A
This department is responsible for ensuring that the business has sufficient funds in order to conduct its daily operations. Essentially, this department is responsible for managing the organization’s money and maintaining accurate records of the firm’s funds.
Finance and accounts
Refers to a reward, cash or otherwise, that a company gives to its shareholders.
Dividend
What business department handles all aspects that relate to the workforce. It involves all aspects of business operations related to staff (personnel) within an organization.
Human Resource
This sector of the industry is concerned with the extraction of raw materials or natural resources from the land. Any business that grows goods or extracts materials from the land would be classed under this sector. What is it?
Primary sector
This growth occurs when a business expands its existing operations. This type of business can be quite slow but easier to manage.
Internal Growth
This economies of scale is also known as ‘bulk-buying economies of scale. This economies of scale materialise when a firm buys in bulk, so can save money per unit bought. Large firms can reduce their average costs by buying resources in bulk as they usually buy greater quantities of inventory (such as raw materials, component parts, and/or finished goods ready for sale).
Purchasing economies of scale
Refers to a loan used to purchase or maintain a home, land, or other types of real estate.
Mortgage
Quaternary sector
Is something a person or company owes, usually a sum of money. It is settled over time through the transfer of economic benefits including money, goods, or services.
Liability
enjoys privacy as it only needs to publish its financial accounts to the tax authorities rather than to the general public.
Sole Proprietorship
What pricing adds a profit margin to the costs of production in order to determine the selling price of a good or service. This ensures that each unit sold adds contribution by ensuring the selling price is higher than the production costs. The difference between the price and the cost is called the mark-up (or the profit margin), which is usually expressed as a percentage figure.
Cost plus pricing
This sector involves the provision of services to other businesses as well as to final consumers.
Tertiary sector
A resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit
Assets
What is a simple business structure in which one individual runs and owns the entire business.
This sector consists of processing, manufacturing, and constructing companies. The sector produces goods from the natural products within. The sector includes the business activities such as Automobile production.
Secondary sector
This economies of scale explains that modern technology enables businesses to produce very high levels of output at much lower unit costs than smaller firms can do. Large firms can afford to use sophisticated and specialised machinery to mass produce their output using flow production techniques. They are able to justify huge investments in mass production technologies (such as assembly lines) because working at a high capacity level can significantly lower average costs of production.
Technical economies of scale
This pricing strategy consist of setting a high price during the introductory (launch) of a new and original product, such as new electronic products. It is often used to target the market segment known as early adopters, who are more interested in the uniqueness, quality and prestige of owning a new and original product (rather than the high price). Firms also charge a high price in order to recuperate their high costs of research and development (R&D) prior to the launch of the product.
Price skimming
Which economies of scale explains that Large firms enjoy favourable terms and conditions when it comes to raising finance. They tend to be able to borrow very large amounts of money from banks or other lending institutions and at lower interest rates. Consequently, lower interest payments mean larger firms enjoy higher profit margins due to the lower average costs of finance. Lenders show preference for lending to larger businesses with a proven track record and a diversified range of products.
Financial economies of scale
This is setting a low price in order to enter an industry. It allows the firm to compete against existing firms and to gain market share. Quite often, this pricing takes the form of a heavily advertised discounted price offer in order to attract a large number of customers in a short space of time. The low price can also allow the firm create brand awareness and brand recognition. As the firm establishes itself and gains brand recognition, the price can be raised.
Penetration pricing
This growth occurs when a business takes over or merges with another business. This is often called integration. This can be divided into horizontal, vertical and conglomerate merger or integration.
External growth
This is an approach to marketing that focuses on making products a business knows how to make well, rather than primarily concentrating on the needs and desires of potential customers. Such businesses prioritise research and development (R&D) over market research. This approach tends to be used by highly innovative and tech-savvy manufacturers. Examples include Apple, Boeing, Gillette, Google and Tesla.
Product orientation
This is a pricing strategy that involves a business charging different prices to different market segments for basically the same good or service. It is a widely used strategy in many industries. For example, adults and children pay different prices at cinemas, hotels and theme parks.
For this pricing strategy to work, three conditions must hold:
Price discrimination
This department involves the process of making goods and providing services from the available resources of a business to meet the needs and wants of its customers. It involves ensuring that goods and services meet the targets, deadlines and certain quality standards.
Operations management or production
When a private company first sells shares of stock to the public, this process is known as an ?. In essence, it means that a company's ownership is transitioning from private ownership to public ownership. For that reason, the process is sometimes referred to as "going public."
Initial public offering-IPO
This is an approach to marketing that focuses on meeting the specific demands (desires and needs) of customers and potential customers. Hence, businesses focus on making products that they can sell, rather than selling products that they can make, i.e. they prioritise the needs of their customers above everything else. Such information can be gathered from conducting a research, rather than from research and development (R&D), which is used to formulate decision-making. For example, the businesses design, develop and improve their products based on customer feedback.
Market orientation