DP1 2022 Case Study Important Key Terms

Not-for-profit business

A not-for-profit business refers to a private sector organization that reuses any financial surplus to achieve its organizational goals, rather than distributing the surplus as dividends to its owners.

Investment

Investment refers to the capital expenditure of a business, i.e., the spending on acquiring, maintaining, and/or upgrading of fixed assets thereby broadening the firm's capital base.

Part-time employment

People in part-time employment work fewer hours per week than those with full-time jobs.

Promotion

Promotion refers to the method of communication marketing messages to customers, usually with the intention of selling a firm's products.

Prototype

Prototypes are trial or test products that are developed as part of the R&D process.

Sustainability policies

Sustainability policies are the internal rules and guidelines about using a firm's resources in such a way that it conserves scarce resources and/or finding more efficient methods to produce goods and services.

Resigned

This occurs when a person leaves their job. This might be due to better job opportunities with other employers, to take a career break, or due to staff grievances and dissatisfaction with the current employer.

Redundant

This occurs when workers are legally terminated from the organization because their job no longer exists, often due to financial problems faced by the employer.

Compensation

This refers to the act of providing a person with financial payments for the costs of damages or inconvenience incurred.

Marketing Strategies

This refers to the management process of formulating an organization's marketing goals and activities to increase sales and to achieve a sustainable competitive advantage.

Expenses

This refers to the money spent on, or the costs incurred in, producing a good or providing a service.

Marketing expenditure

This refers to the spending off the marketing department in order to meet its marketing objectives.

Multinational

A multinational company is an organization owned by shareholders and operates in two or more countries.

Revenue

This is the income of a business derived from its daily operations, i.e. the total amount of income earned from the sales of a good or service over a period of time.

Mission statement

A mission statement refers to a declaration of an organization's overall goal and its purpose. It forms the foundation for setting the aims and objectives of an organization.

Business plan

A business plan is a written document detailing how an organization sets out to achieve its objectives and the strategies to achieve these goals.

Grants

A grant is a source of external finance often provided by the government or a charitable foundation to an individual or business entity for a specific purpose linked to social benefits of others in the community.

Job vacancies

A job vacancy exists when a job position becomes available, often due to resignations.

Cash-flow problem

A liquidity issue occurs when the amount of cash moving into a business is less than the money going out.

Outflows

Cash outflows refer to the movement of cash out of an organization, such as the payment of wages and salaries, repayment of bank loans including interest charges, and/or taxes.

Employment contracts

Employment contracts are legally binding agreements between an employer and employees which set out specific terms and conditions established for work-related matters.

Corporate social responsibility

Corporate social responsibility is the conscience of a business with consideration of the organization's actions on its various stakeholder groups and the natural environment. It also involves organizations monitoring and ensuring their compliance with the ethical standards of society.

Dismissed

Dismissal occurs when a worker's contract of employment is terminated, i.e. they are no longer employed by the organization.

Research

Research refers to the activities that a business conducts with the intention of making discoveries that can lead to commercial successes by adopting new processes and procedures in the workplace.

Board of Trustees

Similar to the board of directors for a commercial for-profit organization, a board of trustees is the governing body of a non-profit organization.

Specializing

Specialization is the process of a business entity focusing on the production of a limited scope of goods or services.

Staff turnover

Staff turnover measures the rate of change of human resources within an organization, per period of time. The more people who leave an organization per time period, the higher the labour turnover rate.

Sustainability

Sustainability is about using the planet's resources in such a way that future generations are not deprived of access to what the current and previous generations have enjoyed.

Fees

These are payments made to a professional body in exchange for advice or services.

Representatives

These are people elected as delegates or ambassadors to represent certain stakeholder groups in negotiations and decision-making processes.

Long-term plan

These are the strategic plans of an organization that set out the goals that are likely to take several years to accomplish.

Economic Recession

This is a period of negative economic growth in a country.

Ecological sustainability

This is one of the three pillars in Elkington's triple bottom line, along with social and economic sustainability.

Training

Training is the process of developing the knowledge and skills of workers in order to enhance their confidence, competence, and commitment in the workplace.