Case Study Vocabulary
IB Business and Management Case Study Vocab
Terms in this set (83)
Refers to businesses involved in the cultivation or extration of natural resources, such as farming, mining, fishing, oil or forestry
Refers to cost measured in terms of the next best alternative that is foregone when a choice is being made
A growth strategy of large businesses by spreading risks over a variety of products and markets
Refers to the transfer or movement of money into and out of an organization
Ability of a business to convert assets into cash quickly and easily without a fall in its value
Refers to a self-employed person. Runs the business on their own and has sole responsibility for its success or failure
The way a corporation is perceived by its stakeholders - its customers, employees and the general public. It is a generally accepted image of what a company "stands for". Corporate image may be created, or adjusted, through marketing, public relations and other forms of promotion.
Someone who commits capital in order to gain financial returns.
Firm owned by a holding company
Private Limited Company
A business organization owned by shareholders with limited liability but whose shares cannot be bought by or sold to the general public
Integration of economic, social, technical, and cultural issues of the world's economies. Taken place largely due to the expansion of multinational corporations and governments advocating freer international trade
Hands Off Management
A management style characterized by little active involvement from senior executives in the day-to-day problems and decisions of the business.
The positive difference between a product's revenue and its costs at each level of output
A share of the profits paid on each share that a shareholder owns, so the more shares held the higher the total payment.
When a business makers neither a profit or loss
Break Even Quantity (BEQ)
The level of output that generates neither any profit not loss. It is shown on the x-axis on a break-even chart.
The guaranteed minimum level of profit the company must earn to satisfy shareholders.
Margin of Safety
Refers to the difference btween a firm's level of demand and break-even quantity.
People responsible for the day to day running of a business or department within a business
Business organization that operates in two or more countries.
The process of hiring suitable workers. This will entail a thorough job analysis to ensure that the best candidate is hired.
A payment made to an employee for his or her labor. Salary is usually expressed as an annual sum and paid to the employee on a monthly basis.
Performance Related Pay
A payment system that rewards people who meet set targets over a period of time. The targets can be on an individual, team or organizational basis.
Measures the value of a firm's sales revenues as a percentage of the industry total
A financial plan of expected revenue and expenditure for an organization or a department for a given period of time.
Secondary Market Data
Second-hand data and information that already exists in another form.
Refers to the review of a firm's current marketing mix, in terms of strengths, weaknesses, opportunities, and threats
A visual aid that shows customer perceptions of a product or brand in relations to others in the market.
The amount of finance available to a business for its daily operations. Also known as net current assets, it is calculated as current asses minus current liabilities.
Any plans of action to achieve the strategic objectives of an organization.
The ability of a business to convert assets to cash quickly and easily without a fall in its value
Clearly identifiable autonomous divisions of an organization for which both costs and revenues can be worked out
Clearly indentifiable autonomous parts of an organization for which costs can be attributed
The annual financial statements that all limited companies are legally obliged to report. These include the balance sheet and the trading, profit and loss accounts.
Refers to how well a business is performing financially as reflected in its Balance Sheet and Profit and Loss Account. A ratio analysis is often conducted to assess the performance on various parameters.
Also called inventories, stocks are physical materials and goods that a business holds for further production or sale. They appear on the Current Assets of the Balance Sheet of a business.
Closing Stock Value
Also called Stock Valuation, this refers to the methods used by a business to place a value on stocks. Stock valuation can be influenced by the purchase date and costs of purchase.
The roles of managers in developing the organization's people, such as recruitment, selections, dismissal and training and development of employees.
Someone devoted to the promotion of human welfare and to social reforms.
Refers to the inner desire or passion to do something
The unjust or prejudiced and biased treatment of different categories of people especially on grounds of age, gender, religion, race or any other reasons. In countries allowing equality and freedom from discrimination as a fundamental right, any acts which seem to imply discrimination are against the law and can be challenged in a court of law.
Refer to the way in which managers and leaders behave or reveal their behavior in different ways
If people are task-oriented they focus on the task and getting the job done without considering the needs of the team completing the task.
The official administrative and formal rules of an organization that govern business activity.
The obligation of an individual or organization to account for its activities, accept responsibility for them, and to disclose the results in a transparent manner. It also includes the responsibility for money or other entrusted property.
Chain of Command
The formal line of authority, shown in an organizational chart, through which orders are passed.
Involves basing decisions on a formal framework and a data analysis of both the problems and the options available
One who prefers to have minimal direct input into the work of the employees
A form of non-financial motivator which involves a line manager giving his or her subordinates some autonomy in their job and the authority to make various decisions.
The empowerment of authority of a person lower down in the organizational structure.
One that makes all the decisions and prefers not to delegate any responbility to their subordinates
Refers to unofficial channels of communication that are established by an organization
Refer to the way in which managers and leaders behave or reveal their behavior in different ways
Refers to the formal process of evaluating the contributions and performance of an employee, usually conducted through observstions and an interview with the appraisee's line manager
Termination of a worker's employment due to incompetence or breach of contract
A form of industrial action that involves employees refusing to work.
A predetermined point at which an investor will exit a trade in a profitable position. Profit targets are part of many trading strategies that technical traders use to manage risk.
A bargaining process whereby two or more parties attempt to achieve a mutually acceptable outcome. The ultimate and ideal goal of a negotiation is a 'win-win' situation.
Employee representatives are a small number of workers selected usually by the other workers to present their views to management. The representatives will call a meeting with all employees to determine their opinions before passing on their views to the management. This collective voice tends to be more powerful than people passing on their opinions individually.
Empowering (for employees)
Giving employees skills, resources, authority, opportunity, motivation, as well holding them responsible and accountable for outcomes of their actions, will contribute to their competence and satisfaction.
Refers to the factors beyond the control of the business which have an impact on business operations and performance.
High level and long term decisions that set the overall direction for a business
Product Life Cycle
6. R and D
Eaily recgonixable, memorable and portray the desire image of a business
People or organizations that buy a product
Workforce planning begins with an examination of the current workforce of an organisation. It then involves a forecast of future human resource needs and identification and development of the knowledge, skills and experience required to ensure future success in meeting the organisation's objectives. This may require recruitment and training.
Human Resources Strategic Plan
Process of anticipating the current and futrue demand for workers in an organization
A particular market segment at which a marketing campaign is focused.
Amount of products that customers are willing and able to buy at each price level
Probability that a business will become larger. The growth potential refers to amount of sales or revenues the organization generates.
Refers to the money that the business collects from the sale of its goods and services. It is calculated bt multiplying the unit price of each product by the quantity sold
The costs that do not vary with the level of output. They exist even if there is no output, such as rent, management salries, and interest repayments
Those that change in proportion to the level of output, such as raw materials
Several businesses pool their human, capital and financial resources in a shared project
Business networking is a socioeconomic business activity by which groups of like-minded businesspeople recognize, create, or act upon business opportunities. A business network is a type of business social network whose reason for existing is business activity.
Right to equal protection
People should not be discriminated against for any reason and that all individuals should be treated equally regardless of, for example: gender, race, religion and marital status
Refers to the practice of hring people who already work for the firm to fill a position, rather than recruiting someone new to the organization
Training and Development
The official and ongoing educational activities within an organization designed to enhance the fulfillment and performance of employees. Training and development programs offered by a business might include a variety of educational techniques and programs that can be attended on a compulsory or voluntary basis by staff.
Staff Retention Rate
refers to the ability of an organization to keep its employees
Involves recruiting staff from outside the organization to fill vacant posts.
the ability of a company to keep its employees and stop them from going to work somewhere else,