Startegic business vocabulary 2 Flashcards
(12 cards)
profit margin
Definition: The percentage of revenue left after all expenses are deducted from sales. Example: Our profit margin improved by 5% after we cut manufacturing costs.
exit strategy
Definition: A plan for how to leave or sell a business venture to maximize returns or minimize losses. Example: The founders’ exit strategy involved selling the company after five years.
market saturation
Definition: A situation where a product has become so widespread that most potential customers already own it. Example: With so many competitors, the smartphone market is nearing saturation.
diversification
Definition: Expanding into new products, services, or markets to reduce risk. Example: The company is pursuing diversification to protect against industry downturns.
synergy
Definition: The increased effectiveness or performance that results from the combination of two companies or departments. Example: The merger created strong synergy between the firms’ logistics and supply chains.
disruptive innovation
Definition: A new idea, product, or service that radically changes an existing industry or creates a new one. Example: Streaming platforms have been a disruptive innovation in the entertainment industry.
first-mover advantage
Definition: The benefits gained by being the first to enter a market or develop a new product. Example: The company enjoyed a first-mover advantage in electric vehicles.
lean operations
Definition: A business approach focused on reducing waste and improving efficiency. Example: Lean operations helped the startup scale quickly with limited resources.
scalable model
Definition: A business model that can grow and handle increased demand without significant cost increases. Example: Their app-based service is built on a scalable model ideal for rapid expansion.
KPIs (Key Performance Indicators)
Definition: Specific, measurable values used to track progress toward business goals. Example: Customer retention is one of our most critical KPIs this quarter.
brand equity
Definition: The value a brand adds to a product or company based on customer perception. Example: Strong brand equity allows them to charge a premium price.
value chain
Definition: The full range of activities a company performs to deliver a valuable product or service. Example: They analyzed their value chain to identify where costs could be reduced.
