Andalusia PAU Business and Business Model Design key terms

Any individual or group that affects or is affected by a firm's decisions and results, including owners, employees, customers, suppliers, lenders, local communities and public bodies.

A firm's voluntary commitment to meet social, environmental and ethical expectations beyond legal minimums, balancing the interests of stakeholders with the pursuit of profit.

The financial return delivered to owners, usually measured through share price growth and dividends; a classic objective that competes with broader stakeholder goals.

Three linked statements: mission explains why the firm exists and what it does, vision describes the desired future position, and values set the principles guiding behaviour.

A scan of the macro-environment across political, economic, social, technological, environmental and legal factors that may create opportunities or threats for a firm.

A framework assessing industry attractiveness through rivalry among existing firms, threat of new entrants, threat of substitutes, and bargaining power of buyers and of suppliers.

A structured summary of a firm's internal strengths and weaknesses alongside external opportunities and threats, used to connect diagnosis with strategy formulation.

An attribute allowing a firm to outperform rivals, typically through lower costs or differentiated offerings that customers value enough to pay a premium for.

A generic strategy in which a firm aims to become the lowest-cost producer in its industry, then either undercut rivals on price or earn higher margins at market prices.

A generic strategy based on offering unique features, quality, service or brand image that justify a higher price than competitors charge for comparable products.

A planned route to expand sales or market position, commonly classified as market penetration, market development, product development or diversification.

Growth by taking control of a stage of the supply chain, either backwards towards suppliers or forwards towards distributors and final customers.

Falls in average cost per unit as output rises, caused by spreading fixed costs and by greater specialisation, purchasing power or process efficiency.

A concise statement of the specific problem a firm solves for a customer segment and why its offering is better or different from available alternatives.

A defined group of buyers who share similar needs, behaviours and willingness to pay, and whom the firm chooses to serve with a tailored offer.

The route through which a firm reaches and delivers value to customers, such as a physical shop, a website, a distributor or a sales force.

A distinct way in which a firm earns money from a customer segment, for example one-off sale, subscription fee, rental, licensing or advertising.

The mix and behaviour of the main costs a business model incurs, distinguishing fixed from variable costs and highlighting which activities absorb most spending.

A one-page visual template describing a business through nine blocks: customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partners and cost structure.

An adaptation of the Canvas designed for start-ups, replacing some blocks with problem, solution, key metrics and unfair advantage to stress hypothesis testing and uncertainty.

The smallest version of an offering that lets a team test key assumptions with real users and gather learning before committing major resources.

The process of testing whether a proposed value proposition, customer segment and revenue logic actually attract and retain paying customers before scaling.

Financing a new venture mainly from the founders' own savings and early customer revenue rather than external investors, keeping ownership and control intact.

Professional equity investment in high-growth young firms, usually in exchange for shares and some influence over strategy, aiming for large returns on exit.

A wealthy private individual who invests own money and often mentoring time in early-stage companies, typically at smaller amounts than venture capital funds.

Raising small sums from many people, usually through an online platform, in return for rewards, donations, loans or equity in the venture.

The sum of a project's expected future cash flows discounted to today at a required rate, minus the initial outlay; a positive value suggests the investment adds value.

The time needed for cumulative cash inflows from an investment to equal the original outlay, a simple liquidity measure that ignores cash flows after that point.

The discount rate at which a project's net present value equals zero; a project is acceptable when this rate exceeds the firm's cost of capital.

The sales volume or revenue level at which total revenue equals total cost, so the firm makes neither profit nor loss.

The difference between a product's selling price and its variable cost per unit; it shows how much each sale adds towards covering fixed costs.

A statement of a firm's financial position at a single date, listing assets, liabilities and equity, where assets equal liabilities plus equity.

A report of revenues, expenses and resulting profit or loss over a period, showing how sales translate into operating and net results.

A figure computed by dividing one financial statement item by another to assess liquidity, solvency, efficiency or profitability and to compare firms of different sizes.

Current assets minus current liabilities; it measures the short-term funds tied up in day-to-day operations and the ability to meet near-term obligations.

A report of cash generated and used over a period, split into operating, investing and financing activities, explaining the change in the cash balance.

The formal arrangement of roles, reporting lines and coordination mechanisms that determines how tasks are divided and decisions are made.

The number of subordinates directly reporting to one manager; a wide span implies flatter hierarchy and more autonomy, a narrow span implies closer supervision.

Assigning responsibility and the necessary authority for a task to a subordinate, while the manager keeps overall accountability for the outcome.

A published account of a firm's environmental, social and governance performance, often alongside financial results, allowing stakeholders to judge non-financial impact.

A production and consumption model that keeps materials in use through reuse, repair and recycling, reducing waste and reliance on virgin resources compared with a linear take-make-dispose model.