Unit 1: Business Organization and Environment
This is the sector of the economy that includes farming, fishing, and mining.
What is the primary sector?
According to Maslow’s hierarchy, this need level is at the very top.
What is self-actualisation?
These costs do not change with the level of output.
What are fixed costs?
This type of marketing orientation focuses on internal capabilities rather than consumer needs.
What is product orientation?
This production method produces one unique item at a time.
What is job (customised) production?
This type of business is owned and operated by a single individual.
What is a sole trader (sole proprietor)?
This leadership style makes decisions without consulting team members.
What is autocratic leadership?
This is the formula used to calculate working capital (also known as net current assets).
What is current assets minus current liabilities?
This pricing strategy sets a price lower than rivals to enter a competitive market.
What is penetration pricing?
Total fixed costs / contribution per unit
What is the formula for calculating the break-even quantity?
This business document outlines an organization’s purpose and core values.
What is a mission statement?
This motivational strategy involves giving employees greater responsibility in their roles.
What is job enrichment?
This ratio shows a company’s ability to pay its short-term debts by using its current assets.
What is current ratio?
This strategic tool helps identify whether to grow a product line or enter a new market.
What is Ansoff's matrix?
A calculation of output per worker, per time period. An important measure of operational efficiency.
What is labour productivity?
This type of growth involves partnerships, joint ventures, or mergers with other firms
What is external (inorganic) growth?
The various factors that can prevent information being transferred effectively or accurately. These hurdles can also cause messages to be misinterpreted or misunderstood
What are barriers to communication?
This investment appraisal method calculates how long it takes to recover initial investment.
What is payback period?
(HL) This pricing strategy changes price based on different elasticities of demand. Often used by ride-sharing apps to maximise revenues during peak and off-peak times of the day.
What is dynamic pricing?
This business model emphasizes resource regeneration and includes strategies like product life extension and resource recovery.
What is a circular business model?
When average costs rise as a business grows in scale, often occurs due to rising miscommunication, conflict and language/cultural barriers.
What are diseconomies of scale?
(HL) This term describes disputes between employees and management that may lead to strikes.
What is industrial action?
Opening stock + purchases - closing stock
What is the formula for calculating cost of sales?
(HL) One of Porter's generic strategies which involves creating differentiation in a niche (narrow) market. Typically involves a business charging premium prices, for unique features or branding in a highly focused market, e.g. Lululemon, Long Tall Sally etc.
What is differentiation focus?
(HL) This concept critiques the monitoring of employee behavior using digital tools, which raises ethical concerns over employee privacy and work-life balance.
What is Digital Taylorism?