Business T1

Total value of sales in a market over a period of time

The proportion of a total market that a business holds

Business develops product with quality or function as the focus

Business responds to customer wants and designs accordingly

Allows a business to identify competitor strategies, customer’s needs and market segments

Surveys, interviews, observations, experiments

Internet, government resources, trade press

Group of consumers that share a similar characteristic

Evaluates a group of competitors’ values and USPs within a diagram

Difference between price of product and costs of production

Design (differentiation) product (quality) marketing (desirable)

The amount of a good customers are willing and able to buy at a given price

The amount of a good a producer is willing and able to make available on the market over a period of time

Aimed at general population with standard product

EOS, high sales, high competition, inflexible to changing trends, high barriers to entry

A subset of the market with specific needs

Premium price, high profit, high loyalty, low competition, low entry barriers , lack of EOS

Market subject to continuous rapid changes

Function, aesthetics, cost

Appeals to consumer trends, lower costs

Used to prevent a product reaching the decline stage of the product life cycle

Motivated staff, high staff retention, better customer service

Controls a group with day to day tasks

An individual with ability to motivate and inspire others long term success

One manager delegates with little input from others, which is useful when dealing with low skilled workers

The leader delegates to the workforce, who are involved in decision making

Low skilled, high turnover , low costs, centralised decision making

Workers are motivated to increase the quantity produced with piece rate pay

Stages of a product from when it is first introduced to the market to when it is removed

Relationships at work and self actualisation (opportunities for promotion motivate staff)

Softer form of autocratic leadership that involves consultation and motivation

Leader offers coaching and support, but employees are mostly autonomous

Hygiene factors like pay and working conditions are as important as motivating factors like recognition and responsibility

Sponsorship, USP, endorsement, social media

Price covers the costs of production plus a profit margin

Introducing a product with a high price and the gradually decreasing it. Often used in tech due to short product life cycle

Price appears better value than it is

Setting a very low price to eliminate competitors

Setting the same price as competitors and using quality to differentiate

Entering a market with low prices to drum up demand then gradually increasing them

The route of intermediaries that the product goes through between the producer and the consumer

From manufacturer to consumer, usually via the internet

From manufacturer to retailer to consumer

From manufacturer to agent to consumer

From manufacturer to wholesaler to retailer to consumer

Uses online and retail stores

High market growth high market share

Low market growth high market share

high market growth low market share

Low market growth low market share

Shows who has the responsibility and authority to make decisions

Many layers of managers with smaller spans of control

Managers have wide spans of control and short chains of command

Allows for the simultaneous allocation of staff to several projects

All decisions made by senior managers at the top of the business

Decision making is shared out to individual managers of different parts of the business

A person who can spot opportunities in the market and is willing to take a risk by setting up their own business in the hopes of being rewarded

An employee within a business who spots opportunities to innovate and take risks

Rewarding employees financially

Specific, measurable, agreed, realistic, timely

Survival, profit maximisation, social enterprise

The business and the owner have separate legal identities and the owners assets are not at risk

The business and its owner are seen as one legal entity and the owner’s assets are at risk

Typically a small business with 2-20 partners and unlimited liability

When a franchisor grants a licence to a franchisee to use its business format and brand in exchange for a fee and portion of the profits

A business which reinvests its profits back into the community and has a focus on social and ethical aims

The cost of missing out on the next best alternative foregone

A recognisable name or logo that differentiates a product or business

A brand name that has colloquially become a generic name for a product

When a brand name is used a across a range of products

Using the company name as a brand, as opposed to specific products or services

One brand for one product, little focus on the company name

Development, introduction, growth, maturity, decline