PAU Business Operations (Catalonia) flashcards

33 cards. Read the term and the definition here. The deck at the top of this page is optional.

PESTEL analysis

A macro-environment scan of Political, Economic, Social, Technological, Ecological and Legal factors that can affect a firm's markets and strategy.

Porter's five forces

A framework assessing industry attractiveness through rivalry, new entrants, substitutes, buyer power and supplier power. High combined pressure means lower average profitability.

SWOT matrix

A tool that lists internal Strengths and Weaknesses and external Opportunities and Threats, providing a basis for matching capabilities to the environment.

Ansoff matrix

A growth grid crossing existing or new products with existing or new markets: penetration, product development, market development and diversification, in rising order of risk.

Generic strategies

Porter's three routes to competitive advantage: overall cost leadership, differentiation, and focus on a narrow segment, each aiming to avoid being stuck in the middle.

Span of control

The number of employees directly reporting to one manager. A wide span flattens hierarchy; a narrow span adds levels and supervision.

Functional structure

An organizational design grouping people by specialized activity such as finance, marketing or production, favoring efficiency and expertise over cross-department coordination.

Divisional structure

An organizational design grouping activities by product, customer segment or territory, each division holding responsibility for its own results and often its own support functions.

Matrix structure

A dual-authority design in which staff report both to a functional head and to a project or product manager, improving coordination at the cost of possible conflicts.

Delegation

Assigning a specific task together with the authority needed to carry it out, while the delegating manager retains ultimate accountability for the outcome.

Economic order quantity

The order size minimizing total ordering plus holding cost, computed as the square root of 2DS divided by H, where D is demand, S order cost and H holding cost.

Reorder point

The inventory level that triggers a new order, equal to average demand during lead time plus safety stock when demand or supply is uncertain.

Just-in-time

A pull-based production approach where materials and components arrive only as needed, minimizing inventory and waste but demanding reliable suppliers.

Critical path

In project scheduling, the longest chain of dependent activities; it determines the shortest possible project duration and has zero slack.

Total quality management

A management approach combining customer focus, continuous improvement, employee involvement and data-based decisions to raise quality across the whole organization.

Capacity utilization

Actual output divided by maximum possible output, expressed as a percentage, showing how fully installed productive capacity is being used.

Net present value

The sum of expected cash flows discounted at the required return, minus the initial investment. A positive NPV adds value and supports acceptance.

Internal rate of return

The discount rate at which a project's net present value equals zero; the project is acceptable when IRR exceeds the required rate of return.

Payback period

The time needed for cumulative cash inflows to equal the initial investment. It is simple but ignores the time value of money and later cash flows.

Current ratio

Current assets divided by current liabilities. A value above one indicates short-term assets cover short-term obligations; too high may signal idle assets.

Break-even point

The sales volume at which total revenue equals total cost, computed as fixed costs divided by contribution margin per unit.

Working capital

Current assets minus current liabilities; the surplus of short-term resources over short-term obligations that funds day-to-day operations.

Marketing mix

The controllable levers of Product, Price, Place and Promotion used to serve a target segment; services extend this with People, Process and Physical evidence.

Market share

A firm's sales divided by total sales in the relevant market, expressed as a percentage and used to gauge competitive position.

Price elasticity of demand

The percentage change in quantity demanded divided by the percentage change in price. Absolute values above one mean demand is elastic.

Market segmentation

Splitting a market into groups of buyers with similar needs or behavior so that offers and messages can be tailored to chosen targets.

Penetration pricing

Setting a low initial price to attract buyers quickly, build volume and market share, often accepting thin early margins.

Product life cycle

The sequence of introduction, growth, maturity and decline in a product's sales, each stage requiring different pricing and promotion decisions.

Collective agreement

A written contract negotiated between employer associations and trade unions that sets wages, hours and working conditions for the employers and workers within its scope.

Unfair dismissal

A termination without a legally valid cause or with procedural defects, entitling the worker to reinstatement or to statutory compensation.

Herzberg two-factor theory

The view that hygiene factors such as pay and conditions only prevent dissatisfaction, while motivators such as achievement and recognition create satisfaction.

Triple bottom line

A reporting approach measuring organizational performance on three dimensions: economic profit, social (people) impact and environmental (planet) impact.

Greenwashing

Communicating environmental claims that exaggerate or misrepresent a product's or firm's real performance, misleading consumers and eroding trust.