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A2
A2 BUSINESS STUDIES
Module 5 Terms | Module 5 Defintions | Module 5 Terms | Module 5 Definitions | Module 4 Terms | Module 4 Definitions |
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Industrial location | The decision a business or an industry makes concerning its geographical placing in a country. Many factors affect the decision of where to locate:the proximity to the market & to suppliers. The cost & availability of land & cost of labour. | Individual Barganing | When each employee separately negotiates their own pay & working conditions | Asset Led Marketing | bases the marketing strategy, tactics & decisions on the firm's existing strnghts in consideration of customer requirements. |
Research and development (R and D) | carrying out extensive research about how a product can be designed, manufactured, packaged, etc, and then developing a prototype of the product which can then be test-marketed. If the test-market is successful, then the product is likely launched. | Collective Barganing | negotiation between employers and the representatives of the workforce, usually trade union officials | Market - Led Marketing | bases their strategy & marketing decisions on customer requirements. |
Feedback | response to communication that may confirm receipt & comprehension | Works council | a type of worker participation and it consists of regular discussions between managers and representatives of the workforce over such issues as how the business can improve its processes and procedures. | Extrapolation | is a statistical process of forecasting sales based on historical data. It involves the use of moving averages to erradicate results & seasonal effects to produce a smooth predicted trend line. |
Decentralisation | This means passing responsibility and authority away from the headquarters of the business to regional offices and departments. | Autonomous Work Groups | teams that have been structured to manage and coordinate their own activities and make many of the day-to-day decisions that would have traditionally been made by a supervisor or manager. | e.g. a three year MOVING AVERAGE | = sum of three years sales figures, finding the average & plotting this for the middle year. |
Communication Overload | too much information is being circulated which can lead to distortion of messages and a communication breakdown. | Industrial Dispute | Disagreement between an employer and its employees, usually represented by a trade union, over some aspect of the terms or conditions of employment. A dispute is often followed by industrial action, in the form of a strike or a work to rule. | Correlation | shows the existence of a casual link between two variables. |
Layers of hierarchy | the number of levels within the structure of the business, from senior management at the top to shop-floor employees at the bottom. | Conciliation | is negotiations undertaken with the aim of reconciling differences between the parties to an industrial dispute. | Marketing Strategy | the company's medium- to long-term plan to enable it to meet its marketing objectives. |
Investment Apprasial | involves QUANTITATIVE techniques used to assess investment projects. They include Payback, Average Rate of Return(ARR) and Net Present Value(NPV). | Trade Union | an organised group of employees who have joined together in an officially recognised organisation to further their common interests. | Scientific Marketing Model | SET OBJECTIVES, GATHER DATA, ANALYSE DATA, DEVELOP MARKETING STRATEGY, IMPLEMENT MARKETING STRATEGY, REVIEW RESULTS |
Multinational | this is a firm with production bases in more than one country. | Advisory, Conciliation and Arbitration Service (ACAS) | It negotiates disputes between employers and employees as well as establishing codes of practice and principles for harmonious relationships. | Marketing Decisions | are based on a combination of EXPERIENCE, DATA & INTUITION(HUNCH) |
Protectionism | these are measures introduced by governments to prevent free trade. They include tariffs which are taxes on foreign goods & quotas which place a limit on the number of goods which can be imported from a foreign country. | Arbitration | the attempt to settle an industrial dispute through the use of a neutral third party. | Marketing Mix | detailed tactics of PRICE, PRODUCT, PLACE, PROMTION & the coordination of activites throughout the company. |
Economies of Scale (EoS) | these occur when the unit cost falls as output increases. They provide larger firms with cost advantages. | Single Union Agreement | exists when an employer agrees to recognise only ONE union for the purpose of collective barganing. | Marketing Budget | the total amount of money a firm allocates to marketing activites. |
Web-based exchange | this occurs when firms join together on the net to trade. Manufactures can invite member suppliers to tender for orders. | Individual Labour Law (ILL) | refers to the rights & obligations of individual employess. | Mwthods of Sales Forecasting | EXTRAPOLATION, MARKET RESEARCH, DELPHI TECHNIQUE, MANAGEMENT EXPERIENCE |
Computer Aided Design (CAD) | involves the use of computers to help in the production of designs, drawings & data for use in manufacturing. | ILL e.g.Equal Pay Act | both sexes should be treated equally in all matters relating to employment. | MARKET RESEARCH | PRIMARY or SECONDARY research into consumer buying habits, trends & market size to try and establisj expected levels of sales. |
Computer Aided Manufacture (CAM) | uses computers to support manufacturing processes such as Computer Numerically Controlled machines (CNC), robots & automated handling systems. | ILL e.g.Race Relations Act | where discrimination in relation to employment, against men or women on the grounds of colour,race,nationality or ethnic or national origin is illegal. | The DELPHI TECHNIQUE | CONSULATION with INDUSTRY EXPERTS over their EXPECTATIONS for MARKET DEVELOPMENTS. Usually used for LONG-TERM projections |
CADCAM aka Computer Aided Engineering (CAE) | links product design and manufacturing through intergrating CAD & CAM processes. | Collective Labour Law (CLL) | this group of laws apply to the operation of industrial relations and collective barganing as well as the activities of trade unions. | MANAGEMENT EXPERIENCE | MARKET KNOWLEDGE & HUNCHES or the EXPERIENCE & KNOWLEDGE of their SALES FORCE. |
Materials Requirement Planning (MRP) | is a computerised production scheduling system which looks at future production schedule & from this derives a list of what components are needed at each stage & exactly when they will be required. | (Closed Shop) | a situation where in which all the employees of a business are required to be members of a specific trade union. | TEST MARKETING | occurs when a NEW PRODUCT is TESTED with a SAMPLE of CUSTOMERS, or LAUNCHED in a RESTRICTED GEOGRAPHICAL AREA, to JUDGE CUSTOMERS' REACTIONS. |
Teleworking | occurs when employees work from home using Information Technology (IT). | CLL e.g.Employment Act 1990 | Closed shop finally illegal. Employees taking part in UNOFFICAL strike action could be dismissed without being able to make a claim of unfair dismissal. | CAPITAL EXPENDITURE | MONEY SPENT by COMPANIES in the PROCUREMENT(PURCHASING) of FIXED ASSETS & as such AFFECTS the BALANCE SHEET POSITION of the FIRM. |
Critical Path | this identifies the activities which have no total float time; if these overrun the whole project will be delayed | CLL e.g. Minimum Wage Act | general minimum wage of £3.70,£3 for 18-21yr olds. Workers paid on piece-rate,part-time or temps MUST be paid minimum wage. | REVENUE EXPENDITURE | is the MONEY USED by the FIRM in its DAY-TO-DAY EXPENSES. It's the FINANCE USED to ASSIST the BUSINESS in the GENERATION of SALES. |
Total Float | this shows the amount of time an activity can overrun without delaying the completion of the project as a whole. Critical activites have no total float time. | Workforce Planning | (blank) | PROFIT & LOSS ACCOUNT | a FINANCIAL STATEMENT that EXAMINES a COMPANY'S FINANCIAL PERFORMANCE OVER a PERIOD of TIME, USUALLY ONE YEAR. MEASURES FIRMS REVENUES AGAINST its COSTS RESULTING in PROFIT or LOSS. KEY AREAS for ANALYSIS CONSITS of PROFIT QUALITY & PROFIT UTILISATION. |
Total Float Time equation | Total Float Time = latest finish time -- duration -- earliest start time | Human Resource Management (HRM) | management and welfare of the personnel of the business. It includes the recruitment process, training and development of employees, and termination of employment. Making most effcient use of employees. | BALANCE SHEET | a FINANCIAL STATEMENT DETAILING the ASSETS & LIABILITIES HELD by a BUSINESS. It EXAMINES the FINANCIAL STRENGTH of a BUSINESS by CONTRASTING WHAT a BUSINESS OWNS with WHAT it OWES. |
Time Based Management | this represents techniques used to speed up the time taken to develop new products or processes such as simultaneous engineering | 'Hard' HRM | employees are a resource like any other available to the business. | WINDOW DRESSING | MANIPULATING PROFITS so STAKEHOLDES MAKE INCORRECT JUDGEMENTS. MAKING THE FINANCIAL DATA SEEM BETTER THAN THEY ACTUALLY ARE. |
(blank) | (blank) | 'Soft HRM' | sees employees as different and more important than any other resource available to mangagers. | DEPRECIATION | is the LOSS in VALUE of a BUSINESS ASSET OVER a PERIOD of TIME. |
(blank) | (blank) | Remuneration | (blank) | DEPRECIATION STRAIGHT LINE | = COST of MACHINE - RESIDUAL VALUE / WORKING LIFE in YEARS |
(blank) | (blank) | Absenteeism | measures the proportion of the workforce who are absent from in a given period of time. | CAPITAL EMPLOYED | AMOUNT of MONEY SHAREHOLDERS HAVE INVESTED in a COMPANY |
(blank) | (blank) | Absenteeism Equation | = number of staff absent(on one day) x 100 / total number of staff | CAPITAL EMPLOYED | = ISSUED SHARE CAPITAL + RESERVES + PROFIT & LOSS BALANCE |
(blank) | (blank) | Labour Productivity | indicates the performance of a group of employees. | WORKING CAPITAL | = CURRENT ASSETS - CURRENT LIABILITES |
(blank) | (blank) | Labour Productivity Equation | = output per period / number of employees at work. | WORKING CAPITAL | A COMPANY NEEDS ENOUGH WORKING CAPITAL TO PAY OFF ITS DAY- TO - DAY DEBTS. |
(blank) | (blank) | Labour Turnover | this ratio measures the proportionof employees leaving a business over a period of time, usually a year. | ACID TEST RATIO MEASURES the VERY SHORT TERM LIQUIDITY of a FIRM | = LIQUID ASSETS / CURRENT LIABILITIES |
(blank) | (blank) | Labour Turnover Equation | number of staff leaving during the year x 100 / average number of staff | ASSET TURNOVER RATIO | = SALES(TURNOVER) / NET ASSETS (TOTAL ASSETS - LESS CURRENT LIABILITIES) |
(blank) | (blank) | Health & Safety | measures the safety of the working environment. | STOCK TURNOVER | = COST of SALES / STOCK |
(blank) | (blank) | Health & Safety Equation | number of working days lost per annum for health and safety reasons x 100 / total number of possible working days | DEBTOR DAYS | (DEBTORS / TURNOVER) x 365 |
(blank) | (blank) | (blank) | (blank) | GEARING | (LOAN CAPITAL / SHARE CAPITAL + RESERVES + LOAN CAPITAL) x 100 |
(blank) | (blank) | (blank) | (blank) | GROSS PROFIT MARGIN | GROSS PROFIT x 100 / TURNOVER |
(blank) | (blank) | (blank) | (blank) | NET PROFIT MARGIN | NET PROFIT x 100 / TURNOVER |
(blank) | (blank) | (blank) | (blank) | RETURN on CAPITAL EMPLOYED (ROCE) | (NET PROFIT / CAPITAL EMPLOYED) x 100 |
(blank) | (blank) | (blank) | (blank) | SHAREHOLDERS' RATIO | DIVIDEND per SHARE & DIVIDEND YIELD |
(blank) | (blank) | (blank) | (blank) | DIVIDEND per SHARE | = TOTAL DIVIDENDS / NUMBER OF ISSUED SHARES |
(blank) | (blank) | (blank) | (blank) | DIVIDEND YIELD | DIVIDEND per SHARE x 100 / MARKET PRICE of SHARE |
(blank) | (blank) | (blank) | (blank) | SPECIAL ORDER | a CUSTOMER OFFERING to BUY GOODS AT a LOWER PRICE THAN NORMALLY CHARGED. |
(blank) | (blank) | (blank) | (blank) | CONTRIBUTION per a UNIT | = SELLING PRICE a UNIT - VARIABLE COST a UNIT |
(blank) | (blank) | (blank) | (blank) | BREAK EVEN in UNITS | = FIXED COSTS / CONTRIBUTION per a UNIT |
(blank) | (blank) | (blank) | (blank) | AVERAGE RATE of RETURN (ARR) | = AVERAGE ANNUAL NET PROFIT(TOTAL NET PROFIT/ NUMBER of YEARS of PROJECT) / INVESTMENT COST x 100 |
(blank) | (blank) | (blank) | (blank) | NET PRESENT VALUE | FORECASTS EXPECTED OUTFLOWS & INFLOWS OF CASH & DISCOUNTS THE INFLOWS & OUTFLOWS |
(blank) | (blank) | (blank) | (blank) | PAYBACK | = HOW MANY YEARS UNTIL INITIAL INVESTMENT IS RECOVERD. REMANING MONTHS = AMOUNT STILL OWING / CASH VLOW THAT YEAR x 12 |