AS Edexcel Business Studies Key Terms (Theme 1)

A business with many layers in its hierarchy

A pricing strategy where a low price is set to try and get a foothold in the market

Strategies used to pro-long the life cycle of a product

Candidates are recruited from outside the organisation

Communicating with the media to get favourable publicity

The owner is fully responsible for all debts run up by the business

Where a firm targetsa small subsection or an unexploited gap in the market

A feature that allows a business to preform more successfully than others in a market

The stages that a product goes through in its life time

A business with few layers in its hierarchy

The route by which a product takes to get from producer to consumer

A technique used to compare businesses by Price and Quality

A pricing strategy where a low price is set to try and force a competitor out of the market

An unique and recognised feature of a business or product such as name colour shape or logo

When a firm targets the whole of the market rather than a small subsection

Where two or more people join up to set up a business

The variety of methods used, with no money value, that are used to reward workers

The route by which communication and decisions are passed through an organisation

The collective name for; Price, Promotion, Product and Place

A leadership style where the leader lets the workers work for themselves without supervision

A business whose aim is not for financial gain but to provide a service to benefit society

the leader consults their team but makes the final decision themselves

States that all tasks should be carried out scientifically

The point where supply and demand meet

The amount of a good or service that a customer is willing and able to buy at a set price

Informing and persuading consumers about the product

Where the workforce is treated as a resource that must be managed

Medium to long term plans adopted by a business to achieve its marketing objectives

If price rises then demand falls

The process of investigating a group of subjects that have been chosen from a larger group

training which takes place within the workplace

The reasons why people behave in the manner they do

leadership style where all decisions are made at the top with no consultation

A business where teams are put together from different functional areas

The collection and analysis of data nd information to inform a business about a market

Introductory training for new employees

Finance provided by the government to encourage businesses to produce more of a certain good

A pricing strategy where a price is made to sound cheaper than it actually is

Negotiations between a group of employees, the trade union and the organisations

A place where buyers and sellers come together to exchange goods or services

The amount of a good or service that a business is willing and able to offer at a set price

The three fundamental elements of a product which include; Function, Aesthetic and Cost

A person who spots an opportunity in the market and takes risks to set up a new business

When employees within an organisation act in the same way as entrepreneurs

When the use of natural resources is quicker than the rate of replacement

Using another organisation to complete part of or all of the manufacturing process

How is PED Calculated

How is YED Calculated

The way in which the workforce is ordered

A process through which a business increases the worth of the product

The collection of first hand data

An individual who runs and owns their own business

The ability to work from home rather than having to travel into work

When an employee's contract is terminated due to a breach in the terms of the contract

The total value or volume of sales in the market

The gathering of non-numerical data that gives a business insight into human behaviour

Where prices change frequently and quickly in response to a change in demand

Where the workforce is treated as an asset to the business that can contribute

The gathering of data that can be used in statistical analysis by a business

If income rises then demand falls

Where permission is given to another business for them to trade using it's name

National organisations which protect their members rights

The ability of workers to carry out a range of different tasks

The cost of the next best alternative

In law, there is no distinction between the owner and the business

The veriety of methods, with a money value, that are used to reward workers

A model used to analyse a firm's product portfolio by considering market share and growth

Where some factors will create satisfaction where as other factors will remove dissatisfaction

The process of identifying and finding new workers for a vacancy

The quantifiable goals or targets to be achieved by the business

An enviroment where demand, supply and prices are constantly changing

A pricing strategy where a high price is set at launch and is gradually reduced over time

Where the responsibility for decision making is delegated to a number of middle managers

States that workers must be seen as members of a group and not individuals for motivation

A strategy that uses temporary, part time workers to make it easier to respond to demand

The process of splitting the market up into subgroups of consumers with similar characteristics

Outlines the characteristics, qualities and qualifications that are needed for the role

The number of Subordinates that a manager is in direct control of

Creating an identifiable feature that makes the product distinguishable to others

Research that has already been undertaken by another organisation

The leader acts in a fatherly way towards the workforce

Using short term discounts in order to increase sales

When employees take sanctions to try and force pressure on to the employer

Candidates are recruited from within an organisation

A document used in the recruitment process which sets out the details of the job

States that as one need is fulfilled more motivation is achieved by going on to the next level

The range of products a business has under its control

when an employee's contract Is terminated because the role no longer exists

Where the responsibility of decision making is held by a limited number of senior managers

The proportion of the total market that the firm has

A pricing strategy where a % is added to the total cost of producing the good or service