Key Vocabulary Flashcards
dynamic market
rapidly changing business environment
Price sensitive
products thats sales are influenced by its price
Triple bottom line
economic social and environmental
Mixed economy
owned and controlled by government + private
Free market economy
owned largely by the private sector
Holding company
owns or controls a number of separate companies
Corporate social responsibility
consider welfare of society
Tangible attributes
Measurable features of a product that can be easily compared with other products
Intangible attribute
Subjective opinions of customers about a product that cannot be measured or compared easily
Mass customization
flexible computer-aided production systems to produce items to meet individual customers requirements at mass production cost levels
Offshoring
The relocation of a business process done in one country to the same or another company in another country
Trade barriers
Taxes or other limitations on the free international movement of goods and services
Scale of operation
the maximum output that can be achieved using the available inputs (resources) - this scale can only be increased in the long term by employing more of all inputs
Economies of scale
Reductions in a firm’s unit costs of production that result from an increase in scale of operations
Buffer inventory
The minimum inventory level that should be held to ensure that production could still take place should a delay in delivery occur or should production rates increase
