Unit 1 Review Materials: Business and the Environmen
social enterprise
a business with mainly social objectives that reinvests most of its profits into benefiting society rather than maximising returns to owners
leadership
the art of motivating a group of people towards achieving a common objective
Marketing
The management task that links the business to the customers by identifying and meeting the needs of consumers profitably. It does this by getting the right product to the right place at the right time
Operation Planning
preparing input resources to supply products to meet expected demand
INTERNAL SOURCES
Internal sources of finance: retained earnings,
sale of unwanted assets, sale and leaseback
of non-current assets, working capi
private sector
comprises businesses owned and controlled by individuals or groups of individuals
autocratic leadership
a leadership style that keeps all decision-making at the center of the organization
Consumer Markets
Markets for goods and services bought by the final user of them
Operations Flexibility
the ability of a business to vary both the level of production and the range of products following changes in customer demand
EXTERNAL SOURCES
External sources of finance: share capital, new partners, venture capital, overdrafts, leasing, hire purchase, bank loans, mortgages, debentures, micro-finance, crowd funding, and government grants
market capitalisation
total value of a companys issued shares
informal leader
a person who has no formal authority over but has the respect of colleague and some power over them
Marketing Strategy
Long-term plan established for achieving marketing objectives
Job Production
producing a one off item specially designed for the customer (unique product)
PURPOSES OF CASH FLOW FORECASTS
Difference between cash and profits
the need to hold a suitable level of cash within a
business, and the consequences of not doing so
corporate social responsibility
the concept that accepts that business should consider the interest of society in its activites and decisions beyond the legal obligations that it has
self actualization
a sense of self fulfillment reached by feeling enriched and developed by what one has learned and achieved
Market Orientation
An outward looking approach basing product decisions on consumer demand, as established by market research
Optimal Location
a business location that gives the best combination of quantitative and qualitative factors
MAIN USERS OF ACCOUNTS
comparison of ratios results between businesses
Limitations of these accounting ratios Identification of the kind of information that
individual stakeholder groups might seek
stakeholder concept
the view that businesses and their managers have responsibilities to a wide range of groups not just shareholders
motivating factors (motivators)
aspects of a worker's job that can lead to positive job satisfaction such as achievement, recognition, meaningful and interesting work, and advancement at work
Product Orientation
An inward looking approach that focuses on making products that can be made, or have been made for a long time, and then trying to sell them
Outsourcing
transferring a business function, like HR, to another company
LIMITATIONS OF PUBLISHED ACCOUNTS
imitations of the usefulness of published
accounts: historical, may not reflect the future,
may be out of date, does not reflect qualitative
aspects of a business, possibility of ‘window
dressing’, may not have details of the
performance of individual parts of a business