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Flashcards in Definitions Deck (32)
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1
Q

Competition

A

Can be described as rivalry amongst sellers

2
Q

Market

A

Is any situation where buyers and sellers are in contact in order to establish price

3
Q

Market price

A

Is the price range in a market of which consumers are prepared to pay

4
Q

Mark up

A

Is the difference between the cost of producing an item and the price at which it is sold

5
Q

Monopoly

A

A market dominated by one seller (CMA say more than 25%)

6
Q

Competitive market

A

A market in which there are a large number of sellers. Competition is mainly based on price.

7
Q

Brand

A

A distinctive product created by the use of a logo, symbol, name, design, packaging or combination there of

8
Q

Global brand

A

Brands that are recognised all over the world

9
Q

Strategy

A

A plan of action

10
Q

Global strategy

A

Companies that are keen to operate on a global scale must consider how to build a competitive global advantage. I.e. choose the best locations to produce products in

11
Q

Globalisation

A

Is the increased integration and interdependence of national economies or the world coming together to trade in each other’s market

12
Q

Multinational

A

A business that has activities and operations in more than one country for example McDonalds, Microsoft and Shell

13
Q

Demand

A

The amount of a good/service that customers are willing and able to buy at any given price

14
Q

Supply

A

The amount of a good/service that sellers are willing and able to sell at any given price

15
Q

Equilibrium price

A

The situation in a market where demand is equal to supply I.e. both parties are happy. Customers an but what they want and shops have no unsold stock

16
Q

Balance of payments/trade

A

Difference between value of exports and imports

17
Q

Subsidies and grants

A

Payments by the government to suppliers that reduce their costs.

18
Q

Organisational chart

A

This is a diagram that shows the hierarchy in a business, usually from top to bottom in terms of seniority.

19
Q

Span of control

A

The NUMBER of employees from whom a manager is responsible.

20
Q

Chain of command

A

The chain of command is concerned with the way in which responsibility for employees is organised within a business.

21
Q

Delayering

A

Delayering is the process of reducing the number of levels or layers in an organisation.

22
Q

Delegation

A

Where responsibility for carrying out a task or role is passed onto someone else in the business.

23
Q

Empowerment

A

Is giving employees the power to do their job, for example the authority to make decisions, plan their own work and solve their own problems.

24
Q

Market size

A

Is the number of individuals in a market who are potential buyers of a good/service. Expressed as the collective value of the goods/services that they purchase.

25
Q

Market growth

A

Is the percentage growth in the size of the market, measured over a specific period.

26
Q

Market share

A

The share of the total market that is owned by a particular business, product or brand.

27
Q

Market dominance

A

A measure of market share compared to competitors

28
Q

Market power

A

The ability of a firm to influence or control the terms and conditions on which goods are brought and sold.

29
Q

Barriers to entry

A

The factors that could prevent a firm from entering and competing in a market

30
Q

Barriers to exit

A

The factors that could prevent a firm from leaving a market, even if it wanted to.

31
Q

Elasticity

A

Measures how sensitive quantity demanded is to a change in price.

32
Q

Evaluate

A

Make a qualitative judgement taking into account different fac