37 of the Business glossary’s terms, each with the part of the syllabus where you first meet it.
An approach to managing change that helps employees adapt to it through training, counselling, time and practical resources.
A method of improving cash flow in which a business sells its debtors (unpaid customer invoices) to a specialist finance company for immediate cash, in return for a fee.
The four types of resource a business uses to produce goods and services: land, labour, capital and enterprise.
A branding approach in which one brand name is used for all or most of a business’s products.
A difference between budgeted and actual figures that increases profit, because actual revenue is higher than budgeted or actual cost is lower than budgeted.
The five activities that, according to Henri Fayol (1916), make up the work of every manager: planning, organising, commanding, coordinating and controlling.
The response of the receiver to a message, which confirms to the sender whether the message has been received and correctly understood.
The financial statements a business prepares at the end of an accounting period, mainly the statement of profit or loss and the statement of financial position, to show its performance and financial position.
The money a business obtains and manages to pay for its activities; also the business function responsible for raising, planning, recording and controlling that money.
Reductions in average cost from raising finance more cheaply, such as borrowing at lower interest rates, because lenders see a large business as less risky.
The section of a business plan that sets out the start-up costs, the sources of finance, and forecasts of sales, cash flow and profit, often with a break-even analysis.
Payments to employees in money, or with a monetary value, such as salaries, wages, commission, bonuses, shares and fringe payments.
The benefit a business can gain by being first to enter a new market or launch a new type of product, such as brand recognition, customer loyalty, economies of scale and control of patents.
A cost that does not change with the level of output in the short run, such as rent, insurance and salaries; it must be paid even if output is zero.
An organisational structure with few levels of hierarchy and wide spans of control, giving a short chain of command.
A working arrangement in which employees choose their start and finish times within agreed limits, usually working a set total of hours and being present during fixed core hours.
A budget that is adjusted to the actual level of output or sales, so that costs which vary with output are compared with what they should have been at that level.
In Handy's shamrock organisation, the part-time, temporary and seasonal workers hired as demand requires, usually with less security and fewer benefits than core staff.
Any working pattern other than fixed full-time hours at a fixed workplace, such as part-time work, job sharing, compressed hours, flexi-time, teleworking or hybrid working.
The amount of time by which an activity can be delayed without delaying the whole project (total float) or the next activity (free float); critical activities have zero float.
A primary research method in which a small group of people, led by a moderator, discusses its opinions of and attitudes to a product, brand, advertisement or idea.
A generic strategy in which a business targets a narrow segment of a market and aims to serve it better than broad-market rivals, through lower cost or differentiation.
Describes a multinational company that can move its operations between countries easily, at low cost, in search of lower costs or better incentives.
A decision-making and change-management tool, developed by Kurt Lewin, that identifies and scores the forces supporting and opposing a proposed change, to judge whether it is likely to succeed and how to manage it.
Investment by a business from one country in productive assets in another country, such as building or buying a factory, in which it has a lasting controlling interest.
Communication through the official channels of an organisation, following the chain of command or agreed procedures, such as reports, minutes of meetings, official emails and announcements.
An ongoing review of an employee’s performance that gives regular feedback and support to help them improve and develop, rather than to judge them.
The sheet provided in the exam that lists the ratio, investment appraisal and (HL) capacity and productivity formulas; other formulas must be learnt.
Integration with a business at a later stage of production, closer to the final customer, such as a manufacturer buying a retailer.
A research question about a decision an organisation still faces, asking what it should do, so that the project ends with a justified recommendation.
An agreement in which a franchisor sells a franchisee the right to trade under its brand name, using its products and business methods, in return for fees and royalties.
A business or person that buys a franchise and runs an outlet under the franchisor's brand, following its rules and paying fees and royalties.
The business that owns a brand and business model and sells franchises, giving franchisees the right to trade under its name in return for fees and royalties.
The time by which an activity can be delayed without delaying the earliest start of the following activity, calculated as the next activity's earliest start time minus duration minus this activity's earliest start time.
Benefits in addition to wages or salary that have a monetary value, such as a company car, health insurance, pension contributions, staff discounts or subsidised meals.
A contract of employment for a full working week, typically about 35 to 40 hours, usually permanent and with full employment benefits.