Above the line promotion (ATL) - Form of promotion that refers to any form of paid-for promotional technique through independent consumer media.

Academic journals - Also known as scholarly journals, these are publications that contain the latest educational research and academic theory for market research purposes.

Accounting rate of return (ARR) - Also referred to as the average rate of return, this method of investment appraisal calculates the average annual profit of an investment project expressed as a percentage of the amount of invested.

Acid test ratio - Also known as the quick ratio, this is a short-term liquidity ratio used to measure an organization’s ability to pay its short-term debts (within the next 12 months of the balance sheet date), without the need to sell any stock (inventories).

Adaptive creativity - Refers to incremental innovation, which adjusts or develops a product or process that already exists.

Ad-hoc market research - Market research conducted as and when required for a specific problem that the organization is facing.

Adding value - The process of producing a particular good or service that is worth more than the cost of the resources used to produce it.

Adverse variance - This discrepancy in the budget occurs when profit is lower than expected, due to costs being higher than expected and/or revenues being lower than predicted.

Advertising - A form of visual and/or audio marketing communication used to inform and persuade people to buy a certain good or service.

Ageing population - A higher average age of the population, which has ramifications for workforce planning.

Agents - These independent intermediaries help to sell a vendor’s products in return for commission, such as real estate agents.

Aims - These are the long-term aspirations of an organization.

Andon - This is a method of lean production that uses audio-visual controls and warning systems to indicate the status of particular aspects of the production process.

Ansoff Matrix - This is a strategic management tool, used to devise product and market growth strategies for an organization.

Appraisal - Also known as a performance review, this is the formal procedure of assessing the performance and effectiveness of an employee, in relation to his/her job description.

Arbitration - Method of stakeholder conflict resolution with all stakeholder groups in conflict agreeing to accept the decision or judgment of the independent arbitrator.

Assets - The possessions owned by a business, which have a monetary value, such has buildings, land, machinery, equipment, inventories and cash.

Autocratic management - Management style that involves centralised and autonomous decision-making, without input from others in the organization.

Average costs (AC) - This is the cost per unit of output. It is calculated by the formula: AC = TC ÷ Q.

Average revenue (AR) - This is the amount a business receives from its customers per unit of a good or service sold. Mathematically, AR = TR ÷ Q = P

Bad debt - This occurs when a debtor is unable to pay outstanding invoices to the business. The result is it reduces the cash inflows for the vendor (seller).

Balance sheet - Part of a firm’s final accounts that shows the value of a firm’s assets, liabilities and the owners’ investment (or equity) in the business, at a particular point in time.

Bar graph - Method of visual presentation of data, used to compare figures in a market research study, such as sales figures during different time periods.

Bargain products - Goods or services that are those perceived by customers to be of high quality but sold at a low price.

Batch production - Production method that involves producing a set of identical products, with work on each batch being fully completed before production switches to another batch.

BCG matrix - Developed by the Boston Consulting Group (BCG), this visual marketing management tool is used to analyse a firm’s product portfolio.

Behavioural training - Type of training that focuses on developing the interpersonal and intrapersonal skills of workers.

Below the line promotion (BTL) - Form of promotion that refers to all forms of advertising or promotion that do not use external media agents.

Benchmarking - The routine process of an organization comparing its products, processes (operations) and performance to that of its competitors or its own historical standards.

Brand awareness - The degree of customer knowledge and recognition of a particular brand in order to gain more customers.

Brand development - Part of a firm’s marketing strategy in communicating the value of a brand and what the brand stands for.

Brand loyalty - The degree of customer devotion to a particular brand.

Brand value - The expected earning potential of a brand, i.e. the likely future earning potential (value) of a particular brand.

Break-even - This condition exists when a firm’s sales revenues cover all of its production costs.

Break-even point (BEP) - This is the point on a break-even chart where the firm’s total costs equal its total revenue, shown by the intersection of the total revenue (TR) and total cost (TC) curves.

Break-even quantity (BEQ) - The quantity of sales (sales volume) required for a firm to reach break-even. It is found by using the formula: BEQ = Fixed costs / (Price – Average variable cost).

Break-even revenue - This is the value of the output needed to break-even.

Budget - A detailed financial plan for the future, usually involving the expected costs and revenues or a cash flow forecast, for a pre-determined period of time.

Buffer stock - The minimum stock level that a firm wishes to hold at any point in time. The buffer stock is held as a contingency in case of unexpected orders for the firm's output and/or in case of any delays from suppliers of raw materials, components or finished goods.

Bulk-increasing industries - Describes the businesses that need to be located near to their customer as the final product (such as hand-made home furniture) is bulkier and heavier than the raw materials used to make it.

Bulk-reducing industries - Describes the businesses that need to be located near to the raw materials needed to produce a certain good, e.g. breweries should locate where there is a readily available supply of barley and water, as the weight of the final output is less than that of the raw materials.

Bureaucracy - The administrative systems within an organization, such as the formal policies and procedures of the business. It includes the formal rules, regulations and procedures of the organization.

Business - A decision-making organization established to produce goods and/or provide services.

Business angels - Wealthy and successful private individuals who risk their own money in a business venture that has high growth potential.

Business cycle - Describes the regular fluctuations in the level of economic activity in an economy, over time.

Business etiquette - This refers to the mannerisms and customs by which business is conducted in different parts of the world.

Business plan - An official document with details of an organization and the proposals for reaching its aims and objectives (goals).

Business to business (B2B) - B2B refers to e-commerce that takes place between two or more organizations, rather than between businesses and consumers.

Business to consumer (B2C) - B2C refers to online businesses selling goods and services directly to consumers, i.e. the end users of the products.

Capacity utilization - Refers to the extent to which an organization operates at its maximum level (known as the firm’s productive capacity).

Capacity utilization rate - Measures a firm’s actual output as a percentage of its capacity (maximum potential output), at a particular point in time.

Capital employed is the value of all sources of finance for a business, including internal and external finance. It is calculate as Capital employed = Loan capital (or long-term liabilities) + Share capital + Accumulated retained profits.

Capital expenditure - Refers to an orgaization's sources of finance being used for spending on fixed assets or capital equipment of the business, i.e. investment expenditure. This includes spending on buildings, machinery and tools.

Capital-intensive - When an organization relies on machinery and equipment to produce its output, rather than labour.

Capital productivity - This measures how efficiently an organization’s fixed assets are used to generate output for the business.

Cash - The money a business has, either “in hand” (at its premises) and/or “at bank” (i.e. in its bank account). It is the most liquid of a firm’s current assets and is easily accessible.

Cash cows - Products in the Boston Consultancy Group Matrix with high market share in a low growth (mature) market. They are the largest cash earners for a business.

Cash flow - The movement of an organization’s cash inflows (cash received from the sale of goods and services) and cash outflows (used to pay for the costs of running the business).

Cash flow forecasting - A quantitative technique used to predict how cash is likely to flow into and out of the business for a particular period of time.

Celebrity endorsement - The use of famous people (such as film stars, musicians and sports personalities) to promote a brand or organization.

Cellular production - Also known as cell production, this production technique involves teams of people working on a certain section of the production process, completing a whole unit of work.

Centralization - The situation where decision-making is predominantly made by a very small group of senior managers at the top of the organizational hierarchy.

Chain of command - The formal lines of authority in an organization. It can be seen via an organizational chart, which shows the formal path through which commands and decisions are communicated from senior managers to subordinates.

Chance node - A chance node is shown as circles on a decision tree diagram, this represents the probable outcome of different decisions.

Change management - Refers to processes and techniques used to plan, implement and evaluate changes in business operations.

Charities - These are altruistic organizations that operate predominantly in the private sector with the goal of promoting a worthwhile social cause.

Closing balance - Found in a cash flow forecast, this refers to the value of cash held by a business at the end of a trading period (usually on the last trading day of the month).

Closure - This occurs when employers temporarily shuts the business in response to extreme industrial action of its employee (such as strike action).

Cluster sampling - Sampling method that involves identifying the population by geographical areas (clusters), and then interviewing people within certain clusters randomly.

Clustering - This occurs when businesses choose to locate near other firms operating in related industries in order to benefit from passing trade and demand for products in complementary markets.

Cognitive training - Method of training that focuses on improving an employee’s thinking skills in order to improve their performance and effectiveness in the workplace.

Collective bargaining - The process of negotiation of working conditions and pay between employer and employees, or their representatives (such as a trade union and a senior management team).

Commercial marketing - Marketing strategies that focus on meeting the demands (needs and wants) of customers in a profitable way. The main purpose is to generate benefits for the owners of the business, such as shareholders.

Commission - Type of financial payment system that rewards workers a certain percentage of the sales of each good or service that they are responsible for completing.

Communication - The transfer of information from one entity to another. It is vital to how a business operates.

Companies (or corporations) - This refers to any business organisation that is owned by its shareholders, who have limited liability.

Competitors - These are the firm’s rivals, which operate in the same industry and contest for the same customers.

Conciliation - Method of stakeholder conflict resolution which aims to align the incompatible interests of different stakeholder groups by helping different parties to better understand each other’s interests.

Conflict - This refers to the mutually exclusive and incompatible interests of different stakeholder groups. If this is not managed, it often leads to protracted disagreements, disputes and arguments in the workplace.

Consumer panel - A focus group comprised of people who belong to the firm’s target segment(s), referred to in order to gather their expert feedback.

Consumer profiles - The demographic and psychographic characteristics of consumers in different market segments.

Consumer to consumer (C2C) - The third type of e-commerce is called C2C, which involves customers selling directly to other consumers.

Contingency planning - The management process of devising and developing pre-arranged plans to deal with a crisis, in case it actually occurs.

Continuous market research - A type of market research that is conducted on an ongoing basis, rather than a one-off basis.

Control - One of the factors that affects the effectiveness of crisis management, about using a crisis management team to handle a crisis and ensure there is leadership and governance.

Convenience sampling - Sampling method that refers to the practice of using people that are within easy reach, in an unplanned way, to conduct market research.

Cooperatives - These are for-profit social enterprises owned and run by their members (usually employees, managers or customers). Their primary goal is to create value for their member-owners.

Copyrights - These intangible fixed assets give the registered owner the legal rights to creative pieces of work, such as the works of authors, musicians, conductors, playwrights (scriptwriters) and directors.

Corporate culture (or organizational culture) - Refers to an organization’s set of core values and beliefs, which shape the firm’s attitudes, behaviour and norms.

Corporate social responsibility (CSR) - This is an organization’s decisions and actions that impact society in a positive way.

Correlation - The relationship between two sets of numbers or variables, such as sales revenue at different times of the year.

Cost centre - A section or division of a business that has responsibility for its own operational costs. It is held accountable for its departmental expenditure.

Cost-plus pricing (or mark-up pricing) - Adds a profit margin to the costs of production, thereby ensuring that each unit sold contributes towards the profits of the firm.

Cost to buy (CTB) - In a ‘make or buy decision’, this method calculates the total cost of subcontracting production to a third-party supplier.

Cost to make (CTM) - In a ‘make or buy decision’, this method calculates the total cost of producing the product in-house, instead of using a third-party provider.

Costs - The charges that an organization incurs from its operations, such as rent, wages, salaries, and insurance.

Cowboy products - Goods or services that are perceived by customers to be of low quality but high price.

Cradle to cradle (C2C) - This lean approach to waste management involves design and manufacturing that is sustainable and waste-free. All material inputs can be recycled or reused, or are consumable or compostable.

Credit control - The process of monitoring and management of debtors, such as ensuring only suitable customers are given trade credit and that customers do not exceed the credit period.

Creditor - A supplier that allow a business to purchase goods and/or services on trade credit.

Creditor days ratio - The efficiency ratio that measures the average number of days an organization takes to repay its creditors (suppliers who the business has bought products from using trade credit, so have yet to pay for these).

Crisis - Any unpredicted event that has widespread negative consequences, causing major disruptions to the normal operations of an organization.

Crisis management - The management process of responding to an actual crisis facing an organization.

Cultural exports - This refers to the extensive availability and consumption of traditionally domestic products in overseas markets.

Culture - Concept referring to the norms, attitudes, values, goals, and practices that characterises an organization, a country or a region of the world.

Culture clash - A situation that exists when two or more cultures exist within the same organization, with wide-ranging differences in the values held by different individuals, thereby causing internal conflict.

Culture gap - The difference between an organization’s desired culture and its actual culture.

Current assets - Short-term assets belonging to an organization which will last in the business for up to 12 months, such as cash, debtors and stock (inventory).

Current liabilities - The short-term debts of a business, which need to be repaid within twelve months of the balance sheet date, e.g. overdrafts, trade creditors and short-term loans from banks.

Current ratio - A short-term liquidity ratio used to calculate the ability of an organization to meet its short-term debts (within the next twelve months of the balance sheet date).

Customer loyalty schemes - Reward systems used to encourage customers to make repurchases, such as price discounts or free gifts for members.

Customers - These external stakeholders are a firm’s clients, individuals and other businesses, who purchase the organization’s goods and/or services. Their interests include competitive prices, fit-for-purpose products and overall value for money.

Cybercrime - Refers to online fraudulent activities, such as hacking of personal data and exploitation of internet security.

Cyclical variations - The recurring fluctuations in sales revenues due to the trade cycle (or business cycle).

Debt factoring - A financial service provided to businesses that are struggling to collect money from their debtors and face liquidity problems, involving the third party financier taking over the collection of the firm’s outstanding (unpaid but issued) invoices.

Debtor - A type of current asset, referring to individual or business customers that owe money to the organization as they have bought goods or services on trade credit, i.e. they need to pay within 30 and 60 days.

Debtor days ratio - The efficiency ratio that measures the average number of days an organization takes to collect debts from its customers (as they have bought goods and services on trade credit but have yet to pay for these).

Decentralization - The situation in an organization where decision-making authority is delegated throughout, rather from a central authoritative group.

Decision node - Decision nodes are shown as squares on a decision tree diagram, this refers to a decision that needs to be made.

Decision trees - A visual management tool, illustrating the likely outcomes arising from various decisions that an organization can pursue.

Declining balance depreciation - A method using a pre-determined fixed percentage to calculate the fall in value of a fixed asset over its useful life.

Deed of Partnership - A legally binding contract that all joint owners of a partnership sign, stating the purpose of the business, the formal rights of the partners, and how any profits should be split.

De-layering - This occurs when an organization removes one or more layers in its hierarchical structure, i.e. the number of layers of management is reduced, or made flatter.

Delegation - The act of line managers entrusting and empowering employees with authority to successfully complete a particular task, project or job role.

Democratic management / Demoractic leadership - The management / leadership style that actively involves the participation of employees in the decision-making process.

Demography - The study of population trends, which has ramifications for human resource planning.

Depreciation - The fall in the value of a fixed asset over time, mainly due to wear and tear (usage) and obsolescence.

Development - The section of R&D that is concerned with adapting existing ideas and products in order to commercialise new products in a financially feasible way.

Differentiated piece rate - Financial payment system advocated by F.W. Taylor to reward workers based on the level of their output or productivity.

Differentiation - The process of distinguishing an organization’s products from those of other firms in the same industry.

Direct costs - Costs that are clearly associated with the output or sale of a certain good, service or business operation, e.g. raw materials.

Direct investment - This involves a business setting up operations in other countries, such as production facilities or distribution services.

Direct mail - The use of postal correspondence for promotional purposes.

Direct marketing - Refers to a business communicating information about its products straight to customers.

Direct tax - A category of tax, imposed on the income, wealth or profit of an individual or organization. Examples include income tax (imposed on wages and salaries, for example) and corporate tax (imposed on the profits of businesses).

Directors - The group of internal stakeholders consisting of senior managers who run a company on behalf of the owners of the company.

Discount rate - The figure used to reduce the future value of money. It is used to establish the present value of cash that is yet to be received by the business.

Dismissal - The employer’s decision to terminate a worker’s employment contract, usually due to the worker’s incompetence and/or a breach of their employment contract.

Distribution (or place) - The marketing process of getting the right products to the right customers in the right place and at the right time.

Distribution channel - Also known as a channel of distribution, this refers to the path taken for a product to get from the producer to the consumer.

Diversification - A growth strategy in the Ansoff matrix, which involves a business launching new products in new markets, such as Honda (motor vehicles) manufacturing lawnmowers and jet planes.

Dogs - Products in the Boston Consulting Group (BCG) Matrix that operate in low growth markets yet have low market share, so are at the end of their product life cycle.

Driving forces - In Lewin's force field analysis, these are the factors that push for or support change in a business organization.

E-commerce - This refers to the buying and selling of goods and services via electronic means, most notably the Internet.

Ecological sustainability - Also known as environmental sustainability, this refers to sustainable use of the planet’s natural resources so that the current level of consumption does not jeopardise the resources available for future generations.

Economic sustainability - Dimension of the triple bottom line that focuses on using resources, both natural and manufactured, efficiently and responsibly.

Economy brands - Goods or services that are perceived by customers to be of low quality and sold at a low price, such as supermarket own-label branded products.

Efficiency - This means using resources more productively, in order to generate more output.

Efficiency ratio - Financial planning and decision-making tool to measure how well the resources of a business are used in order to generate income from the firm’s capital.

Employee participation - This means that workers are given responsibilities and autonomy to do their jobs.

Employee representatives - The individuals or groups of individuals who are elected to act on behalf of their worker members. For example, trade unions represent their members in the negotiation process with employer representatives.

Employee share ownership scheme - Type of financial payment system (financial motivation) that involves giving workers shares in the company they work for, either free of charge or at a discounted price.

Employees - These are the workers within an organization. As internal stakeholders of a business, their interests include: job security, a competitive remuneration package, a safe working environment, and opportunities for career development.

Employer representatives - Refers to a group of individuals or members of an organization that represent the interests of the business in the collective bargaining process.

Empowerment - The delegation of decision-making power to workers, granting them the autonomy and authority to be in charge of their own jobs and to execute their own ideas.

Entrepreneur - A business-minded person who manages, organizes and plans the production process, taking risks with business decision-making.

Entrepreneurship - The knowledge, skills and experiences of individuals who have the capability to manage the overall production process.

Environmental factors - Part of a STEEPLE framework, this refers to the ecological influences which have a direct impact on the operations of a business, e.g. adverse weather, climate change and green technologies.

Equity theory - John Stacey Adams’ theory of motivation suggests that people make social comparisons of fairness in the workplace (based on the ratio of their input (effort) to output (rewards).

Esteem needs - In Abraham Maslow’s hierarchy of needs, this refers to the desire of people to feel respected, having value and having self-respect.

E-tailer - An online business that otherwise operates like a traditional retailer.

Ethical factors - Part of a STEEPLE framework, this refers to external influences concerned with the moral values and beliefs that apply to businesses and how they operate.

Ethical objectives - Organizational goals based on moral guidelines that determine decision-making.

Ethics - These are moral guidelines or codes of practice which govern good organizational behaviour.

Exporting - This method of entering international markets involves a business selling its products to overseas customers without having to physically establish production or distribution facilities abroad.

Extension strategies - Marketing approaches used to prolong or lengthen a product’s life cycle, such as price reductions or new promotional strategies.

External business environment - The (STEEPLE) framework of factors that are beyond the control of any individual organization, but which affect all businesses and their operations in the economy.

External factors - The issues or factors that are beyond the control of the organization, such as employment laws, consumer protection legislation and taxation policies.

External sources of finance - Finance that comes from outside the organization, usually with the help of a third party provider, such as a bank, business angel, venture capitalist or government.

External stakeholders - The stakeholder of a business that are not directly involved in the running of an organization but have a direct interest in its operations.

Extrapolation - A forecasting technique that identifies the trend from using past data and then extending this trend line to predict future sales.

Factors of production - The collective term for the resources used in the production process, i.e. land, labour, capital and entrepreneurship.

Favourable variance - This discrepancy in the budget occurs when profits are higher than expected, due to lower than expected costs and/or higher than predicted revenues.

Final accounts - These are the published accounts of an organization, made available to and used by different stakeholders, such as managers, employees, shareholders, sponsors, financiers and investors.

Finance and accounts - Function of an organization responsible for ensuring that the business has sufficient funds in order to conduct its daily operations.

Financiers - Financial institutions (such as banks) and individual investors who provide source of finance for businesses. They are interested in the organization’s ability to generate profits and to repay debts.

Finished goods - These are the final products of a business, ready to be sold to customers.

First mover advantage (FMA) - the competitive advantage gained by the first firm in an industry to successfully launch a new good or service.

Fishbone diagram - Also known as the cause and effect diagram, this visual tool is used to determine the root cause(s) of a particular problem or issue.

Fixed assets - The long-term assets (possessions) of an organization that have a monetary value and are used repeatedly but are not intended for resale within the next twelve months, e.g. property and equipment.

Fixed costs - Costs that do not change with the level of output, e.g. loan repayments and management salaries.

Flat organization - Also known as a horizontal structure, this type of organizational structure has only a few layers of management.

Flat structure - Type of organizational structure that has few levels in the organizational hierarchy.

Flexitime - A form of flexible work practice that enables employees to work a set number of core hours each week, often at the office during peak periods of the day and/or week.

Flow production - This is a production method whereby different operations are continuously and progressively carried out in sequence, with a very large volume of output.

Focus groups - Small groups of targeted customers with similar characteristics and/or similar interests.

Footloose operations - These businesses do not have to locate in any particular area, i.e. they can choose to locate almost anywhere as there are no cost advantages of any particular location. For example, e-commerce businesses can operate away from prime (and expensive) locations.

For-profit organization - A commercial organization sells goods and/or services in order to earn a profit for its owners / shareholders.

Formative appraisals - Type of appraisal that takes place on a continual basis in order to allow workers to improve their performance and effectiveness.

Franchising - This growth strategy involves international marketers seeking a third party organization (the franchisee) to supply the goods and services of another business (franchisor).

Fringe benefits - Also known as perks, these are financial benefits of a job in excess of the basic pay (wage or salary).

Gantt charts - A visual organizational tool used to show the sequencing and timing of different tasks in a business project.

Gearing ratio - The efficiency ratio that measures the extent to which an organization is financed by external sources of finance (i.e. loan capital as a percentage of the firm’s total capital employed).

Geographic segmentation - The marketing process that involves characterising consumers according to their different geographical locations.

Geographical mobility - The ability and willingness of employees to relocate to another location or country for work reasons.

Globalization - This is the process of the integration and interdependence of the world’s economies, in terms of social, political and economic convergence.

Goods - Physical products, such as food, clothes, furniture, tennis balls, cakes, shoes, cars and smartphones.

Goodwill - The reputation and established networks (know-how) of an organization, which adds to a firm’s monetary value.

Government incentives - Financial motivators offered by the state to businesses to locate in a particular area or regions, perhaps due to high unemployment. Examples of such incentives include: grants, subsidies, tax allowances and interest-free loans.

Government publications - These are official documents released by governments and government agencies, often used for market research purposes.

Grants - Type of financial aid for businesses, paid as a lump sum from the government, which does not need to be repaid.

Gratuity pay - Financial reward for long-term service or for the completion of a fixed-term contract.

Gross profit margin (GPM) - A profitability ratio that measures an organization’s gross profit expressed as a percentage of its sales revenue. It is also an indicator of how well a business can manage its direct costs of production.

Guerrilla marketing - The use of unconventional but innovative promotional strategies that make a major impact but at a fraction of cost of traditional above the line (ATL) promotional methods.

Indirect costs - Also known as overhead costs, these costs are not easily identifiable with the sale or output of a specific good, service or business operation.

Indirect tax - A category of tax, applicable on the sale of goods and services, such as value-added-tax (VAT), goods and service tax (GST) and excise duties.

Induction - Type of training intended for new employees in order to help them acclimatise with the people, policies and processes of the organization.

Industrial democracy - This refers to the involvement of employees in the decision-making process, as their views are important in considering the strategic direction of the organization.

Industrial inertia - This exists when a business chooses to remain in the same location although there are no cost advantages in doing so.

Infrastructure - Refers to the physical and organizational structures and systems necessary for society to function, such as transportation facilities, motorways (highways), road networks, and communications networks.

Initial public offering (IPO) - Finance raised by a public limited company when it issues (sells) shares for the very first time on a stock exchange.

Insourcing - This refers to the use of an organization’s own resources in order to fulfil a specific job, function or project instead of it being outsourced to a third party provider.

Intangible assets - Non-physical fixed assets that are valuable to a firm’s survival and success, such as brand value, copyrights, trademarks and patents.

Intellectual property rights - Abbreviated as IPRs, these are a firm's fixed, intangible assets with a monetary value, comprised of goodwill, patents, copyrights and trademarks.

Internal sources of finance - Finance that come from within the organization, from its own resources and assets without the help of a third party provider.

International marketing - This refers to the marketing of an organization’s goods and services in overseas markets.

Innovation - Concept referring to the process of creating a product (good or service) that is new, better and of commercial value.

Innovative creativity - Refers to innovation that involves creating entirely new products and/or processes.

Intermediary - A third-party person or business that offers distribution services as part of a channel of distribution, such as agents, wholesalers and retailers.

Internal factors - The issues or features that are within the control of the organization, e.g. staff remuneration and approaches to training.

Internal stakeholders - These stakeholders are part of the organization. Examples include employees, managers, directors and shareholders.

Interviews - Method of market research that involves dialogue between the interviewer (the market researcher) and the interviewees (respondents to the market research).

Intrapreneurship - Describes the traits of individuals who work for an organization (so are not self-employed) but act as entrepreneurs.

Invention - Part of the process of innovation that involves creating a product that is completely new to the market.

Investment - Capital expenditure with the intention of a financial return on this spending at some point in the future.

Investment appraisal - The formal process of quantifying the financial risks of an investment decision, in order to establish whether the expenditure can be justified from a financial perspective.

Iteration - Part of the process of innovation that involves creating a change/improvement in a product that already exists.

Job analysis - The process of examining what a particular job involves, thereby enabling the HR department to determine the roles, tasks, duties, responsibilities and skills required to do the job.

Job description - Formal document containing the particulars of a job, e.g. the job title, roles and responsibilities, and other duties.

Job enlargement - A type of non-financial motivation that takes place when more tasks or activities are added to a worker’s job description.

Job enrichment - Type of non-financial reward, involving enhancing the experiences of workers, giving workers a wide range of challenging tasks and more responsibility at work.

Job evaluation - An appraisal of the value of a job in relation to other jobs in the organization, so that the remuneration and other rewards can be determined in an objective, transparent and fair manner.

Job production - Production method suitable for making special one-of-a-kind orders.

Job rotation - Type of non-financial motivation that involves workers switching between jobs (tasks) for a period of time.

Job security - The assurance given to employees that they will keep their current job for the foreseeable future, usually stated in an employment contract.

Joint venture - International marketers use this method to sell their products in overseas markets by two or more parent companies forming a new business entity in its own legal right.

Just-in-case (JIC) - This is a stock control system that requires businesses to have large quantities of stock, in the event that it is needed for an unexpected order or in case there is a problem with the supply chain.

Just-in-time (JIT) - This is a lean method of stock control whereby materials and components are scheduled to arrive precisely when they are needed in the production process.

Labour-intensive - When an organization relies on labourers to produce its output, rather than machinery or capital equipment.

Labour mobility - Measures the extent to which workers have the ability and willingness to move between geographical locations and/or occupations for their employment.

Labour productivity - This measures the average level of output per worker, for a given period of time.

Labour turnover - The amount of people who leave an organization, expressed as a percentage of the workforce, per time period (usually one year).

Laissez-faire leadership - A hands-off approach to leadership by devolving decision-making power to the workforce.

Lead time - The timeframe (or time lag) from when a firm places an order for stock and it receiving delivery of the stock.

Leadership - The art of inspiring and motivating other people towards achieving a common organizational aim or vision.

Leadership style - Refers to the way in which managers and leaders provide direction for others.

Lean production - This is a philosophy, approach or organizational culture about streamlining production processes in order to increase efficiency and reduce waste.

Leasing - This financial service enables businesses to have access to fixed assets, by hiring these assets, but without the high costs of capital expenditure.

Legal constraints - These rules and regulations of a country set the permissible parameters that international marketers can operate within, such as consumer protection laws.

Levels of hierarchy - The number of layers of formal authority in an organization. It is represented in an organizational chart.

Liabilities - The debts of a business, i.e. the money owed to others, such as money owed to financiers, trade creditors, and the government (for tax).

Limited liability - This legal status of a business enables its shareholders (business owners) not to be liable for more than the original amount of money invested in the business.

Limited partnership - This is a special type of partnership where some partners contribute capital and enjoy a share of the profits but do not participate in the running of the business. At least one partner must still have unlimited liability.

Line manager - The person directly above an employee in a firm's organizational chart / organizational structure.

Line graphs - Method of visual presentation of data, used to show time-series data, i.e. changes in variables over time.

Liquidity problem - Also known as a cash flow problem, this issue occurs when there is a lack of cash in the organization because its cash inflows are less than its cash outflows, i.e. it experiences negative net cash flow.

Liquidity ratios - Financial ratios that examine an organization’s ability to pay its liabilities and debts.

Loan capital - Also known as debt capital, this refers to borrowed funds from financial lenders, such as commercial banks.

Local community - As an external stakeholder group, this refers to the general public and local businesses that have a direct interest in the activities of the organization. The local community is interested in the firm’s ability to create jobs and to operate in a socially responsible way.

Lock-out - This occurs when, during an industrial dispute, employers shut out their employees. Locks may be changed and/or added security is used to prevent employees from entering the workplace.

Long-term finance - Refers to sources of finance of more than five years, for the purchase of long-term fixed assets or to fund the growth of a business in overseas markets.

Loss - This occurs when a firm’s total costs are greater than its total revenues, i.e. the business is unprofitable.

Loss leader pricing - Pricing a product below its cost of production so as to attract customers to also buy other items (with a higher profit margin).

Make or buy decision - The choice of managers whether to manufacture a product in-house (make) or to purchase it (buy) from a third-party subcontractor.

Management - The art of getting things done through others by setting clear objectives and organising organizational resources.

Managers - The people hired to be responsible for overseeing certain functions, operations or departments within an organization.

Margin of safety (or safety margin) - The numerical difference between how much a business sells and its break-even quantity.

Mark-up (or the profit margin) - The difference between the price and the cost per unit.

Market - The collective term for the buyers and sellers of a particular product.

Market development - A growth strategy in the Ansoff matrix which focuses on using customer loyalty to persuade them (and prospective customers) to buy a new product.

Market growth - The increase in the size of a market. It is usually expressed as the percentage increase in the market size over a given period of time.

Market leader - Refers to the firm with the largest market share in the industry.

Market orientation (or market oriented) - An approach to marketing that focuses on meeting the specific demands (desires and needs) of customers and potential customers.

Market penetration - A growth strategy in the Ansoff matrix that focuses on developing existing markets with existing products to increase sales revenue and market share.

Market segment - A distinct group of customers with similar characteristics, tastes and preferences.

Market share - A measure of the size of a business in comparison to others in the same industry, by calculating its proportion of the total value of sales revenue in the industry.

Market size - The number of people in a certain market who are potential customers of a product or service.

Marketing - Function of identifying the needs and wants of customers so that the business can provide goods and services to meet these requirements and desires, usually in a profitable way.

Marketing mix - The key elements of a marketing strategy to ensure its success in meeting the needs and wants of the organization’s customers and the firm’s marketing objectives.

Marketing objectives - The targets of the marketing department within an organization, in order to help achieve the overall goals of the business.

Marketing plan - A document that shows the marketing objectives and marketing strategy of a particular business.

Marketing planning - The structured process of formulating marketing objectives and appropriate marketing strategies to achieve these goals.

Market research - Refers to the range of marketing activities designed to determine the opinions, beliefs and feelings of existing and potential customers.

Marketing strategies - The different long-term actions used by an organization to achieve its marketing goals.

Mass markets - Industries that buy and sell mass markets products, catering for a broad range of target markets, such as the markets for bottled water or breakfast cereal.

Mass / flow / process production - Production method whereby different operations are continuously and progressively carried out in sequence, with a very large volume of standardized products.

Maximum stock level - The most amount of stock that a firm wants to hold at any point in time, given its storage facilities and capacity.

Mean (average) - The most common measure of the average in a data set, by calculating the sum of all the numbers in the data set divided by the number of items in that data set.

Media articles - Professional documents or articles in print or online media, often used for secondary market research purposes. Unlike academic journals, media articles are written by trained journalists and authors, rather than by academics at university.

Median (average) - The average based on the middle value of the data set, which splits values in the higher half from those in the lower half.

Medium-term finance - Refers to all sources of finance of one to five years in duration. The finance is used mainly to pay for fixed assets, i.e. capital expenditure.

Mentoring - The training process of pairing, or attaching, an employee (the trainee or mentee) with a more experienced colleague (the mentor) who acts as a coach, trainer or advisor.

Merchandise - Form of promotional strategy that refers to a retailer’s range of goods that are available for sale.

Microfinance providers - Financial organizations that advance very small amounts of money to entrepreneurs of small businesses, especially females and those on low incomes.

Migrant workers - People who move to other countries in search of better job opportunities, which can have ramifications for a firm's workforce planning.

Mission statement - A succinct and motivating declaration of an organization’s purpose of existence, who they are, and what they do.

Modal - The average as measured by the number or value that occurs most frequently in a data set.

Motivation - The intrinsic desire to do something, which exists when workers do something because they actually want to, rather than because they have to.

Motivators - Also known as growth factors, these factors address the higher level needs in Frederick Herzberg’s motivation theory and are based around the job itself, e.g. achievement, purpose and responsibility.

Moving average - A mathematical method used to discover the underlying trend in a data set by smoothing out such variations in a data set.

National minimum wage (NMW) - The lowest hourly pay, as stipulated by the law, that employers can remunerate their workers.

Net assets - Refers to the overall value of an organization’s assets after all its liabilities are deducted. It is calculated by the formula: total assets less current liabilities less long-term liabilities.

Net cash flow (NCF) - The numerical difference between an organization’s total cash inflows and its total cash outflows, per time period. The formula to calculate this is: Cash inflows – Cash outflows.

Net current assets (NCA) - Also known as working capital, this is shown on a balance sheet to reveal the liquidity position of a business, this is found by using the formula: Current assets – Current liabilities.

Net present value (NPV) - A method of investment appraisal that calculates the real value (rather than the absolute value) of an investment project by discounting (adjusting) the actual value of money received in the future.

Net profit - The financial surplus that remains after a firm deducts expenses (fixed costs) from its gross profit.

Net profit margin (NPM) - A profitability ratio that measures a firm’s overall profit (after all costs of production have been deducted) as a percentage of its sales revenue. It is also an indicator of how well a business can manage its indirect costs (overhead expenses).

Niche markets - Industries that buy and sell highly specialised products to cater for a small and select target market, e.g. snowboarders.

No-strike agreement - This is a promise from the employee representatives that its members will use resort to strike action as a method of industrial action.

Non-governmental organizations (NGOs) - A type of non-profit organization (NPO) operating in the private sector of the economy for the benefit of others in society (rather than for shareholders).

Non-profit organization (NPO) - A business that does not primarily aim to earn a profit but to serve a purpose beyond the organization itself, for the betterment society as a whole.

Non-sampling error - When an inappropriate sampling methodology is used, i.e. mistakes not attributed to human errors in market research design.

Objectives - These are the clearly defined targets of a business in order to achieve its aims. They are often based on the SMART acronym – specific, measurable, agreed, realistic and time specific.

Observations - A form of primary market research that involve researchers watching, monitoring and recording how customers behave or react to certain situations.

Occupational mobility - The ability and willingness of employees to do another job or pursue a different career, which can have ramifications for a firm's workforce planning.

Off the job training - Type of training led by external specialists and takes place away from the place of work.

Offshoring - This activity happens when an organization relocates some of its operations overseas, usually due to cost advantages.

On the job training - Type of training that takes place within the organization, so employee are performing tasks at the place of work.

One-channel distribution network - This method of distribution involves the use of a single intermediary, such as an agent or retailers.

Opening balance - Found in a cash flow forecast, this refers to the value of cash held by a business at the start of a trading period (usually the beginning of the month).

Operational implications - This refers to the daily operations of a business, such as monitoring of exchange rates and conducting market research in order to remain competitive.

Operations (or operations management) - The process of making goods and providing services from the available resources of a business to meet the needs and wants of its customers.

Opportunities - These are factors in the external business environment or a SWOT analysis that create prospects or openings for a firm’s growth and development.

Organization by function - Structuring a workforce according to business functions, i.e. specialised roles or tasks.

Organization by product - Structuring a workforce according to the goods or services sold. Each department focuses on a different product within the organization’s overall product portfolio.

Organization by region - Structuring a workforce according to different geographical areas based on where the firm’s operations are.

Organizational chart - A diagrammatic representation of an organization’s formal organizational structure.

Organizational structure - The formal interrelationships and hierarchical arrangements within a firm.

Outsourced workers - Also known as outsourced vendors or the contractual fringe, these are the individuals or other organizations hired on a contract basis to carry out a specific but non-core role in Charles Handy’s Shamrock organization.

Outsourcing - Also known as subcontracting, this is the use of external (third-party) personnel for certain non-core business operations in order to improve operational efficiency and reduce production costs.

Overdraft - A banking service that enables customers (personal and business customers) to withdraw more money from their account than exists in the account.

Overtime ban - This form of industrial action involves the directive from employee representatives to their members to refuse working beyond their contracted hours.

Packaging - As part of a firm's product strategy, this is the art of presenting a product in an advantageous way.

Paradigm innovation - Type of innovation that involves R&D focusing on radical innovation that has the capability of changing the nature of a market.

Partnership - A business alliance consisting of between 2 and 20 individual owners who are jointly responsible for the business (although this number can vary between countries).

Patents - The official rights given to a business to exploit an invention or process for commercial purposes.

Paternalistic management / Paternalistic leadership - The management / leadership style that involves treating workers as family members, so managers make decisions believed to be in the best interest of the workforce.

Payback period (PBP) - The investment appraisal method that considers the time it takes for the amount of money invested in a project to be repaid using the proceeds generated from the investment.

People - The employees who deliver the customer service element of the extended marketing mix.

Penetration pricing - Setting a low price in order to enter an industry, which allows the firm to compete against existing firms and to gain market share.

Performance-related pay (PRP) - Type of financial payment system used to pay people a bonus for reaching or exceeding a set target.

Peripheral workers - According to Charles Handy, these are the contingent workers, consisting of part-time and temporary staff hired by the organization.

Person culture - One of Charles Handy’s types of culture, where people regard themselves or their skills set as being more important than the organization itself.

Person specification - Document containing details of the attributes and qualities of the ideal person for a particular job, such as preferred qualifications, experiences, knowledge, skills, and personality.

Personal funds - Internal source of finance, with entrepreneurs using their own savings, usually to finance their start-up business.

Personal selling - The use of sales personnel to sell goods and services with customers on a face-to-face basis.

Physical evidence - The observable and tangible aspects of a service in the extended marketing mix, e.g. in a hotel, this could include the lighting, ambience, cleanliness, aroma, presentation of hotel staff, and the physical size of the building.

Physiological needs - Also known as basic needs, these are the requirements for human survival in Abraham Maslow’s hierarchy of needs.

Pie charts - Method of visual presentation of data, used to show percentages, such as the percentage of participants who chose a particular option in a market research survey.

Piece rate payment systems - Financial reward that pays workers based on their output or productivity, e.g. $8 per unit of output.

Place - Distribution channels that enable customers to conveniently buy the product, such as wholesalers, retailers, agents or vending machines.

Point of sale (POS) - The promotion of products in retail outlets where customers can buy the goods.

Political factors - Influences from the role that governments play in business operations, such as tax laws and rules or restrictions on international trade.

Population - Refers to all members of a particular group or market, for market research purposes.

Position innovation - Type of innovation that involves R&D focusing on altering customer perceptions of a brand or product.

Power culture - One of Charles Handy’s types of culture, where an individual (such as the founder or a figurehead), or a small group of senior staff, makes decisions for the organization.

Predatory pricing - A strategy that involves charging a low price, sometimes even below the cost, so as to damage the sales of rivals.

Premium products - Goods or services that are perceived by customers to be of high quality and high price.

Pressure groups - Individuals who come together or organizations that are set up for a common concern. They aim to influence government and public opinion in order to create the desired social change.

Price - Also known as average revenue (AR), this is the amount of money a product is sold for. Pricing decisions, as part of the marketing mix, must entice customers yet allow the business to be profitable. It presents the value of a good or service that is paid by the customer.

Price discrimination - Involves a business charging different prices to different market segments for basically the same good or service, e.g. adult and child fares at the cinema, theme park or concert.

Price leadership - A strategy of following the price set by the dominant firm in the industry (the firm with the largest market share).

Price transparency - The openness in communications about the different prices being charged by different online businesses.

Primary research (or field research) - The process of conducting market research to collect new (original) data to gain more insight into the issue being investigated, such as questionnaires, interviews, observations and focus groups.

Primary sector - Business activity involved with the extraction of natural resources, e.g. fishing, mining and agriculture.

Private sector - This section of the economy is made up of businesses that are owned by individuals or groups of individuals, rather than by the government.

Process - As part of the extended marketing mix (for services) this refers to the way that a service is provided, such as the various methods of payment that customers can use, or the queuing system used by the business.

Process innovation - Type of innovation that involves R&D focusing on developing new methods of production (or work practises) or product delivery.

Product - A tangible good or an intangible service that satisfies the needs or wants of the customer.

Product development - This growth strategy in the Ansoff matrix that involves introducing new products to existing customers by developing or replacing current products.

Product life cycle (PLC) - Marketing theory showing the different stages that most products go through from their research and development (R&D) stage to their final removal from the market.

Product orientation (or product oriented) - An approach to marketing that focuses on making products a business knows how to make well, rather than primarily concentrating on the needs and desires of potential customers.

Product position map - Also known as a perception map, this is a graphical illustration of customer perceptions of a business, its products, and/or brands in comparison to other firms in the industry.

Production - The process of creating goods and/or services using the factors of production available to the business.

Productive capacity - The maximum level that a firm is able to operate at, given the resources it has.

Productivity - Refers to the level of efficiency in the production process. The more productive resources are, the more output they generate.

Professional core - According to Charles Handy, these are the core workers consisting of full-time specialists who are vital for the organization’s operations and survival.

Profit - The financial surplus that remains when a firm's total costs (TC) of production are deducted from its total sales revenues (TR). Hence, profit = TR – TC.

Profit centre - A section or division of a business that has responsibility for both costs and revenues generated within the department. It is held accountable for the amount of profit generated.

Profit-related pay - Type of financial reward system which remunerates workers a certain percentage of the annual profits that the business earns.

Project-based organization - Also known as a matrix structure, this flexible organizational structure is based on the specific needs of a particular short-term or temporary project.

Promotion (HRM) - The career advancement of an employee in terms of their hierarchical ranking and professional responsibilities.

Promotion (Marketing) - Aspect of the traditional marketing mix that is focused on communicating relevant product information to inform and persuade customers to buy the good or service.

Promotional mix - The range of above and below the line methods used to promote a product as part of a larger marketing mix.

Prototype - A test (or trial) version of a product to determine whether it addresses the unmet needs of customers, thereby gauging the chances of commercial success.

Psychological pricing - Uses numbers and decimals in such a way to make the price seem (artificially or psychologically) lower, e.g. $9.95 instead of $10.

Psychographic segmentation - Segmentation that involves characterising consumers according to people’s lifestyle choices and personal values.

Public limited company (PLC) - A joint-stock company owned by shareholders. The shares in a PLC can be bought and sold by the general public, without prior approval of existing owners.

Public-private partnerships - These are organizations jointly stablished by the government and a private sector business(es) in order to provide certain goods or services.

Public relations - The management function overseeing public attitudes and opinions of an organization to gain public understanding, trust, and support.

Public sector - Businesses in this section of the economy are run and owned by the government in order to provide essential services for society as a whole, e.g. education and healthcare services.

Purpose - An intrinsic, non-financial type of motivation involving people doing genuinely meaningful work, making a difference on a personal, professional or social level.

Qualitative research - A category of market research based on the opinions of participants. It creates detailed and non-numerical information.

Quality - This means that a product is fit for purpose, i.e. the good or service meets or exceeds the needs of its customers.

Quality assurance (QA) - This is a lean approach to quality management as it involves all employees in the quality process.

Quality circles - Small groups of employees who meet on a regular basis to discuss quality issues and make recommendations to improve quality standards.

Quality control (QC) - The most traditional form of quality management in which a supervisor or inspector periodically checks and examines output for possible defects, usually at the end of the production process.

Quaternary sector - Business activity involving the creation or sharing of knowledge and information.

Quantitative research - A category of market research based on gathering facts and figures, i.e. quantifiable data.

Question marks (or problem child) - Products in the Boston Consulting Group (BCG) Matrix that have low market share in a high growth market.

A quota refers to a quantitative restriction on imports. As a form of trade restriction, it is used to limit the number of a particular product that can be imported into the country.

Quota sampling - A form of sampling in which the researcher selects a certain number of people from each market segment and then grouped according to characteristics (such as age or gender).

Random sampling - A sampling method that selects anyone in the population for market research, allowing all respondents the same equal chance of being selected.

Random variations - Irregular, erratic or unexpected fluctuations in sales revenues, caused by unexpected and unpredictable factors.

Range - The difference between the highest and the lowest values in a data set.

Ratio analysis - A quantitative management planning and decision-making tool, used to analyse and evaluate the financial performance of a business. These can be further categorised as profitability, liquidity and efficiency ratio analysis.

Raw materials - Natural resources used in the production process, e.g. wood, fish, physical land, and water.

Recession - Phase in the business cycle that occurs when there is a decline in the level of economic activity (GDP) for at least half a year.

Recruitment - The process of hiring a suitable worker. This would typically involve a thorough job analysis in order to attract suitable candidates and then to selecting (hiring) the one(s) most suited to the job.

Recruitment process - A major and vital aspect of human resource management, this refers to the procedures involved in the hiring of the right employees, with the right aptitudes and attitudes.

Redundancy - Also known as layoffs, these occur when an organization no longer has a job for the employer or when the employer can no longer afford to hire the employee, i.e. the job ceases to exist.

Remuneration - The overall financial package of a person, e.g. salaries, commission, profit-related pay, performance-related pay, share ownership schemes, and fringe benefits.

Reorder level - The level of inventory when a firm is required to reorder its stock.

Reorder quantity - The amount of new stock that is ordered for production.

Research - The section of R&D that is concerned with the creation of new ideas and new products.

Research and development (R&D) - The process of creating new products (goods and services) and processes (how things are down), in order to meet market needs.

Residual value - Also known as the scrap value, this is the value of a fixed asset at the end of its useful life, before it is replaced.

Restraining forces - These are the are the factors that act against or obstruct change in a business organization.

Retailers - These are commercial businesses that sell a manufacturer’s products directly to consumers.

Retained profit - Also known as ploughed-back profit, this is the surplus funds that are reinvested back in the business, rather than being distributed to the owners.

Retention - The opposite of labour turnover, this measures the ability of an organization to keep its employees at the firm.

Return on capital employed (ROCE) - A profitability ratio that measures a firm’s efficiency and profitability in relation to its size (as measured by the value of the organization’s capital employed).

Revenue - The money (income) received by a business from the sale of goods and/or services.

Revenue expenditure - Refers to business spending on its everyday and regular operations, e.g. spending on wages, raw materials and bills.

Role culture - One of Charles Handy’s types of culture, where operations and organizational norms are underpinned by formal and hierarchical structures, and clear policies and procedures.

Safety needs - Also known as security needs, these are the requirements in Abraham Maslow’s hierarchy of needs that make people feel safe, such as job security.

Salary - Type of financial payment that rewards workers a fixed annual amount of money, but paid in monthly instalments.

Sales forecasting - A quantitative technique used to predict a firm’s level of sales revenue over a given time period.

Sales promotion - A short term promotional tactic used to entice customers to buy a certain product.

Sales revenue - The value of goods and/or services sold to customers. It is calculated using the formula: Price × Quantity.

Sample - The proportion or subgroup of the population selected for market research purposes.

Sampling error - When a researcher inappropriately designs market research, resulting in bias and unrepresentative results.

Scatter diagrams - Method of visual presentation of data, used to show possible correlations between two variables (such as consumer income and expenditure levels) from market research findings.

Scientific Management - F.W. Taylor’s theory of motivation, that people are, above all things, motivated by higher wages. Hence, there is one best way to motivate these employees.

Seasonal variations - Foreseeable periodic fluctuations in sales revenues over a known period of time, such as certain months or times of the year.

Secondary research - Also known as desk research, this refers to the collection of data and information that has already been collected by another source, i.e. the data or information already exists.  Examples include gathering sources from trade journals, specialist magazines, newspapers and government statistics.

Secondary sector - Business activity involved with the manufacturing or construction of finished products.

Self-actualisation - This is the highest level of needs in Maslow’s hierarchy of needs, which occurs when people become the very best that they can be and fulfil their potential.

Self-appraisal - A type of appraisal system that involves the individual employee reflecting on and rating his/her own performance against the pre-agreed standards.

Self-interest - This occurs when employees place their own interests above those of the organization.

Semi-finished goods - Inventory consisting of work-in-progress, i.e. components of an incomplete product.

Semi-variable costs - Costs that have a fixed and variable features, e.g. power and electricity or salaried staff who also earn commission.

Services - Intangible products, such as haircuts, tourism, public transport, banking, insurance, public transportation, education, and healthcare.

Shamrock organization - Type of flexible organizational structure, coined by Charles Handy, advocating that organizations must adapt to changes in the business environment by having a core workforce, contingent workforce and outsourced vendors.

Share capital - Also known as equity capital, this is finance raised through the issuing of shares via a stock exchange (or stock market).

Shareholders - The people or organizations that have shares in a company. Their interest is financial, i.e. regular dividends and a higher share price.

Share issue - The process involving a public limited company selling additional shares in order to raise finance.

Shortlisting - The process of employers selecting the most suitable applicants and inviting them for a job interview.

Short-term finance - Refers to sources of finance needed for the day-to-day running of the business, i.e. revenue expenditure.

Short-term loans - Advances (borrowed funds) from a financial lender, such as a bank, repayable within 12 months.

Single-union agreement - The arrangement whereby the employer’s representative conducts negotiations with one main trade union, rather than several subordinate ones.

Situational leadership - Leadership style that requires leaders to change and adapt their approach in response to different situations and circumstances.

Skimming (or price skimming) - The pricing strategy that sets a high price during the introductory (launch) of a new and original product, with gradual price reductions as rival products enter the market.

Sleeping partner (or silent partner) - This is an investor in a partnership but who does not get involved in the daily running and management of the organization.

Slowdown - Also known as a go-slow, this occurs when employees deliberately work at the slowest pace allowable, in order to minimise efficiency and productivity.

Social marketing - Marketing activities that aim to influence or change people’s attitudes and behaviour for the good of society as a whole, rather than primarily to make a profit.

Social needs - Also known as love and belonging needs, this refers to the requirements in Abraham Maslow’s hierarchy of needs about being accepted by others.

Social sustainability - Dimension of the triple bottom line that focuses on the extent to which an organization or economy can meet the needs of the current population without jeopardising the needs of future populations.

SMART objectives - Peter Drucker’s framework for setting organization objectives, which should be specific, measurable, agreed (or achievable), realistic (or relevant), and time bound.

Snowballing - Sampling method that relies on participants referring or recommending further subjects to take part in the market research.

Social enterprises - These organizations are revenue-generating businesses with community (social) objectives at the core of their operations in order to benefit the general public, rather than private shareholders.

Social factors - Influences related to people, their lifestyles and their beliefs (or values).

Social media marketing (SMM) - The use of online content that users can upload to a website using a suitable medium, such as a blog, podcast, video or image.

Social networking - This refers to the use of internet based websites, platforms and apps to share online content by building online communities.

Sole trader (or sole proprietor) - An organization which is owned by a single entrepreneur who has exclusive responsibility for the running of the business.

Span of control - Refers to how many workers are directly accountable to (or under the authority of) a particular line manager.

Speed - One of the factors that affects the effectiveness of crisis management, about making prompt decisions and actions in order to return to the business to its normal operations as soon as possible.

Spokesperson - A representative of the organization appointed to handle the communications with key stakeholder groups should a crisis occur.

Sponsorship - A promotional strategy that involves a business providing financial support to another organization or event in return for marketing exposure.

Stakeholders - The individuals, organizations or groups with a vested interest in the actions and outcomes of a specific organization. They are directly affected by the performance of the business.

Stars - Products in the Boston Consulting Group (BCG) Matrix with high or rising market share in a high growth market.

STEEPLE analysis - A management tool used to analyse the factors in the external business environment that impact on business operations, i.e. social, technological, economic, ethical, political, legal, and environmental factors.

Stock control chart - A visual tool used to monitor and analyse a firm’s stock levels. It shows the rate at which stocks are used, when stocks are order, how long they take to be distributed, and when they are delivered.

Stock exchange - This is any marketplace where the general public and other companies can buy and/or sell shares.

Stock-out - This occurs when a business has no more stock for production or sale, i.e. it is out of stock.

Stockpiling - This occurs if a business orders more stock than it would usually do, perhaps in anticipation of higher levels of demand during economically prosperous times, such as peak trading periods.

Stock turnover ratio - The efficiency ratio that measures the number of days it takes a business to sell its stock (inventory). The ratio can also show the number of times during any given period of time (usually a year) that the business restocks or replaces its inventory.

Stocks - Also known as inventories, these are the goods that a business has available for sale, per time period. They are intended to be sold as quickly as possible, to generate cash for the business.

Straight line depreciation - A method of depreciation that spreads the depreciation of a fixed asset evenly over its useful life, i.e. the value of the asset falls by the same amount each year.

Strategic alliance - This method is used by international marketers to sell their products in overseas markets by using partner firms in other countries, working in collaboration on a specific project.

Strategic implications - This refer to the longer term operations of a business, e.g. the formation of a strategic alliance or joint venture as part of an international marketing strategy.

Strategy - Strategies are the ways in which a business plans to reach its long-term organizational aims.

Stratified sampling - A sampling method where the population is segmented into various strata (layers of sub-groups) that share similar characteristics – rather like with quota sampling.

Strike action - This extreme form of industrial involves an outright refusal by employees to work, for a certain time period, thereby preventing the organization from continuing to operate. The aim is to pressure the employer to meet the workers’ demands.

Subcontractors - These outsourced firms perform non-core activities for an organization. They are used for their expertise and the cost advantages they bring.

Subsidies - Form of government assistance, provided to encourage firms to increase their output of certain goods or services, which are deemed to be beneficial for society as a whole.

Summative appraisals - Type of appraisal conducted periodically or at the end of a task or project, so includes an element of making a judgment about whether the appraisee has passed the agreed standards.

Sunrise industry - A rising (growing) industry as there is significant growth potential in the market, so R&D expenditure is justified.

Sunset industry - A declining industry as there is no or negative growth in the market, so R&D expenditure is minimal or withdrawn.

Suppliers - As an external stakeholder group, these are rganizations that provide the goods and support services for other businesses. Their interests include receiving regular orders and receiving payments from their business customers on time.

Supply chain management (SCM) - The art of managing and controlling the sequence of activities from the production of a product to it being delivered to the final customer.

Survey - A data collection tool used to gather primary market research about individuals or their opinions, using a series of standardised questions.

Sustainability - The ability of an organization or an economy to continue its business activities indefinitely, without jeopardising opportunities for future generations.

SWOT analysis - A strategic analysis tool that allows managers to assess the current situation facing an organization, including both internal factors and the external business environments.

Tactic - The short-term methods, often on a daily basis, used to implement business strategy.

Tall organization - Also known as a vertical structure, this type of organizational structure has many layers in the organizational hierarchy.

Tall structure - Type of organizational structure that has many levels of hierarchy, so the span of control is likely to be narrow.

Target markets - The group or groups of customers that businesses aim their products at, e.g. females, children, high-income earners or a particular ethnic group of customers.

Target price - This is the amount customers need to pay per unit in order for the firm to break-even or to reach a particular target profit.

Target profit - This is the amount of profit that a firm aims to earn within a given time period.

Target profit output - Also known as the target profit quantity, this refers to the quantity of sales required to reach the firm’s target profit.

Targeting - The marketing practice of creating and using an appropriate marketing mix and marketing strategies to cater for different market segments.

Tariff - An import tax placed on certain goods coming into the country from overseas, thereby raising the price of the imported product and giving domestic producers a relative competitive advantage.

Task culture - One of Charles Handy’s types of culture, involving teams of experts who are empowered to complete a project or tackle a problem with their particular skills.

Tax - Payment made to the government if the business earns profit after all costs and expenses have been paid.

Teamwork - A form of non-financial motivation, involving the combined efforts of a group of workers to achieve of an organizational goal.

Telemarketing - The use of telephone systems to sell products directly to the potential customers, such as insurance, movie tickets or package holidays.

Teleworking - Flexible working practice that involves employees being away from the office as they rely on the use of telecommunications technologies, e.g. internet and mobile technologies.

Tertiary sector -  Business activity that involves providing services to customers, i.e. consumers and business clients.

Threats - These are the external factors in a SWOT analysis that create challenges for an organization wishing to expand in overseas markets.

Three-channel distribution network - This type of distribution channel uses three intermediaries. It often involves an agent who sells the goods to wholesalers on behalf of the producer. In turn, wholesalers sell to retailers.

Time-based payment systems - Financial reward system that pays workers based on their time input in the production process, e.g. $10 per hour.

Time series analysis - A statistical technique used to identify trends in historical data, such as the figures for a firm’s monthly sales revenues.

Total costs (TC) - This refers to the aggregate amount of money spent on the output of a business. The formula is: TC = TFC + TVC.

Total quality management (TQM) - An approach to quality management that involves all workers having responsibility for maintaining quality standards throughout the production process.

Total revenue (TR) - This is the sum of income received by a business from its trading activities. It is calculated using the formula: TR = P × Q.

Trade credit - Financial service that enables a business customer to purchase and obtain goods and services but to pay for these at a later date.

Trade creditors - Suppliers may give trade credit, which needs to be repaid at a future date (typically 30 to 60 days).

Trade fair - Promotional event where specialist firms exhibit their products for sale to potential customers.

Trademarks - A form of intellectual property, the value of which gives the listed owner the legal and exclusive commercial use of the registered brands, logos, and/or slogans ( corporate catchphrases).

Trade union - Also known as a labour union, this form of employee representative is set up to serve and protect the interests of its worker members. Its primary role is to uphold and improve the welfare of its members.

Training - This is the provision of work-related education, either on-the-job or off-the-job.

Transparency - One of the factors that affects the effectiveness of crisis management, about being open and honest with all stakeholders during a crisis. It is about disclosing the truth, such as the scale or severity of the crisis.

Triple bottom line - John Elkington’s notion of three pillars (aspects) of sustainability that businesses need to consider: social, ecological and economic sustainability (or people, planet and profits).

Two-channel distribution network - This method of distribution involves the use of two intermediaries, usually wholesalers and retailers.

Unique selling point (USP) - An exclusive feature or aspect of a business, its products or brands that makes it distinct from others in the same industry.

Unlimited liability - This means the owner(s) of a business (such as a sole trader or partner) is personally liable for any business debts, even if this requires the debts to be settled by selling off personal assets.

Usage rate - On a stock control chart, this shows the speed (rate) at which stocks are used in the production process.

Value added - The numerical difference between the cost of factor inputs in the production process and the price that the final output is sold for.

Values - The organization’s beliefs and moral standards, which form an essential part of its organizational culture.

Variable costs (VC) - Costs that change with the level of output - they rise when output or sales increase, e.g. raw materials and packaging costs.

Variance - Refers to a discrepancy between the planned (budgeted) item of expenditure or revenue and the actual amount.

Venture capitalists - Financial institutions and investment banks that invest in start-up firms and/or small but expanding businesses with significant growth potential.

Vision - The overall purpose of an organization’s existence, which forms a major element of its corporate culture.

Vision statement - An inspiring declaration of what an organization ultimately strives to be, or to achieve, in the distant future.

Viral marketing - The spread of information about a business, its brands and its goods and services from one Internet user to others.

Wages - Type of financial reward payment system based on time or output. Wages are paid as time rate (hours) or piece rate (output).

Waste - Anything that prevents an organization from being efficient or lean, such as defected products, stockpiling and overproduction.

Wholesalers - These are intermediaries that buy products from a manufacturer and sell these in smaller quantities to retailers.

Workforce planning - Also known as human resource planning, this refers to the ongoing process through which the current and future human resource needs of a business are identified and anticipated.

Work-in-progress - Also referred to as semi-finished goods, these are parts and components used in the production process.

Work-to-rule - The form of industrial action involves all employees being instructed by their representatives to follow all the rules, regulations and policies of the organization, word for word.

Working capital - Also known as net current assets, this refers to the cash or other liquid assets available to an organization for its daily operations, such as paying for raw materials, utility bills and staff wages.

Working capital cycle - The duration between a business paying for its production costs of a good or service and receiving the cash from customers purchasing the product.

Zero-channel distribution network - Also known as direct distribution, this method does not use any intermediaries, i.e. the producer sells directly to the consumer.

Zero defects - An aspect of lean production that focuses on preventing mistakes being made by getting things done right, first time round.