Unit 1 - Business Organisation Flashcards Preview

IB Business Management HL 2016+ > Unit 1 - Business Organisation > Flashcards

Flashcards in Unit 1 - Business Organisation Deck (94)
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1

added value

difference between a product’s price and the total cost of the inputs that went into making it; extra worth created in the production process

2

aim

long-term goals of a business, often expressed in the firm’s mission statement

3

Ansoff’s matrix

tool to analyse product and market growth strategies

4

backward vertical integration

business buys a firm operating in an earlier stage of production, e.g. firm buys supplier

5

business

organisation involved in the production of goods and/or provision of services

6

business cycle

cyclical fluctuations in economic activity; the business cycle shows that economies typically move through a pattern of economic growth with the phases: recovery, boom, recession, trough

7

business plan

report detailing how a business sets out to achieve its aims and objectives

8

capital

all non-natural resources used in the production process, e.g. money, machines, buildings

9

charities

non-profit organisations established to support good causes

10

company

business that is owned by shareholders with a separate legal identity from its owners

11

conflict

situation where people have disagreements or certain matters due to differences in their opinions

12

conglomerates

businesses with a diversified range of products and operations in different industries, e.g. Virgin

13

corporate social responsibility CSR

consideration of ethical and environmental issues relating to business activity

14

decision-making framework

systematic process of dealing with business problems, concerns or issues in order to make the best decision

15

decision trees HL

tool to calculate the probable values of different options

16

deregulation

removal of government rules and regulations which constrain an industry

17

diseconomies of scale

cost disadvantages of growth as unit costs eventually rise as a firm grows, e.g. lack of control

18

diversification

growth strategy that involves selling new products in new markets

19

division of labour

breaking a job down into particular roles or tasks that are repeated by the same workers

20

driving forces HL

forces acting for change, e.g. benefits after the change

21

economic growth

increase in the GDP of a country

22

economies of scale

cost advantages of growth as unit costs eventually decrease as a firm grows, e.g. bulk buying

23

ethics

moral values that determine and affect business behaviour and decision-making

24

entrepreneurs

people who organise the other 3 factors or production and take the risk

25

exchange rate

value of a currency in terms of another currency

26

external growth

business grows by collaborating, buying up or merging with another firm

27

external stakeholders

are not part of the organisation but have direct interest in its actions, e.g. customers, suppliers, government

28

factors of production

inputs necessary for the production process (land, labour, capital, entrepreneurship)

29

fishbone diagram HL

decision-making framework based on identifying the root causes of a problem or issue

30

force-field analysis HL

model that deals with the forces for and against change