Notesale: Turn your study into money

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Theme 1

Percentage Change in price

Market share

Price new – Price old
Price old
x 100

The % of a market that a business, product
or service has

Added value

Market size

Value added is when a business chooses to
enhance the quality of a core product by
providing extras to improve a customer’s
utility/experience

Measured by volume of sales or value

Above the line promotion

Marketing

Placing adverts using the media

A management process involved in
identifying, anticipating and satisfying
consumer requirements profitably

Advertising

Marketing mix

Communication between a business and its
customers where images are placed in the
media to encourage the purchase of
products

Price, place, promotion and product, how a
business uses these 4 elements strategically

Aesthetics

Marketing Strategy

What the item looks like

A Set of plans that aim to achieve a specific
marketing objective
...


Articles of Association

Mass market

A document that provides details of the
internal running of a limited company

Products or services that are sold or
advertised to everyone at the same time in
the same way

Authority

Matrix structure

This is the power or right to give orders in an
organisation

This is a hierarchy design which groups by
project and function

Autocratic Leadership

Mechanisation

Leader makes all the decisions

Method of operating or controlling
processes using machinery

Automation

Merchandising

Method of operating or controlling processes A promotion specifically at the point of sale
by automatic means using devices
...


Below the line promotion

Memorandum of Association

Any promotion that does not involve using
the media

A document that sets out the constitution
and states key external details about a
limited company

Theme 1

Bonus

Motivated

A payment in addition to the basic wage for
reaching targets or in recognition for service
...


Things at work that result in satisfaction
...


An employee is trained to do more than
one job, for example an electrician is
trained to plaster walls

Breaking – bulk

Mutual Organisation

Dividing a large quantity of goods received
from a supplier before selling them on in
smaller quantities to customers
...


Business Choices

Niche market

Deciding between alternative uses of
resources
...


The goals or targets set by a business to
help achieve its long-term purpose

Chain of command

Off the job training

This is the route that orders travel down in
an organisation and complaints travel up

Training that takes place away from the area
of work
...


Co-operative

Online Business

A business organisation owned by its
members, who have equal voting rights
...


Training that takes place while doing the job

Competitive advantage

Opportunity cost

An advantage a business has over its
competitors, allowing it to generate larger
than average turnover for the industry

The cost of the loss of the item not chosen,
or the profit from the goods not produced

Theme 1

Competitive pricing

Organisational chart

To charge a similar amount for goods as are
charged elsewhere

A diagram that shows the different job roles
in a business and how they relate to each
other
...


Consumer Durables

Own – label, distributer or private brand

Goods that can be used repeatedly over a
period of time, such as cars and household
appliances
...


Two to 20 people who set up a business
together as joint owners e
...
vets, solicitors,
dentists

Consultation

Part-time

Listening to the views of employees before
making key decisions that affect them

Employees work less than 35 hours a week
but still get sick pay and work benefits

Cost-plus pricing

Paternalistic Leadership

To set the price of a product or service by
calculating the cost then adding a set
amount or % to it
...


Payment methods that rewards workers for
the quantity and quality of work they
produce
...


Deed of partnership

Penetration pricing

Binding legal document that states the
formal rights of partners
...


Decentralisation

PPP (Performance Related Pay)

A type of business organisation where
A payment system designed for non-manual
decision making is pushed down the chain of
workers where pay increases are given if
command and away from the centre of the
performance targets are met
...

Delayering

Person Specification

Removing layers of management from the
hierarchy of an organisation

The characteristics the candidate both
needs to have and those which are desired,
for example skills and qualifications

Delegation

Piece rate

The act of asking a worker to perform a task

A payment system where employees are
paid an agreed rate for every item produced

Theme 1

Demand

PLC

Amount customers willing to buy

Stands for public limited company, shares
are floated on the stock market and can be
bought by anyone

Demand Curve

Point of sale

A line to plot relationship between price and
quantity demanded

Any point where a consumer buys a
product

Democratic Leadership

Predatory Pricing or destroyer pricing

Leaders encourage participation in decision
making

Setting a low price forcing rivals out of
business

Demographics

Price elastic demand

The statistical data relating to population used to describe a group in marketing e
...

UK’s aging population demographics

The change in price results in a greater
change in demand

Design Mix

Price elasticity of demand

The range of features that are important
when designing a product
Aesthetics, Economics and Function

How much demand for a good or service is likely to
fluctuate with a change in price e
...
petrol will still
be demanded no matter what the price is,
therefore it is inelastic in that demand doesn’t
change by much with a price increase

Differentiation

Price inelastic demand
A change in price results in a proportionally
smaller change in demand

How well a business can change the product
so that a consumer recognises it as superior
e
...
Audi / BMW German technology engines

Theme 1

Direct Selling

Price Skimming

Producers selling their products directly to
consumers

Setting a high price initially and then
lowering it later
...


The pricing policies or methods used by a
business when deciding what to charge for
its products
...
g
...


The stages that a product moves through
over time

Entrepreneur

Product Lines

A person who sets up a business, taking
financial risks in the hope of making a profit

A group of products that are very similar
...


Ethical sourcing

Productivity

Buying from sustainable sources, for
example trees from forest suppliers who
replant

The rate at which goods or services are
produced

Theme 1

Ethical stance

Profit maximisation

To trade in a way that is respectful of people,
animals, or the environment
...


Extension strategy

Promotion

A plan to extend the maturity stage of a
product life cycle of a product, either
through changes to the product or
promotions to boost sales

An attempt to obtain and retain customers
by drawing their attention to a firm or its
products

External recruitment

Psychological pricing

Appointing workers from outside of the
business

Setting the price slightly below a round
figure

Flat structure

Public relations

This is a hierarchy design which has few
layers and short chain of command but a
wide span of control

An organisation’s attempt to communicate
with interested parties

Theme 1

Flexible Workforce

Qualitative data

A workforce that can respond, in quantity
and type, to changes in market demand
...


Process by which a job vacancy is identified
& potential employees are notified

Formal organisation

Recycling

The internal structure of a business as shown
by an organisational chart
...
g
...


Franchisee

Responsibility

The person who buys the franchise

The duty to complete a task

Theme 1

Franchisor

Resource depletion

The person who sells the franchise

The use up of natural resources

Function

Respondents

What the item is used for

A person or organisation that answers
question in a survey

Generic Brands
Products that only contain the name of the
product category rather than the company
or product name

Retailer
A business that sells goods to consumers

Government subsidy

Risk

A grant or gift of money from the
government to encourage supply of certain
goods e
...
milk subsidies

The possibility of financial loss

Hawthorne Effect

Sales maximisation

The idea that workers are motivated by
recognition given to them as a group
...


Hygiene Factors (Hertzberg)

Secondary sector

Things at work that result in dissatisfaction
...


Income elasticity of demand

Scientific Management

How much demand changes when the
consumer has a change in income

A theory that suggests there is a ‘best way’
to perform work tasks
...


Information which already exists

Income inelastic demand

Selection

Where the percentage change in demand is
proportionately less than the percentage
change in income

Process of assessing candidates and
appointing a post holder

Independence

Self actualisation

To trade in a way which meets the
entrepreneur's own goals and allows them
to be their own boss

A level in Maslow’s hierarchy where people
realise their full potential
...
g
...


Division of people according to social class
...
A brand that is recognised by everyone, e
...

Rolls Royce, Rolex, Ford, Chanel

Intrapreneur

Subordinates

An employee who works for a large business People in the hierarchy who work under the
but thinks like an entrepreneur
control of a senior worker
...


Job enlargement

Subsidy

Giving an employee work of a similar
responsibility to do

A grant given to producers, usually to
encourage production of a certain good
...


The amount of revenue generated from the
sale of goods calculated by multiplying price
by quantity in given period of time
...
At least one partner must
have unlimited liability

Organisations of workers that exist to
promote the interests of their members

LTD
Stands for private limited company, shares
can only be sold to friends and family

Trade offs
In business, where a decision maker faces a
compromise between two different
alternatives, for example between paying
dividends to shareholders and reinvesting
profits in the business

Management

Training

Authority to make decisions in the best
interest of the business

A process that involves increasing the
knowledge and skills of a worker to enable
them to do their job effectively
...


Unit costs
The same as average costs – total costs
divided by output

Theme 1

Market

Unlimited Liability

A set of arrangements that allows buyers and
sellers to communicate and trade in a
particular range of goods and services
...


Market mapping is about positioning the
products/service a business plans to provide

Market orientation

Viral Marketing

To sell products or services based on
customer needs and wants

Any strategy that encourages people to
pass on messages to others about a product
or a business electronically

Market Positioning

Waste minimisation

The view consumers have about the quality,
value for money and image of a product in
relation to those of competitors
...


Reducing the quantity of resources that are
discarded in the production process

Market segmentation

Wholesaler

A whole market can be divided into sections
called segments

A business that sells goods to retailers

Theme 1

Zero Hours Contracts
Employees are called into work only when
they are needed, they get no work benefits
and cannot be guaranteed work

YED
Income elastic demand (we use Y because
the letter I is reserved for the word
investment)



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