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Edexcel A Level Business - Theme 1
Brand Name - ANSWER-A name, term, sign, symbol, design or any other feature that allows consumers to identify the goods and services of a business and to differentiate them from those of competitors
E-commerce - ANSWER-Conducting business transactions online
Online retailing - ANSWER-The retailing of goods online
Market - ANSWER-A set of arrangements that allows buyers and sellers to communicate and trade in a particular range of goods and services
Marketing - ANSWER-A management process involved in identifying, anticipating and satisfying consumer requirements profitably
Market share - ANSWER-The proportion of total sales in a particular market for which one or more businesses or brands are responsible. It is expressed as a percentage and can be calculated by value or volume.
Mass market - ANSWER-A very large market in which products with mass appeal are targeted
Niche market - ANSWER-A smaller market, usually within a large market or industry
Consumer panels - ANSWER-Groups of customers are asked for feedback about products over a period of time
Database - ANSWER-An organised collection of data stored electronically with instant access, searching and sorting facilities
Focus groups - ANSWER-Where a number of customers are invited to attend a discussion about a product led by market researchers
Market orientation - ANSWER-An approach to business which places the needs of consumers at the centre of the decision-making process
Market research - ANSWER-The collection, presentation and analysis of information relating to the marketing and consumption of goods and services
Market segment - ANSWER-Part of a whole market where a particular customer group has similar characteristics
Primary research or field research - ANSWER-The gathering of 'new' information which does not already exist
Product orientation - ANSWER-An approach to business which places the emphasis upon the production process and the product itself
Qualitative research - ANSWER-The collection of data about attitudes, beliefs and intentions
Quantitative research - ANSWER-The collection of data that can be quantified
Respondent - ANSWER-A person or organisation that answers questions in a survey
Sample - ANSWER-A small group of people who must represent a proportion of a total market when carrying out market research
Secondary research - ANSWER-The collection of data that is already in existence (also known as desk research)
Socio-economic groups - ANSWER-Division of people according to social class
Added value - ANSWER-The extra features that may be offered by a business when selling a product, such as high-quality customer service, which helps to exceed customer expectation
Competitive advantage - ANSWER-An advantage that enables a business to perform better than its rivals in the market
Market map - ANSWER-Typically a 2d diagram that shows two of the attributes or characteristics of a brand and those of rival brands in the market
Market positioning - ANSWER-The view consumers have about the quality, value for money and image of a product in relation to those of competitors
Product differentiation - ANSWER-An attempt by a business to distinguish its product from those of competitors
Reposition - ANSWER-Changing the view consumers have about a product by altering some of its characteristics
USP - ANSWER-The aspect or feature of a product that clearly distinguishes it from its rivals
Complementary goods - ANSWER-Goods that are purchased together because they are consumed together
Demand - ANSWER-The quantity of a product bought a given price over a given period of time
Income elastic demand - ANSWER-The percentage change in demand for a product is proportionately greater than the percentage change in income
Income elasticity of demand - ANSWER-The responsiveness of demand to a change in income
Income inelastic demand - ANSWER-Where the percentage change in demand is proportionately less than the percentage change in income
Consumer durables - ANSWER-Goods that can be used repeatedly over a period of time, such as cars and household appliances
Design mix - ANSWER-The range of features that are important when designing a product
Ergonomics - ANSWER-The study of how people interact with their environment and the equipment they use - often in the workplace
Ethical sourcing - ANSWER-Using materials, components and services from suppliers that respect the environment, treat their workforce well and generally trade with integrity
Product design - ANSWER-The process of creating a new product or service
Recycling - ANSWER-Making use of materials that have been discarded as waste
Resource depletion - ANSWER-The using up of natural resources
Waste minimisation - ANSWER-Reducing the amount of resources that are discarded in the production process
Above-the-line promotion - ANSWER-Placing adverts using the media
Advertising - ANSWER-Communication between a business and its customers where images are placed in the media to encourage the purchase of products
Below-the-line promotion - ANSWER-Any promotion that does not involve the media
Emotional branding - ANSWER-The practice of using the emotions of a consumer to build a brand
Generic brands - ANSWER-Products that only contain the name of the product category rather than the company or product name
Manufacturer brands - ANSWER-Brands created by the producers of goods or services
Marketing mix - ANSWER-The elements of a business' marketing that are designed to meet the needs of the customers
Merchandising - ANSWER-A promotion specifically at the point of sale of a product
Own-label, distributor or private brands - ANSWER-Products that are manufactured for wholesalers or retailers by other businesses
Point of sale - ANSWER-Any point where a consumer buys a product
Promotion - ANSWER-An attempt to obtain and retain customers by drawing their attention to a firm or its products
Public relations - ANSWER-An organisation's attempt to communicate with interested parties
Sales promotions - ANSWER-Methods of promoting products in the short term to boost sales
Sponsorship - ANSWER-Making a financial contribution to an event in return for publicity
Viral marketing - ANSWER-Any strategy that encourages people to pass on messages to others about a product or business electronically
Competitive pricing - ANSWER-Pricing strategies based on the prices charged by rivals
Cost plus pricing - ANSWER-Adding a percentage (the mark up) to the costs of producing a product to get the price
Mark up - ANSWER-The percentage added to unit cost that makes a profit for a business when setting the price
Penetration pricing - ANSWER-Setting a low price when launching a new product in order to get established in the market
Predatory pricing - ANSWER-Setting a low price forcing rivals out of business
Pricing strategy - ANSWER-The pricing policies or methods used by a business when deciding what to charge for its products
Product life cycle - ANSWER-Shows the different stages in the life of a product and the sales that can be expected at each stage
Psychological pricing - ANSWER-Setting the price slightly below a round figure
Home workers - ANSWER-People who undertake their regular work from home
Industrial action - ANSWER-Disruptive measures taken by workers to apply pressure on employers when disagreement cannot be resolved
Outsourcing - ANSWER-Getting other people or businesses to undertake work that was originally done in-house
Multi-skilling - ANSWER-The process of increasing the skills of employees
Trade unions - ANSWER-Organisations of workers that exist to promote the interests of their members
Zero-hours contract - ANSWER-A contract that does not guarantee any particular number of hours' work
Curriculum vitae - ANSWER-A document that lists personal details, qualifications, work experience, referees and other information about the jobseeker
External recruitment - ANSWER-Appointing workers from outside the business
Induction training - ANSWER-Training given to new employees when they first start a job
Internal recruitment - ANSWER-Appointing workers from inside the business
Job description - ANSWER-A document that shows clearly the tasks, duties and responsibilities expected of a worker for a particular job
Off-the-job training - ANSWER-Training that takes place away from the work area
On-the-job training - ANSWER-Training that takes place while doing the job
Person specification - ANSWER-A personal profile of the type of person needed for a particular job
Training - ANSWER-A process that involves increasing the skills and knowledge of a worker to enable them to do their job more effectively
Authority - ANSWER-The right to command and make decisions
Centralisation - ANSWER-A type of business organisation where major decisions are made at the centre or core of the organisation and then passed down the chain of command
Chain of command - ANSWER-The way authority and power is organised in an organisation
Decentralisation - ANSWER-A type of business organisation where decision making is pushed down the chain of command and away from the centre of the organisation
Delayering - ANSWER-Removing layers of management from the hierarchy of an organisation
Delegation - ANSWER-Authority to pass down from superior to subordinate
Formal organisation - ANSWER-The internal structure of a business as shown by an organisational chart
Hierarchy - ANSWER-The order of levels of responsibility in an organisation, from the lowest to the highest
Organisational chart - ANSWER-A diagram that shows the different job roles in a business and how they relate to each other
Responsibility - ANSWER-The duty to complete a task
Span of control - ANSWER-The number of people a person is directly responsible for in a business
Subordinates - ANSWER-People in the hierarchy who work under the control of a senior worker
Bonus - ANSWER-A payment in addition to the basic wage for reaching targets or in recognition for service
Commission - ANSWER-Percentage payment on a sale made to the salesperson
Consulation - ANSWER-Listening to the views of employees before making key decisions which affect them
Delegation - ANSWER-The passing of authority further down the managerial hierarchy
Empowerment - ANSWER-Giving official authority to employees to make decisions and control their own work activities
Hawthorne effect - ANSWER-The idea that workers are motivated by recognition given to them as a group
Hygiene or maintenance factors (Herzberg's) - ANSWER-Things at work that result in dissatisfaction
Paternalistic leadership - ANSWER-A leadership style where the leader makes decisions but taken into account the welfare of employees
Entrepreneurs - ANSWER-Individuals who, typically, set up and run a business and take the risks associated with this
Intrapreneurs - ANSWER-Employees who use entrepreneurial skills, without having to risk their own money, to find and develop initiatives that will have financial benefits for their employer
Profit maximisation - ANSWER-An attempt to make as much money as possible in a given time period
Profit satisficing - ANSWER-Making enough profit to satisfy the needs of the business owner(s)
Aims - ANSWER-What a business tries to achieve in the long term
Objectives - ANSWER-The goals or targets set by a business to help achieve its long- term purpose
Sales maximisation - ANSWER-An attempt to sell as much as possible in a given time period (or an attempt to generate as much sales revenue as possible in a given time period)
Articles of Association - ANSWER-A document that provides the details of the internal running of a limited company
Certificate of Incorporation - ANSWER-A document that declares a business is allowed to trade as a limited company
Co-operative - ANSWER-A business organisation owned by its members, who all have equal voting rights
Deed of Partnership - ANSWER-A binding legal document that states the formal rights of partners
Franchise - ANSWER-A business model in which a business (the franchiser) allows another operator (the franchisee) to trade under their name
Lifestyle business - ANSWER-A business that aims to make enough money and provide the flexibility needed to support a particular lifestyle for the owner
Limited company - ANSWER-A business organisation that has a separate legal entity from that of its owners
Limited liability - ANSWER-A legal status which means that a business owner is only liable for the original amount of money invested in the business
Limited partnership - ANSWER-A partnership where some members contribute capital and enjoy a share of profit, but do not participate in the running of the business
Memorandum of Association - ANSWER-A document that sets out the constitution and states key external details about a limited company
Mutual organisation - ANSWER-A business owned by its members, who are customers not shareholders
Online business - ANSWER-A business that uses the global communications infrastructure of the internet as a trading base
Partnership - ANSWER-A business organisation that is usually owned by between 2 - 20 people
Primary sector - ANSWER-Production involving the extraction of raw materials from the earth
Secondary sector - ANSWER-Production involving the conversion of raw materials into finished and semi-finished goods
Sleeping partner - ANSWER-A partner that contributes capital and enjoys a share of the profit but takes no active role in running the business
Social enterprise - ANSWER-A business that trades with the objective of improving human or environmental well-being
Sole trader - ANSWER-A business organisation which has a single owner
Tertiary sector - ANSWER-The production of services in the economy
Unlimited liability - ANSWER-A legal status which means that the owner of a business is personally liable for all business debts
Private limited company - ANSWER-A business usually owned by private individuals backed by financial institutions
Public limited company - ANSWER-A company owned by shareholders where the stocks can be traded openly on the stock market
Stock market - ANSWER-A market for second-hand shares
