Section 1
The difference between the selling price of a good or service and the cost of raw materials used to produce it
What is added value?
Training given to new staff to help familiarise themselves with the organisation (usually on the first few days on the job)
What is induction training?
Marketing to a small segment of a larger market
What is niche marketing?
Risk of obsolescence and opportunity cost
What are (two) disadvantages to holding (high) inventory?
Finance that has been raised from inside the business
What is internal finance?
People (social), planet (environmental), profit (financial)
What is the triple bottom line (objectives of a social enterprise)?
An organisation who protects the rights of its worker members
What is a trade union?
Research data that is collected first hand, often referred to as field research
What is primary market research?
A method of production that combines low unit costs with flexibility to meet customers’ individual requirements
What is mass customisation?
The investment needed for a business to buy all the things it needs before producing goods or services
What is capital employed?
A financial reward that involves providing employees with non-cash items such as a company car and health insurance
What is a fringe benefit?
Non probability sampling method where the researcher selects survey participants based on specific characteristics e.g Gender
What is quota sampling?
output / capital employed
What is capital productivity (formula for/how you work it out)?
Integration (merger or takeover) with a business in a different industry
What is conglomerate integration?
These are factors that Hertzberg believed don't themselves motivate, but have to be in place in order for motivators to work.
What are hygiene factors?
This intermediary is often brought in to a producers distribution channel when they wish to sell their product overseas (in foreign markets)
What is an agent?
Reducing excess capacity by closing factories or production units (also making employees redundant)
What is rationalisation?
A member-owned business structure needing at least 5 shareholders. Everyone has equal voting rights, regardless of level of investment
What is a Cooperative?
planning, organising, coordinating, commanding and controlling
What are the functions (roles) of management?
Identifying and satisfying customer needs as well as building and maintaining loyalty.
What is (the role of) marketing?
Intangible capital of a business that can include the skill level of employees, any data or information systems you have built up or your brand strength.
What is intellectual capital?