1 AS Business and it's Environment 2023
1.
Business ethics,
“Doing the right thing” basing business decisions on what is morally right
2.
Business Objectives,
Aims or targets a business sets out to achieve
3.
Business Plan
A document setting out a business's objectives and how it will achieve them
4.
Co-operative,
business, or other organization which is owned and run jointly by its members, who share the profits or benefits.
5.
Corporate Social Responsibility,
businesses who take responsibility for the social and economic impact of their activity
6.
Entrepreneur,
Someone who invests capital, takes a risk and starts up and operates a new business venture
7.
External Growth
Business expansion taking over or merging with another business )
8.
External Stakeholders,
person or group outside the business impacted by the business activity
9.
Franchise
Buying the license to use another companies logo and sell their products.
10.
Incorporated Business
Business is a separate legal entity - separation between owners and the company
11.
Internal Growth
Business expansion without taking over or merging with another business (organic growth)
12.
Internal Stakeholders,
Individual or group inside the business impacted by the business activity (owners/shareholders, managers,
employees)
13.
Joint Venture
Two companies share capital and expertise on a project. Share risks and profits.
14.
Limited Liability
Owners responsibility for company debts restricted to what they have invested
15.
Mission Statement,
A mission statement is a visionary aim for a business of the direction/purpose
16.
Needs
Goods or services we need to survive
17.
Opportunity Cost,
the potential benefits a business misses out on when choosing one alternative over another.
18.
Partnership
Two or more people join to set up a business. Shared decision making, capital invested and risk.
19.
Primary Sector,
Using natural resources to make raw materials for business
20.
Private Limited Company
Incorporated business with shares sold to friends and family. Limited liability.
21.
Private Sector,
Part of the economy owned and controlled by private individuals
22.
Public Corporation,
Government owned organisation set up to provide service to the public
23.
Public Limited Company
Incorporated business with shares sold to general public. Limited liability.
24.
Public Sector,
Part of the economy owned and controlled by the government
25.
Purpose of Business Activity,
Business satisfies peoples (consumers) wants
26.
Quaternary Sector
Sector of the economy is based upon the economic activity that is associated with either the intellectual or
knowledge-based economy.
27.
Scarcity
Not enough resources/goods or services to provide for peoples' (consumers) unlimited wants
28.
Secondary Sector,
Manufacturing goods from raw materials
29.
Social Enterprise,
private enterprise which uses profits to persue environmental or social objectives
30.
Sole Trader
A business owned by one person who is responsible for all decisions, capital invested and risk.
31.
Specialisation
People in business focus on what they do best
32.
Tertiary Sector,
Services to consumers and other businesses (B2B)
33.
Triple Bottom Line,
Business objectives not just based on profit, but also social and environmental objectives
34.
Unincorporated Business
No separation between the company and the owners in law
35.
Unlimited Liability
Owners personal assets may be taken to pay for debts of the company.
36.
Value Added,
Selling price - cost of bought in materials
37.
Wants
Good or service people want but isn't essential for survival
38.
Intrapreneur
An intrapreneur is an employee who is tasked with developing an innovative idea or project within a company. The
intrapreneur may not face the outsized risks or reap the outsized rewards of an entrepreneur; however, the
intrapreneur has access to the resources and capabilities of an established company.
39.
Multinational Business
A multinational corporation (MNC) is a company that has business operations in at least one country other than its
home country. Generally, a multinational company has offices, factories, or other facilities in different countries
around the world as well as a centralised headquarters which coordinates global management.
40.
Adding Value
(Added Value) the difference between the cost of purchasing bought-in materials and the price the finished goods are
sold for.
41.
Factors of production
Factors of production are the inputs needed for creating a good or service, and the factors of production include land,
labor, entrepreneurship, and capital.
42.
Dynamic Business Environment
None found
43.
Business Risk and
Business Risk is the exposure a company or organization has to factor(s) that will lower its profits or lead it to fail.
44.
merger
A merger is an agreement that unites two existing companies into one new company.
45.
takeover
when a company buys more than 50% of the shares of another company and becomes the controlling owner of it –
often referred to as ‘acquisition’.
46.
Conglomerate Diversification
integration with a business in a different industry
47.
Horizontal Integration
Horizontal integration –integration with firms in the same industry and at
same stage of production
48.
Vertical Integration (forward and backward)
"Forward - forward integration with
49.
Strategic Alliance
Strategic alliances are agreements between firms in which each agrees to commit resources to achieve an agreed
set of objectives. The agreement is less complex and less binding than a joint venture, in which two businesses pool
resources to create a separate business entity.
50.
SMART Objectives
SMART Criteria: (Specific, Measurable, Achievable, Realistic and Relevant, Time-Specific) to guide in the setting of
goals and objectives for better results
51.
Friendly merger
The acquisition of one company by another with the full knowledge and consent of the target company's board of
directors.
52.
Hostile takeover
The acquiring company tries to take over a target company against the wishes of the target company's management.
2 AS Human Resource Management 2023
1.
Bonus,
an extra reward given to employees for reaching a certain target
2.
Commission,
"salespeople are given a % of the selling price if they make a sale.
3.
Profit Sharing
employees get rewarded with a % of the firms profits annually"
4.
Contract of employment,
A contract is an agreement between employee and employer setting out terms and conditions of a job.
5.
Democratic management,
Leader consults with employees before making decision - two way communication
6.
Dismissal,
End of employement due to underperformance or breaking company regulations
7.
Dismissal,
an employer brings an employment contract to an end,
8.
Diversity and equality policies,
outlines how a business will avoid discrimination against employees, and create a safe and inclusive workplace
9.
Empowerment,
delegation of some authority and responsibility to employees and involving them in the decision-making process
10.
External recruitment,
Hiring an employee for a post not currently employed by the business
11.
Fringe benefit,
an extra benefit in addition to an employee's money wage or salary, for example a company car, private healthcare,
etc.
12.
Functions of management,
Planning, Commanding, Controlling, Organising and co-ordinating
13.
Herzberg's Hygiene Factors,
"basic employee needs which must be fulfilled before employees can be motivated
14.
Induction training,
Training to familairise new employees with the workplace, co workers and procedures
15.
Internal recuitment,
Hiring an employee for a post currently employed by the business in another post
16.
Job description,
Duties and responsibilities of a postion
17.
Job enrichment,
employees are given additional responsibility in their day to day tasks which often involved more training or
development.
18.
Job Redesign,
Restructuring the elements including tasks, duties and responsibilities of a specific job in order to make it more
encouraging and inspiring for the employees or
19.
Labour productivity,
Labour productivity – output per worker measured by Output/no. of workers
20.
Labour turnover,
is the amount of employees leaving a business in a year and is calculated as a share of the total workforce
21.
Lassez-Faire management ,
A "hand's off" approach to management where most decisions and responisbility are delegated to employeeds
22.
Legal Minimum Wage,
Government sets the lowest pay rate for workers within a country
23.
Maslow's Hierarchy of needs,
ranked human needs in order from survival needs to self actualisation
24.
Mayo,
Recommended working in teams, greater consultation between workers and managers and allowing greater control
over the daily lives of employees to improve motivation
25.
McClelland/Vroom Expectancy Theory,
Expectancy theory based on valence, expectancy and instrumentality connecting employee efforts to rewards in
order to improve motivation.
26.
McGregor's management Roles,
Management attitudes to employees - theory X sees employees as lazy and irresponsible, theory y as hardworking
and responsible
27.
Mintzberg's Roles of Management,
Mintzberg identified 10 roles common to all managers under three categories, interpersonal, informational and
decisional roles
28.
Motivation
Motivation is the reason why employees work hard and effectively for a business
29.
Off the job training,
Training off site at a college or specialist training location
30.
On the job training,
Training at the workplace under the direction of an experienced employee
31.
Performance Related Pay,
A bonus scheme used to motivate employees for above average performance
32.
Person specifications,
description of the qualifications, skills, experience, knowledge and other attributes (selection criteria) which a
candidate must possess to perform the job duties.
33.
Recruitment and Selection,
Finding and choosing the correct candidate for the vacant job post
34.
Redundancy
Losing employment as the postion no longer exists - for example after a factory is closed
35.
Salary,
fixed payment usually paid monthly
36.
Span of control,
No of subordinates who report to each manager/supervisor
37.
Staff morale,
attitude, satisfaction and overall outlook of employees towards an organization or a business.
38.
Taylor,
viewed workers as machines – they more you pay they harder they will work.
39.
Team working,
– group of employees are given responsibility for a specific project, department or unit of work.
40.
Trade Union,
Organisation of employees who aim to improve the pay and conditions of their members
41.
Training,
improving the knowledge and skills of employees so they perform their jobs more effectively.
42.
Unfair dismissal,
Ending a work contract without proper or legal justification.
43.
Wages,
payment for work, usually paid weekly
44.
Worker participation,
o any process in the company that allows workers to exert influence over their work or their working conditions.
45.
Employment Agencies
an agency that helps find jobs for persons seeking employment or assists employers in finding people to fill positions
that are open.
46.
Online Recruitment
Some specialist businesses offer online recruitment services – such as Jobtrain and HireServe – and they assist
businesses in preparing an effective online advertisement for the vacant positions. (Chap 12)
47.
Multiskilling and flexibility
Multi-skilling is the training of employees in more than one skill set.
48.
Trade Union
an organisation of working people with the aim of improving the pay and working conditions of their members and
providing them with support and legal services.
49.
Collective Bargaining
negotiating the terms of employment between an employer and a group of workers who are usually represented by a
trade union representative
50.
Mc Gregors Theory X and Y Managers
Theory X and Theory Y are theories of human work motivation and management created by Douglas McGregor.
presents a pessimistic view of employees’ nature and behaviour at work, that employees are inherently lazy and
avoid work. Theory Y Presents an optimistic view of the employees’ nature and behaviour at work so workers enjoy
completing tasks and seek responsibility.
Marketing 2023
1.
4c's
Consumer wants and needs, Cost, Convenience, and Communication
2.
Advertising promotion,
influencing the buying behavior of consumers with a persuasive selling message about products and/or services.
3.
Brand image,
The the general impression that a brand presents to consumers
4.
Brand,
A name image or logo which distinguishes a product or serivce from competitors
5.
Building customer relationships,
Building strong relationships to ensure customer loyalty
6.
Competitive pricing,
Setting a price close to competitors products in the same market
7.
Cost plus pricing,
Adding a fixed price to the cost of making or buying a product
8.
Customer loyalty,
Consumers who make repeated purchases of a specific product or brand
9.
Demand
consumer's desire to purchase goods and services and willingness to pay a price for a specific good or service.
10.
Distribution channels,
The path a product takes from producer to consumer
11.
Dynamic pricing
changing the price for a product or service to reflect changing market conditions, in particular the charging of a higher
price at a time of greater demand.
12.
E-commerce,
Selling products and services over the internet
13.
E-commerce,
commercial transactions conducted electronically on the Internet.
14.
Extension strategies,
Strategies to lengthen the maturity stage of a product
15.
Focus groups
a group of people gathered to discuss heir opinions and preferences about a product
16.
Licensing,
An agreement in which one company gives another company permission to manufacture its product for a payment.
17.
Market Growth
Market growth is the increase or decrease in the size of a market for a product or service over time.
18.
Market orientated,
Products or services developed in reponse to market research data
19.
Market research,
Collecting and analysing data about customers, competitors and the market for a product or service
20.
Market segmentation,
Splitting a market into smaller parts based on consumer characteristics
21.
Market Share,
Revenue of a business as a % of the total market revenue
22.
Market,
All potential consumers who have an interest in buying a product and the money to do so
23.
Marketing Mix,
Four marketing decisions required for the successful marketing of a product or service (4p's or 4c's)
24.
Marketing Objectives
Marketing objectives are goals set by a business when promoting its products or services to potential consumers that
should be achieved within a given time frame
25.
Marketing Strategy,
Plan to achieve marketing targets with set resources
26.
Mass marketing,
Selling the same product to a whole market
27.
Niche marketing,
Developing product for a small market segment
28.
Packaging,
The wrapping material around a consumer item that serves to contain, identify, describe, protect, display, promote
and otherwise make the product marketable and keep it clean.
29.
Penetration pricing,
Setting a low price to attract consumers to buy a new product
30.
Price elasticity,
How much demand is impacted by a change in price
31.
Price skimming,
Setting a high price for a new unique product which has no direct competitor in the market
32.
Primary research,
First hand data collected specifically for a business needs
33.
Product Differentiation
is the process of distinguishing a product or service from others, to make it more attractive to a particular target
market.
34.
Product life cycle,
Pattern of sales from introduction to withdrawl from the market
35.
Product oriented,
A business decides what to produce then finds buyers for the product
36.
Promotional pricing,
reducing the price of a product or services in short term to attract more customers & increase the sales volume
37.
Random Sampling
member of the sample has an equal probability of being chosen
38.
Sales Promotion,
incentives used to encourage short term increases in sales or repeat purchases
39.
Sampling,
Taking a representative sample from the target market to complete market research
40.
Secondary research,
Collection of data from second hand resources
41.
Social media marketing,
is the use of social media websites and social networks to market a company's products and services.
42.
Supply
the total amount of a specific good or service that is available to consumers.
43.
Surveys
asking consumers or potential consumers for their opinions and preferences about a product
44.
Unique Selling Point (USP)
A unique selling proposition (USP, also seen as unique selling point) is a factor that differentiates a product from its
competitors, such as the lowest cost, the highest quality or the first-ever product of its kind
45.
Viral marketing
consumers are encouraged to share information about a company's goods or services via the Internet.
46.
B2B
Business-to-business (B2B), also called B-to-B, is a form of transaction between businesses, such as one involving a
manufacturer and wholesaler, or a wholesaler and a retailer. Business-to-business refers to business that is
conducted between companies, rather than between a company and individual consumer.
47.
BSC
The term business-to-consumer (B2C)means selling products and services directly between a business and
consumers who are the end-users of its products or services.
48.
Customer Relationship Marketing
Customer relationship management (CRM) refers to the principles, practices, and guidelines that an organization
follows when interacting with its customers.to establish successful customer relationships to maintain customer
loyalty
49.
Tangible attributes
Measurable features of a product that can be easily compared with other products.
50.
Intangible attributes of product
Subjective opinions of customers about a product that cannot be measured or compared easily.
51.
Boston Matrix Analysis
The Boston Matrix is a model which helps businesses analyse their portfolio of businesses and brands in terms of
market share and market growth.The Boston Matrix is a popular tool used in marketing and business strategy.
52.
Product Portfolio Analysis
analysing the range of existing products of a business to help allocate resources effectively between them.
53.
Psychological Pricing
"Psychological pricing is a pricing and marketing strategy based on the theory that certain prices have a
psychological impact.For example. $19.99 or £2.98 so consumers think just-below prices (also referred to as ""odd
prices"") as being lower than they actually are. Psychological pricing can also refer to the use of market research to
avoid setting prices that consumers consider to be inappropriate for the style and quality of the product."
54.
Direct Promotion
Direct marketing consists of any marketing that relies on direct communication or distribution to individual consumers,
rather than through a third party such as mass media for example mail, email, social media, and texting campaigns
are among the delivery systems used.
55.
Digital Promotion
The term digital marketing refers to the use of digital channels to market products and services in order to reach
consumers. This type of marketing involves the use of websites, mobile devices, social media, search engines, and
other similar channels.
Operations Management 2023
1.
Average costs,
Cost of producing a single unit of output
2.
Batch production
Producing goods in batches where all products must pass through one stage of production before moving onto the
next
3.
Buffer Inventory
supply of inputs held as a reserve in case of unexpected changes in demand or supply.
4.
Capital Intensive
High quantity of capital input compared to labour input
5.
Effectiveness
achieving business objectives by using inputs productively to meet customers’ needs.
6.
Efficiency,
Making the best possible use of resources. Maximising outputs from inputs.
7.
Flow production,
Constantly producing large quantities of identical goods
8.
Inventory,
Stock of work in progress, raw materials, and finished products held by a business
9.
Job production,
Producing a unique product, one at a time.
10.
Just in time (inventory management),
is an inventory management method where supplies arrive exactly when needed in the production process
11.
Labour intensive
High quantity of labour input compared to capital input
12.
Lead Time
Time taken between placing an order and receving delivery.
13.
Lean Production,
Production of goods and servies with maximum efficiency and minimum waste
14.
Process Innovation
is the implementation of a new or significantly improved production or delivery method. This includes significant
changes in techniques, equipment and/or software
15.
Production,
The process of converting inputs like (raw materials and components) into finished products
16.
Productivity,
Measure of efficiency by caluclated by dividing output by input
17.
Reorder Level
Inventory level at which a company would place a new order
18.
Total Costs,
Fixed costs plus variable costs
19.
Transformation Process
activity or group of activities that takes one or more inputs, transforms and adds value to them, and provides outputs
for customers or clients.
20.
Value Added
Value-added is the difference between the price of product or service and the cost of producing it.
21.
Sustainability
production systems that prevent waste by using the minimum of non-renewable resources so that levels of resources
will remain available for the long term.
22.
Mass Customisation
market goods and services that are modified to satisfy a specific customer's needs. Mass customization is a
marketing and manufacturing technique that combines the flexibility and personalization of custom-made products
with the low unit costs associated with mass production.
23.
Just in Case (Inventory Management)
Just in case (JIC) is an inventory strategy where companies keep large inventories on hand. This type of inventory
management strategy aims to minimize the probability that a product will sell out of stock.
24.
Supply chain management
Supply chain management is the management of the flow of goods and services and includes all processes that
transform raw materials into final products.
25.
Capacity Utilisation
"Capacity utilization rate measures the percentage of an organization's potential output that is actually being realized.
The formula for finding the rate is: (Actual Output / Potential Output ) x 100 = Capacity Utilization Rate"
26.
Outsourcing
Making an agreement with another business to undertake a part of the production process rather than doing it within
the business using the firm’s own employees.
Finance and Accounting 2023
1.
Break even,
Level of output where total revenue is equal to total costs - neither a profit or loss is made.
2.
Capital Expenditure
money spent by a business or organization fixed assets, such as land, buildings, and equipment.
3.
Cash flow
cash flow in and out of the business over a period of time
4.
Cash flow forecast
Estimate of future cash inflows and outflows usually calculated month by month to ensure there is enough cash to
pay short term debts
5.
Cash Flow Forecast
Estimate of future cash inflows and outflows
6.
Cash Inflow
Cash going into a business
7.
Cash outflow
cash going out of the business
8.
Crowd Funding
raising finance by raising small amounts of money from a large number of people, usually via the Internet.
9.
Debt Factoring
With debt factoring, a business can raise cash by selling their outstanding sales invoices (receivables) to a third party
(a factoring company) at a discount.
10.
Debt Finance
borrowing money from a bank which must be re paid with interest
11.
Debentures
a medium- to long-term debt instrument used by large companies to borrow money, at a fixed rate of interest.
12.
Direct costs
A cost that can be directly tied to the production of specific goods or services
13.
Equity Finance
selling shares in the business to raise finance rather than borrowing
14.
Fixed Clost
Costs that don't change with output.
15.
Indirect costs
A cost that can't be directly tied to the production of specific goods or services
16.
Internal Sources of Finance
Finance sourced from inside the business - for example owner's funds, sale of assets and retained profit all are
17.
Loan
bank lends a fixed amount for an agreed time period, which must be repaid with interest
18.
Long term finance
finance required for periods usually longer than one year
19.
Margin of safety,
The amount sales can fall before the break-even. point is reached and the business makes no profit.
20.
Marginal Costs
the cost added by producing one additional unit of a product or service
21.
Micro Finance
lending small amounts of finance small business people to those who can’t access finance from another source
22.
Net cash flow
Cash inflows - cash outflows
23.
Net Cash Flow
Cash inflows - cash outflows
24.
Overdraft
banks allow businesses to take additional money out of their account up to a certain limit
25.
Owners savings
– using owners own savings to finance the business
26.
Revenue Expenditure
money spent by a business or organization on day to day operating costs such as rent, insurance, heating,
maintenance etc
27.
Sale and Leaseback
Selling an asset for a capital sum and then leasing at an agreed rate from the buyer.
28.
Sale of assets
selling equipment /machinery/inventory to finance the business
29.
Short Term Finance
finance required for short periods usually less than one year
30.
Start Up Capital
money required to set up a business and keep the business operating until the business starts to break even
31.
Variable Costs
Costs that change with output.
32.
Working Capital
cash used to pay short term debts (current assets - current liabilities)
33.
Working Capital
- capital available to a business day to day to pay short term debts. Current Assets – current liabilities
34.
Average cost (Unit Cost)
This is the average cost of producing each unit of output: unit cost = total cost of producing this product /Number of
units produced
35.
Total Cost
Total costs, = total fixed costs + total variable costs
36.
Marginal Cost
the cost of producing one extra unit.
37.
Special order decisions
Special-order decisions involve situations in which management must decide whether to accept unusual customer
orders. These orders typically require special processing or involve a request for a low price.
38.
Contribution
"(Contribution looks at the profit made on individual products. It is used in calculating how many items need to be sold
to cover all the business' costs (variable and fixed).
39.
Contribution per unit
= selling price per unit less variable costs per unit
40.
Bankruptcy
Bankruptcy is a legal process conducted when a business is unable to repay outstanding debts or obligations.
41.
Liquidation
when a firm goes bankrupt, stops trading and its assets are sold for cash to pay suppliers and other creditors.
42.
Administration
When a business goes bankrupt an administrator is called into oversee the liquidation of the business assets. This
process is called “going into administration”
43.
Budgets
a detailed financial plan or revenue and expenditure over a specified time period.
44.
Incremental budgeting
uses last year’s budget as a basis and an adjustment is made for the coming year.
45.
Flexible budgets
(Flexible budgeting) cost budgets for each expense are allowed to vary if sales or production vary from budgeted
levels.
46.
Zero budgeting
setting budgets to zero each year and budget holders have to justify why they should receive any finance.
47.
Variances
Adverse variance: exists when the difference between the budgeted and actual figure leads to a lower-than-expected
profit. Favourable variance: exists when the difference between the budgeted and actual figure leads to a higherthan-expected profit.