things i don’t know business

• charismatic = leader who uses communication and charm to influence others
• how the marketing mix has adapted for mass market:

  • ignores segmentation
  • universals marketing to reach large audience
  • low price
• marketing mix adapted for niche market

  • increase quality
  • increase market research
  • increase price
  • promotion specific to audiences
• forms of bellow line promotion

  • direct marketing
  • sponsorship
  • public relations
• economic manufacture = cost of producing the product
• social trends = ideas and activities society thinks are important
• pricing strategy = approach taken when setting price
• viral marketing = producing marketing materials that can be shared on social media
• strategies to decrease price elasticity

  • discounts
  • promotion
• market mapping = process of using a graph to plot competitors
• productivity = output // input
• labour productivity = ouput in a period // number of workers
• capacity utilisation = actual output // maximum potential output
• efficiency = how effectively a business makes goods in relation to time and money involved in producing
• lean production = focusing on cutting waste and maintaining quality
• mothballing = putting equipment into storage
• total quality management = approach to long term success through improving quality and focusing on customer satisfaction
• kaizen = making small request changes to increase quality and efficiency
• capacity = maximum output revenue a company can sustain to make goods
• zero defect = no mistakes can be made
• excess capacity = demand less than supply
• colluding = acting together secretly or illegally to discieve or cheat someone
• competition policy = policies to encourage companies to offer consumer goods or services on favourable terms
• statement of financial position = formal comment showing the financial organisation structure of the business
• working capital = money a business can use to pay for day to day expenses
• acid test ratio = (current assets - inventory) // current liabilies
• working capital = current assets - current liabilities
• over trading = expanding to quickly without the finances to support it
• inventories= list of stock held by the business
• credit period = duration of time for a buyer to pay for items
• business model = companies plan for making profit
• administration = arrangments needed to control the operation of an organization
• total contribution = (revenue - variable costs) // revenue
• margin of safety = (current sales - break even) // current sales
• solvency = ability to pay debt
• undercapitalisation = firm doesn’t have enough capital to conduct business operations
• sales forecast = estimating sales revenue at time frames
• price manipulation = misleading investors supply or demand to increase or decrease price artificially
• sales volume = number of units sold in a specific time period at current prices
• profit margin = profit as % of sales