business studies terms

production is divided into separate tasks and each employee does just one of those tasks

decline in the importance of secondary, manufacturing industry

the business integrates with another in the same industry and same stage of production

the business integrates with another in the same industry but different stage of production

towards supplier

towards market/customer

the business integrates with another in a different industry and different stage of production

a document containing the business objectives and important details about the operations, finance and owners

independence

uses own ideas

could be profitable

business could fail

opportunity cost

lack of experience

production is more efficient because of more motivation, money

increase productivity

jobs are made into simple steps

work is boring and repetitive

low quality goods because of fast production

no stable income

clean and safe environment

opportunity for promotion

workers are happy and satisfied

more competition among workers

too many policies

conflict may arise

refers to the management levels within an organisation

giving subordinates the authority to perform particular tasks

employee’s experience and skill will increase

more promotions

the manager is to blame if a mistake happens or work is not completed

measures the number of subordinates reporting directly to a manager

many levels of management

managers are responsible for few employees

few level of managment

managers are responsible for many employees

faster communication and decision making

less expensive

increase worker motivation

reduced promotion opportunities

less control over subordinates work

effective communication may be difficult

effective communication is easier

better control over workers and work

increased promotion opportunities

communication and decision making is slower

more expensive

more supervision reduces worker motivation

manager has total control and there is no delegation. communication is one way. this style is used when employees are unskilled or not trusted

quick in decision making

manager always feels in control

employees have clear direction

motivation low as employees don’t feel involved

employees too dependent on manager

undeveloped skills for employees

manager is good at communicating and willing to delegate. employees are skilled and experienced. final decision made by manager after discussion

employees are motivated as they are listened to

loyalty increases due to responsibility given to employees

managers feel that decisions are supported by employees

decision making can be slow

problems can occur due to lack of knowledge from employees

conflict if views differ

managers have little influence in the actions of employees and only involved to resolve disagreements. good for small, highly motivated teams

high motivation as employees are free to do what they want

all skills used for the benefit of the business

loyalty increases due to responsibility given to employees

no real direction

poor coordination which leads to inefficiency

conflict may arise

the factor that makes people want to do something for job satisfaction

employees are paid a fixed amount per year, which is usually paid monthly

employees are paid a set amount for each hour worked

employees are paid by the amount of output they produce

non-financial rewards/incentives given in addition to wages

employees receive extra money above basic pay if they reach certain performance targets

salesperson are given an incentive to sell more as they receive a percentage of any sales made

additional payments are given based on the level of business profits

in limited companies, employees have a chance to buy shares to become part owners in the business, they receive dividends

the employees are given more responsibility or more difficult tasks to do

enjoyment employees can derive from work if they feel that they have done a good job

tasks of a similar level of difficulty/responsibility are added to a workers job description

payments made to shareholders from the profits of a company

a business that uses, under licence, the brand name, logo and trading methods of an existing business. the franchisor sells the licence; the franchisee buys the licence

two or more businesses start a new project together sharing capital, risks and profits

a business in the public sector, that is owner and controlled by the government

the aims or targets that a business works towards

total income of a business minus total costs

the proportion of total market sales held by one brand or business

sales of business/total market sales × 100

an organisation with profit, environmental and social objectives

any person or group with a direct interest in the performance and activities of business

the levels of management and divisions of responsibility in an organisation

the route taken by instructions passed down from senior management

a level of management where people have the same level of responsibility

have direct responsibility over people below them in the hierarchy of an organisation

specialists who provide support, information and assistance to the managers

a group of workers who join together to protect their interests

identifying need for new employees and encouraging people to apply for a vacancy

responsibilities and duties to be carried out by job holder

training at the place of work, watching and being instructed by experienced workers

training away from the place of work. e.g at college, being instructed by specialists or trainers

training for new employees explaining the business structure, activities and procedures

employees are no longer required

an employee’s employment contract is terminated and they must leave the business

sending a message from sender to receiver who understands it

information or instructions sent from sender and receivers

communication between members of the same organisation

communication between one organisation and another organisation

the person sending the message

the person who receives the message

reply from receiver to sender to confirm message received/understood

how the message is communicated

message is sent without receiver required or expected to give feedback

gives feedback to a received message and there may be discussion about it

messages sent through established channels

factors that stop effective communication

anticipating the needs and wants of targeted customers and managing the process through which these needs and wants are satisfied

• identifying and satisfying customer needs

• maintaining customer loyalty

• building customer relationships

• gain information on customers

• anticipate changes in customer needs

a place where buyers and sellers come together to buy and sell goods and services

a small and specific part of a larger market

a market for products that are often standardised and sold in large quantities

Less competition, Increased customer loyalty, Cost-effective marketing, Enhanced product development, Higher profit margins

specialised products helps the business stand out from other firms

Build strong relationships and encourage repeat business.

Optimize budget by focusing on a defined audience.

Understand and meet specific market needs.

Customers willing to pay more for specialized products.

Limited customer base, Dependency on niche trends, High unit costs

Smaller pool of potential customers, limiting growth opportunities.

Niche markets are driven by specific trends, leaving businesses vulnerable to quick changes.

Small size of the market means that economies of scale are unlikely to be achieved.

Intense competition, Limited customization, Less choice, Reduced profit margins

Challenging to differentiate products and maintain market share.

Lack of personalised product options may not appeal to customers seeking unique products

Lack of diversity and limited choices for consumers because of standardised production