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Flashcards in Definitions Deck (32)
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1

Competition

Can be described as rivalry amongst sellers

2

Market

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

3

Market price

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

4

Mark up

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

5

Monopoly

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

6

Competitive market

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

7

Brand

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

8

Global brand

Brands that are recognised all over the world

9

Strategy

A plan of action

10

Global strategy

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

Globalisation

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

12

Multinational

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

13

Demand

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

14

Supply

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

15

Equilibrium price

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

Balance of payments/trade

Difference between value of exports and imports

17

Subsidies and grants

Payments by the government to suppliers that reduce their costs.

18

Organisational chart

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

19

Span of control

The NUMBER of employees from whom a manager is responsible.

20

Chain of command

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

21

Delayering

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

22

Delegation

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

23

Empowerment

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

Market size

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

Market growth

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

26

Market share

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

27

Market dominance

A measure of market share compared to competitors

28

Market power

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

29

Barriers to entry

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

30

Barriers to exit

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