31 of the Business glossary’s terms, each with the part of the syllabus where you first meet it.
Specific, measurable targets that a business sets in order to achieve its aims, usually with a deadline.
A primary research method that collects information by watching and recording people’s behaviour, such as how customers shop or use a product, instead of asking them questions.
The loss of value of an asset because it has become out of date, for example when newer technology replaces it, even though it may still work.
The ease with which workers can move from one type of job or occupation to another, which depends on their skills, qualifications and access to retraining.
Training that takes place away from the employee’s usual place of work, such as courses at a college, a training centre, a conference or online.
The relocation of a business activity, such as manufacturing or customer service, from the home country to another country, either to the business's own operations abroad or to a foreign subcontractor.
A distribution approach that integrates a business’s physical stores, websites, apps and other channels so that customers have one seamless experience across them.
Training that takes place at the workplace while the employee is doing their job, for example through coaching, mentoring or shadowing an experienced colleague.
A distribution channel with one intermediary, usually a retailer, between the producer and the consumer.
A question that lets respondents answer in their own words rather than choose from fixed options, giving detailed qualitative information that is harder to analyse.
The amount of cash a business holds at the start of a period, equal to the closing balance of the previous period.
The extent to which a business's costs are fixed rather than variable, so that a change in sales revenue causes a more than proportionate change in profit before interest and tax.
Short-term, specific objectives for teams and individuals, set by junior managers or supervisors, that contribute to achieving tactical objectives.
The planning, organising, controlling and improvement of the activities that transform resources into goods and services, so that they meet customers’ needs efficiently and effectively.
The five aspects of performance that operations managers aim to improve to satisfy customers and support a business’s strategy: quality, speed, dependability, flexibility and cost.
The section of a business plan that explains how the business will produce its goods or deliver its services, including premises, equipment, suppliers, production methods, capacity and quality control.
External factors in an organisation’s environment that it could use to its advantage, such as a growing market, new technology, a change in consumer tastes or a competitor leaving the market.
The value of the next best alternative given up when a choice is made.
The transfer of messages using the spoken word, such as face-to-face conversations, meetings, presentations, telephone calls and video calls, which allows immediate feedback.
A diagram that shows the formal structure of an organisation: its roles and departments, the levels of hierarchy, the chains of command and the spans of control.
The shared values, beliefs, norms and attitudes of the people in an organisation, which shape how they behave and how work is done; “the way we do things around here”.
The formal way in which an organisation arranges its roles, departments and lines of authority, communication and accountability.
A value in a data set that is much higher or much lower than most of the other values, either a genuine unusual case or an error in the data.
An AO1 command term asking for a brief account or summary, usually two linked points.
The goods and services that a business produces from its inputs and sells to customers.
The transfer of a business activity, such as manufacturing, IT, cleaning or customer service, to an external business that carries it out under contract instead of the business doing it in-house.
A flexible short-term facility that allows a business to withdraw more money from its bank account than it holds, up to an agreed limit, paying interest only on the amount overdrawn.
A form of industrial action in which employees refuse to work beyond their contracted hours, reducing the employer’s output without employees losing their basic pay.
The situation in which a business expands its sales and operations too quickly for its working capital and finance to support, so that it runs short of cash despite strong demand.
The marking principle under which an error carried forward from an earlier part of a question is not penalised again, so later parts earn marks if the correct method is applied to the student's own figure.
A branding approach in which a retailer sells products under its own brand name, made for it by other manufacturers.