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Key terms and Spelling List - Year 11 Business Studies
  • Topic 2.2 Making marketing decisions
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    AestheticsHow things appeal to the senses; do they look great, smell good, feel nice, sound solid (the 'ker-lunk' of a BMW door shutting) and taste great? 
    Economic ManufactureMaking the product cheaply enough to make it profitable. 
    Extension StrategyAn attempt to prolong sales of a product for the medium to long term, to prevent it from entering its decline stage. 
    FunctionHow well the product or service works for the customer; for example, are the beds comfortable at a hotel; does the smartphone take sharp photos? 
    Product DifferentiationThe theory that every product goes through the same four stages of introductions, growth, maturity and decline. 
    Profit MarginsProfit as a percentage of the selling price (one unit) or as a percentage of total sales revenue (for the business as a whole). 
    BrandingGiving your product or service a name that helps recall and recognition, and gives a sense of personality. 
    E-newslettersRegular updates on the activities of a business sent electronically to actual or potential customers. 
    Promotional StrategyA medium to long term plan for communicating with your target customers. 
    SponsorshipWhen companies pay to have a brand associated with an iconic individual or event (usually connected with sports or the arts). 
    Viral advertisingWhen young people start to spread your message for you through social means, be it word of mouth or via social media. 
    DistributionHow ownership changes as a product goes from producer to consumer. 
    E-tailerAn electronic retailer; in other words purchasing electronically, either by e-commerce or, more likely these days, mobile commerce (M-commerce). 
    RetailerA shop or chain of shops, usually selling from a building in a high street or shopping centre. 
    BudgetA ceiling on the amount of money that can be spent; a marketing budget of 1 million means the marketing manager can spend up to that figure, but no more. 
    'Inform' decisionsEvidence that can be used to make a better decision; a company can gain a better understanding of its customers through the 4Ps which helps in decision making. 
  • Topic 2.3 Making operational decisions
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    BespokeDesigned and made for an individual customer  
    AutomationUsing machinery or robotics to do jobs instead of using people to do them  
    ProfitThe proportion of revenue left over after costs have been deducted  
    Economies of scaleA situation where average costs (of production, distribution and sales, for example) falls as business increases the amount of product that it produces, distributes and sells  
    DowntimeTime when a person or machine is not producing anything  
    StandardisedWhen every example of a product is exactly the same as the others  
    Cost per unit (average cost)How much it costs to make each product or service, taking into consideration all of the variables cost  
    Variable costs CostsVariable costs Costs paid by a business that change depending on how many products or services the business sells  
    LogisticsThe organisation and management within a business of the transport of raw materials and goods  
    Competitive advantageAn advantage a business has over its rivals that is unique and sustainable  
  • Topic 2.4 Making financial decisions
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    Cost of salesThe direct costs of purchasing raw materials and manufacturing finished products  
    Profit marginA measure of profitability calculated as a percentage of revenue  
    InflationThe general increase in prices over time  
    VariableA quantity used in calculation or some measurable piece of information  
    DemographicRelating to the structure of a population  
    Qualitative dataConcerning the quality of something that cannot be measured in numbers 
  • Topic 2.5 Making human resource decisions
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    LayersIn an organisational structure, this means the levels of job roles in the business, from the highest-paid directors to the most junior members of staff  
    Span of controlThe number of employees that are managed by a manager. If a person manages three employees, their span of control is three  
    AccountabilityBeing responsible for something and being held responsible for it and its outcomes. For examples, a manager is often accountable for the actions of their staff  
    JargonTechnical or obscure words or terms used by a particular group of people that may not be understood by everyone  
    FreelanceSomeone who is self-employed and contracted by businesses to work for them  
    ProductivityThe measurement of how much work a business is able to complete. Higher levels of productivity mean that employees are completing more work  
    LegislationThe laws that a business must comply with  
    MotivationReasons for behaving in a particular way. In business, motivation usually refers to the reasons that an employee has for working well and increasing their productivity  
    AutonomyIndependence or freedom to make your own decisions  
    Job satisfaction The sense of achievement or fulfilment that an employee gets from their job  
  • Term 5 GCSE Examinations and Revision
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    PointSetting out what you want to say 
    becausethe explanation of the point 
    leads tothe consequence of the point made 
    thereforeWhat will be the outcome of the consequence 
    which shouldWhat will be the likely impact of that consequence