business p1 keyterms/info

• Direct competition Businesses produce similar products that appeal to the same group of customers
• indirect competition 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
• Social networking A platform such as Facebook, X and You Tube, which can be used to market a businesses products/services
• Trade publications Specialist magazines that look at current trends in the business world
• Market mapping A form of market positioning. It is the use of a 2-dimensional diagram that plots products or services in a market using two key variables. It is used to spot a gap in the market
• Boston matrix A method used to analyse the product portfolio of a business
• Business to business (B2B) When a business promotes the sale of products/services to other businesses for use in their operations
• Business to customer (B2C) Where a company targets to sell its products to individual customers
• Collective bargaining Negotiation of wages/conditions of employment between employee representatives / trade unions and the employer
• Induction training Introductory training given to employees covering its background, policies, health and safety procedures
• Centralised structure An organisational structure where business decisions are made at the top of the hierarchy by senior management/or at the headquarters of a business
• Decentralised structure When a business allows branches to take more control/make their own decisions
• Stock market flotation When a business sell shares publicly on the stock exchange for the first time
• Economic growth An increase in the GDP - value of output of goods and services produced in an economy over time
• Emerging economy The economies of developing countries where there is rapid growth, but also significant risk
• HDI 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
• FDI Foreign Direct Investment, when a business invests by setting up operations or buying assets in businesses in another country
• Migration The movement of people from one country to another to seek employment or a better life
• Trade liberalisation The reduction, and sometimes removal, of trade barriers between countries
• Protectionis m Policies used by a government to protect domestic businesses by making foreign owned products less attractive. Examples include tariffs, quotas, subsidies and regulation
• Tariffs A tax on imports to make them more expensive
• Trading bloc A group of countries that trade freely with reduced or no tariffs and quotas on trade between businesses in these countries
• Joint venture When two or more businesses come together for a specific project. It is not a formal takeover or merger, and the businesses remain independent of each other
• Global localisation or glocalisation A marketing strategy that adapts a global product or service to suit differing tastes and preferences in different regions e.g. ‘think global, act local’
• Balance of payments A record of all transactions associated with imports and exports and all international capital movements
• FDI flows The transfer of funds by an MNC to purchase and acquire physical assets such as factories or machines
• Transfer pricing A system operated by MNC's. It is an attempt to avoid relatively high tax rates through the prices which one subsidiary charges another for components and finished goods
• WTO The World Trade Organisation that supervises world trading arrangements and trade negotiations and promotes the benefits of free trade
• BRICS Economies are considered to be: Brazil, Russia, India, China and South Africa.
• MINTS Economies are considered to be Mexico, Indonesia, Nigeria and Turkey
• ASEAN The Association of Southeast Asian Nations
• EU 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
• NAFTA The North American Free Trade Area. Replaced by the USMCA
• Maslow's hierarchy of needs The order of people’s needs, starting with basic human needs
• Mayo's human relations theory Emphasises the importance of the ways in which people interact and how they are treated. Motivation can improve when employees feel more involved
• Taylor’s scientific management Suggested a job could be broken down into constituent parts, so that the most efficient way of working could be calculated. He believed workers are motivated by money
• Hawthorne effect Workers may change their behaviour because they know they are being observed
• Job enrichment Giving an employee greater responsibility to increase motivation
• Job rotation Allowing employees to move between different jobs within a company
• Job specialisation Breaking work down into smaller tasks or sub-tasks