Page 373 - Cambridge IGCSE Business Studies

Index

penetration pricing 172, 174 qualitative research 156, 160 specialisation 12–14
performance, measurement of quality specialist goods and services 31, 150
business 284–287 importance of 229–230 see also niche marketing
performance-related pay 81 issues arising from international spending patterns, consumer 141–142
person specifi cation 109, 110 locations 238 sponsorship 185
personal selling 184 quality assurance 232–233 stakeholders
personalised service 17 quality control 231–232 financial statements 284, 291–292

persuasive advertising 183 quality standards 229 groups 62–64, 317
physical goods 14, 15 quality circles 84 objectives 65, 65
pictograms 161 quantitative research 156, 160 profit and income statements 272

pie charts 161 quotas 330–331 start-ups 30–31, 46, 53–54
piece-rate 76, 80 status 75, 81–82, 90
Pizza Hut 95 ratio analysis see accounting ratios stock see inventories
place see distribution channels recession 302 subordinates 92
pollution 314, 315 recruitment and selection 106–113, Subway 197
postal surveys 157–158 108, 131 supervision 78
pressure groups 60, 320–321 redundancy 117–118 and leadership styles 101
price relationships 77 supervisors 97
and demand 141, 144–145, 170–171, relocation of operations 237–238 suppliers 63, 65
175–177 repeat purchases 230 sustainable development 319
effect of competition 31 resignation, employee 117

premium 17, 230 resources tables (data presentation) 160
price discrimination 150 for business growth 39 takeovers 36, 49
price elasticity of demand 175–177 decisions on use of 12 see also integration
price leadership 172 natural 316 tall organisational structures 93
pricing methods 171–173, 174, 175 retailers 180 tangible goods 14
primary research 154–160, 155 see also distribution channels target market 141

primary sector activity 20 retained profi ts 247–248, 268 tariffs 238, 307, 330
private limited companies 48–49 retirement 117 Tata Group 52
see also limited companies return on capital employed (ROCE) 287 tax 64, 292, 303–304, 309
private sector 25–26, 49, 270 revenue 29, 33, 177, 268 Taylor, F. W., scientifi c management
privatisation 144 risk theory 76
product 164 banks’ views when lending 252 team-working 84 371
features and functions 17 for business owners 29, 53–54 technology
marketing decisions 170 advantages and disadvantages for
see also goods and services salary 80 stakeholders 212–213, 212
product development 144, 165, 165 sale and leaseback 248 failure to invest in 42
product life cycle 166–170, 168, 170, sales commission 81 impact on production 211–213, 220
230, 302 sales promotions 183 and the marketing mix 186–187
product-orientation 153 sales tax 307 telephone calls 129
production 203–207 sampling 159 tertiary sector activity 21
impact of technology 211–213 scarcity 12 Tesco 196
importance of specialisation 12–14 scientific management theory 76 test marketing 157

methods 208–211 secondary research 154–155, 155 text messaging 129
quality control and assurance secondary sector activity 21 total cost 215, 216, 268
231–233 selection see recruitment and selection tourism 313
productivity 366 services 15 trade bloc 328
productivity, labour 73, 204–205 personalised 17 trade credit 251
profit 223, 268–271, 366 specialist 31 trade payable 278

from adding value 16 share issues 254 interest in fi nancial statements 292
business objective 36, 59 shareholders 48, 278 trade receivable 250, 252, 278
and ethical behaviour 324 as stakeholders 62–63, 291 trade unions 103, 119
social enterprises 60 Sharia law 308 trading account 367
see also dividends; income statements short-term fi nance 246 training 72
profit and loss 366 shortlist of job applicants 112 benefi ts 114

profi t margin 285–286 shrinkage costs 205 types 115–116
profi t-sharing 82 slump 303 transportation, product 180, 195, 236, 327
promotions, product 145, 170, 172–173, 174, small businesses 40, 92 turnover, labour 73
182–184 SMART objectives 57–58 Twitter see social networks
public corporations 54–55 social benefi t 317 two-factor motivation theory 77
public limited companies 48–49 social cost 317 two-way communication 125
see also limited companies social enterprises 60–61 see also feedback, communication
public sector 25–26, 66 social networks 144, 188
see also public corporations sole traders 45–46, 246 unemployment, level of 300
purchase orders 126 Sony Corporation 52 unethical business practices 323
purchasing economies 220 span of control 90, 92–93 unfair dismissal 119