Unit 1
Business activity involved with the extraction of natural resources
What is the primary sector?
The process of teaching a particular new skill or knowledge in order to develop a person’s competence in the workplace.
What is Training?
Business spending on fixed assets
What is capital expenditure?
Persuading customers them to purchase the product through various marketing methods.
What is promotion?
Output of a customized good or service that meets the specific needs of a specific customer.
What is job production?
Contains introduction to business, mission & vision statements, market analysis, financial analysis
What is a business plan?
An employer can no longer afford to hire the employee
What is redundancy?
Surplus funds that are reinvested in the business, instead of being distributed to the owners
What is retained profit?
Using unconventional but innovative marketing strategies that make a major impact on the market, but at a fraction of cost of traditional promotional methods.
What Is Guerilla Marketing?
When an organization relies on workers to produce its output, rather than machinery or capital equipment,
What is labour intensive production?
Shareholders have limited liability, so cannot lose more than what they invest in the company.
Managers who prefer to discuss and involve employees in decision making.
What is democratic leadership style
This short term source of finance would not be suitable for purchasing capital assets such as a fleet of new motor vehicles or for financing investment decisions.
What is an overdraft?
the acronym - OINKY for a market segment
What is One Income, No Kid Yet?
All material inputs in the operations method must be either recyclable or reusable with no loss of quality or consumable or compostable in an ecologically friendly way.
What is Cradle-to-cradle (C2C)?
Larger businesses can afford to hire specialist functional managers, thus improving the organization’s efficiency and productivity.
What are managerial economies of scale?
an organisation structure with only few layers of management
What is a flat organisation structure?
e.g. Utility companies (electricity, gas, water and telecommunications service providers) charge more to customers who use a greater amount of their services (the variable component) plus a fixed monthly fee which has to be paid regardless of the amount used (the fixed component).
What is a semi-variable cost?
Range of marketing activities designed to determine the opinions, beliefs and feelings of existing and potential customers.
What is market research?
Technique that involves teams of people working on a certain section of the production process. Each team (or cell) works on a significant part or complete unit of output within the overall production process.
What is cellular manufacturing?
A car manufacturer purchases a group of car dealerships to secure control over the distribution channel
What is forward vertical integration?
This motivation theory argues that in order to create any motivation in the workplace, it is essential to first remove the factors that cause dissatisfaction (hygiene factors).
What is Hertzberg's two factor theory of motivation?
Snippets Hair Salon Co. has annual fixed costs of $1.2 million. The company has an annual output of 150,000 customers, with a variable cost per customer of $15. Calculate the total annual costs for Snippets Hair Salon Co.
What is 3,450,000?
The marketing mix focuses on keeping the product as a cash cow for as long as possible in order to maximize profits. Profit will be high and generally stable.
What is the maturity phase of the PLC?
Devising and developing pre-arranged plans to deal with a crisis, in case it actually occurs.
Contingency Planning