PAU Business Operations (Catalonia) key terms

The set of external factors-economic, legal, technological, social, and competitive-that surround a company and shape what it can and cannot do, even though it does not control them directly.

A structured scan of the political, economic, social, technological, environmental, and legal forces affecting a business, used to anticipate opportunities and threats before setting strategy.

A diagnostic grid that lists a firm's internal strengths and weaknesses alongside external opportunities and threats, giving a compact picture used to build strategy.

A capability the firm performs particularly well, is hard for rivals to copy, and can be extended to several products or markets, making it a base for sustained advantage.

Any attribute-lower cost, better quality, stronger brand, faster delivery-that lets a company outperform rivals and attract customers more effectively than they can.

Competing by offering something buyers value as unique-design, service, quality, image-so the firm can charge a premium rather than win on lowest price.

A strategy of becoming the lowest-cost producer in an industry, so the firm can undercut rivals on price or earn higher margins at prevailing market prices.

The intensity of jostling among existing firms in a market, driven by number of competitors, slow growth, high fixed costs, and low switching costs for buyers.

Obstacles that make it costly or slow for new firms to enter a market, such as capital needs, licences, brand loyalty, patents, or access to distribution.

The fall in average cost per unit as output rises, because fixed costs are spread over more units and larger purchases or runs become more efficient.

The formal arrangement of roles, reporting lines, and units that defines who decides what, how work is grouped, and how information flows through the company.

Grouping employees by specialized activity-production, sales, finance, human resources-so each area builds deep expertise but coordination across areas needs deliberate effort.

Organizing the company into semi-independent units by product, customer group, or geography, each with its own functions and accountable for its own results.

A dual-reporting design in which employees answer both to a functional head and to a project or product manager, gaining flexibility at the cost of conflicting priorities.

The number of subordinates who report directly to one manager; wide spans flatten hierarchies and need more delegation, narrow spans add layers of supervision.

Assigning a task together with the authority and responsibility to complete it to a subordinate, while the manager remains accountable for the outcome.

Recurring patterns in how a manager directs people-autocratic, democratic, laissez-faire, transactional, transformational-each suited to different situations and teams.

Explanations of what drives effort at work, such as Maslow's hierarchy of needs, Herzberg's separation of hygiene factors from motivators, and Vroom's expectancy model.

Redesigning a role to add responsibility, autonomy, and meaningful feedback so the work itself becomes a source of satisfaction rather than only a paycheck.

The share of a plant's or operation's maximum feasible output that is actually being produced in a period, expressed as a percentage of design capacity.

The stage in a process with the least capacity, which limits the throughput of the whole system; relieving it is the fastest way to raise total output.

A production approach in which materials and components arrive only as needed, cutting inventory and tied-up cash but demanding reliable suppliers and stable demand.

The order size that minimizes the combined annual cost of placing orders and of holding inventory, balancing ordering frequency against stock-holding expense.

The stock level at which a new order must be placed, calculated from expected demand during the lead time plus a safety buffer against variability.

A company-wide commitment to continuous quality improvement in which every employee is responsible for preventing defects rather than detecting them after the fact.

A Japanese practice of continuous, incremental improvement carried out by the people doing the work, based on small changes sustained over time rather than big redesigns.

The inspection and testing activities that check output against standards and separate acceptable from defective units before they reach the customer.

The sales volume or revenue at which total income exactly covers total costs, so profit is zero and every additional unit sold contributes to profit.

The amount left from each sale after variable costs are deducted, which first covers fixed costs and then generates profit per additional unit sold.

The degree to which a firm's cost structure is fixed rather than variable; high leverage magnifies profit swings when sales rise or fall.

The difference between current assets and current liabilities, measuring the short-term funds available to keep day-to-day operations running smoothly.

Current assets divided by current liabilities, indicating whether a firm can meet obligations falling due within a year; a value below one signals strain.

Total liabilities divided by total assets, showing what proportion of the firm's resources is financed by creditors rather than by owners' equity.

Using borrowed funds to finance assets in the hope that returns exceed interest cost, which raises potential returns to owners but also raises financial risk.

The time needed for cumulative cash inflows from an investment to equal its initial outlay; simple to compute but it ignores value after that date.

The sum of an investment's future cash flows discounted to today at a required rate, minus the initial cost; a positive figure means value is created.

The discount rate at which an investment's net present value equals zero; projects are accepted when this rate exceeds the firm's cost of capital.

A financial report showing money actually entering and leaving the business across operating, investing, and financing activities during a period.

The four controllable levers-product, price, place, and promotion-that a firm combines and adjusts to reach its chosen target market.

Dividing a broad market into groups of buyers with similar needs or behavior, so offers and messages can be tailored to each group rather than everyone.

The specific group of customers a firm decides to serve with a tailored offer, chosen after segmentation and evaluation of attractiveness and fit.

The distinct place a brand occupies in customers' minds relative to competitors, built through consistent choices about features, price, and communication.

The extra value a product gains from its name and associations, letting the firm charge more, win trust faster, and retain customers more easily.

The sequence of stages a product passes through-introduction, growth, maturity, decline-each requiring different pricing, promotion, and investment decisions.

The responsiveness of quantity demanded to a change in price; demand is elastic when buyers react strongly and inelastic when they barely respond.

The chain of intermediaries-wholesalers, retailers, agents, or direct channels-through which a product travels from producer to final buyer.

Negotiation between employer representatives and worker representatives over wages, hours, and working conditions, resulting in a binding collective agreement.

A body of elected employee representatives with rights to be informed and consulted on workplace decisions, distinct from a union's negotiating role.

An organization of workers formed to protect their interests, negotiate collectively with employers, and represent members in disputes and grievances.

The rate at which employees leave and are replaced over a period, calculated as departures divided by average headcount; high rates raise recruiting costs.

The proportion of scheduled working time lost because employees do not attend, whether for certified illness, unauthorized absence, or other reasons.

Forecasting how many people with which skills the firm will need and comparing that with expected supply, then deciding on recruitment, training, or reduction.

A firm's voluntary commitment to act in ways that benefit society and stakeholders beyond what law requires, often reported alongside financial results.

The view that a company should answer to everyone affected by it-employees, customers, suppliers, communities, owners-not only to shareholders.

Disclosure of a firm's environmental and social performance-emissions, resource use, labour practices-in a form comparable over time and open to scrutiny.

A model in which materials are reused, repaired, and recycled so waste becomes input, contrasting with the linear take-make-dispose pattern.

The rules and bodies-board of directors, audit committee, shareholder meetings-that determine how a company is directed, controlled, and held accountable.

A written statement of the principles and behavioral standards a company expects from its staff, used to guide decisions and discipline misconduct.