Business Strategy & Performance
Growth
Increase in company revenues or economy output
Equity
Value of stakeholder claims on company assets
Regulation
Government laws and rules controlling business activities
Customization
Tailoring a product or service to customer preferences
GDP
Total value of goods/services produced in an economy
Economies of scale
Cost savings from large-scale production
Net worth
Value of assets minus liabilities
Perfect/Imperfect competition
Many/few buyers/sellers, identical/differentiated products
Elastic demand
Demand highly sensitive to changes in price
Inflation
Sustained rise in the general price level
Comparative advantage
Ability to produce a product most efficiently
Capital Gain
Profit from selling an asset for more than the purchase price
Oligopoly
Market dominated by small number of firms
Core competency
Activity a company is highly skilled at and critical to success
Recession
Temporary economic contraction visible in GDP decline
First mover advantage
Competitive edge from being first in a market
Balance sheet
Financial statement showing assets, liabilities, and equity
Business cycle
Fluctuations in economic activity over time
Production Possibility Frontier
Maximum possible output combinations with scarce resources
Deflation
General decline in prices over time
Supply chain management
Managing flows of goods, services, finances from suppliers to customers
Stock buybacks
Company repurchasing own shares on the open market
Multiplier effect
Economic impact exceeding initial spending as income circulates
Law of diminishing returns
Declining marginal output as production factors increase
Law of supply/demand
Inverse relationship between supply/demand and prices