IB Business and Management [Only SL] Full Revision
product
A broad term that refers to any physical or non-physical item that is purchased by either commercial or private customers.
online presence
A business has a dedicated website for e-commerce; simplest form is a website that provides information about the business and its products/services; a large presence means a business is featured on major search engines and customers can browse and purchase online without the need to visit a retail outlet.
direct investment
A business setting up production and/or distribution facilities in foreign countries.
footloose organization
A business that does not acquire any cost-reducing advantages from locating in a particular location; the firm can locate in almost any area.
liquidity crisis
A cash flow emergency situation where a business does not have enough cash to pay its current liabilities (short-term debts).
promotion
A component of the marketing mix that refers to the methods used to inform, persuade, or remind people about its products, brands, or business; it is a key element of any marketing strategy.
electronic point of sale (EPOS)
A computerized system that automatically keeps a running balance of stock levels and reorders them as an when necessary.
cash flow forecast
A financial document that shows the predicted future cash inflows and outflows for a business over a trading period.
non-recourse debt factoring
A financial service where a debt factor (i.e. a bank) protects its customer against bad debts that they might incur.
factoring
A financial service whereby a factor (i.e. a bank) collects debts on behalf of other businesses, in return for a fee; the factor will pay, in cash, most of the outstanding debts owed to the business and then chase its debtors for payments.
profit and loss account
A financial statement of a firm's trading activity over a period of time (the balance sheet by contrast shows the financial position of the business at a specific point in time); it is split into three parts: the Trading Account, the Profit and Loss Account, and the Appropriation Account.
line production
A form of flow production whereby a product is assembled in various stages along a conveyor belt (or assembly line) until a finished product is made.
flow production
A form of mass production whereby different operations are continuously and progressively carried out in sequence.
personal selling
A form of promotional technique that relies on keen and knowledgeable sales staff directly helping and persuading customers to make a purchase.
quality
A good or service must be fit for its purpose by meeting or exceeding the expectations of the consumer.
gearing
A long-term liquidity ratio that measures the percentage of a firm's capital employed that comes from long-term liabiliites, such as debentures and mortgages; a 50% ratio is said to be high.
brand development
A long-term product strategy that involves strengthening that name and image of a brand in order to boost its sale.
ratio analysis
A management tool that compares different financial figures; it requires the application of figures found in the Balance Sheet and Profit and Loss account of a business; they can be classified into five categories: profitability, efficiency, liquidity, gearing, and shareholders.
penetration pricing
A market-led pricing strategy that involves a firm setting low prices to gain entry into a new market; once the product has established market share, prices can then be increased.
skimming
A market-led pricing strategy that involves charging a high price for innovative or high-tech products for an initial period; as the novelty factor wears off, prices will be gradually reduced (or skimmed).
product orientation
A marketing approach adopted by businesses that are inward looking; businesses focus on selling products that they can make, rather than making products that they can sell.
lead time
A measurement of the amount of time between placing an order and receiving the stock; the longer this takes, the higher buffer stocks tend to be.
advertising
A method of informative and/or persuasive promotion that has to be paid for; the ultimate aim is to raise the level of demand for a firm's product.
job production
A method of production that involves the production of a unique or one-off job; it is entirely completed by one person (such as a tailor) or by a team of people (such as architects).
last in, first out (LIFO)
A method of stock valuation that uses the most recent batches of stock first; a suitable method of stock that does not need to be rotated, i.e. it has a very long shelf life; it raises the value of cost of goods sold, thereby giving some tax benefits as gross profits will be relatively lower.
first in, first out (FIFO)
A method of stock valuation whereby stock is valued based on the order in which it was purchased by the business; it ensures that any unsold stock is more realistically valued at its replacement cost.
total quality culture (TQC)
A philosophy which occurs in organizations that embed quality in all aspects of business activity, with every employee accustomed to being responsible for quality control and quality assurance.
gross profit margin (GPM)
A profitability ratio that shows the percentage of sales revenue that turns into gross profit, i.e. the proportion of sales revenue left over after all direct costs have been paid.
net profit margin (NPM)
A profitability ratio that shows the percentage of sales revenue that turns into net profit, i.e. the proportion of saleserevenue left over after all direct and indirect costs have been paid.
sponsorship
A promotional technique which involves a business funding, supporting, or donating resources for an event or business venture in return for prominent publicity.
marketing audit
A review of a firm's current marketing mix, in terms of its strengths, weaknesses, opportunities, and threats.
overdrafts
A service offered by financial institutions that allow a business to spend in excess of the amount in its account, up to a predetermined limit; the cheapest and most flexible form of borrowing for most businesses.
current ratio
A short-term liquidity ratio that calculates the ability of a firm to meet its debts within the next twelve months; it is worked out by the formula: current assets divided by current liabilities.
liquidity crisis
A situation where a firm is unable to pay its short-term debts, i.e. current liabilites exceed current assets and, therefore, the acid test ratio is less than 1:1.
just-in-time (JIT)
A stock control system that originated in Japan; materials and components are scheduled to arrive precisely when they are needed in the production process.
repositioning
A strategy that involves changing the market's perception of a product or brand relative to those offered by rival firms.
leasing
A suitable alternative to purchasing if a firm needs to use expensive assets such as equipment or vehicles; the leasing company owns the equipment and hires it out to the customer; the customer does not have to commit large amounts of their own capital.
marketing audit
A systematic examination and review of the current position of a firm in terms of its strengths and weaknesses.
cash cow
A term used by the Boston Consultancy Group to refer to any product that generates significant sales revenue due to its large market share in a slowly expanding or mature market.
Boston matrix
A tool for analyzing the product portfolio of a business that measures whether products have a high or low market share and operate in high or low market growth industries.
intangible assets
A type of fixed asset that does not exist in a physical form; examples include goodwill, copyrights, brand names, and registered trademarks.
debentures
A type of long-term loan to a business with the promise of fixed annual interest payments to the debenture holders; the vast majority are also repayable on maturity, although some are indefinite so are classed as permanent capital to the firm as there is no maturity date.
position map
A visual aid that shows the customers' perception of a product or brand in relation to others in the market; also known as a perception map.
intermediaries
Agents or firms that act as a middle person in the chain of distribution between the producer and consumers of a product; examples include retailers, distributors, and agents.
Capital
All non-natural resources used in the production process; examples: money, resources (machinery, tools, equipment, factories).
product range
All product lines of a firm's product mix, i.e. all the products sold by the business.
market orientation
An approachadopted by businesses that are outward looking; they focus on making products that they can sell, rather than selling products that they can make.
extension strategy
An attempt by marketers to lengthen the product life cycle of a particular product; typically used during the maturity or early decline stages of the product's life cycle.
return on capital employed (ROCE)
An efficiency ratio (although it also reveals the firm's profitability); it measures the profit of a business in relation to its size (as measured by capital employed); the higher this figure, the better it is for a business as it shows more profit being generated from the amount of money invested in the firm.
stock turnover
An efficiency ratio that measures the number of times a firm sells its stocks within a year; it can also be expressed as the number of days it takes, on average, for a firm to sell all of its stocks; the costs of goods sold is used in this calculation rather than the selling price of the stocks.
net present value
An investment appraisal technique that calculates the total discounted cash flows, minus the initial cost of an investment project;if the figure is positive, then the project is viable and should be undertaken based on financial grounds.
payback period
An investment appraisal technique which estimates the length of time that it will take to recoup the initial cash outflow of an investment project.
unique selling point (USP)
Any aspect of a product that makes it stand out from those offered by rival businesses; also known as unique selling proposition.
above-the-line promotion
Any form of paid-for advertising through the mass media (such as television and radio) in order to reach a wide audience.
marketing strategy
Any medium- to long-term plan for achieving the marketing objectives of a business.
direct marketing
Any promotional activity that involves making direct contact with existing and potential customers, such as door-to-door selling, personal selling, and direct mail.
differentiation
Any strategy used to make a product appear to be dissimilar from others; examples include quality, branding, and packaging; also known as product differentiation.
market-led pricing strategies
Based on the level of customer demand for a firm's products, i.e. the level of demand in the industry rather than being based on costs of production or the prices charged by competitors.
strategic business unit (SBU)
Businesses or divisions owned by a firm that operate as independent profit centers; each is in charge of a certain product or product portfolio.
clicks and mortar
Businesses that combine the traditional main-street existence with an online presence; also known as 'brick and click'.
creditors
Businesses that have sold goods or services on credit and will collect this money at a future date; often referred to as accounts payable by accountants.
bulk-reducing businesses
Businesses that need to locate near the source of raw materials because they are heavier (and more costly) to transport than the final product; also known as weight-losing industries.
bulk-increasing businesses
Businesses that need to locate near their customers in order to reduce costs due to the products increase in weight during the production process; also known as weight-gaining industries.
e-tailers
Businesses that operate predominantly online, such as Amazon.com, eBay, Yahoo!, and Google; they are different to retailers that operate physical stores in shopping malls and other physical outlets.
wholesalers
Businesses that purchase large quantities of products from a manufacturer and then separate or 'break' the bulk purchases into smaller units for resale to retailers.
average revenue
Calculated by dividing a firm's total revenue by its level of output; it is the same as the price charged since average revenue is the amount of money received for each unit sold.
contribution per unit
Calculated by dividing the contribution of a firm by its sales level (or using the formula Price - Average Variable Cost); it works out the contribution made by selling a single unit of a product.
Shamrock organization
Charles Handy's idea that organizations are increasingly made up of core (vital) staff who are supported by insourced part-time workers and consultants and by outsourced staff and contractors
profit centers
Clearly identifiable autonomous divisions of an organization for which both costs and revenues can be worked out.
cost centers
Clearly identifiable autonomous parts of an organization for which costs can be attributed.
variable costs
Costs that change in proportion to the level of ouptut, such as raw materials and piece-rate earnings of production workers.
semi-variable costs
Costs that have an element of both fixed costs and variable costs, such as power and electricity.
indirect costs
Costs which do not directly link to the production or sale of a specific product; examples include rent, management salaries, cleaning staff wages, and lighting; also known as overheads.
liabilities
Debts owed by a business; current are short-term debts, such as on overdraft, which need to be repaid within twelve months from the balance sheet; long-term, such as mortgages and bank loans, are repayable over a longer period.
targeting
Each distinct market segment can have its own marketing mix; different markets can also be identified, depending on whether they operate in niche, differentiated, or mass markets.
sunk costs
Expenses that cannot be recovered if the business collapses, such as puchasing the lease and license fees for a commercial property.
market leaders
Firms that dominate the market shrae in a particular market; it identifies the business that has the largest market share in an industry as measured by value or volume of sales.
external financing
Getting sources of finance from outside the organization, such as through debt (i.e. overdrafts, loans, or debentures), share capital, or funding from the government.
quality circles
Groups of workers that meet on a regular basis to identify problems related to quality assurance; they give considerations to alternative solutions to the identified problems before finally making recommendations to management.
distributors
Independent businesses that act as intermediaries by specializing in the trade of products made by certain manufacturers.
creditors
Individuals or organizations that the business owes money to that needs to be settled within the next 12 months; examples include money owed to a bank for an overdraft or to suppliers for the purchase of stock bought on credit.
consumer goods
Items bought by the final user for their own personal consumption; examples include consumer durables (such as furniture, computers, and cars) and perishables (such as flowers and food); also known as consumer products.
fixed assets
Items of monetary value that are owned by a business but are not intended to be sold within the next twelve months; can be used repeatedly to generate revenue for the business; examples include land, premises, and machinery.
qualitative investment appraisal
Judging whether an investment project is worthwhile through non-numerical means, such as whether an investment decision is in line with the corporate culture; based on intuitive rather than scientific decision-making.
quantitative investment appraisal
Judging whether an investment project is worthwhile through numerical (financial) means, such as payback period, accounting rate of return, and net present value.
Theory Y
McGregor's term describing an optimistic management stance towards worker attitudes; these managers believe that employees do have initiative, want praise and recognition for their achievements, and like taking on responsibility at work
Theory X
McGregor's term for describing managers that perceive their employees in a pessimistic way, i.e. subordinates need constant supervision, prefer to be told what to do, avoid work if they can, and do not seek any responsibility
productivity
Measures the level of labor and/or capital efficiency of a business by comparing its level of inputs with the level of its output.
Land
Natural resources that can be found on the planet, including renewable and non-renewable natural resources such as water, fish, wood, and physical land itself.
agents
Negotiators who help to sell the vendor's products, such as real estate agents selling residential property on behalf of their clients; also known as brokers.
B2C
Online business conducted directly for the end-user (the consumer), such as Amazon.com selling books directly to private individuals; stands for business-to-consumer.
B2B
Online trade conducted directly for the business customer rather than the end-user, such as Amazon.com supplying books to other book retailers; stands for business-to-business.
Businesses
Organizations that are involved in the production of goods and/or the provision of services.
process
Part of the extended marketing mix which refers to the methods and procedures used to give clients the best possible customer experience.
Entrepreneurs
People who manage, organize, and plan the other three factors of production; risk takers who exploit business opportunities in return for profits.
trading account
Presented at the top of the Profit and Loss Account and shows the difference between a firm's sales revenue and its direct costs of trading; it is used to show the gross profit of a business.
shareholders' funds
Presents the sources of finance of a firm less its long-term liabilities; it includes the capital invested by shareholders (known as share capital), retained proft, plus any reserves which it may have accumulated over time.
competition-based pricing
Pricing strategies based on the prices charged by the rivals in the industry, rather than on the costs of production or the level of customer demand.
debtors
Private customers or commercial customers who have purchased goods or services on credit, so therefore owe the business money that must be paid at a later date; in accounting, often recorded under the heading accounts receivable.
batch production
Producing a collection of identical products (known as a batch); work on each batch is fullly completed before production switches to another batch; it is used where the level of demand for a product is frequent and steady.
standardization
Producing an identical or homogenous product in large quantities, such as printing a particular magazine, book, or newspaper.
substitutes
Products in competitive demand, i.e. they can be used in place of one another.
rising stars (stars)
Products in the Boston matrix that have high or rising market share in a high growth market.
direct mail
Promotional material sent directly to people's homes or places of work.
below-the-line promotion
Promotional methods that do not directly use the mass media as a form of promotion; examples include branding, sponsorship, direct mailing, sales promotions, and trade fairs.
push promotion
Promotional methods that uses intermediaries, such as real estate agencies or financial consultants, to help sell products.
pull promotion
Promotional methods, such as pester-power marketing or television advertising, that lure customers into buying a product.
Functional Areas
Refer to the different sections of a business, i.e. marketing, production, finance, and human resource departments.
net assets
Represents the value of a business by calculating the value of all its assets minus the long-term liabilities; often referred to as assets employed and represents the use of funds.
quantitative research
Research that focuses on teh collection and interpretation of statistical and numerical data for market research purposes.
qualitative research
Research that focuses on the comments, suggestions, and opinions of respondents.
primary research
Research that involves data being collected by the researcher since the information does not currently exist; also known as field research.
secondary research
Research that involves using data and information that has already been collected by another party, i.e. the data or information already exists; also known as desk research.
current assets
Resources that belong to a busines that are intended to be used within the next twelve months, such as cash, debtors, and stocks.
cost-based pricing
Setting prices based on the costs of production rather than on the level of demand or the prices set by competitors.
sales promotions
Short-term incentives designed to stimulate sales of a product, e.g. discount coupons, prize draws, trade fairs, and free product samples.
revenue expenditure
Spending on the day-to-day runing of a business, such as rent, wages, and utility bills.
Muda
The Japanese term for 'wastage'; these businesses strive to achieve lean production to eliminate the causes of waste, such as time wasting, overproduction, defective products, and excess stockpiling.
liquidity
The ability of a business to convert assets into cash quickly and easily without a fall in its value.
average cost
The amount a firm spends on producing one unit of output; it is calculated by dividing the total costs of production by the quantity produced, or by adding up the average fixed costs and the average variable costs.
working capital
The amount of finance available to a business for its daily operations; also known as net current assets which is calculated as current assets minus current liabilities.
reorder quantity
The amount of new stock ordered; it can be seen from a stock control chart and is calculated by the difference between the maximum and minimum stock levels.
demand
The amount of products that customers are willing and able to bu at each price level; generally, as the price increases, demand will tend to fall.
final accounts
The annual financial statements that all limited companies are legall obliged by the authorities to report, including the Balance Sheet and the Trading, Profit and Loss Accounts (income statement); also known as published accounts.
lean production
The approach used to elimnate waste (muda) in an organization; these organizations benefit from lower costs and higher productivity.
liquid assets
The assets of a business that can be turned into cash quickly, without losing their value, i.e. cash, stock, and debtors.
Primary Sector
The businesses involved in the cultivation or extraction of natural resources, such as farming, mining, quarrying, fishing, oil exploration, and forestry.
purchasing
The buying of raw materials, components, and/or equipment needed for the production process; large firms often centralize this function to allow the business to negotiate better prices with suppliers in order to gain purchasing economies of scale.
net cash flow
The cash that is left over after cash outflows have been accounted for from the cash inflows; if positive, this means the value of cash inflows exceeds that of cash outflows; if negative, a business may need to apply for an overdraft.
promotional mix
The combination of individual promotional methods used by a business, such as advertising, direct marketing, packaging, and sales promotion.
Opportunity Cost
The cost measured in terms of the next best alternative that is foregone when a choice is being made, e.g. money today can be either spent for immediate benefit or saved for the future.
overheads
The costs not directly associated with the production process but necessary for providing and maintaining business operations, e.g. lighting, rent, security, insurance, and maintenance.
fixed costs
The costs that do not vary with the level of output; they exist even if there is no output, such as the cost of rent, management salaries, and interest repayments on bank loans.
working capital
The day-to-day money that is available to a business; calculated as the difference between a firm's liquid assets (i.e. value of cash, stocks, and debtors) and its short-term debts (i.e. creditors, tax, and overdrafts).
reorder level
The desired level of stock when a new order must be placed; since there is a time lag between a firm placing an inventory order and it being delivered, the reorder level helps to prevent production problems arising from a lack of stock.
margin of safety
The difference between a firm's level of demand and its break-even quantity; a positive value means the firm can decrease output (sales) by that amount without making a loss; a negative value means that the firm is making a loss; also known as safety margin.
Added Value
The difference between a product's price and the total cost of the inputs that went into making it; the extra worth created in the production process.
contribution
The difference between sales revenues and total variable costs; the difference is then used to contribute towards payment of fixed costs; once all costs, fixed and variable, are covered, then the firm has made profit.
gross profit
The difference between the sales revenue of a business and its direct costs incurred in manufacturing or purchasing the products that have been sold to its customers; it is calculated as sales revenue minus the cost of goods sold; also called trading profit.
cost of goods sold (COGS)
The direct costs of producing or purchasing a particular level of stock that has actually been sold to customers; shown in the Trading Account section of a Profit and Loss Account; also known as cost of sales or the cost of stock sold.
specialization
The division of a large task or project into smaller tasks that allow individuals to concentrate on one or two areas of expertise; it is an essential part of mass production.
marketing plan
The document outlining a firm's marketing objectives and strategies for a specified time period.
packaging
The eighth 'P' in the marketing mix which focuses on the ways in which a product is presented to the consumer.
depreciation
The fall in the value of fixed assets over time, such as motor vehicles, computers, or machinery; the main cause is wear and tear (loss of value due to the asset being used) although some assets can become obsolete (outdated or out of fashion).
cash flow statement
The financial document that records the actual cash inflows and cash outflows for a business over a specified trading period, usually 12 months; often used to prepare a cash flow forecast for the subsequent trading period.
marketing mix
The four main elements of marketing strategies: product, price, promotion, and place; often referred to as the 4 P's of marketing.
distribution
The fourth 'P' in the marketing mix and refers to the process of getting products to customers at the right time and place in the most cost-effective way; also known as placement.
sources of finance
The general term used to refer to where or how businesses obtain their funds, such as from working capital, commercial lenders, and/or government assistance.
location
The geographical position of a business; This is crucial and will depend on both quantitative and qualitative factors.
break-even chart
The graph that shows a firm's costs, revenues, and profits (or losses) ar various levels of output.
physical evidence
The image portrayed by a business (or perceived by customers) regarding its observable and tangible features such as the cleanliness and physical size of a business or the presentation of its staff.
Factors of Production
The inputs (or resources) necessary for the production process: land, labor, capital, and enterprise (aka entrepreneurship).
minimum stock level
The least amount of inventories that a business wishes to hold; generally this minimum is above zero as a precautionary measure.
window dressing
The legal act of manipulating financial information to make the results look more flattering; also known as creative accounting.
break-even quantity (BEQ)
The level of output that generates neither any profit nor loss; it is shown on the x-axis on a break-even chart.
market size
The magnitude of an industry, usually measured in terms of the value of sales revenue from all the businesses in a particular market, per time period.
marketing mix
The main elements of a firm's marketing strategy known as the 4 P's: product, price, promotion, and place.
marketing
The management role of predicting, identifying, and meeting the needs and wants of customers in a profitable manner; these activities can be summed up as the eight P's: product, price, promotion, place, people, physical evidence, process, and packaging.
business etiquette
The manner, social, and cultural context in which business is conducted; international etiquette differs from one country to another so it is important for marketers to be aware of the different protocols that exist.
mass production
The manufacturing of large amounts of a homogeneous (standardized) proudct; unit costs of production are relatively low when using mass production methods.
capital intensive
The manufacturing or provision of a product relies heavily on machinery and equipment, such as automated production systems; the cost of capital accounts for a higher proportion of a firm's overall productrion costs.
international marketing
The marketing of a firm's products in foreign countries.
global marketing
The marketing of a product by using the same marketing strategy in various countries; businesses that are able to do this can gain from marketing economies of scale.
market share
The measurement of the value of a firm's sales revenues as a percentage of the industry total.
production process
The method of turning inputs into outputs by adding value in a cost-effective way; also known as transformation process.
quality assurance
The methods used by a business to reassure customers about the quality of their products in meeting certain quality standards, such as the ISO 9000.
revenue
The money that a business collects from the sale of its goods and services; it is calculated by multiplying the unit price of each product by the quantity sold.
ethical marketing
The moral aspects of a firm's marketing strategies; it can be encouraged by the use of moral codes of practice.
International Standards Organization (ISO)
The most prominent global organization for quality assurance; founded in 1947 and cmoprised of representatives from around 160 countries.
zero defects
The objective of producing each and every product without any defects (mistakes or imperfections); the benefits of such an approach are eliminating waste and reworking time (the time taken to correct faults); achieving this can also lead to a better reputation for a business.
Labor
The physical and mental human effort used in the production process.
stocks
The physical goods that a business has in its possession for further production (i.e. raw materials and unfinished goods) or for sale (finished goods); also known as inventories.
break-even point
The position on a break-even chart where the total cost line intersects the total revenue line, i.e. where Total Costs = Total Revenue.
profit
The positive difference between a product's revenue and its costs at each level of output; on a break-even chart, it can be seen to the right of the break-even quantity.
exporting
The practice of selling domestically produced goods and/or services to overseas buyers to gain access to larger international markets.
segmentation
The process of categorizing customers into distinct groups of people with similar characteristics (such as age and gender), and similar wants or needs for research and targeting purposes.
new product development (NPD)
The process of getting the latest products onto the market; the easiest way is by making small improvements to existing products; alternatively a business could develop and launch entirely new products.
publicity
The process of promoting a business and its products by getting media coverage without directly paying for it.
computer-aided design (CAD)
The process of using dedicated computer hardware and software in the design process, such as three-dimensional designs of a product.
computer-aided manufacturing (CAM)
The process of using sophisticated machinery and equipment in the production process.
total quality management (TQM)
The process that attempts to encourage all employees to make quality assurance paramount to the various functions (production, finance, maketing, and personnel) of the organization.
market research
The range of marketing activities designed to discover the opinions, beliefs, and feelings of potential and existing customers to identify and anticipate the needs and wants of customers.
product portfolio
The range of products or strategic business units owned and developed by an organization.
industrial inertia
The reluctance to relocate due to the inconvenience of moving; managers with this perception believe that the potential inconveniences and costs of relocation cancel out any of the benefits.
Secondary Sector
The section of the economy where business activity is concerned with the construction and manufacturing of physical products; automation and mechanization in modern societies has seen this sector decline in terms of employment.
Tertiary Sector
The section of the economy where business activity is concerned with the provision of services to customers; in modern societies, it is the largest sector in terms of employment and output.
retailers
The sellers of products to the general public (i.e. customers) that operate in outlets.
marketing myopia
The short-sightedness and complacency of marketers in adapting to changes in the marketplace; Theodore Levitt suggested that it exists in businesses that are heavily product oriented.
Division of Labor
The specialization of workers in the provision of goods and/or services by breaking a job down into particular roles or components that are repeated by the same workers.
expenses
The spending in the working capital cycle of a business, i.e. costs of production such as salaries, raw materials, rent, advertising, and distribution.
word of mouth (WOM)
The spreading of good or bad messages about a firm, its products, or its customer service; there is an argument that it is the most cost-effective form of promotion.
net profit
The surplus (if any) that a business makes after all expenses (indirect costs) have been paid for out of gross profit; it is calculated by as gross profit minus expenses.
product line
The term used to describe the varieties of a particular product that serves the same purpose in a particular market; such as the many varieties of the BMW Mini that ranges from the basic model to the top of the range Mini Cooper S.
e-commerce
The trading of goods and services via the Internet; stands for electronic commerce.
just-in-case (JIC)
The traditional stock management system that recognizes the need to maintain large amounts of stock in case there are any emergencies (such as delayed delivery) or supply and demand fluctuations.
quality control
The traditional way of quality management that involves checking and reviewing work processes; usually carried out by quality controllers and inspectors.
cash flow
The transfer or movement of money into and out of an organization; inflows mainly come from sales revenue whereas outflows are for items of expenditure.
infrastructure
The transportation, communication, and support networks in a certain area.
product life cycle (PLC)
The typical process that products go through from their initial design and launch to their decline, and often their death (i.e withdrawal from the market); different products undergo each of the six stages (research, launch, growth, maturity, saturation, and decline) at varying speeds.
maximum stock level
The upper limit of inventories that a business wishes to hold at any point in time.
brand extension
The use of an existing brand name that is successful to launch a new or modified product.
customer relations management (CRM)
The use of people in the marketing mix; it focuses on what can be gained during the lifetime of a positive relationship with customers.
telesales
The use of telelphone systems (audio and text messaging) to sell products directly to potential customers; also known as telemarketing.
capital employed
The value of all long-term sources of finance for a business, such as bank loans, share capital, and any reserves that the business holds; this represents the total amount of capital available to a business.
book value
The value of an asset as shown on a balance sheet; the market value of assets may be higher than its book value because of intangible assets, such as the reputation and brand value of the business.
closing balance
The value of cash left in a business at the end of the month, as shown in its cash flow forecast or statement; worked out by the formula: opening balance + net cash flow.
product mix
The variety of the different product lines that a business produces; also known as product assortment.
channels of distribution
The ways that a product gets from the manufacturer to the consumer; examples include wholesalers, agents, retailers, e-commerce, and vending machines.
assisted areas
Those regions identified by governments to be suffering from relatively high unemployment and low incomes; this leads to government assistance (through financial incentives) is used to to regenerate these areas; also known as enterprize zones.
direct costs
Those that are directly linked to the production of a specific product.
special order decisions
Unique and/or unusual orders for which a customer will pay a price that differs from the norm.
spam
Unsolicited and superfluous marketing messages via email; the common purpose is to advertise a firm's products (such as credit cards or computer software) although this method of promotion is largely seen as being unethical.
contribution per unit
Used to work out the break-even quantity; it is the difference between the selling price of a product and its variable costs of production; the surplus then goes towards paying the fixed costs of production; also known as unit contribution.
clustering
When a business locates near other organizations that operate in similar or complementary markets.
cost-plus pricing
When a firm calculates its unit costs and then adds a percentage profit to determine the price; also known as mark-up pricing.
goodwill
When the value of a firm exceeds its book value (the value of the firm's net assets); it is an intangible asset; examples include the value of a firm's business contacts (customer base and suppliers) and its reputation; it raises the value of a business.
closer economic partnership arrangement (CEPA)
a (World Trade Organization) WTO-compliant free trade agreement between two or more countries
social responsibility
a business being conscientiously concerned about the well-being of the general public as a whole; socially responsible organizations are likely to act in an ethical manner and consider the needs of all their stakeholders
person specification
a business document that gives the profile of the ideal candidate for a job, such as their skills, qualifications, experience, and other attributes
Private Limited Company
a business organization owned by shareholders with limited liability but whose shares cannot be bought by or sold to the general public
company
a business that is owned by shareholders; it possesses a certificate of incorporation that gives it a separate legal identity from its owners
video-conferencing
a communication method that allows meetings, or conferences, via telecommunications networks; the parties can see and hear each other via the electronic equipment
common market
a customs union, such as the European Union, that allows the free movement of factors of production (land, labor, capital, enterprise) between member countries
democratic leader
a decision-maker who takes into account the views of employees; decision-making can therefore be decentralized
communication network
a diagram representing the communication structure within an organization, e.g. the wheel, the chain, the Y-chain, and the circle
job description
a document that outlines the nature of a job (i.e. the roles, tasks, and responsibilites); use for the recruitment and performance appraisal of employees
unlimited liability
a feature of sole traders and ordinary partners who are legally liable for all monies owed to their creditors, even if this means that they have to sell their personal possessions to pay for this
backward vertical integration
a form of amalgamation that takes place when a business acquires or merges with a firm operating in an earlier stage of the chain of production, e.g. a car manufacturer buying out a supplier of tires or other components
takeover
a form of external growth whereby one business buys up another by purchasing a controlling interest in that company, often against the wishes of their directors; also known as acquisition
job rotation
a form of job enlargement that entails giving workers a number of different tasks of the same level of complexity in a prescribed order; this helps to reduce the problems caused by performing repetitive tasks
job enrichment
a form of job enlargement that involves giving workers more challenging jobs with more responsibilities; therefore, workers have better opportunities to express and develop their own ideas
Partnership
a form of private sector business owned by 2-20 people (partners) who share the responsibilities and burdens of running and owning the business
PEST analysis
a framework used to analyze the opportunities and threats of the political, economic, social, and technological environments on business activity; one of many tools used in the decision-making process
regional trading bloc
a group of countries that agree to freer international trade with each other, through the removal of trade barriers; examples include the European Union (EU) and the North American Free Trade Agreement (NAFTA)
customs union
a group of member countries that trade freely with each other buy impose a common external tariff (CET) on imports from non-member states; all members must enforce the same (common) trade barriers to non-member countries
diversification
a growth strategy of large businesses by spreading risks over a variety of products and markets; example: conglomerates provide a whole range of goods and services to clients all around the globe
forward vertical integration
a growth strategy that occurs with the acquisition or merger of a firm operating at a later state in the chain of production, e.g. a book publishing company merging with a book retailer
indirect tax
a levy placed on the purchase of goods and services, such as sales taxes and excise duties
direct tax
a levy that is paid from the income of individuals or businesses, such as personal income tax and corporation tax
acid test ratio
a liquidity ratio that measures the ability of a firm to meet its short-term debts; differs from the current ratio in that stocks are ignored from the calculation because not all stocks, such as supplies of Ferrari cars or Boeing jumbo jets, can be easily and quickly turned into cash
market penetration
a low-risk growth strategy that involves businesses choosing to focus on selling existing products in existing markets
interest rate
a measure of the price of money, expressed in terms of the amount charged for money that is borrowed or how much is offered on money that is saved
market development
a medium-risk growth strategy that involves selling existing products in new markets, i.e. an established product is sold in a new market
product development
a medium-risk growth strategy that involves selling new products in existing markets
delayering
a method of improving communication by reducing the number of levels in an organizational hierarchy
tariffs
a method of protectionism whereby the domestic government taxes foreign imports, thereby giving domestic producers a relative price advantage
teleworking
a method of workforce planning whereby employees work in a location away from the employer's workplace, such as those working from home or at a call center
Maslow's hierarchy of needs
a motivation theory that outlines the five levels of needs, from the requirement to satisfy basic physiological needs through to self-actualization; this theory argues that until a lower order need is met, people cannot progress onto the next level of needs
empowerment
a non-financial motivator which involves a line manager giving his/her subordinates some autonomy in their job and the authority to make various decisions
piece rate
a payment system that rewards employees based on the amount that he/she produces or sells; pay is therefore directly linked to the productivity level of staff, such as sales people
time rate
a payment system that rewards employees for the time (rather than output or productivity) that they put into work; payment is expressed per period of time, e.g. $10 per hour or $5,000 per month
performance-related pay (PRP)
a payment system that rewards people who meet set targets over a period of time; the targets can be on an individual, team, or organizational basis
SWOT analysis
a popular analytical tools used to assess the internal strengths and weaknesses and the external opportunities and threats of an organization or a decision
limited Liability
a restriction on the amount of money that can be lost from the owners of a business if it goes into bankruptcy; the owners will lose no more than the amount of capital that they put into the business
sole trader
a self-employed person who runs the business on their own and has sole responsibility for its success (profits) or failure (unlimited liability)
joint venture
a strategy that combines the contributions and responsibilties of two different organizations to a shared project by forming a separate enterprise; both businesses in a joint venture retain their original identity unlike a merger or takeover
McGregor's Theory X and Theory Y
a theory based on management perceptions of worker attitudes in the workplace; managers in one theory are authoritarian and assume that employees need to be supervised; managers of the other theory assume that employees seek recognition and praise for their contributions and achievements
decision trees
a type of quantitative decision-making tool that allows firms to calculate the probable values of different options if they are pursued; they help minimize the risks involved in decision-making
pressure groups
a type of special interest group which consists of individuals with a common concern who seek to place demands on organizations to act in a particular way or to influence a change in their behavior; examples include Greenpeace and People for the Ethical Treatment of Animals (PETA)
minutes
a written record of the issues discussed in a business meeting
executive summary
a written statement placed at the beginning of a business plan and summarizes the information given in the main business plan, including conclusions
franchise
an agreement between a franchisor selling its rights to other businesses (franchisees) to allow them to sell products under its name; in return, the franchisee pays a fee and a royalty (percentage of the profts) to the franchisor
Balance of Payments
an annual record of a country's export earnings and its import expenditure; a surplus exists if the value of exports exceeds the value of imports (vice versa for a deficit on the balance of payments)
horizontal integration
an external growth strategy that occurs when a business acquires or merges with a firm operating in the same stage of the chain of production, e.g. two commercial banks decide to merge
Public Limited Company
an incorporated business organization that allows the general public to buy and sell shares in the company via a stock exchange
external diseconomies of scale
an increase in the average costs of production as a firm grows due to factors beyond its control; often caused by problems associated with too many firms being in the industry
social audit
an independent assessment of how an organization's actions affect society; likely to include a review of the firm's environmental impact, staff management, and contributions to society
restricted channels of communication
an information method used when information is confidential and is directed only to those who need to know
open channels of communication
an information method used when information is not confidential and can be shared by anyone
accounting rate of return
an investment appraisal technique that calculates the average annual profit of an investment project; expresses as a percentage of the initial sum of money invested
silent partner
an investor of a partnership who is not directly involved in the daily activities of the business; also known as sleeping partner
vision statement
an organization's long-term aspirations, i.e. where it ultimately wants to be
tall organizational structure
an organizational hierarchy with many layers in which managers have a narrow span of control
flat organizational structure
an organizational hierarchy with only a few layers in which managers have a wide span of control
non-verbal communication
any form of communication other than oral communication; examples include electronic systems (i.e. email), written methods (i.e. letters), and visual stimulus (i.e. body language)
protectionism
any measure taken by a government to safeguard its businesses from foreign competitors; this presents a threat or barrier to trade for businesses trying to operate in overseas markets
strategy
any medium to long-term plan of how a business intends to achieve its goals
Non-governmental organization (NGO)
any private sector organization that does not primarily aim to make a profit; rather, they operate for the benefit of others in society; examples include World Wildlife Fund and Friends of the Earth
noise
barriers to effective communication, e.g. jargon, ignorance, or computer failure
conglomerates
businesses that provide a diversified range of products and operate in an array of different industries; likely to have resulted from external growth strategies
visual communication
communication methods that use visual images and stimuli, such as poster displays and a person's body language
verbal communication
communication via the use of spoken words, such as meetings, interviews, and appraisals; also known as oral communication
multinational corporations (MNC)
companies that operate production or service facilities outside their home country
internal politics
conflict between people within an organization that often generates rumors and gossip and a general resistance to cooperate with colleagues and/or managerment
economies of scope
cost-saving benefits of producing a large range of related products by sharing production facilities and resources
scientific decision-making
decision-making that is based on a systematic and logical framework; its purpose is to remove, as far as possible, subjectivity and emotions from decision-making
Taylor's scientific management
developed by F.W. Taylor who believed that specialization and division of labor would generate greater levels of productivity; Taylor introduced a piece-rate payment system to link pay with productivity levels
external stakeholders
do not form part of the organization but have a direct interest or involvement in the actions of the organization; examples include customers, suppliers, and the government
directors
elected by the shareholders of a company to run the business on their behalf; also known as executives
Mayo's Hawthorne effect
experiments that found that workers are most motivated and productive when they are able to have some social interaction with their fellow workers and when management takes an interest in their well-being; this philosophy formed the basis of the human relations management school of thought on motivation
Herzberg's two factor theory
focuses on the factors that motivate employees, namely motivators and maintenance (hygiene) factors
monetary policy
government policies concerned with changing interest rates in order to control the money supply and the exchange rate
fiscal policy
government policies that deal with taxation and government expenditure in order to affect the level of economic activity
job enlargement
increasing the number of tasks that an employee performs, thereby reducing or eliminating the monotony of repetitive tasks
stakeholders
individuals or organizations that have a direct interest (stake) in the activities and performance of a business; examples include shareholders, employees, trade unions, customers, financial investors, suppliers, managers, and the government
centralized networks
involve a key player (or team of people) that holds decision-making power, e.g. the wheel, chain, and Y-chain networks
assets
items owned by a business and have a monetary value; either fixed (owned and not intended for resale within the next 12 months) or current (owned and expected to be used up within the next 12 months)
gross misconduct
major misdemeanors, such as theft, fraud, endangering others, or being drunk at work; such acts can lead to instant dismissal
autocratic leader
managers and leaders who adopt an authoritarian style by making all the decisions rather than delegating any responsibility to their subordinates; this type of leader tells others what to do
economic growth
measures the change in the Gross Domestic Product (GDP) of a nation over time; growth occurs if there is an increase in GDP for two consecutive quarters
productivity
measures the level of output per worker; a measure of motivation because employees tend to be more productive with increased levels of motivation
labor turnover
measures the number of workers who leave a firm as a percentage of the workforce per year; often used to gauge the level of motivation in an organization
labor productivity
measures the output per worker; the measured level is an indicator of the current level of skills and motivation of the workforce
internal stakeholders
members of the organization, i.e. the employees, shareholders (who own the business), managers, and directors of the business
charities
not-for-profit organizations that are established to support good causes, from society's point of view; examples include the prevention of animal cruelty, the preservation of the natural environment, or providing assistance to the elderly
redundancies
occur when the employer can no longer afford to hire the worker or when the job ceases to exist; also known as retrenchments or layoffs
external growth
occurs when a business grows by collaborating with, buying up or merging with another firm; a more expensive but quicker method of growth than organic growth; also known as inorganic growth
organic growth (Internal)
occurs when a business grows internally, using its own resources to increase the scale of its operations and sales revenue; occurs through a firm's efforts to sell more of its own products by using its own resources; also known as internal growth
free trade
occurs when countries trade without any international trade barriers such as tariffs, quotas, and bureaucratic procedures
inflation
occurs when the general price level in an economy continously rises; calculated by measuring changes in the cost of a representative basket of goods and services purchased by the average household over a period of time
management buy-out
occurs when the managers of a company purchase all the shares in the business, thereby becoming the firm's legal owners
industry trade groups (Trade Associations)
organizations that specialize in promoting the aims of a particular industry through education and public relations campaigns; also known as trade associations
public corporations
organizations wholly owned by the government but run as commercial establishments, e.g. the British Broadcasting Corporation (BBC); also known as state-owned enterprises
hygiene factors
parts of a job that Herzberg referred to that do not increase job satisfaction but help to remove dissatisfaction, such as reasonable wages and working conditions
conflict
situations where people have disagreements on certain matters due to differences in their opinions; can often lead to arguments and tension between various stakeholder groups
jargon
specialist or technical language used to speed up communication; can cause communication problems when communicating with non-specialists
capital expenditure
spending by businesses on fixed assets such as the purchase of land and buildings;viewed as vital to the growth and survival of businesses in the long run; also known as investment expenditure
cash
the actual money a business has received from selling its products; it exists in the form of cash in hand (actual money) or cash at bank (money in a bank account); the most liquid of a firm's current assets
fringe benefits
the benefits received in addition to a worker's wages or salaries, such as free uniforms, subsidized meals, housing benefits, pension fund contributions, and company cars; also known as perks
corporate social responsibility (CSR)
the consideration of ethical and environmental issues relating to business activity; a CSR allows the business to act morally towards its various stakeholder groups
performance management
the continuous process of planning, reviewing, and mentoring employees to enhance their performance at work
diseconomies of scale
the cost disadvantages of growth; unit costs are likely to eventually rise as a firm grows in size due to internal factors (such as a lack of control, coordination, and communication) and external factors (such as saturated markets which create a need for cost cutting)
mission statement
the declaration of an organization's overall purpose; it forms the foundation for setting the objectives of a business
organizational chart
the diagrammatic representation of a firm's formal organizational structure
Certificate of Incorporation
the document issued to a limited company to show that it has been legally formed and is therefore a separate legal entity from its owners; this certificate allows the company to begin trading shares
Articles of Association
the document that sets out the internal organization and rules of a limited company, including the powers of each director and voting rules; a compulsory document needed to set up a company
information overload
the excessive amount of information being passed onto staff, i.e. swamping workers with too much communication; this can increase workload and stress
accountability
the extent to which a person is held responsible for the success or failure of a task
motivators
the factors that Herzberg considered to increase job satisfaction and motivation levels, such as praise, recognition, and responsiblity
appropriation account
the final section of a profit and loss account which shows how the net profits of a business are distributed; profits are appropriated in three ways: taxation, dividends, and retained profits
balance sheet
the financial statement showing a firm's assets and liabilities at a specific point in time; it shows the sources of funds, such as long-term loans and owners' equity, which must be balanced with the uses of funds, such as the purchase of fixed assets
trade cycle
the fluctuation in the level of economic activity over time; economies tend to move through the cycle of booms, recessions, slumps, recovery, and growth; also known as the business cycle
chain of command
the formal line of authority, shown in a firm's organizational chart, through which orders are passed down in an organization
appraisal
the formal process of evaluating the contributions and performance of an employee, usually conducted through observations and an interview with the appraisee's line manager
motivation
the inner desire or passion to do something
globalization
the integration of economic, social, technical, and cultural issues of the world's economies; this has occurred largely due to the expansion of multinational corporations and governments advocating freer international trade
contract of employment
the legal agreement between an employer and employee, detailing the terms and conditions of employment (i.e. job title, pay and responsibilities of the post holder)
Deed of Partnership
the legal contract signed by the owners of a partnership; the formal document includes the fundamental issues of the business, such as the name and responsibilities of each partner and their share of any profits or losses
aims
the long-term goals of a business, often expressed in the firm's mission statement; a general statement of a firm's purpose or intentions and tend to be qualitative in nature
economies of scale
the lower average costs of production as a firm operates on a larger scale; benefits include easier and cheaper access to finance, marketing economies, division of labor, and technological economies
human resource planning
the management process of forecasting an organization's current and future staffing needs; also known as workforce planning
Stock Exchange
the market place for trading stocks and shares of public limited companies; examples include the London Stock Exchange (LSE) and the New York Stock Exchange (NYSE)
merger
the method of external growth whereby two (or more) firms agree to form a new organization, losing their original identities
communication channels
the methods or routes through which information is passed from the sender to the recipient; also known as channels of communication
ethics
the moral values and judgments that society believes organizations should consider in their decision-making
ethics
the moral values that determine and affect business behavior and decision-making, such as taking actions that are in the best interest of the world's scarce resources
business plan
the name given to a report detailing how a business sets out to achieve its aims and objectives; requires managers to plan their marketing, financial, and human resources
Memorandum of Association
the name of one of the legal documents required to create an incorporated company; it includes the basic information of the organization such as the name and address of the company, its objectives, and details of its share capital
shareholder concept
the notion that shareholders are the key stakeholder group as any business ultimately belongs to its shareholders
unemployment
the number of people in the workforce who are willing and able to work but cannot find employment
barriers to entry
the obstacles that make it difficult for a new firm to enter a market, including high set-up costs and the market power of established firms in the industry
formal communication
the official channels of communication that are established by an organization
continuous professional development (CPD)
the ongoing investment in human resources by providing training and development opportunities
special interest group (SIG)
the organization of people who have a common interest, such as the protection of the global environment, and collectively act to achieve that interest by swaying public opinion and support, lobbying government policy and influencing business behavior
stockholders (Shareholders)
the owners of a company; the shares of a company may be held by individuals or other organizations; also known as shareholders
public sector
the part of the economy controlled by the government, e.g. state health and education services, emergency services, and national defense
private sector
the part of the economy under the control of private individuals and businesses, rather than the government, e.g. sole traders, partnerships, and limited companies
delegation
the passing on of authority to a person lower down in the organizational behalf
managers
the people responsible for the day-to-day operations of a business or a department within a business; accountable to Directors and responsible for their staff teams
decision-making framework
the phrase to describe a systematic process of dealing with business problems, concerns, or issues in order to make the best decision
protectionism
the policies used by a government to guard the interest of its domestic industries from foreign competition; examples include the use of import taxes and imposing higher safety standards on foreign products; also known as protectionist measures
management
the practice of achieving an organization's objectives by using the available resources of the business, including its human resources
internal recruitment
the practice of hiring people who already work for the firm to fill a position, rather than recruiting someone new to the organization
decision-making
the process of choosing between the alternative options available to a business
recruitment
the process of hiring suitable workers which entails a thorough job analysis in order to ensure that the best candidate is hired
training
the process of providing opportunities for workers to acquire employment-related skills and knowledge
external recruitment
the process of recruiting staff from outside the organization to fill vacant positions; methods include headhunting or advertising
delayering
the process of removing one or more levels in the hierarchy in order to flatten out the organizational structure
short-listing
the process of sifting through applications to identify candidates who are suitable for the job; the stage that precedes the interview in the recruitment process
objectives
the relatively shorter term targets of an organization; often expressed as SMART objectives
deregulation
the removal of government rules and regulations which constrain an industry, thereby enhancing its efficiency; should also encourage more competition within an industry
human resource management
the role of managers in developing the organization's people (human resources); includes tasks such as recruitment, selection, dismissal, and training and development of employees
directors
the senior members of staff who have been elected by shareholders of a company to run the business on their behalf
employment legislation
the set of laws that govern employment practices, such as antidiscriminatory behavior when recruiting, selecting, training, and promoting workers
tactics
the short-term methods that firms can use to achieve their objectives
leadership
the skill of getting things done through other people by inspiring, influencing, and motivating them
demography
the statistical study of population characteristics, using data such as birth rates, death rates, ageing populations, and net migration rates
dismissal
the termination of a worker's employment due to incompetence (unsatisfactory performance) or a breach of contract
Gross Domestic Product (GDP)
the total value of a nation's annual output, used as an indicator of the level of economic activity in a country
communication
the transfer of information between different people and between business organizations
flexible work patterns
the trend in using less core staff and more peripheral workers (i.e. part-time staff & consultants) and subcontractors; these structures improve the flexibility of the workforce
informal communication
the unofficial channels of communication naturally established by people from within an organization, often based on their common interests
exchange rate
the value of a country's currency in terms of another currency
strategy
the various methods that businesses can use in an attempt to achieve their mission or vision; it forms the long-term plans for the whole organization
planning tools
the various methods that businesses use to aid their decision-making; examples include business plans, SWOT analysis, the 5 Why's model, and decision trees
cascading
the vertical transfer of information in a hierarchy, via meetings between staff at different levels of the hierarchy
management style
the way in which managers tend to operate, such as in an autocratic, paternalistic, democratic, or laissez-faire manner
incorporation
there is a legal difference between the owners of a company and the business itself that ensures that the owners are safeguarded against any losses made by the company as the owners are protected by limited liability
portfolio working
to simultaneously carry out a number of different jobs, often for various employers, usually on a part-time or temporary basis; examples include freelance editors and management consultants
induction
training aimed at introducing new staff to the business to get them familiar with the policies, practices, and culture of the organization
off-the-job training
training carried out off-site, such as at a tertiary college or hotel conference room, often requiring specialist trainers and equipment that are not available in the business
on-the-job training
training carried out whilst at the workplace, with the training being delivered by an in-house specialist, such as a head of a department
redeployment
transferring a staff member from a department or branch that no longer requires their services to other areas of the business where a vacancy exists
external shocks
unforeseeable and unexpected changes in the external business environment that tend to affect all businesses in the economy, such as natural disasters or wars; also known as exogenous shocks
business angels
wealthy and entrepreneurial investors who rist their money in small to medium sized businesses that have high growth potential; using a hands-on approach, experience, and financial investment can have a large impact on the success of business start-ups
SMART objectives
well-set objectives ought to be Specific, Measurable, Agreed, Realistic, and Timed
delegation
when managers pass on tasks or responsibilities to their subordinates; this can motivate workers who wish to be entrusted with assigned tasks and recognized for their abilities
responsibility
who is in charge of whom, such as the Marketing Manager of an organization being responsible for the team of marketers
