IUM TUTORING & CONSULTING

DICTIONARY OF
BUSINESS MANAGEMENT
For IB DIPLOMA FINAL EXAM
BUSINESS MANAGEMENT HL

EDITED BY
KWAK SANG IN I IUM TUTORING & CONSULTING
BUSINESS HL DICTIONARY
 123
2.4 360-degree 360-degree feedback is a process whereby an employee receives feedback from
feedback all of the people with whom the employee comes into contact (peers,
customers, supervisor, and so on.). Because 360-degree feedback is so
comprehensive (and expensive), it is typically done most o en with senior
members of an organiza on.A

4.5 Above-the-line This refers to the various forms of promo on, such as television and radio
promo on adver sing, print adver sing in newspapers and magazines, and so on, that are
aimed at mass or large audiences. Above-the-line promo on is generally not
1.5 Acquisi on targeted.
See “Merger and acquisi on”.
2.7 Arbitra on Refer to “Concilia on and arbitra on”.
5.9 Ar cial AI is a broad term for the ability of computers or robots to do things normally
intelligence associated with intelligent beings, for example, tasks such as understanding
speech, opera ng autonomous vehicles and determining op mal delivery
2.3 Autocra c routes.
A type of leadership where the leader concentrates all, or virtually all, decision-
leadership making in his or her own hands; usually, autocra c leaders neither seek input
from subordinates or value input that they might try to provide.
B
3.6 Bankruptcy A legal process that insolvent or near-insolvent companies enter into when they
can no longer pay their debts. While laws governing bankruptcy vary from
country to country, when a company enters bankruptcy, a court will oversee the
process of the company restructuring and repayment of its debts or, in extreme
cases, overseeing the liquida on of the company’s assets and the disbursement
of the funds therefrom.
5.2 Batch This is a method used to produce similar items in groups. Each group (batch) goes
produc on through a stage of produc on together before the whole batch moves onto the
next stage together. This con nues un l the batch is completed.
4.5 Below-the-line Below-the-line promo on refers to the various types of promo on that are
promo on focused on speci c segments or groups and do not rely on mass promo on
techniques, such as radio and television. Some below-the-line promo onal
techniques include iers, banners, SMS, emails, pamphlets, sponsorships and in-
5.3 Benchmarking store promo ons.
Benchmarking is the prac ce of comparing a company’s performance and
processes to the performance and processes of recognized industry leaders.
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 5.9 Big data The term “big data” is used to describe extremely large data sets, whether
structured or unstructured. Increasingly, as more computer devices are
interconnected and more data are collected using devices such as sensors,
organiza ons and businesses have large data sets, which are then analysed (see
“Data analy cs”) and used for predic ve purposes (see “Data mining”).
4.5 Brand This refers to the degree to which consumers recognize a product by its name and
awareness special characteris cs.
4.5 Brand This is the process of building brand awareness. Companies must plan, build and
development maintain their brand through careful nurturing of the company’s core values and
of customers’ percep ons of the company and the brand.
4.5 Brand loyalty Brand loyalty exists when customers con nue to buy a par cular brand even
when alterna ve products or companies exist. For a company, a high degree of
brand loyalty means customers will con nue to buy their products or services.
4.5 Brand value This is an es ma on of how much a brand is worth. When a company develops
their own brand, the brand value never appears on the company’s balance sheet.
When a company purchases a brand, the value of the acquired brand is the
purchase price minus the net book value (assets minus liabili es) of the acquired
brand, and the brand value is recorded on the balance sheet as a form of
2.2 Bureaucracy goodwill.
Though most commonly used to refer to non-elected government o cials, the
term “bureaucracy” is also used when referring to any organiza on, including
large businesses, that have mul ple layers of authority and complex approval
processes. Decision-making in bureaucracies is generally slower than in small
organiza ons. C
5.6 Capacity This is the percentage measure of the extent to which a business is using its
u liza on produc ve capacity.
3.1 Capital This refers to the expenditure for assets the useful life of which is more than one
expenditure year (for example, property, plant and equipment).
2.2 Centraliza on Centraliza on occurs when an organiza on concentrates authority for decision-
making in the personnel at the main, or central, o ce of the business. Individuals
not in the central o ce largely focus on implemen ng the decisions made in the
2.2 Chain of central
The o ocialce.
hierarchy in an organiza on. The chain of command speci es who
command reports to whom, and who has direct authority over speci c employees.
2.7 Collec ve The process whereby the employees of an organiza on will work together when
bargaining bargaining with management about wages and work condi ons. Collec ve
bargaining can occur in non-union organiza ons, though typically it occurs in
organiza ons where the employees are members of a union or unions, and
representa ves of the union(s) assist with the collec ve bargaining.
2.4 Commission A type of payment to an employee who is responsible for comple ng a sale or
performing a service. Commissions are typically a percentage of the monetary
value of the transac on. For example, real estate agents (estate agents) typically
receive a commission based upon the sales value of a house they sell.
4.5 Compe ve When a company bases the price for its goods or services upon what its
pricing compe tors are charging for similar goods and services.
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 2.7 Concilia on Concilia on and arbitra on can occur in the collec ve-bargaining process.
and arbitra on Concilia on is the agreement to rely on a third party—someone with exper se
in dispute resolu on. Concilia on is the agreement to rely on a third party—
someone with exper se in dispute resolu on.
4.5 Contribu on This is where the price charged for a good is based upon the variable costs of
pricing manufacturing it, plus some mark-up. The di erence between the price charged
and the variable costs per unit is a contribu on to xed costs.
1.2 Coopera ves Businesses owned and operated by their members, who share the pro ts.
Coopera ves are commonplace in agriculture but also exist in other industries.
5.8 Copyright A form of intellectual property giving the author or creator the exclusive right to
reproduce the work for a period me.
1.3 (CSR) The view that businesses should govern themselves and act in a way that
Corporate enhances society and businesses’ stakeholders. Advocates of CSR believe that
social businesses should be held accountable for any of their ac ons that a ect
responsibility individuals, communi es or the environment.
3.9 Cost centre A department or unit of a company that has costs but does not contribute to the
pro ts of the business because a cost centre does not generate revenue.
4.5 Cost-plus This is a method of pricing a product or service whereby all total direct costs and
(mark-up) some alloca on of indirect costs are added together, along with some mark-up—
pricing either a xed or percentage amount—to determine the sales price to the
5.3 Cradle-to- customers.
A method for designing products that looks to natural processes and that
cradle design a empts to use material in products that, when no longer needed, become the
basis for future materials. In other words, rather than design products or
buildings with materials that eventually will become non-decomposable or toxic
waste, adherents of cradle-to-cradle design want to be able to reuse raw
3.4 Current assets materials inde assets
Cash and other nitely. that a business plans to convert into cash in less than one
year (debtors and stock/inventory).
3.4 Current Debts and other payables that are due within one year.
liabili es
5.9 Customer Marke ng strategies that reward customers, o en with points or discounts, for
loyalty repeat purchases from a store or of a brand. Such programmes encourage these
programmes customers to be repeat customers.
5.9 Cybercrime An inten onal malicious a ack on one or more organiza on’s networks,
computers or other related electronic systems and devices.
5.9 Cybersecurity The process of defending networks, computers or other related electronic
systems and devices from any type of malicious a ack (cybera ack).
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5. Data analy cs Data analy cs involves working with either primary or secondary data and
9 encompasses sta s cs, visualiza on and data mining to answer business
ques ons. Increasingly, data are captured electronically, and computer systems
are used to analyse the data.
5. Data mining Data mining is mostly about predic ve analy cs. It is the process of nding
9 broad trends, pa erns and correla ons within large data sets, and using those
ndings to predict future situa ons.
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 5. Database A systema c constructed set of electronic data les that are organized in such a
9 fashion that they can be easily opened, administered and updated. In a business
se ng, databases are typically about customers or transac ons.
2. Decentraliza on Decentraliza on occurs when an organiza on delegates authority for some
2 decision-making to o ces that are not the main or central o ces. Authority for
making decisions, other than the highest-level strategic decisions, are made by
managers in regional or outlying o ces, as the managers in these o ces have a
be er sense of local condi ons.
5. Defect rate The percentage measure of the number or volume of product that fails to meet
6 speci ed quality guidelines.
2. Delayering Delayering occurs when a business removes levels of hierarchy in an organiza on.
2
2. Delega on The process of assigning authority or responsibility over speci c tasks from one
2 person in an organiza on to someone lower down the organiza onal chart. When
delega on occurs, the senior person remains accountable for the successful
comple on of the tasks over which authority was delegated.
2. Democra c A style of leadership whereby the leader ac vely solicits input from members of
3 leadership the organiza on and encourages their par cipa on in decision-making.
3. Deprecia on Deprecia on has two meanings. The rst meaning is used in a general sense: the
4 loss of the value of a long-term asset over me. The second meaning is more
precise. It refers to the exact alloca on in the nancial statements of the cost of
a long-term asset over the life of the asset.
3. Direct cost A cost that is precisely traceable to a speci c cost object, which may be a product,
3 a service or a department. Examples of direct costs include direct labour, direct
material, commissions, and so on.
1. Diseconomy of The increase in per-unit produc on cost as a business grows.
5 scale
5. Disrup ve The least common form of innova on. This occurs when someone or some
8 innova on organiza on creates something so wholly new that it fundamentally disrupts
the marketplace by crea ng a new market and disrup ng an exis ng market.
4. Distribu on The network used to move a product from manufacturer to the end users.
5 channel Companies may have mul ple distribu on channels, depending on the type of
product and the needs of the customers.
4. Dynamic pricing The prac ce of changing the price of a good or service according to the demand.
5 Dynamic pricing is some mes called “surge pricing” (as prices go up when and
where a surge in demand occurs) or “ me-based pricing” (as prices change
according to the me of day or year).
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1. Economy of scale The reduc on in per-unit produc on cost as a business grows.
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2. Employees Various types of programmes that award employees shares in the company or
4 share-ownership allow them to purchase shares in the company at a below-market price. The aim
schemes of these schemes is to enhance employee compensa on and/or to make
employees more loyal and more commi ed to the company, as they have some
ownership in the company.
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 2. Empowerment Empowerment is a management strategy. It is a long-term process whereby
4 employees are developed and given the tools and resources to make decisions.
1. External growth External growth occurs when a business expands by relying on external resources,
5 typically by acquiring or forming some kind of rela onship with another
organiza on. F
3. Fixed costs Those costs that, during the relevant period, do not vary with output or ac vity.
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2. Forma ve The con nuous appraisal of employees so that they can improve their
4 appraisal performance. Forma ve appraisal is on-going, not just once a year or within
some other periodic xed me period.
1. Franchising A type of business organiza on whereby a business (the franchisor) develops the
5 product or service and develops its brand, and then sells the right to use the
brand and its related product or service to other businesses (franchisees). To
operate as a franchise, the franchisee typically pays, in addi on to an original fee,
some percentage of revenue and agrees to comply with opera ng and quality
speci ca ons set by the franchisor.
2. Fringe payments Any kind of compensa on that an employee receives other than their salary.
4 Fringe payments might be the use of a company car, life insurance coverage or, in
countries without a na onal health insurance, health insurance coverage.
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5. Incremental Incremental innova on occurs when small and con nuous improvements are
8 innova on made to the exis ng products, services or processes in a business.
3. Indirect cost/ Costs that are used in mul ple areas or ac vi es of the business and, therefore,
3 overhead are not traceable to a speci c cost object.
2. Induc on The process of welcoming new employees into a company and providing
4 company-speci c rules, regula ons and training to increase the likelihood that
they can successfully perform their job according to the expecta ons of the
2. Industrial company.
In a broad sense, industrial democracy refers to the process of allowing workers
7 democracy to have a say in the decision-making of a company. In a narrower sense,
industrial democracy is co-determina on, whereby several workers will actually
sit on the board of directors of the company and assist in making highest-level
organiza onal decisions.
5. Innova on Occurs when someone or some organiza on creates something new with value.
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3. Insolvency Insolvency has two meanings. In a general sense, insolvency is when a company
6 lacks the ability to pays its bills and debts owing to insu cient cash. The second
meaning is more precise and occurs when a company’s liabili es are greater
than the value of its assets. That is, the company has a nega ve net worth. With
either meaning, the implica on is the same: the company cannot pay its debts.
5. Insourcing This occurs when a company decides to have its own personnel perform tasks or
4 opera ons previously performed by an external organiza on.
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 5. Intellectual Intellectual property is a widely used term to cover all types of intangible
8 property interests in work or inven ons to which a company has proprietary right. The
most common types of intellectual property are patents, copyrights and
1. Internal growth trademarks.
This occurs when a business gets larger by using its own resources, that is, it
5 reinvests its pro ts in new products, new sales channels or more stores, and so
on, in order to increase sales.
5. (IoT) Internet of This refers to the systems of computerized devices transmi ng data to one
9 things another without human involvement.
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2. Job enlargement Job enlargement is a technique of job design whereby many tasks associated with
4 a job are o cially added to the job descrip on. Unlike job enrichment, the
addi onal tasks are horizontal in terms of skill and di culty level.
2. Job enrichment Job enrichment is a mo va onal technique that occurs when a job is given
4 addi onal tasks that are challenging and are usually done by managers. These
extra tasks make the work more interes ng, lead to professional growth, and can
eventually lead to higher pay or promo on.
5. Job produc on When each product is produced individually, usually to unique speci ca ons, and
2 the produc on process begins when the previous job is completed.
2. Job rota on When employees are regularly rotated into di erent posi ons in an organiza on,
4 which allows the employees to gain experience and acquire new skills. Job
rota on also gives employees a broader perspec ve about how the various
posi ons t into the whole organiza on.
1. Joint venture When two business create, own and operate a third organiza on.
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5. Just-in- me This is tradi onally a term used to describe an inventory management strategy
3 that minimizes the amount of stock (inventory) that a company holds at any
me. Raw materials are ordered and delivered immediately before their use.
Today, the term is some mes applied to manufacturing (just-in- me
manufacturing), which is very similar to lean produc on. All stages of the
manufacturing and sales process are done just-in- me, from arrival of raw
materials and other inputs for manufacturing to shipment of nished goods.
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5. Kaizen A Japanese term that means “con nuous improvement”. Kaizen is a philosophy,
3 an approach where employees are encouraged always to seek be er ways to
improve processes and to implement those changes, even when they appear to
be only minor adjustments. Collec vely, con nuous small improvements can
have a signi cant impact.
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2. Laissez-faire A style of leadership whereby the leader “lets go” of decision-making and allows
3 leadership members of the group or team to make decisions.
5. Lean produc on A systema c approach to produc on that a empts to reduce waste at all stages
3 of the produc on process. Reducing waste includes all elements of waste, such
as materials, space, human e ort, and so on. Lean produc on is the a empt to
produce high-quality products that the customers want while using as few
resources of any kind in doing so.
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 2. Levels of The number of layers of authority available within an organiza on.
2 hierarchy
1. Limited liability When you the business owners are not liable (not responsible) for paying any
2 debts the business has. Your losses are limited to the amount you invested. This is
the case for both private and public limited companies
3. Liquidity The ability to convert an asset into cash without loss of value. Therefore, cash is a
5 company’s most liquid asset, typically followed by debtors (accounts receivable)
and stock (inventory). When an asser on is made such as “The company has a
weak liquidity posi on,” the speaker is implying that, though the company has
assets with value, it does not have much cash or many assets easily conver ble
2. Lockouts into cash.are, in certain respects, the opposite of a strike. Lockouts occur when,
Lockouts
7 as part of the nego a ng process with labour, management locks up the
company or factories so that the workers cannot enter the premises. With
lockouts, even employees who wish to do their jobs or are happy enough with
wages and working condi ons cannot perform their jobs.
4. Loss leader A product that is sold at a loss to a ract customers into the store. For example, a
5 company selling scores of products may adver se one popular item at a very low
price (loss leader) with the hope that customers, while at the store, will purchase
other products, which are priced to make a pro t.
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5. Margin of safety This is the di erence between the current or forecasted level of sales and,
5 respec vely, the current or forecasted break-even level of sales.
4. Market growth The increase in the number of consumers who buy a product or service. It also
1 refers to the increase in the number of products sold.
4. Market Market orienta on is an approach by companies that seeks to determine what
1 orienta on customers need and want, and then make, design and deliver products or services
based upon the customers’ needs and wants.
4. Market share Market share refers to the percentage of a given market controlled by a par cular
1 company or product. Market share can be calculated based upon either total sales
value or, with high cost items, like automobiles, by volume (in terms of total
5. Mass units).
Because of computer-assisted design and advanced robo cs, certain items
2 customiza on manufactured today can have features of both mass manufacturing and
individualiza on. For example, aluminium water bo les can be manufactured
uniformly in terms of size, shape, volume (mass produc on), but then have
di erent pain ng and nishing according to customer needs (individualized
customiza on). Mass customiza on is, therefore, a combina on of mass
produc on and individualized customiza on.
4. Mass market A market for goods that are produced in very large quan es. Because of
2 economies of scale, products sold in mass markets are less expensive than goods
produced for niche or highly specialized markets.
5. Mass/ ow Mass/ ow produc on is the produc on of large amounts of standardized
2 produc on products in an assembly line. Mass/ ow produc on is a con nuous process
whereby a product moves on an assembly line from stage to stage. At each stage,
a worker or robot will perform some opera on on the semi-completed product,
which will then ow to the next stage. Products are con nuously being started
and completed.
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 2. Matrix structure When individuals in an organiza on report to more than one person in the
2 ful lment of the job du es. Matrix structures o en exist in work environments
where projects and project comple on require the “signing o ” by managers in
di erent areas of the organiza on, each manager with a di erent type of
exper se (marke ng, opera ons, human resources, and so on).
1. Merger and A merger occurs when two companies legally consolidate into one company; an
5 acquisi on acquisi on occurs when one company purchases the shares of another company.
Thus, a legal dis nc on exists between a merger and an acquisi on, though, in
prac ce, the two have very similar aims: the combina on of the resources of the
two companies.

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4.2 Niche market A small part of a larger market. In niche markets, customers have very specialized
needs or wants that are di erent from the larger market. O en, products sold in
niche markets are more expensive than in mass markets, precisely because
products for niche markets are not suitable for mass produc on and sale.
1.2 (NGOs) Non- These are organiza ons independent of government. They are non-pro t and
governmental o en have a humanitarian or social purpose. Though technically independent,
organiza ons NGOs o en receive government funding and cooperate with government.
2.7 No-strike A provision in the collec ve bargaining agreement whereby the workers agree
agreement that they will not take strike or other industrial ac on against the company for a
speci ed period of me, typically the life of the collec ve bargaining
agreement. O
5.4 O shoring O shoring occurs when a business moves some, or virtually all, of its business
opera ons to another country.
2.4 O -the-job The process of training employees o site, and the training is provided by an
training outside party. O -the-job training could include seminars, short courses,
university classes or experien al types of learning where employees are
replica ng tasks that they will eventually do as part of their job.
2.4 On-the-job The process of training employees during their normal working hours and onsite.
training On the-job training can include close supervision and mentorship as an employee
performs tasks of their jobs and formal classroom-style instruc on.
2.2 Organiza onal A visual presenta on (in the form of a chart) that shows the repor ng
chart rela onships within an organiza on. At the top of the organiza onal chart will be
the chief execu ve o cer (CEO). Beneath the CEO are the people who directly
report to him or her, and beneath that layer, the chart shows who reports to
whom, all the way down to the lowest level of the workforce.
2.5 Organiza onal Organiza onal culture refers to the beliefs, norms, customs and social prac ces
culture of an organiza on. Organiza onal culture will typically re ect some of the
cultural prac ces of the host country, though any two organiza ons within one
host country could have remarkably di erent organiza onal cultures.
5.4 Outsourcing / Outsourcing/subcontrac ng occurs when a business takes an internal func on
subcontrac ng and has it performed externally by another person or business.
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 1.2 Partnership This refers to a business owned and run by two or more persons who share the
pro ts, o en speci ed in a partnership agreement. Like a sole trader, no legal
dis nc on exists between the business and the partners, who legally are 100%
liable for all debts of the partnership, regardless of any understanding speci ed in
5.8 Patent the partnership
Patent is a formagreement.
of intellectual property. When someone or an organiza on
makes or develops something new with value (innova on), they apply at their
na onal patent o ce for a patent, which gives the patent holder the exclusive
right to make, use or sell the product for a speci c period of me.
2.3 Paternalis c Paternalis c leadership is a style of leadership whereby the head of an
leadership organiza on, the patriarch or matriarch, treats employees as though they were
part of their family. The head of the organiza on treats the employees warmly, as
a parent would their children; in return, he or she expects loyalty and obedience.
4.5 Penetra on Penetra on pricing is a pricing strategy used to a ract customers to a new
pricing product or service. When a company using penetra on pricing introduces a new
product or service, the company will ini ally set a low price, which encourages
poten al customers to purchase. A er the ini al release period, the company
then raises the price of the product or service.
2.4 Performance- Performance-related pay is any form of compensa on above salary or wages that
related pay is based upon the performance of an individual, a unit or even an en re company.
Typically, in performance-related pay schemes, certain targets or criteria are
established, and exceeding the targets or the criteria results in addi onal
compensa on.
4.5 Predatory Predatory pricing occurs when a company sells a product or service at such a low
pricing price that other companies cannot compete and are forced to exit the market.
While laws and sanc ons for predatory pricing vary from country to country, in
most developed countries predatory pricing is illegal because, when a company
uses it, their aim is to eliminate compe on and thus gain monopoly power in the
4.5 Premium market.
A pricing strategy whereby a company sets the price of its products higher than
pricing they otherwise might need to be in order to create the impression that the
products are of higher quality or value than their lower-cost equivalents.
4.5 Price elas city This refers to the price sensi vity of consumers and the impact of that
of demand sensi vity to demand. Demand for a good is inelas c when changes in price
have li le e ect on demand. Demand for a good is elas c when changes in price
have a signi cant impact on demand.
1.1 Primary sector is a sec on of an economy that extracts materials (minerals, oil, etc.) or harvests
products from the earth, including farming, shing, forestry and raising livestock.
1.2 Private sector The por on of an economy not owned or directed by the government.
1.2 Privately held A corpora on that o ers limited liability to the owners. Whereas laws governing
company privately held companies or private limited companies vary according to legal
jurisdic on, shareholders of private limited companies cannot sell their shares
unless rst o ering them to exis ng shareholders, and the shares cannot be
traded on a stock exchange. Most jurisdic ons limit the number of shareholders
in a privately held company.
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 4.1 Product An approach by companies that focuses their a en on and resources on the
orienta on product that they produce, typically by making the product as high quality or
special as possible. Product-oriented companies are generally not concerned
about the quan ty of sales but rather that they are o ering the highest quality or
most special product for its target market.
4.5 Product This refers to all of the products and services that a company o ers.
3.9 por
Pro tolio
centre A department or unit of a company that generates revenue and has costs;
therefore, its pro t contribu on to the company can be determined.
1.2 Public sector This refers to the por on of the economy controlled or owned by the
government, such as government services and schools or, in countries with
na onalized industries, state-owned en es or corpora ons.
1.2 Publicly held A corpora on that o ers limited liability to the owners. The shares of the
company company are traded in some public exchange, and, because of the large number
of shareholders, publicly held companies must disclose or make public
considerable informa on about the company, including audited nancial
informa on. Q
5.3 Quality circle A group of workers who perform the same or similar work and who regularly
meet to discuss their work in order to iden fy, analyse and solve challenges and
problems that they encounter. O en, a quality circle will be led by a manager
and a facilitator trained in problem-solving. The workers are encouraged to
implement the solu ons that they develop.

1.1 Quaternary The quaternary sector is that area of economic ac vity based upon knowledge
sector and the movement of informa on. This designa on is new, and some would argue
that quaternary ac vity is part of the ter ary sector. Users of the term emphasize
that quaternary-sector ac vi es are advanced knowledge-based ac vi es, such as
informa on technology services, consultancy, research and development.
R
2.7 Redundancy Redundancy occurs when the job someone is doing is no longer required, and
the company eliminates the posi on. The posi on is then made redundant;
typically, the person formerly doing the job is made unemployed.
5.4 Reshoring Reshoring occurs when a business chooses to have a func on or opera on that is
performed in another country brought back to the company’s home country.
3.1 Revenue This refers to the expenditure or expenses used to generate revenue. In other
expenditure words, revenue expenditure is ongoing expenses for purchasing raw materials,
paying wages, employing sales sta , and so on, to generate revenue within the
accoun ng period. S
2.4 Salary A xed, regular payment to employees, typically on a bi-weekly or monthly basis.
Salaries are typically paid to white-collar workers and expressed on an annual
4.4 Sampling basis.
Sampling is a technique of selec ng a subset of individuals from a given
popula on to make some es ma on or predic on of the popula on as a whole.
Various types of sampling methods exist.
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 1.1 Secondary The secondary sector is the economic ac vity of producing a nished good, that
sector is, the sector of the economy involving manufacturing.
4.2 Segmenta on Segmenta on is the process of dividing a broad market group into various
segments (age, interests, special needs, loca on, and so on). Segmenta on allows
companies to shape their marke ng approaches in ways that will be er allow
them to meet the interests of par cular segments.
2.4 Self-appraisal A type of appraisal whereby an employee evaluates their own performance.
O en, self-appraisal follows a designated format, as prescribed by a company
form, and the self-evalua on process can either be part of forma ve or
2.7 Single-union summa ve assessment.
Single-union agreement is simply the agreement by workers and management
agreement that all workers at the company or at a speci c site will be in the same union.
2.3 Situa onal This occurs when the leader assumes that one best leadership style does not exist
leadership but rather that leaders in an organiza on should adapt their leadership style
according to: the ability and readiness of the people whom the leader seeks to
in uence; the nature of the task or work.
1.2 Sole trader A business owned and run by one person. When a business operates as a sole
trader, no legal dis nc on exists between the business and the owner.
2.2 Span of control This refers to the number of people who report to a manager. A manager with a
wide span of control has more people repor ng to them (direct reports) than a
manager with a narrow span of control.
1.4 Stakeholder A person or organiza on that a ects, or is a ected by, a business. Stakeholders
are o en classi ed as internal versus external, market versus non-market, or
primary versus secondary.
1.5 Strategic This occurs when one or more businesses agree to some form of opera onal
alliance coopera on that enhances the value for all par es.
2.7 Strike ac on, When workers decide to stop working, typically because of grievances over
or strike wages or working condi ons. Workers a empt to use the work stoppage as a
means to open up new nego a ons regarding pay and condi ons.
5.4 Subcontrac ng Refer to “Outsourcing/subcontrac ng”.
2.4 Summa ve The formal, documented appraisal of an employee, usually done at a xed me
appraisal during a year. Summa ve appraisal typical involves a formal assessment of the
employee’s performance over the past year and sets targets for the upcoming
year. T
1.5 Takeover A takeover is form of acquisi on. With an acquisi on, both par es agree to the
transac on. With a takeover, the transac on is typically “hos le”, meaning that
the company being acquired does not want to be taken over by the acquiring
4.2 Target market company.
A par cular group of customers or poten al customers that a company is trying to
reach. Clarity about which target market a company wants to reach provides
opportuni es to shape marke ng strategies.
1.1 Ter ary sector The service sector of the economy. Services include banking, retail, health care,
restaurants, hotels, among many other areas of economic ac vity.
4.5 Through-the- An integrated marke ng approach that includes both above-the-line and below-
line promo on the-line elements.
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 5.3 Total quality A management philosophy that that believes every person in an organiza on
management should be commi ed to making the company be er by improving processes,
products, services and the culture of the organiza on.
5.8 Trademark A form of intellectual property that refers to a word, symbol or phrase that
iden es a speci c product and dis nguishes it from other products.
U
1.2 Unlimited When you the business owner are liable (responsible) for paying any debts the
liability business has. This is the case for sole traders and partnerships.
V
3.3 Variable costs Variable costs are those costs that, during the relevant period, vary with output or
ac vity.
3.9 Variances In cost or managerial accoun ng, variances are the di erences between planned
or budgeted sales and costs and the actual sales and costs.
5.9 Virtual reality The use of computer technologies to create a simulated 3D experience. Virtual
reality is o en used for entertainment but is increasingly used for educa onal
purposes, where the learner can experience a simulated situa on (for example,
surgery) before actually performing the task in live or real circumstances.
V
W
2.4 Wages ( me The monetary compensa on paid by an employer to an employee for work
and piece rates) completed. Wages can be either on a me basis (for example, $15 per hour) or, in
certain industries, on a piece basis ($10 for every widget produced).
2.7 Work to rule A form of industrial ac on by workers where workers follow the rules of work
established in the collec ve bargaining process but do no more. Work-to-rule
ac on reduces output and e ciency, as workers are doing only the bare
minimum required by the collec ve bargaining agreement.
X
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