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Flashcards in Partial 2 Deck (33)
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1
Q

Aim

A

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
Q

Ansoff matrix

A

(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
Q

Corporate Social Responsibility

A

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

4
Q

Code of ethics

A

The documented beliefs and philosophies of an organization.

5
Q

Ethics

A

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
Q

SMART objectives

A

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

7
Q

SWOT analysis

A

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
Q

Joint venture

A

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

9
Q

Lateral integration

A

Unit not yet reviewed.

10
Q

Merger

A

Unit not yet reviewed.

11
Q

Multinational company

A

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

12
Q

Optimal level of output

A

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

13
Q

Backward vertical integration

A

Unit not yet reviewed.

14
Q

Conglomerates

A

Unit not yet reviewed.

15
Q

Diseconomies of scale

A

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
Q

Diversification

A

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
Q

Economies of scale

A

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
Q

Forward vertical integration

A

Unit not yet reviewed.

19
Q

Franchise

A

Unit not yet reviewed.

20
Q

Globalization

A

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
Q

Horizontal integration

A

Unit not yet reviewed.

22
Q

Internal growth

A

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
Q

Inflation

A

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
Q

Interest rate

A

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
Q

Protectionist measure

A

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
Q

STEEPLE analysis

A

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
Q

Unemployment

A

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

28
Q

Conflict

A

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
Q

External stakeholders

A

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

30
Q

Internal stakeholders

A

They are members of the organization.

31
Q

Pressure groups

A

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
Q

Shareholders (stockholders)

A

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

33
Q

Stakeholders

A

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