BAM words Unit 1

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• Cooperative Producer or community cooperations, if you are a member you are one of the owners. The end mean is to get benefits from being a member. Meeting the common needs and aspirations of its members.
• Triple bottom line Similar to CSR, some stakeholders are taken into consideration. Looks at the social and environmental or social impact of a company.
• Enterprise Company
• Free-market economy The opposite of planned economy. Everything doesn't have to be owned by the state, private ownership of property and businesses.
• Fiscal policy State budget, handled by the politicians
• Monetary policy Central bank, work with the interest rate.
• Command economy Regulated by the state, planned economy
• Sales turnover Sales * quantity, the amount we sell for. A measurement of performance
• Trading record Past sales
• Start-up Company being started. Can face economical problems, finding investors, creating a brand awareness
• Shareholder value The benefits of being a shareholder, such as dividens, capital gain
• Executive summary Summary towards the CEO, concentrated on the recommendations of what should and has been done.
• Legal personality You are not your company, person and company are separated.
• Social audit When we look at how we affect the social life of our employees, an investigation. E.g customer satisfaction, pollution levels or health & safety records
• Continuity A problem for a sole trader because the company=the person. If the person dies the company doesn't go on.
• Capital goods Goods that are used in production of other goods and services, such as machines.
• Recession More than three months of negative growth in GDP, or very slow growth.
• Opportunity costs The cost of the alternative that was not chosen
• Alienation of workforce When you don't bring in the employees into the decision-making
• Conglomerate diversification Going into a completely new industry that we have no knowledge of
• Internal growth With our own resources
• External growth With other companies, merging or cooperating
• Strategic alliance Loosely knit, you cooperate sometimes
• Protectionism Being against free trade, using barriers to prevent it.
• Consumer goods physical, tangible goods sold to the general public. Both durable and non-durable
• Consumer services Non-tangible products sold to the general public, such as insurance or tourism related services.
• Primary sector Extracting natural resources for production, such as farming and fishing.
• Secondary sector Manufacturing and processing natural resources into products, such as baking, clothing and construction work.
• Tertiary sector Providing services to others, such as transport, retail, banking, tourism and insurances.
• Quarternary sector Providing services connected to IT, such as R&D or consulting
• Entrepreneur Someone who takes the financial risk of starting and managing a new company
• Intrapreneur Someone within a large corporation who takes direct repsonsibility for turning an idea into a profitable concept using "entrapreneurial talents"
• Business plan A written document that describes a business, with its objectives and strategies, its market and financial forecasts.
• Private sector Businesses owned by individuals
• Sole trader a business in which one person provides the permanent financial and thus has full control over the business and the profits
• Partnership Business formed by two or more people to carry on a business together, with shared capital investment and responsibilities
• Share a certificate connfirming part ownership of a company, entitling the owner to dividens and power over decision-making
• Shareholder Individuals or institutons that own shares in a limited company
• Private limited company Ltd Small company owned by shareholders, where shares cannot be issued to the general public
• Public limited company Plc Larger company owned by shareholders, with legal right to sell shares to the general public
• Social enterprise Business with an objective of benefiting society
• Microfinance The provision of very small loans to entrepreneurs
• Non-profit organisation An organisation with an objective other than making profit
• NGO Non-governmental organisation, has a specific aim of e.g. advocating for human rights
• Mission statement A statement of the business's core aims
• Vision statement A statement of what the business wants to achieve long term
• SMART specific, measurable, achieveable, realistic, time specific
• Ethics Moral guidelines that determine decision-making
• Ethical code of conduct A document detailing a company's rules and gudelines on staff behaviour
• Stakeholder People or groups who can be affected by and thus have an interest in any action by an organisation
• CSR Corporate social responsibility, considering the interests of society
• Product development Selling new or developed products in existing market
• Market development Selling existing product in new marjets
• Diversification Selling different goods in new markets
• STEEPLE Social, Technological, economic, environmental, political, legal and ethical factors that impact a business. A framework for analysing the external environmental factors.
• IT information technology, the use of technology to gather, store and process information
• Scale of operation The maximum output from the avaliable inputs
• Economies of scale Decrease in average unit cost from an increase in scale of operations
• Diseconomies of scale An increase in average unit costs when scale of operation is increased
• Merger An agreement between businesses to bring both firms together under a common board
• Takeover, acquisition When one company owns more than 50& of the shares in another and gains control.
• Joint venture Multiple businesses work together on a project using a separate business division
• Strategic alliance Agreement between firms to commit resources to reach a common objective
• Franchise A business that uses the name, logo and trading system of an existing business.
• Globalisation The growing integration of countries through increased freedom of global movement
• Free trade No restrictions or trade barriers between countries
• Multinational business Organisational that has its headquarters in one country whole operating in another

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