IB Business Management HL

Cooperative

A business that is owned by the members it serves and is managed in their interest.

Non-profit Organization

A business whose goal is to provide a service rather than to make a profit, such as the American Red Cross.

Position Map

A diagram which illustrates the position of products in relation to each other and against variables such as price, quality, and target market.

Unique Selling Point

A feature or function of a product that makes it different to any other on the market.

Moving Average

A forecast based on average past demand.

Franchise

A legal agreement that gives an individual the right to market a company's products or services in a particular area.

Vision

A long-term strategy for attaining a goal

Boston Matrix

A model which analyses the product portfolio of a business into four categories (stars, cash cows, problem children and dogs)

Primary Sector

A part of an economy that is dominated by agriculture, including fishing and forestry.

Joint Venture

A partnership created by two or more companies for a specific purpose over a set period of time.

Niche Market

A small market for specialized products

Diversification

A strategy of increasing sales by introducing new products into new markets

Extension Strategy

A way of extending the product life cycle when it has reached maturity or saturation stage.

Advertising

A written or spoken media message designed to interest consumers in purchasing a product or service

Situational Leadership

Adjustment of a leadership style to specific situations to reflect employee needs.

Product Portfolio

All the products a company has available at any one time

Market Share

An organization's portion of the total industry (sector) sales in a specific market

Competition Pricing

Basing sale price on Competition

External Growth

Business takes over or merges with another.

Financial Rewards

Cash and non-cash rewards paid to workers which are often used to motivate workers to increase their efforts

Merger

Combination of two or more companies into a single firm

Economies of Scale

Cost advantages associated with large-scale production

Operational Objectives

Deals with the day-to-day or short-term planning for delivery of a business process

Decentralization

Degree to which decision-making authority is given to lower levels in an organization's hierarchy.

Mass Market

Developing products and promotions to please large groups of people

Inorganic Growth

Expansion by merging with or taking over another business.

Guerilla Marketing

Focusing on low cost, creative strategies to reach the right people in a market area

Economic Influences

Food choices based on supply and demand, price and availability

Fiscal Policy

Government policy that attempts to manage the economy by controlling taxing and spending.

Laissez-faire

Hands off. No government intervention in business.

Random Sample

In this type of sample, every individual has unknown and random chance of being selected.

Differentiation

Making a product different from other similar products

Ansoff Matrix

Market Penetration, Market Development, Product Development, Product Diversification

Price Inelasticity

People being sensitive to what a product's price is

Vertical Integration

Practice where a single entity controls the entire process of a product, from the raw materials to distribution

Ethical Objectives

Pressure on business to have ethical manners, expected from the general public

Psychological Pricing

Pricing products at price points that make a product seem less expensive than it is $.99

Collective Bargaining

Process by which a union representing a group of workers negotiates with management for a contract

Marketing Mix

Product, Price, Place, Promotion

Below-the-line Promotion

Promotion that is not a directly paid-for means of communication but based on short-term incentives to purchase

Above-the-line Promotion

Promotion through advertising: TV, radio, internet, press, etc.

Span of Control

Refers to the number of individuals who report to a supervisor.

Quantitative Research

Research that provides data that can be expressed with numbers, such as ranks or scales.

Qualitative Research

Research that relies on what is seen in field or naturalistic settings more than on statistical data

Democratic

Ruled by the people

Internal Stakeholder

Stakeholders that work within the business.

Dismissal

Termination of an employment contract due to incompetence or indiscipline

Centralization

The degree to which decision making is concentrated at a single point in an organization.

Social Influences

The forces other people exert on one's buying behavior

Levels of Hierarchy

The number of layers of management and supervision existing in an organisation

Marketing

The promotion and selling of products or services

De-layering

The removal of one or more layers from the organisational structure

Gross Domestic Product

The sum total of the value of all the goods and services produced in a nation

Branding

The use of a trade name, symbol, logo or other device to differentiate a product or service

Horizontal Integration

Type of monopoly where a company buys out all of its competition. Ex. Rockefeller

Outsourcing

a decision by a corporation to turn over much of the responsibility for production to independent suppliers.

Product Line

a group of closely related product items

Multinational Corporation

a large company that has operations in more than one country

Price Elasticity

a measure of the sensitivity of demand to changes in price

Penetration Pricing

a pricing policy whereby a firm charges a relatively low price for a product initially as a way to reach the mass market

Globalization

a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology.

Quota Sample

a sample deliberately constructed to reflect the characteristics of a given population

Target Market

a specific group of consumers that have similar wants and needs

Marketing audit

a thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization

Marketing Plan

a written document that acts as a guidebook of marketing activities for the marketing manager

Business Plan

a written statement of the business's goals and objectives, and the steps to be taken to achieve them.

Autocratic

absolute in power or authority

Pest Analysis

acronym for Political, Economic, Social and Technological factors, which are used to assess the market for a business or organizational unit.

Product Mix

all products that an organization sells

Force Field Analysis

analyzing the reasons for a problem as well as what is preventing the problem from being eliminated

Conciliation

appeasement

Social Media Marketing

applying marketing principles to social media

Asset-led Marketing

bases strategy on the firm's existing strengths and assets instead of purely on what the customer wants.

Corporate Social Responsibility

business's concern for society's welfare

Monetary Policy

changes in the money supply to fight recessions or inflations

Fixed Costs

costs that are the same no matter how many units of a good are produced

Marketing myopia

defining a business in terms of goods and services rather than in terms of the benefits customers seek

Dividends

earnings distributed to stockholders

Termination

end

Appraisal

evaluation or estimation of worth

Chain of Command

hierarchy

Organization Chart Types

hierarchy and matrix

Maslow's Motivational Theory

hierarchy of needs

Product Life Cycle

introduction, growth, maturity, decline

Arbitation

is a produre in which a neutral person or panel listens to both sides of a dispute and weighs the evendice and reaches a decision

Company/ Corporation

legal entity separate from its owners

Market Research

organized effort to gather and interpret information about a market

Secondary Research

past research which has already been performed and often already published

Remuneration

payment for work done

Primary Research

research done firsthand for the first time

Slow Downs

sales during offseason

Pink's Motivational Theory

self-direction, mastering that skill, find purpose in their work

Decision Tree

shows conditions and actions graphically

SWOT Analysis

strengths, weaknesses, opportunities, threats

Product Orientation

that is viewed as inward looking

Empowerment

the delegation of power and authority to subordinates

Human Resource Management

the effective management of the formal relationship between the employer and employees

Labor Turnover

the number of workers who leave a firm each year

Secondary Sector

the part of the economy that transforms raw materials into manufactured goods

Distribution Channels

the path through which products or services get to customers

Stakeholder

the people whose interests are affected by an organization's activities

Labor Productivity

the quantity of goods and services that can be produced by one worker or by one hour of work

Strike Action

the refusal to work (a form of industrial action -> a result of major industrial unrest such as pay disputes)

Offshoring

the relocation of business processes and services to a lower-cost foreign location

Product Range

the set of products made by a company

Market Orientation

the tendency of an economic activity to locate close to its market

Redundancy

unnecessary repetition

Paternalistic

use of work-center behavior coupled with protective employee centered concern

Social Marketing

uses advertising and marketing techniques used for selling to promote positive behavior

Fishbone Diagram

visual model to clarify cause and effect relationships

Organic Growth

where a business grows naturally without merging or taking over other businesses

Taylor's Motivational Theory

workers are paid based on the amount of items they produce