Pancyprian TS Bus. Org. key terms

The combination of internal and external conditions - economic, legal, political, social, technological and competitive - that surround a firm and shape the opportunities and threats it faces.

A scanning tool that sorts external influences into political, economic, social and technological categories so managers can judge how far outside forces will affect strategy and demand.

Any individual or group with an interest in what a business does and how it performs, including owners, employees, customers, suppliers, lenders, local residents and government bodies.

A structured summary that matches a firm's internal strengths and weaknesses against external opportunities and threats, used to test whether a proposed strategy fits current conditions.

A business owned and run by one person who keeps all profits but carries unlimited personal liability for the debts and obligations of the firm.

A business formed by two or more owners who share capital, profits and decision-making under a partnership agreement, usually with unlimited liability unless a limited-partnership form is used.

A business that is a separate legal entity from its owners, so shareholders' liability is normally capped at the amount of capital they subscribed.

The legal principle that an owner's financial exposure is restricted to the capital invested, protecting personal assets if the business cannot pay its debts.

A position in which the owner is personally responsible for all business debts, so personal property may be used to settle claims against the firm.

The constitutional documents of a registered company: the memorandum records its name, objects and initial capital, while the articles set out internal rules on shares, directors and meetings.

Money raised by issuing shares to owners, who in return receive rights to dividends, voting at general meetings and a residual claim on assets.

A contractual arrangement in which one business pays fees to a brand owner for the right to trade under its name and use its proven systems within a defined territory.

The top-level process of setting long-term direction, defining objectives and deciding how resources will be allocated to reach them over several years.

A goal written to be specific, measurable, achievable, relevant and time-bound, so that progress can be tracked and performance judged objectively.

The number of subordinates who report directly to one manager; a wide span produces a flatter structure, while a narrow span creates more supervisory layers.

The unbroken line of authority running from senior management down to front-line staff, which shows who reports to whom and carries accountability.

The formal arrangement of roles, reporting relationships, departments and communication channels that determines how work is divided and coordinated inside a firm.

Passing authority for a specific task to a subordinate while the manager keeps overall accountability for the outcome.

Removing one or more levels of management to create a flatter hierarchy, cutting overhead cost and shortening communication lines but widening each manager's span of control.

Forecasting how many staff with which skills the business will need, comparing that with the current workforce, and planning recruitment, training or redundancy to close the gap.

The systematic study of a role that produces a job description of duties and responsibilities and a person specification of the qualifications, skills and attributes required.

The structured introduction given to a new employee covering the organisation, its rules, health and safety, colleagues and the specific duties of the post.

The internal drive that makes an employee choose to apply effort and persist with a task; managers influence it through pay, recognition, responsibility and working conditions.

The idea that hygiene factors such as pay and working conditions only prevent dissatisfaction, while motivators such as achievement, recognition and responsibility actually create satisfaction and effort.

A reward system that links part of an employee's earnings to measured results such as output, sales or targets, intended to align individual effort with business objectives.

Giving employees real authority to make decisions about their own work, which raises involvement and speed of response but requires clear limits and competence.

Dividing a broad market into smaller groups of buyers with similar needs or characteristics so that products, prices and promotion can be tailored to each group.

The specific segment or segments a business decides to serve with a tailored offer, having assessed size, growth, competition and fit with its own capabilities.

The four controllable elements - product, price, place and promotion - that a firm combines and adjusts to meet the needs of its chosen target market.

The name, design, symbols and associations that distinguish a firm's offer from rivals and build recognition, trust and willingness to pay a premium.

The tendency of buyers to return to the same supplier repeatedly, often reflected in repeat purchase rates and resistance to competing offers.

The practices and systems used to collect customer data, personalise service and manage contacts so that relationships are retained and lifetime value grows.

Output produced per unit of input such as labour hours or machine time; rising productivity means more is made from the same resources.

Reductions in average cost per unit that arise as output expands, from spreading fixed costs, bulk purchasing and greater specialisation of labour and machinery.

Inspecting output against standards, usually at the end of the process, to detect and reject defective items before they reach the customer.

Designing and managing every stage of production so that defects are prevented rather than detected afterwards, often through documented procedures and staff involvement.

The level of sales at which total revenue exactly equals total cost, so the business makes neither profit nor loss; calculated as fixed costs divided by contribution per unit.

A cost that does not change with the level of output in the short run, such as rent, insurance or salaried management.

A cost that rises or falls in direct proportion to the quantity produced or sold, such as raw materials or packaging.

The amount left from a sale after deducting variable costs, which goes first towards covering fixed costs and then towards profit.

A projection of money expected to come in and go out over future periods, showing the opening balance, net movement and closing balance for each period.

The funds tied up in day-to-day operations, measured as current assets minus current liabilities, needed to pay suppliers and wages before customers pay.

A firm's voluntary commitment to act in the interests of society and the environment beyond what the law requires, often reported alongside financial results.

Operating so that resources consumed today do not compromise the ability of future generations to meet their own needs, covering environmental, social and economic dimensions.

The moral principles that guide commercial decisions, such as honesty in advertising, fair treatment of workers and avoidance of bribery or conflicts of interest.

Reporting wrongdoing inside or outside an organisation, for example to a regulator, by an employee who has witnessed illegal or unethical conduct.

A written document setting out a venture's idea, market, operations, management, financial forecasts and funding needs, used to guide the founders and persuade lenders or investors.

A person who spots an opportunity, takes on the financial risk of organising resources and launches a venture in the hope of profit and growth.

Collecting and analysing information about customers, competitors and markets, using primary methods such as surveys and secondary sources such as published statistics, to reduce the risk of poor decisions.