| A | B |
|---|
| mission statement | Declaration of an organization's overall purpose. |
| staff turnover | The rate at which employers gain and lose employees |
| economies of scale (2) | notion that unit costs drop as size of firm grows |
| primary market research | Gathering new data first-hand for a specifc study. |
| decentralization | Delegating the decision-making authority down the chain of command to the lower level employees and away from the central authority |
| intangible asset (2) | non-phyiscal aspects, generate income, add value to business and are not intended for sale within 12 months, i.e. patents, copyrights, registered trademarks |
| socially responsible organization | Business being conscientiously concerned about the well-being of the general public as a whole. |
| batch production | Producing a limited number of identical products. |
| mass production | Manufacturing of large amounts of a standardized product. |
| flexible working practices (2) | practices that include: teleworking, working from home, job sharing, part-time employment |
| unfavourable variance | when variance is financiall detrimental to the organization, occurs when costs are higher than expected or when actual revenue is lower than budgeted revenue |
| absorption costing | A type of cost-based pricing method that focuses on covering all costs of production. |
| ethical responsibility | firm's responsibility to behave with integrity with all their stakeholders |
| premium pricing | a firm permenantly setting a high price b/c of image, reputation, or status associated with its product, commonly used for jewelry, designer clothes, and luxury cars |
| niche market (2) | Small and specialist market segments. |
| strategic objectives | Longer Term aims of a business. |
| tactical objectives | Short-Term objectives that affect a segment of the organization. |
| cost center | Department or unit of a business that incurs costs but is not involved in making any profit. |
| private limited company | Business organization owned by shareholders with limited liability but whose shares cannot be bought by or sold to the general public. |
| working capital | money that is available for the day to day running of the business, comes from the sales of goods and services |
| co-operative | business run by community members who share tasks and profits/losses |
| direct costs | specifically related to a particular project or the output of a single product, i.e. telephone bills, postage, mortgage |
| indirect costs | costs that cannot be clearly related to teh level of outputof any single product, not directly linked with the level of production or sale of a product i.e. rent, advertising, accounting costs |
| partnership agreement | agreement between up to 20 people to split control, risk and profits of a firm |
| branding | a form of differentiating a firm's product from those of its competitors, refers to a name that is identifiable with a product of a particular business |
| profit center | department or unit of a business that incurs both costs and revenues, tend to be used by large businesses that are diversified or have a broad product mix, costs and revenues are clearly attributed to the activites of that department or unit |
| capital expenditure | spending on fixed assets such as machines and heavy equipment |
| globalization | Growing integration and interdependence of the world's economies. |
| takeover | occur when one company purchases the majority of shares of another company. May be hostile or friendly. |
| quality circles | Groups of workers that meet on a regular basis to identify problems related to quality assurance. |
| buffer stock | A reserve stock of raw materials, semi-finished and finished goods in case there are any contingencies. |
| manufacturing capacity | maximum number of units that can be produced by a factory |
| unique selling point | principal characteristic of a good or service that separates it from its competitors |
| working capital | amount of money available to fund day to day operations |
| liquidity | how quickly and cheaply an asset can be converted to cash |
| franchisee | company which has bought the legal rights to another company's names, logos and training methods |
| market penetration | One of the four options in the Ansoff matrix. Involves trying to expand market share of an existing product in an existing market. |
| informal communication | communication that takes place outside of official channels. |
| non-government organizations | firms that operate in the private sector but do not try to make profits. Exist to promote a social purpose or to advocate for under-represented groups. |
