paper 2 Flashcards
(34 cards)
What is organic growth?
A business expanding by increasing output, sales, or opening new stores.
What is external growth?
A business growing by merging with or acquiring another company.
What is a merger?
When two businesses join together to form one company.
What is a takeover?
When one business buys another business, gaining control over it.
What is economies of scale?
Cost advantages gained as a business increases production, reducing unit costs.
What is diseconomies of scale?
An increase in costs per unit when a business grows too large and becomes inefficient.
What is product differentiation?
Making a product stand out from competitors through branding, features, or quality.
What is market segmentation?
Dividing a market into smaller groups based on characteristics like age, income, or interests.
What is penetration pricing?
Setting a low price to attract customers and gain market share quickly.
What is price skimming?
Setting a high initial price for a new product to maximise early profits before lowering it later.
What is competitive pricing?
Setting prices based on competitors’ prices to stay competitive in the market.
What is cost-plus pricing?
Setting the price by adding a fixed percentage to the cost of making the product.
What is promotion?
Marketing activities used to increase awareness and sales, such as advertising and discounts.
What is branding?
Creating a unique name, image, or reputation to distinguish a business from competitors.
What is a profit margin?
The percentage of revenue that is profit after costs have been deducted.
What is return on investment (ROI)?
A measure of how profitable an investment is compared to its cost.
What is cash flow forecasting?
Estimating the flow of money in and out of a business over time.
What is working capital?
The money a business has available for daily operations after short-term debts are paid.
What is break-even analysis?
A tool used to determine the level of sales needed to cover total costs.
What is liquidity?
How easily a business can convert assets into cash to meet short-term obligations.
What is supply chain management?
Managing the process of sourcing, producing, and delivering goods to customers.
What is lean production?
Minimising waste and increasing efficiency in the production process.
What is just-in-time (JIT) production?
A stock control method where materials are ordered only when needed to reduce storage costs.
What is just-in-case (JIC) production?
A stock control method where extra inventory is kept in case of unexpected demand or delays.
