Theme 1 + 4 Business -> Paper 1

where there are many rivals selling similar products

Businesses produce similar products that appeal the same group of customers

Different businesses make or sell products that are not in direct competition but compete for the same customer experience e.g. Netflix and the local cinema

An increase in demand/sales for a particular product/service

The % of the total market a business has in terms of volume or value

when a business products/ services are based around the needs and wants of the customer.

dividing a whole market into particular customer groups that have similar characteristics.

ie - demographic, behavioral, psychological

obtaining data first hand by the business to match the specific needs of the business. AKA - Field Research

When a business prioritises a products design quality or performance rather than meeting customer preferences to guide production and marketing decisions

Market research collected relating to the opinions and beliefs of consumers . Data not presented numerically.

Numerical information gathered and can be presented and analysed using graphs, charts, table.

Data collected by another business or organisation but used by the business in question. Also known as desk research

Specialist magazines that look at current trends in the business world

The increase in value that a business creates when producing a product/service. The difference between the price the customer pays and the total cost of inputs needed to create a product

A feature of a business and/or its products that enable it to compete effectively with rival producers/products.

The quantity of goods/services that a consumer is willing to buy at a given price and at a given time

Factors beyond the control of a business

A payment given to producers, usually to encourage production of a certain good

Taxes imposed by the government on spending e.g. VAT and Excise duties. Responsibility for payment lies with the business

The amount that producers are willing/able to produce at a given price/over a given period of time

The price where supply and demand are equal. Also known as market clearing price

Factors other than price e.g. Change in consumer incomes, advertising and seasonality

Where demand exceeds supply

Where supply exceeds demand

demand is responsive to change in price

% change in quantity demanded / % change in price x 100

Measures the responsiveness of demand to a change in price.

% change in quantity demanded / % change in income x 100

measures the responsiveness of changes in demand to changes in consumer income

when the business focusses on being economically viable therefore they aim to minimise costs.

Producing products using materials that have been discarded as waste and recycled

When materials used in the initial product are utilised again in the future beyond their initial intended use.

Reducing the quantity of resources that are discarded in the production process

The combination of factors needed in designing a product and include Aesthetics, Function, Economic Manufacture

The creation of brands that perhaps appeal to customers' emotional nature, rather than their logical side.

Brands created by the producers of goods and services eg Kellogg's cornflakes (bear the producers name)

Products that only contain the name of the product category rather than the company or product name e.g. Carrots

An organisations attempt to communicate with interested parties, usually through unpaid media such as press conferences

Negotiation of wages/conditions of employment between employee representatives / trade unions and the employer

Referred to informally as firing or sacking. It is the termination of employment by an employer against the will of the employee.

The process of increasing the skills of employees

A cost to businesses in terms of recruitment, training, remuneration, welfare and even severance

Employers recognise the input of employees as an important business resource. They contribute to the value of output, whether this is through providing added value to a product by supporting the manufacturing process or through effective customer service

A workforce representative that act to protect and improve the economic and working conditions for their members.

When the business looks to fill the vacancy from outside of the business.

Selecting employees who already work within the business to fill job vacancies

When employees are given training away from their normal job environment, often in a classroom

Learning/gaining/developing skills whilst at work doing the job

An organisational structure where business decisions are made at the top of the hierarchy by senior management/or at the headquarters of a business

When a business allows branches to take more control/make their own decisions

Organises employees from different disciplines or divisions into projects/teams

A payment to a worker based on a percentage of the value of sales.

Authority to pass down from superior to subordinate

Giving official authority to employees to make decisions and to control their own work activities

theory of motivation that is split into two categories: Motivators and Hygiene factors

Giving an employee more work to do of a similar nature, horizontally extending their work role

Giving employees greater responsibility and recognition by vertically extending their work role

The changing of jobs or tasks

The order of people's needs, starting with basic human needs

Emphasises the importance of the ways in which people interact and how they are treated. Motivation can improve when employees feel more involved

Suggested a job could be broken down into constituent parts, so that the most efficient way of working could be calculated. He believes workers are motivated by money

Ways of encouraging employees without the use of monetary rewards e.g Delegation, consultation, empowerment, team working, flexible working, job enrichment, job rotation and job enlargement

A leadership style where the decision-making is best kept with managers, who will direct subordinates with little consultation

A type of leadership style in which members of the group take a participative role in the decision-making process. Group members are encouraged to share ideas and communication is two ways

A leadership style where employees are encouraged to make their own decisions within certain limits

Leaders that are in control, but take the welfare of employees into account when making decisions

Someone who organises a business venture by combining the other factors of production, namely land, labour and capital. They task risks to set up a business in hope of profit/reward

Making enough profit to satisfy the needs of the business owner

Setting up a business and showing concern for the local area

A business created to advocate for a social change ie - a business who sells sustainable clothes for those in protest for sustainability

Minimising costs/expenses/waste when producing a product or service

When the difference between sales revenue and cost is at its greatest

An attempt to sell as much as possible in a given time period (or to generate as much sales revenue as possible)

A business set up with the aim of making no more than a set level of income from which to enjoy a particular lifestyle

When a business sell shares publicly on the stock exchange for the first time

A process by which economies and cultures have been drawn deeper together and have become more interconnected through networks of trade and the rapid spread of technology

Measures designed to restrict trade

A group of countries that trade freely with reduced or no tariffs and quotas on trade between businesses in these countries

A regulation or policy that restricts international trade, for example: tariffs, quotas, customs duties, rules and regulations

economies are considered to be: Brail, Russia, India, China and South Africa

The Association of Southeast Asian Nations

The North American Free Trade Area. Replaced by the USMCA.

The European Union, the most powerful trading bloc in the world. A single market that guarantees the free movement of people, goods, services and capital through member states

Economies are considered to be Mexico, Indonesia, Nigeria and Turkey

An increase in the GDP - value of output of goods and services produced in an economy over time

An area/country where goods and services are produced, sold and bought

The economies of developing countries where there is rapid growth, but also significant risk

A key indicator of growth looking at unemployment rates, trends, labour costs and productivity as well as education qualifications and potential employees

Gross Domestic Product. Measures the output of goods and services in an economy over a period of time

Is a composite index focusing on three basic measures of human development: Life expectancy at birth, mean years of schooling and expected years of schooling and standard of living, measured by gross national income per capita

Goods or services that a firm produces in its home market, but sells in a foreign market

Foreign Direct Investment, when a business invests by setting up operations or buying assets in businesses in another country

The transfer of funds by an MNC to purchase and acquire physical assets such as factories or machines

The movement of people from one country to another to seek employment or a better life

Goods and service that are bought into one country from another

Where some businesses grow while others will shrink or close down e.g. those in primary, secondary and tertiary sectors

The reduction, and sometimes removal, of trade barriers between countries

Companies that own or control production or service facilities outside the country in which they are based

Financial support given to a domestic producer to help compete with overseas firms

Policies used by a government to protect domestic businesses by making foreign owned products less attractive. Examples include tariffs, quotas, subsidies and regulation

A tax on imports to make them more expensive

physical limit on the quantity of imports allowed into a country