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Flashcards in Partial 2 Deck (33):
1

Aim

The long-term goals of a business, often expressed in the firm’s mission statement. They are a general statement of a firm’s purpose or intentions and tend to be qualitative in nature.

2

Ansoff matrix

(1957) An analytical tool to devise various product and market growth strategies, depending on whether businesses want to market new or existing products in their new or existing markets.

3

Corporate Social Responsibility

The conscientious consideration of ethical and environmental practices related to business activity.

4

Code of ethics

The documented beliefs and philosophies of an organization.

5

Ethics

The moral principles that guide decision-making and strategy. Morals are concerned with what is considered to be right or wrong, from society’s point of view.

6

SMART objectives

Targets that are specific, measurable, achievable, realistic and time constrained.

7

SWOT analysis

Is an analytical tool used to assess the internal strengths and weaknesses and the external opportunities and threats of a business decision, issue or problem.

8

Joint venture

A growth strategy that combines the contributions and responsibilities of two different organizations in a shared project by forming a separate legal enterprise.

9

Lateral integration

Unit not yet reviewed.

10

Merger

Unit not yet reviewed.

11

Multinational company

An organization that operates in two or more countries, with its head office usually based in the home country.

12

Optimal level of output

The most efficient scale of operation for a business which occurs at the level of output where average costs of production are minimized.

13

Backward vertical integration

Unit not yet reviewed.

14

Conglomerates

Unit not yet reviewed.

15

Diseconomies of scale

Are the costs disadvantages of growth. Unit costs are likely to eventually rise as a firm grows due to a lack of control, coordination and communication.

16

Diversification

It is a high risk growth strategy that involves a business selling new products in new markets, i.e. spreading risks over a diverse variety of products and markets.

17

Economies of scale

It refers to lower average costs of production as a firm operates on a larger scale due to gains in productive efficiency, e.g. easier and cheaper access to finance.

18

Forward vertical integration

Unit not yet reviewed.

19

Franchise

Unit not yet reviewed.

20

Globalization

It is the growing integration and interdependence of the world's economies, causing consumers around the globe to have increasingly similar habits and tastes.

21

Horizontal integration

Unit not yet reviewed.

22

Internal growth

Also known as organic growth, it occurs when a business grows using its own capabilities and resources to increase the scale of its operations and sales revenue.

23

Inflation

It occurs when the general price level in a economy continuously rises. it is measured by changes in the cost of living for the average household in a country.

24

Interest rate

It is a measure of the price of money in terms of the amounts charged for borrowed funds or how much is offered on money that is saved.

25

Protectionist measure

It is any measure taken by a government to safeguard its industries for overseas competition. They are a threat to businesses trying to operate in foreign markets.

26

STEEPLE analysis

It is an analytical framework use to examine the opportunities and threats of the external environment (social, technological, economic, environmental, political, legal, and ethical environments) on business activity.

27

Unemployment

Refers to the number of people in the workforce who are willing and able to work but cannot find employment.

28

Conflict

It refers to situations where stakeholders have disagreements on certain matters due to differences in their opinions. This can lead to arguments and tension between the various stakeholder groups.

29

External stakeholders

They are individuals and organizations not part of the organization but have a direct interest in its activities and performance.

30

Internal stakeholders

They are members of the organization.

31

Pressure groups

They consists of individuals with a common concern (such as environmental protection) who seek to place demands on organizations to act in a particular way or to influence a change in their behavior.

32

Shareholders (stockholders)

They are the owners of a limited liability company. Share in a company can be held by individuals and other organizations.

33

Stakeholders

They are the owners of a limited liability company. Share in a company can be held by individuals and other organizations.