates changes on behalf of the workers. Have more bargaining power as they speak for many

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78
Q

Individual Approach

A

Where an individual discusses issues relating to their terms and conditions of employment with their employer - the employer has the position of strength over an individual

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79
Q

Lean Production

A

Term used to describe a range of methods of waste saving

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80
Q

Absenteeism

A

Measure of the rate of deliberate workforce absence as a proportion to all the employees

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81
Q

Centralised Structure

A

Organisation where decision making made by one or few people

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82
Q

Decentralised Structure

A

Organisation where decision making is run through everyone down a chain of command

83
Q

Heirarchy

A

Traditional business structure with a series of levels that represents authority and responsibility

84
Q

Chain Of Control

A

Path of communications and authority up and down the heirarchy

85
Q

Span Of Control

A

The number of workers who are answerable directly to a manager

86
Q

Narrow Span Of Control

A

Responsibility for fewer workers

87
Q

Wide Span Of Control

A

Responsibility for a lot of workers

88
Q

Organisational Design

A

Structure of a business commonly organised by either: Area, customer, function, product or process

89
Q

Matrix Structure

A

Where staff work in project teams in addition to their responsibilities within their own department.Answerable to more than one boss

90
Q

Job Enrichment

A

Adding tasks which have more responsibility to help increase overall skills which may be useful preparation for promotion

91
Q

Crowdfunding

A

Finance obtained from many individuals through small investments usually over the internet

92
Q

Entrepreneur

A

Someone who makes a business idea happen, either through their own effort or by organising others to do the work

93
Q

Piece Rate

A

Paying workers per piece they produce e.g £2 per pair of jeans

94
Q

Budgets

A

An agreed maximum on monthly expenses set by a manager

95
Q

Mission Statment

A

A short and powerfully expressed sentence or two that clearly outlines the businesses aims clearly and motivationally

96
Q

Share Holder Value

A

Mix of shareholder dividends and a rising price that stems from rising profit

97
Q

Staff Retention

A

Retaining Staff

98
Q

Bankrupt

A

When a person is unable to meet personal liabilities, some or all of which are a consequence of business activites

99
Q

Creditiors

A

Those owed money by a business

100
Q

Debtors

A

Those who owe a business money

101
Q

Franchisee

A

An independent business who has bought the right to use another businesses brand, logo and trading practices in a certain area

102
Q

Incorporation

A

Establishing a business as a separate legal entity from its owners and thus giving them limited liability

103
Q

Limited Liability

A

Owners are not liable for the debts raised by a business, loss is limited to what they invest

104
Q

Sole Trader

A

One person who owns a business and holds unlimited liability

105
Q

Unlimited Liability

A

Owners are liable to all of the businesses debts so can have personal possessions taken away to cover the debt if need be

106
Q

Opportunity Cost

A

The cost of missing out on the next best alternative when making a decision or committing resources

107
Q

Trade-Off

A

Accepting less of something to achieve more of another e.g less quality for lower costs

108
Q

Liquidity

A

The ability a business has to pay its debts on time which relies on how much money they have in the bank

109
Q

Overtrading

A

When a business expands at a rate that it cannot be sustained due to its capital base

110
Q

Capital

A

Wealth in the form of money or assets that signifies the financial strength of an individual, business or nation

111
Q

Fixed Costs

A

Costs that stay the same regardless of output

112
Q

Variable Costs

A

Costs that change relevant to the level of output

113
Q

Working Capital

A

The finance available for the day to day running of a business

114
Q

Angel Investors

A

Investors who back a business before it opens its doors, taking a full equity risk

115
Q

Collateral

A

An asset used as security for a loan

116
Q

Public Limited Company (PLC)

A

Company with limited liability and shares which are available for sale on the stock market

117
Q

Seedcorn capital

A

The early stage finance that may come from an angel investor

118
Q

Share Capital

A

Business Finance that has no guarantee of repayment or of an annual income, but gains a share of the business and its profits

119
Q

Stock Market

A

The market for buying and selling company shares supervising the issuing of shares by a business and providing a market place for the buying and selling of second hand shares

120
Q

Venture Capital

A

High risk capital invested in a combination of loans and shares, usually in a small and dynamic business

121
Q

Best Case

A

An optimistic estimate of the best possible outcome of a business

122
Q

Business Plan

A

A document setting out a businesses idea, showing how it will be financed, marketed and put into practice

123
Q

Cashflow Forecast

A

A predictive business management tool which estimates the amount of money flowing in and out of a business allowing you to predict net cash flow

124
Q

Just-In-Time

A

Ordering stock so that it comes just before it runs out

125
Q

Overdraft

A

An authorised short term loan from a bank used for daily cash defecits

126
Q

Defecit

A

Negative balance in the cash flow forecast

127
Q

Surplus

A

Positive balance in the cash flow forecast

128
Q

Worst Case

A

A pessimistic estimate assuming the worst possible outcome for a business

129
Q

Retained Profit

A

Profit after tax which is invested back into the business

130
Q

Debenture

A

Long term business to business loan

131
Q

Lease

A

Essentially hiring equipment from other external businesses

132
Q

Secured Loan

A

A loan where the lender requires security e.g collateral

133
Q

Unsecured Loan

A

Where the lender has no protection if the borrower fails to repay its money

134
Q

Capital Gain

A

Profit made from selling a share for more than you bought it for

135
Q

Undercapitalised

A

A firm not raising enough capital when the business starts up

136
Q

Cashflow Forecast

A

A predictive business management tool which estimates monthly cash inflows and outflows to be able to manage net cashflow

137
Q

Opening Balance

A

The balance at the start of each month which is the closing balance of the previous months

138
Q

Net Cashflow Balance

A

The difference between cash flowing in and out

139
Q

Closing Balance

A

The amount in the bank at the end of the month

140
Q

Adverse Variance

A

Difference between budgeted and actual figures that I worse for the business

141
Q

Favourable Variance

A

Difference between budgeted and actual figures where it is good for the business

142
Q

Income Budget

A

Setting a minimum figure for the revenue to be generated by a product, department or manager

143
Q

Zero Budgeting

A

Setting all future budgets at zero and having all expenses asked for and justified by those who need it

144
Q

Margin of Safety

A

Amount you which current output exceeds the breakeven output

145
Q

Contribution

A

Selling Price - Variable Costs per unit

146
Q

Breakeven

A

Predictive calculation used to calculate the amount a business must sell to cover its costs

147
Q

Breakeven Formula

A

Selling price - VC per unit = Contribution

Fixed costs / Contribution = Breakeven Quantity

148
Q

Total Contribution Formula

A

Contribution x Breakeven Quantity

149
Q

Total Revenue at Breakeven Formula

A

Selling price per item x Breakeven Quantity

150
Q

Sales Forecast

A

Method of predicting future sales based on past statistics

151
Q

Time Series Data

A

Method that allows a business to predict future levels based on past output

152
Q

Extrapolation

A

Forecasting future trends based on past data

153
Q

Real Incomes

A

Changes in household incomes after allowing for changes in price I.e percentage change in household income - inflation = real income

154
Q

Contingency Plans

A

Plans held in reserve in case things go wrong e.g sales predicted at 30% lower in worst case

155
Q

Sales Volume

A

Number of units sold in a given time period

156
Q

Capacity Utilisation

A

The use a business makes of its resources

157
Q

Rationalisation

A

Reducing resources usually due to excess capacity

158
Q

Batch Production

A

Products passed through each production stage in batches

159
Q

Flow Production

A

A continuous production where standardised products are assembled in stages

160
Q

Job Production

A

One off production, usually unique products and services

161
Q

Lean Production

A

An approach to operations that focuses on a reduction of resources

162
Q

Cell Production

A

Involves producing a family of products in a small self contained unit of a factory

163
Q

Capital Intensive

A

More machinery used relative to Labour

164
Q

Labour Intensive

A

More labour used relative to machinery

165
Q

Division of Labour

A

Specialisation in specific tasks or skills by an individuals

166
Q

Production

A

A measure of quantity output

167
Q

Productivity

A

Measure of efficiency measured by dividing output by inputs per time period e.g a factory worker may make 10 computer chips every hour

168
Q

Efficiency

A

Producing a level of output where average costs are minimised

169
Q

Kaizen

A

Japanese term meaning continuous improvement

170
Q

Buffer Stock

A

Stock held as a precaution to cope with unforeseen demand

171
Q

TQM

A

Constant Company Wide culture of total quality management

172
Q

Lead Time

A

Time between placing an order and delivery

173
Q

Re-order Level

A

The level of current stock when a new order is placed

174
Q

Re-order Quantity

A

Amount of stock ordered when an order is placed

175
Q

Stock Rotation

A

Flow of stock into and out of a business

176
Q

Work-In-Progress

A

Partly Finished Goods

177
Q

Quality

A

Features of a product that allow it to satisfy customers needs

178
Q

Quality Assurance

A

A method of working for businesses that takes into account customers wants when standardising quality

179
Q

Quality Circles

A

Groups of workers meeting regularly to solve problems and discuss work issues

180
Q

Quality Chains

A

When employees form a link between customers and suppliers internally and externally

181
Q

Appreciation In A Currency

A

Rise in value of a currency

182
Q

Base Rate

A

Rate of interest the bank structures other interests off

183
Q

Gross Domestic Product (GDP)

A

Common measure of national income, output or employment

184
Q

Boom

A

The peak in an economic cycle, GDP is growing at its fastest

185
Q

Consumer Price Index (CPI)

A

Common measure of price changes used in the EU

186
Q

Deflation

A

A fall in the general price level

187
Q

Depreciation

A

Fall in the value of a currency

188
Q

Downturn

A

The GDP is growing but more slowly than before

189
Q

Fiscal Policy

A

Using changes in Taxation and government expenditure to manage the economy

190
Q

Inflation

A

General rise in prices

191
Q

Monetary Policy

A

Using changes in interest and money supply to manage the economy

192
Q

Recession

A

Less severe form of depression when GDP has decrease for more than 2 quarters

193
Q

Index linked

A

Linking of certain payments, such as benefits to the rate of inflation

194
Q

Slump or Depression

A

The bottom of the economic cycle where the GDP starts to fall with a significant increase in unemployment

195
Q

Taxation

A

Charges made by governments on the activities, earnings and incomes of individuals

196
Q

Anti-Competitive or Restrictive Practices

A

Attempt by firms to prevent or restrict competition

197
Q

Barriers of Entry

A

Obstacles that make it hard for a business to enter the market

198
Q

Collusion

A

Two or more businesses working together to do restrictive practices such as price fixing

199
Q

Contract Of Employment

A

Written agreement between an employer and employee with each having obligations

200
Q

Employment Tribunal

A

Court that deals with cases involving disputes between employers and employees

201
Q

Cartel

A

Group of businesses or countries which join together to agree on pricing and output in a market in attempt to gain higher profit at the consumers expense

202
Q

Market Structures

A

Characteristics of a market e.g size of barriers of entry, number of businesses,what they produce and the behaviour of them within the market

203
Q

Monopoly

A

Absence of competition where a single group or company has vast market share

204
Q

Unfair Dismissal

A

Illegal dismissal of a worker by a business

Business Edexcel AS + A2 Level WIP (59 decks)

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