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B
Bar Gate Stock Graph
A visual representation of stock levels over time, showing minimum stock level, maximum stock level, reorder level, and lead time. It helps businesses manage inventory efficiently and avoid stockouts or excess stock.
Unit 3
Business Plan
A formal document that outlines a business idea, market analysis, financial projections, marketing strategy, and operational plans. It is used to secure funding and provide a roadmap for the business.
Unit 1
Boston Matrix
A portfolio analysis tool used to categorise products based on market growth rate and relative market share. It identifies products as stars, cash cows, problem children, or dogs to guide investment decisions.
Unit 5
C
Cost
The amount of money spent on producing goods or services. Costs include raw materials, labour, rent, and utilities, and are subtracted from revenue to calculate profit or loss.
Unit 1
Customer Service
The support provided to customers before, during, and after purchase. Good customer service aims to meet customer needs, solve problems quickly, and build long-term customer loyalty.
Unit 3
Competition
Rivalry between businesses selling similar products or services. Competition can drive innovation, lower prices, and improve quality, but can also increase costs for businesses trying to remain competitive.
Unit 2
Consumer Law
Legislation that protects consumers from unfair or unsafe business practices. It includes rules about product safety, labelling, returns, and protection against false advertising.
Unit 2
Competitive Pricing
A pricing strategy where a business sets prices based on competitor prices rather than costs or demand. The business aims to be priced similarly to competitors to remain competitive in the market.
Unit 5
Consumer Law
Legislation that protects consumers from unfair or unsafe business practices, including rules about product safety, accurate labelling, and protection against false advertising.
Unit 2
D
Demand
The quantity of a product or service that consumers are willing and able to buy at a given price. Demand changes based on factors such as price, income, tastes, and availability of substitutes.
Unit 2
Delegation
The process of assigning tasks and responsibility to team members. Effective delegation allows managers to focus on important decisions while developing employee skills and motivation.
Unit 4
Distribution
The process of making products available to consumers through various channels such as retail stores, online platforms, and wholesalers. Also known as the Place element of the marketing mix.
Unit 5
E
E-commerce
The buying and selling of goods and services over the internet. E-commerce includes online shopping, digital payments, and electronic transactions conducted through websites or mobile applications.
Unit 2
Exchange Rate
The value of one currency in relation to another. Exchange rates affect the cost of imports and exports, and can impact business profitability when trading internationally.
Unit 2
Enterprise
The activity of setting up and running a business, taking on financial risks in the hope of making a profit. It involves identifying a business opportunity, organising resources, and taking action to start a new venture.
Unit 1
Entrepreneur
An individual who creates and runs their own business, taking on financial and personal risk. Entrepreneurs identify market opportunities, innovate, and drive business growth through their ideas and effort.
Unit 1
Ethics
Moral principles concerning what is right and wrong in business conduct. Ethical businesses consider the impact of their decisions on stakeholders, society, and the environment.
Unit 2
Ethical Trading
Business practices that ensure fair wages, safe working conditions, and environmental responsibility throughout the supply chain. Ethical trading aims to improve the wellbeing of workers and protect the environment.
Unit 2
Efficiency
The ability to produce maximum output with minimum input of resources such as labour, materials, and time. Efficient operations reduce costs and increase profitability.
Unit 3
Environmental Considerations
Factors that businesses must consider to minimise their environmental impact, including waste management, carbon emissions, energy use, and sustainable sourcing of materials.
Unit 2
Extension Strategy
Marketing tactics used to extend the sales of a product in its mature stage of the product life cycle. Strategies include new packaging, new uses, or new target markets to revive sales.
Unit 5
F
Franchise
A business arrangement where a franchisee pays a franchisor for the right to operate a business using the franchisor's name, systems, and support. Franchises offer a way to expand without directly owning all outlets.
Unit 1
Franchisee
An individual or business that purchases the rights to operate a franchise. The franchisee pays fees and royalties to the franchisor in exchange for using their brand, systems, and support.
Unit 1
Franchisor
The company or individual that owns the franchise business model and grants rights to franchisees. The franchisor provides the brand, systems, training, and ongoing support.
Unit 1
G
Globalisation
The increasing integration of economies, cultures, and societies across borders. Globalisation enables businesses to access new markets, but also increases competition and may create social and environmental challenges.
Unit 2
Government Legislation
Laws created by government bodies that regulate business activity. Legislation covers areas such as employment, consumer protection, health and safety, and environmental protection.
Unit 2
H
Health and Safety Legislation
Laws that protect the wellbeing of employees and the public. This includes regulations about workplace hazards, accident prevention, and emergency procedures.
Unit 2
Herzberg's Two Factor Theory
A motivation theory that identifies hygiene factors (preventing dissatisfaction) and motivators (creating satisfaction). Herzberg argues that good working conditions are necessary but are not enough to truly motivate employees.
Unit 4
I
Inflation
A sustained increase in the general price level of goods and services in an economy over time. Inflation reduces the purchasing power of money and affects business costs and pricing strategies.
Unit 2
Interest Rate
The percentage charged by lenders for borrowed money or paid to savers for deposits. Interest rates affect the cost of borrowing for businesses and influence consumer spending and investment decisions.
Unit 2
Internal Recruitment
The process of filling a job vacancy by promoting or transferring an existing employee. Internal recruitment is often cheaper and quicker than external recruitment, and maintains employee motivation.
Unit 4
Induction Training
Training provided to new employees to familiarise them with the organisation, its policies, safety procedures, and their role. Effective induction helps employees settle in and become productive quickly.
Unit 4
J
Just in Time (JIT)
An inventory management system where materials are ordered and received just when they are needed for production. JIT reduces storage costs and waste, but requires reliable suppliers and accurate forecasting.
Unit 3
Just in Case (JIC)
An inventory management approach where businesses hold extra stock as a buffer against unexpected demand or supply disruptions. JIC ensures availability but increases storage and holding costs.
Unit 3
Job Description
A formal document detailing the duties, responsibilities, reporting structure, and key requirements of a job position. Job descriptions help candidates understand expectations and assist in recruitment and performance management.
Unit 4
L
Loss
A financial situation where total costs exceed total revenue. A loss occurs when a business performs poorly or fails to generate sufficient sales.
Unit 1
Limited Liability
A legal arrangement where owners are responsible for business debts only up to the amount they invested. Limited liability protects personal assets if the business fails.
Unit 1
Limited Liability Company (Ltd)
A private company where shares are owned by specific individuals or organisations. Limited liability companies have limited liability for shareholders and can raise capital by selling shares.
Unit 1
Lead Time
The time between placing an order for stock and receiving the goods. Lead time affects inventory planning and must be considered when setting reorder levels.
Unit 3
Lean Production
A production philosophy that aims to eliminate waste and maximise efficiency by improving processes and reducing unnecessary activities. Lean production often includes JIT and continuous improvement methods.
Unit 3
M
Market
The demand for products or services from consumers. A market can be defined by geography, demographics, or product type, and represents potential customers for a business.
Unit 5
Market Research
The systematic collection and analysis of data about a market, competitors, and consumers. Market research informs business decisions about products, pricing, and marketing strategies.
Unit 5
Market Segmentation
The division of a market into groups of consumers with similar characteristics or needs. Segmentation allows businesses to target specific groups with tailored marketing messages and products.
Unit 5
Marketing Mix
The combination of product, price, place, and promotion used to market a product. The marketing mix is a strategic tool for meeting customer needs and achieving business objectives.
Unit 5
Maslow's Hierarchy of Needs
A motivation theory that ranks human needs in a hierarchy from basic physiological needs to self-actualisation. The theory suggests people are motivated to fulfil higher-level needs once lower needs are met.
Unit 4
Maximum Stock Level
The highest amount of stock a business should hold to avoid excessive storage costs. Maximum stock level is calculated based on reorder level, lead time, and maximum usage rate.
Unit 3
Minimum Stock Level
The lowest amount of stock that should be held to avoid running out of inventory. Minimum stock level acts as a safety buffer against unexpected demand or supply delays.
Unit 3
Motivation
The driving force that inspires employees to work effectively and achieve business objectives. Motivation can be influenced by factors such as pay, recognition, job satisfaction, and career development.
Unit 4
O
Off the Job Training
Training conducted away from the workplace, such as in colleges, training centres, or online. Off the job training provides formal education but is more expensive than on the job training.
Unit 4
On the Job Training
Training delivered while employees perform their actual job duties. On the job training is cost effective, practical, and allows immediate application of skills.
Unit 4
Organisational Structure
The way an organisation is arranged and how authority, responsibilities, and communication flow. Common structures include hierarchical, flat, matrix, and divisional structures.
Unit 4
P
Partnership
A business structure where two or more individuals jointly own and operate the business. Partners share profits, losses, and unlimited liability unless they are limited partners.
Unit 1
Public Limited Company (Plc)
A company whose shares are traded on the stock exchange and available to the public. Plcs have limited liability, access to large amounts of capital, but face strict regulatory requirements.
Unit 1
Private Limited Company (Ltd)
A private company where shares are owned by specific individuals or organisations. Limited liability companies have limited liability for shareholders and can raise capital by selling shares.
Unit 1
Profit
The financial gain made when total revenue exceeds total costs. Profit is the primary objective for most businesses and is used to reward owners, reinvest in the business, or distribute to shareholders.
Unit 1
Procurement
The process of acquiring materials, supplies, and services needed for production. Procurement includes identifying suppliers, negotiating terms, and managing orders.
Unit 3
Productivity
A measure of how effectively resources such as labour and materials are used to produce output. Higher productivity means more output from the same amount of input, improving profitability.
Unit 3
Product
A good or service offered for sale to satisfy customer needs. Product is one element of the marketing mix and includes features, quality, branding, and packaging.
Unit 5
Product Life Cycle
The stages a product goes through from introduction to decline. The cycle includes introduction, growth, maturity, and decline stages, each requiring different marketing strategies.
Unit 5
Pressure Group
An organisation that represents the interests of a specific group and seeks to influence business and government policy. Pressure groups campaign on issues such as the environment, workers' rights, and consumer protection.
Unit 2
Price
The amount of money charged for a product or service. Price is a key element of the marketing mix and must balance affordability for consumers with profit requirements for the business.
Unit 5
Penetration Pricing
A pricing strategy where a new product is launched at a low price to quickly gain market share. Penetration pricing can attract customers away from competitors but may reduce initial profit margins.
Unit 5
Promotion
Marketing activities designed to communicate a product's benefits to customers and encourage purchase. Promotion includes advertising, sales promotions, public relations, and personal selling.
Unit 5
Place
The distribution channels through which a product reaches the customer. Place includes the choice between direct sales, retail stores, wholesalers, and online platforms.
Unit 5
Person Specification
A document outlining the skills, experience, qualifications, and personal qualities required for a job position. The person specification helps in selecting the most suitable candidates during recruitment.
Unit 4
Q
Qualitative Data
Information that describes qualities, characteristics, or opinions rather than numbers. Qualitative data includes customer feedback, focus group discussions, and detailed descriptions of consumer behaviour.
Unit 5
Quantitative Data
Information expressed in numerical form, such as sales figures, market size, or customer demographics. Quantitative data can be analysed statistically to identify trends and patterns.
Unit 5
Quality Assurance
A systematic process to ensure that production methods meet set quality standards. Quality assurance focuses on preventing defects through careful planning and process control.
Unit 3
Quality Control
The inspection and testing of finished products to identify and remove defective items. Quality control is a final check to ensure products meet quality standards before sale.
Unit 3
R
Revenue
The total money earned by a business from selling goods or services before deducting costs and expenses. Revenue is calculated by multiplying the price per unit by the quantity sold.
Unit 1
Reward
The financial or personal benefit gained from undertaking a business venture. Rewards for entrepreneurs can include profit, independence, and personal satisfaction.
Unit 1
Risk
The possibility of loss or failure in a business venture. Business risks include market risk, financial risk, and operational risk, and must be managed to protect the business.
Unit 1
Recruitment
The process of finding and hiring suitable candidates for job vacancies. Recruitment includes advertising, screening applications, interviewing candidates, and selecting the best match.
Unit 4
Reorder Level
The stock level at which a new order should be placed to ensure stock does not run out before the new delivery arrives. Reorder level is calculated based on lead time and daily usage.
Unit 3
Primary Research
The collection of new, original data directly from sources such as customers, through surveys, interviews, or experiments. Primary research is more expensive but provides current, specific information.
Unit 5
S
Supply
The quantity of a product or service that producers are willing and able to supply at a given price. Supply is affected by production costs, technology, and the number of suppliers in the market.
Unit 2
Supply Chain
The sequence of activities and organisations involved in producing and delivering a product from raw materials to the final customer. The supply chain includes procurement, production, warehousing, and distribution.
Unit 3
Sole Trader
An individual who owns and operates a business alone, bearing all profits and losses personally. Sole traders have unlimited liability but retain full control and keep all profits.
Unit 1
Stakeholder
Any person or group with an interest in or affected by the business, including employees, customers, suppliers, owners, and the local community. Different stakeholders have different priorities and interests.
Unit 1
Social Media
Digital platforms and networks used for communication and sharing content. Businesses use social media for marketing, brand building, customer engagement, and market research.
Unit 2
Sustainability
The ability to meet present needs without compromising the ability of future generations to meet theirs. Sustainability in business involves responsible use of resources and environmental protection.
Unit 2
Selection
The process of choosing the most suitable candidate from applications received for a job vacancy. Selection involves interviews, tests, references, and assessment of candidates.
Unit 4
Span of Control
The number of employees directly supervised by a manager. A narrow span of control means fewer subordinates per manager, allowing closer supervision.
Unit 4
T
Technology
Tools, systems, and processes used to improve business operations and product quality. Technology enables automation, faster communication, better data analysis, and creation of new business models.
Unit 2
Target Market
The specific group of consumers that a business aims to reach with its marketing efforts. The target market is identified through market segmentation and analysis of customer characteristics and needs.
Unit 5
Total Quality Management (TQM)
A management philosophy focused on continuous improvement of quality throughout all business processes. TQM involves all employees working to meet and exceed customer expectations.
Unit 3
Training
The process of teaching employees new skills or knowledge required for their job. Training can be on the job or off the job, and is essential for employee development and productivity.
Unit 4
Taylor's Scientific Management
An approach to management that seeks to improve efficiency through scientific analysis of work. Taylor's theory emphasises breaking work into tasks, training workers, and using financial incentives.
Unit 4
Secondary Research
The use of existing data previously collected for other purposes, such as industry reports, census data, or competitor information. Secondary research is cheaper and quicker than primary research.
Unit 5