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Business A level definitions (9609) > Section 1 > Flashcards

Section 1 Flashcards

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1
Q

Market failure

A

When markets fail to achieve the most efficient allocation of resource, resulting in under or over production of certain goods or services

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2
Q

External costs

A

The costs of an economic activity that are not paid for by the producer or consumer but by the rest of society

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3
Q

Macroeconomic objectives

A

The goals a government is aiming to achieve for the whole economy

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4
Q

Economic growth

A

The increase in a county’s productive potential, measured by an increase in real GDP

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4
Q

Gross domestic product (GDP)

A

The total value of goods and services produced in a country in one year

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4
Q

Real GDP

A

Gross domestic product data adjusted for the effects of inflation

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5
Q

Inflation

A

An increase in the average price level of goods and services resulting in a fall in the value of money

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6
Q

Unemployment

A

When members of the working population are willing and able to work but are unable to find a job

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7
Q

Imports

A

Goods and services purchased from other countries

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8
Q

Exports

A

Goods and services sold to consumers and businesses in other countries

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9
Q

Exchange rate

A

The price of one currency in terms of another

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10
Q

Recession

A

A decline in real GDP of two or more quarters (at least 6 months)

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11
Q

Business investment

A

Expenditure by businesses on capital equipment, new technology and research and development

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12
Q

Labour productivity

A

Average output per employee in a given time period

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13
Q

Business cycle

A

The regular swings in output, measured by real GDP, that occur in most economies, varying from boom conditions to recession.

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14
Q

Deflation

A

A fall in the average price level of goods and services.

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15
Q

Hyperinflation

A

Very high and accelerating inflation, which quickly erodes the real value of the local currency.

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16
Q

Working population

A

All those in the population of working age who are willing and able to work

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17
Q

Cylical unemployment

A

Unemployment caused by low demand for goods and services during a period of slow economic growth or a recession

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18
Q

Structural unemployment

A

Unemployment caused by the decline in important Industries, leading to significant job losses in one sector of the industry

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19
Q

Frictional unemployment

A

Unemployment caused by workers losing or leaving jobs and taking a substantial period of time to find alternative employment

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20
Q

Monetary policy

A

Decisions about the level of interest rates and supply of money in the economy

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21
Q

Fiscal policy

A

Decisions about government expenditure, tax rates and government borrowing

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22
Q

Budget deficit

A

The value of government spending exceeds revenue from taxation

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23
Budget surplus
The value of taxation revenue exceeds the value of government spending
24
Supply side policies
Government measures that aim to improve the competitiveness of markets and the economy
25
Exchange rate depreciation
A fall in the external value of a currency as measured by its exchange rate against other countries
26
Exchange rate appreciation
A rise in the external value of a currency has measured by its exchange rate against other countries
27
Common currency
A currency that is used by more than one country
28
Eurozone
Countries in the reopen Union that all use the Euro currency
29
Strategic management
Analysis of the current business situation, setting long-term objectives, deciding on business strategies to achieve them and then implementing this strategies
30
Strategic analysis
The process of conducting research into the business environment and into the business itself, in order to help identify future strategies
31
Strategic choice
The process that leads to a decision to choose a particular strategy from various alternatives in the techniques used to help make the choice
32
Strategic implementation
The process of planning, allocating and controlling resources to support the chosen strategy
33
Blue Ocean strategy
One that exploits uncontested market space through product differentiation and low cost
34
Red ocean strategy
One that competes with rivals and existing markets
35
Scenario planning
Identifying possible future situations and how the business might respond to them
36
SWOT analysis
A form of Strategic analysis that identifies and analyzes the main internal **strengths** and **weaknesses**, and external **opportunities** and **threats**, that will influence the future Direction and success of a business
37
PEST analysis
The strategic analysis of a firm's macro environment, including political, economic, social and technological factors
38
Porter's five forces model
A technique for analyzing competitive forces within an industry
39
Core competence
An important business capability that gives the Firm competitive advantage
40
Core product
Product based on a business's core competencies, but not necessarily for the final consumer or end user
41
Ansoff Matrix
A model used to show the degree of risk associated with the four growth strategies of market penetration, market development, product development and diversification
42
Market penetration
Achieving higher market shares in existing markets with existing products
43
Product development
The development and sale of new products on new development of existing products in existing markets
44
Market development
The strategy of selling existing products in a new market
45
Diversification
The process of selling different, and unrelated goods or services in new Markets
46
Force field analysis
A technique for identifying and analyzing the positive faactors that support a decision (driving forces) and the negative factors that constrain it (restraining forces)
47
Decision tree
A diagram that sets out the options connected with a decision in the outcomes in economic Returns that may result
48
Expected value
The Likely financial result of an outcome obtained by multiplying the probability of an event occurring by the forecast economic return if it does occur
49
Corporate plan
A plan containing details of a business's central objectives and the strategies to achieve them
50
Corporate planning
The process used by companies to set long-term plans to meet certain objectives, such as business growth and higher return On Capital employed
51
Corporate culture
The values, attitudes and beliefs of the people working in an organization that affect the way the interact with each other, and with external stakeholders
52
Power culture
A culture that concentrates power amongst just a few people
53
Role culture
A culture in which members of staff has a clearly defined job title and role
54
Task culture
A culture based on cooperation and teamwork
55
Person culture
A culture in which individuals are given the freedom to express themselves fully and make decisions for themselves
56
Entrepreneurial culture
A culture that encourages management and workers to take risk, to come up with new ideas and test out new Business Ventures
57
Transformational leadership
The leader works with the teams to identify the Need For Change, creates a vision to inspire people to accept change and implements change with the cooperation of the team
58
Change management
Planning, implementing, controlling and reviewing the movement of an organization from its current state to a new one
59
Business process re–engineering
Fundamental event thinking and redesigning the process of a business to achieve a dramatic improvement in performance
60
Project champion
A person appointed to support a project and drive It Forward by explaining the benefits of change and assisting in supporting the team putting change into practice
61
Project groups
Groups created by an organization to address a problem that requires input from different specialists
62
Contingency plan
A plan for preparing an organizations resources for unlikely events
63
Crisis management
The process of dealing with the sudden emergency event
64
Continuity plan
Preparing resources so that the business can continue operations after a major crisis

Business A level definitions (9609) (5 decks)

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