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