Unit 1 - Business and it's environment
Resources needed by business to produce goods or services (land, labor, capital, enterprise)
What are Factors of production
The strategic approach to the effective management of employees so that they help the business gain a competitive advantage.
What is Human Resources Management
Well-defined and realistic goals that are set for the whole company
What are corporate objectives
The ratio of outputs to inputs during production.
A: What is productivity
The capital needed by an entrepreneur to set up a business.
A: What is start up capital
A written document that describes a business, its objectives, its strategies, the market it is in and its financial forecasts.
What is a Business Plan
A sense of self-fulfillment reached by feeling enriched and developed by what one has learned and achieved.
What is self actualization
The price level at which demand is equal to supply.
What is equilibrium price
The use of flexible computerized aided technology on production lines to make products that meet individual customer’s requirements for customized products
A: What is mass customization
The use of small amounts of capital from a large number of individuals to finance a new business venture.
What is crowd funding
Firms providing services to consumers and other businesses, such as retailing, transport, insurance, banking, hotels and tourism
What is Tertiary Sector
Number of employees leaving in 1 year
_________________________________ x 100
Average number of people employed
What is Labour Turnover
The process of collecting, recording and analysing data about customers, competitors and the market.
What is market research
The process of ordering, storing and using a company’s inventory.
What is inventory management
Estimated difference between cash inflows and cash outflows for the period.
What is net cash flow
The total value of a company's issued shares.
What is Market Capitalism
A scheme that gives employees shares in the company they work for or allows them to buy those shares at a discount.
A: What is share-ownership scheme
The special feature of a product that makes it different from competitors’ products.
A: What is USP (unique selling point)
Handling the entire production flow of a product to minimize costs but improve customer service.
What is Supply Chain Management
Total cost divided by the number of units produced.
total cost of producing this product
__________________________
number of units produced
What is average cost
Aims that are specific, measurable, achievable, realistic and time-limited
What are SMART Objectives
Some managers believe employees are lazy, fear-motivated and in need of constant direction.
What is Theory X
A method of analysing the product portfolio of a business in terms of market share and market growth.
What is the Boston Matrix
Current output level
_________________ x 100
Maximum output level
What is Capacity Utilization
Calculation of the differences between budgets and actual figures, and analysis of the reasons for such differences.
What is variance analysis