Canary Islands PAU Business & Business Model Design (ULPGC / ULL) key terms

The bundle of products, services and benefits a company offers to solve a specific customer problem or satisfy a need, explaining why a customer should choose it over alternatives.

A one-page visual tool that describes a business model through nine blocks: customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships and cost structure.

The logic by which an organisation creates, delivers and captures value, describing who it serves, what it offers, how it operates and how it earns money while covering its costs.

The way a company converts its value proposition into income, for example one-off sales, subscriptions, licensing fees, commissions or advertising, each with its own pricing mechanism.

The mix of fixed and variable costs a business incurs to operate its model, shaped by whether it competes on low cost, high value or a balance of both.

Any individual or group affected by or interested in a firm's decisions, including owners, employees, customers, suppliers, creditors, local communities and public administrations.

The voluntary integration of social, ethical and environmental concerns into business operations and relationships with stakeholders, going beyond what the law strictly requires.

A person or institution that owns part of a company's equity capital, holding rights to a share of profits and residual assets and typically seeking maximum return on investment.

A lasting attribute that lets a firm outperform rivals, such as lower costs, superior quality, brand strength or unique capabilities that customers value and competitors cannot easily copy.

A generic strategy in which a firm aims to become the lowest-cost producer in its industry, offering acceptable quality at prices rivals cannot match while still earning a margin.

A generic strategy in which a firm offers something customers perceive as unique, such as design, service or technology, and charges a premium price that exceeds the extra cost of providing it.

A generic strategy that targets a narrow segment or niche, competing either through low cost or differentiation within that segment rather than across the whole market.

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

A structured diagnosis that lists a firm's internal strengths and weaknesses alongside external opportunities and threats, providing a basis for matching capabilities to the environment.

Dividing a heterogeneous market into groups of buyers with similar needs or characteristics, so that each group can be served with an appropriate offer and marketing mix.

The specific segment or segments a company decides to serve, chosen after evaluating segment size, growth, competition and fit with the firm's resources and objectives.

The controllable set of decisions a firm combines to influence demand, traditionally summarised as product, price, place and promotion, and extended to people, process and physical evidence for services.

The systematic collection and analysis of information about customers, competitors and the environment, using primary sources such as surveys and secondary sources such as official statistics.

Promotion and customer relationship activity carried out through online channels such as search engines, social media, email and websites, allowing precise targeting and measurable results.

The practices and systems a firm uses to attract, retain and grow profitable customers by managing information and interactions across every point of contact.

The ratio of output produced to the inputs used in a given period, such as output per worker or per hour worked, used to judge how efficiently resources are being employed.

The sales volume or revenue level at which total income equals total costs, so the firm makes neither profit nor loss; above it each additional unit contributes to profit.

A cost that does not change with the level of output in the short run, such as rent, insurance or salaried management, and which must be covered before any profit is made.

A cost that rises or falls in direct proportion to the quantity produced or sold, such as raw materials or sales commissions, and which determines the contribution margin per unit.

Reductions in average cost per unit achieved as output expands, arising from spreading fixed costs, specialisation, bulk purchasing or more efficient technology.

The set of activities and systems used to ensure products or services consistently meet requirements, including quality planning, control, assurance and continuous improvement approaches.

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

The time required for cumulative cash inflows from an investment to recover the initial cash outflow, used as a simple measure of risk and liquidity rather than profitability.

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

Raising funds by issuing shares or retaining profits, which brings permanent capital and no obligation to repay but dilutes ownership and shares control and future profits.

Raising funds through loans, bonds or credit lines that must be repaid with interest on agreed dates, preserving ownership but increasing financial risk and fixed obligations.

A financial statement showing a firm's assets, liabilities and equity at a specific date, based on the identity that assets equal liabilities plus owners' equity.

A financial statement summarising revenues, expenses and the resulting profit or loss over an accounting period, showing how the business performed rather than what it owns.

A statement classifying cash movements into operating, investing and financing activities, explaining the change in cash and revealing whether the firm can meet its payments.

The internal or external forces that energise, direct and sustain a person's effort at work, influenced by pay, recognition, autonomy, achievement and the design of the job itself.

The process of influencing individuals and groups towards shared goals by setting direction, building commitment and shaping culture, exercised differently from formal administrative authority.

The formal pattern of roles, reporting lines and coordination mechanisms that determines how tasks are divided and decisions are made, ranging from functional to divisional and matrix forms.

Coordinating a group of interdependent people towards a common objective through clear roles, effective communication, conflict handling and shared accountability for results.

A written document describing a venture's idea, market, strategy, operations, team and financial forecasts, used to guide the founders and to persuade investors or lenders.

The legally recognised structure chosen for a business, such as sole trader, partnership or limited company, which determines liability, taxation, capital requirements and governance rules.

The simplest version of a product that lets a venture test its core value proposition with real users and gather learning before committing further resources.