Unit 1
A category of business that is involved in the intellectual knowledge-based activities that generate and share information
Quaternary sector
The average cost of production
Money spent on fixed assets
Capital expenditure
The amount of time needed for an investment project to earn enough profits to repay the initial cost of the investment
Payback period
Targets a specific and well-defined market segment.
Niche market
Has to make all the decisions
Limited Capital
Limited economies of scale
When large firms can use sophisticated capital and machinery to mass produce their products and lower production costs.
Technical economies of scale
Share capital and Loan capital
Sources of long-term finance
Firm's sale revenue / Industry's sales revenue
Market share
Focus group
Interview
Survey
Examples of primary market research
What IPO stands for
Initial Public Offering
Lack of control and coordination
Poorer working relationships
Bureaucracy
Diseconomies of Scale
What is the formula for revenue?
Cost x units sold
A marketing approach for businesses that focus on selling products that they can make or that they know they can specialize in. They are less concerned with market research and what the market dictates.
Market orientation
A sampling method whereby a certain number of people from different market segments are selected.
Quota (Sampling)
Cooperatives
Occurs through dealings with outside organizations rather than from an increase in the organization's own business operations.
External Growth
Branding
Copyrights
Patents
Intangible assets
Refers to a distinct group of customers with similar characteristics and similar wants and needs.
A product that operates in a sector that has high market growth but has low market share.
Question Mark
The tool used to help decide how to solve an issue or conflict between different stakeholders
Stakeholder mapping
Similar to a joint venture expect the two or more businesses remain independent and do not form any new business organizations.
Strategic Alliance
(Current assets - stock) / Current Liabilities
Acid test ratio or quick ratio
Being the first business to provide a certain product or service.
First mover advantage
A pricing method where large companies offer very low, or sales at a loss, in order force competitors out of the market.
Predatory (pricing)