An organisation that provides goods and services
Basic requirements for survival — the goods and services a person must have (food, water, etc)
Goods that are purchased to add comfort or pleasure to life
Items with lasting value, the purchase of which is considered a form of savings
goods that last a short period of time, such as food, light bulbs, and sneakers
intangible things of value (haircuts, maid service, laundry, education, etc.)
Any natural resource provided by nature and used in the production process
productive work (especially physical work done for wages)
Man made resources used to make a product
Combining the Factors of Production
Factors of Production
Land, Labour, Capital and Enterprise
The increase in worth of a product or service as a result of a particular activity.
The part of the economy that produces raw materials; examples include agriculture, fishing, mining, and forestry.
The portion of the economy concerned with manufacturing useful products through processing, transforming, and assembling raw materials.
the part of the economy that involves services rather than goods
Sectors of Industry
Primary, Secondary & Tertiary
a business owned by a single person
A business in which two or more persons combine their assets and skills
Private Limited Company
A business organization owned by shareholders with limited liability but whose shares cannot be bought or sold to the general public.
Public Limited Company
a business with limited liability whose shares are available to the general public to buy on the stock market
Comprises businesses owned and controlled by individuals or groups of individuals
Comprises organisations accountable to and controlled by central or local government (the state)
The Not For Profit Sector
A payment from profits by a company’s Board of Director’s to shareholders.
The owner is personally and fully responsible for all losses and debts of the business
A business that is set up to help society rather than to make a profit.
the extent to which a product’s perceived performance matches a buyer’s expectations
After Sales Service
providing support for a product post purchase
An organization’s aim to have a positive impact on society.
Political, Economic, Social, Technological, Environmental, Competitive
A slowdown in a nation’s economy
Measures the number of people who are able to work, but do not have a job during a period of time.
A rise in the general level of prices in an economy.
A law or set of laws made by a government
A person with a key interest in the success of a business
People who buy the product/service
Person who controls the company
Person who makes decisions for the company
People who work for the company
Companies that provide material, human, financial, and informational resources to other companies
A place where buyers and sellers meet
Dividing a market into groups of similar customers
The 4 Ps
The item made by the business and sold to customers
How much you charge for your product
Where the product is sold
How customers are made aware of the product
A working model of the test product
Product Life Cycle
Five stages that product goes through over its life: development, introduction, growth, maturity, and decline.
A firm uses a name, phrase, design, symbols, to distinguish itself from competitors.
Setting a high price for a quality product
A low cost pricing strategy
Temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales
Cost plus pricing
Adding a mark-up percentage to costs & expenses to determine selling price
Charging a deliberately low price to try to undermine competitors and put them out of business
Demand Oriented Pricing
Charging customers different prices for the same product or service depending on demand
Setting prices that take account of customers’ perception of value of the product
a storehouse for goods and merchandise
A paid form of communication sent out by a business about a product or service.
any activity designed to create a favourable image of a business, its products, or its policies
Short-term incentives to encourage the purchase or sale of a product or service
Using point of sale displays to attract customers into the store
When a company pays money to have their name or logo used in association with an event or an activity
use of famous people to promote a product
an event at which many different companies show and sell their products
The activity of gathering information about consumers’ needs and preferences.
Data collected first hand
Data collected second hand
A list of questions, usually printed, submitted for replies that can be analysed for information
A small group of individuals who are led in discussion by a facilitator in order to gather opinions on an issue
sampling products and offering feedback
Input Process Output
A supply of something available for future use.
The manufacture of one-off goods tailor made to meet the specifications of the customer.
A production method that produces goods in groups
large quantities of a product are produced in a continuous process. Also called mass production because of the large quantity of a standardised product that is produced
Using a high proportion of employee effort rather than machinery in the production process.
Using a high proportion of machinery rather than employee effort in the production process
Consistently producing what the customer wants while reducing errors before and after delivery.
Checking the product at the end of production
Checking the product at each stage of production
Voluntary groups of people drawn from various production teams who make suggestions about how to improve the product
When a firm emulate the leading product in the field and try to improve upon it
Total Quality Management
Aims to have 100% customer satisfaction and aims for zero defects. Every employee is treated like a customer.
Collecting and reprocessing a resource or product to make into new products.
Process of encouraging people to apply for a job vacancy
Process of choosing the best person for a job
Looking at the tasks and duties in a position to see what it consists of
A written statement listing duties and responsibilities of a specific role
Document which outlines the requirements, qualifications and expertise required by the ideal candidate
creating the shortlist for interview
A series of exercises in which management candidates perform realistic management tasks while being observed by appraisers.
A formal meeting arranged to evaluate an applicant
Training for new employees
On the job training
Training provided at the employee’s place of work
Off the job training
Training provided at college or a training centre
Delivery of formal and informal training and educational materials, processes, and programs via the use of electronic media
Buying and selling online
Encouraging employees to get the best out of them
Any financial extras beyond the regular pay check, such as health insurance, life insurance, paid vacation retirement, and/or company car
assumes that workers are basically lazy, error-prone, and extrinsically motivated by money and, thus, should be directed from above.
assumes that, given challenge and freedom, workers are motivated to achieve self-esteem and to demonstrate their competence and creativity.
Hierarchy of Needs
Maslow’s pyramid of human needs, beginning at the base with physiological needs that must first be satisfied before higher-level safety needs and then psychological needs become active
The money paid annually for employee services
An amount of money paid to an employee at a specified rate per hour worked
rewarding employees for the number of items they produce.
a management theory using efficiency experts to examine each work operations and find ways to minimize the time needed to complete it
Receiving an extra payment for meeting a goal or target
Receiving a percentage of money based on the amount of sales they make
rate of pay based on an amount of time, usually per hour
Working from home but staying in touch with others with the help of technology
one full-time job split between two employees, each working on a part-time basis
a system in which people work a particular number of hours each week or month, but can change the times at which they start and finish each day
Measures taken by the workforce or trade union to put pressure on management to settle an industrial dispute in favour of employees.
An organized work stoppage intended to force an employer to address union demands.
Work to Rule
A job action in which workers cause a slowdown by doing only the minimum amount required by the rules of the workplace
a form of industrial action when the employees do their normal tasks but more slowly than usual
form of protest where employees occupy the workplace and refuse to leave
a form of industrial action when employees refuse to work longer than their normal working hours
Legislation that brings together all discrimination acts
National Minimum Wage
the amount by law that firms are must pay their workers
Health and Safety at Work Act
Legislation that protects the working conditions of employees from danger or exploitation