Business terms.

• A strong pound is good for...

  Importers, bad for exporters
• A weak pound is good for...

  Exporters, bad for importers
• exchange rate


  The measure of how much one currency is worth in relation to another.
• Globalization


  Multiple business operations across different countries
• interest rates go up

  More expensive loans = slower expansion, higher risk, less demand and elasticity of demand.
• Interest rates goes down

  Higher demand, less people save, higher sales.
• Reasons for starting a business

  Profit, personal hobbies, help others (social/enterprise/charity), challenge.
• Risks to environment in business


  Land,air, noise and water pollution and traffic congestion.
• Ethical considerations in business


  Pay, conditions, treatment, materials/suppliers, fair trade/taxes, pollution.
• What is in paper 1?

  Business in the real world, influences on business, business operations, and Human Resources.
• What is in paper 2?

  Business in the real world, marketing, finance, influences on business.
• Organisational structure


  Refers to the levels of management and division of responsibilities within an organisation
• minimum wage


  a minimum price that an employer can pay a worker for an hour of labor
• Decentralised business


  Decisions are made by lower-mid level managers rather than top level managers
• Centralised business


  Decisions made by top level managers.
• hierarchical structure


  Different levels of management and staff, with higher levels exercising greater authority and control
• Digital Communication


  Firms that use social media, websites, email, etc.
• Sustainability in business


  A business being sustainable means that it's not damaging the earth for future generations.
• On the job training


  Employee training at the place of work while he or she is doing the actual job.
• Off-the-job training


  Internal or external training programs away from the workplace that develop any of a variety of skills or foster personal development.
• Monetary Motivation


  A way of motivating workers e.g. bonuses, raise, profit share, etc
• non-monetary motivation


  - Job Enrichment

  - Job Enlargement

  - Empowerment

  - Teamwork

  - Positive Reinforcement

  - Effective Discipline and Punishment

  - Fair Treatment

  - Satisfaction of Needs

  - Work-Related Goals
• fringe benefits


  Any financial extras beyond the regular pay check, such as health insurance, life insurance, paid vacation and/or retirement
• Quality control


  A process that evaluates output relative to a standard and takes corrective action when output doesn't meet standards
• Business objectives


  The aims or targets that a business works towards.
• Lean production


  an approach to production that emphasizes the elimination of waste in all aspects of production processes
• Non lean production


  Higher output over minimising waste.
• External recruitment


  the process of seeking new employees from outside the firm
• Internal recruitment


  the process of seeking employees who are currently within the firm to fill open positions
• TQM (Total Quality Management)


  A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction.
• Quality Assurance


  focuses on the performance of workers, urging employees to strive for "zero defects"
• Paternalistic management


  Centralised decision making
• Democratic management structure


  Decentralised decision making
• Laissez-faire


  a policy or attitude of letting things take their own course, without interfering.
• Batch production


  a manufacturing operation that produces goods in large batches in standard lot sizes
• Flow production


  producing items in a continually moving process
• Job production


  where a single product is made at a time
• Customer service expectations


  Not just meet customer needs, exceed them
• Leaving employment


  Redundancy, gross misconduct, incompetence -> paper trail of evidence
• procurement


  The process of finding and keeping a good supplier