Glossary of Terms

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Accounting reports
Reports showing an organisation's financial position.
Accounting standards
Rules that govern the practice of accounting. The standards are legally binding.
When a company actively seeks to purchase another business, usually through buying a controlling interest in its shares, to facilitate growth and expansion.
A shortcut version for a longer name, usually referred to by initials, e.g. ANZ for the historical name Australia and New Zealand Banking Group Ltd.
Insurance experts who calculate risks and premiums.
Adds value
How a department, function or individual contributes to the business, in order to achieve company goals or increase profit.
Advertising is bringing a product (or service) to the attention of potential and current customers. Advertising is typically done with signs, brochures, radio or TV commercials, direct mailings or e-mail messages, personal contact and the like. See also, brand awareness, promotion
Affirmative action
Measures taken to eliminate direct and indirect discrimination, and for implementing positive steps to overcome the current historical causes of lack of equal employment opportunity.
When businesses join together to achieve a favourable outcome for both parties.
A representative (often not an employee) of an organisation of high distinction, for example, a professional athlete.
Animal welfare
Animals (under human care) should be kept healthy and properly fed with a satisfactory level of well being.
Annual turnover
The annual amount of money earned by a business through sales of goods and services.
A highly structured on-the-job training programme in which typically a new entrant to the workforce formally agrees with an employer to undertake practical work combined with structured training on and off the job.
Part of corporate governance in which a management provides accurate and current information to the stakeholders about the efficiency and effectiveness of its policies and operations, and the status of its compliance with the statutory obligations.
Abbreviation for the Australian Stock Exchange. This is the market where shares are bought and sold.
Funds that can be accessed at anytime.
Automatic teller machine.
Audit (non-accounting)
The formal analysis of systems and processes to gain insight into patterns of use. This can lead to adjustments to improve the operational efficiency of a system or process.
The formal analysis of systems and process to gain insight into patterns of use. This can lead to adjustments to improve the operational efficiency of a system or process.
The people/companies that carry out the formal examination of financial systems and the reports that come from them to ensure compliance with records and standards set.


Basket of goods
A selection of what people are buying; also refers to goods used by governments to determine the Consumer Price Index.
A process where a business compares its performance in a particular area with that of other, similar businesses. Often businesses seek an international benchmark.
Best practice
A proven method or system that is recognised as being the most successful. Organisations attempt to develop best practice approaches to deliver on their mission and objectives.
Biodiesel fuel
A processed fuel derived from biological sources equivalent to diesel.
A fuel obtained from a renewable biological source, such as plants.
Biological diversity (biodiversity)
A variety of all life forms including different plants, animals and micro-organisms, their genes and the eco-systems of which they form a part.
Abbreviation for biotechnology. Biotechnology is any technique used to make or modify the products of living organisms in order to improve plants or animals.
Board of Directors
Officers of the company charged with the conduct and management of its affairs.
A method of generating ideas involving asking groups of people to think up concepts regardless of how fanciful they might seem. The complete list of brainstormed ideas can then be analysed to ascertain what is feasible.
Branch network
The use of local, but connected outlets that provide a business with the opportunity to service a wide geographical area such as a state or territory. Each network is usually supported by a centralised infrastructure (head office) that provides HR, IT and supply chain management support
The trading name of a product that has a high level of recognition in the market place. Successful development of the brand and 'brand mark' (identifying symbols and design) is a considerable marketing tool.
Brand alignment
Creating alignment across all the layers of a brand, e.g. positioning, values and differentiation, and in creating that same alignment between your customers, employees and your message: making sure that the message the company is presenting is the same message that employees and customers experienc
Brand awareness
The profile that a particular product has with consumers in the market. Advertising can enhance brand awareness.
Brand equity
The marketing effect or outcome that a brand name product gets compared to the same product without a brand name.
Brand loyalty
When consumers continue to buy the same brand of a product or products, i.e. they do not buy that product from a range of brand producers.
Brand management
The application of marketing techniques to a specific product, product line or brand.
Brand personality
The application of marketing techniques to a specific product, product line or brand. The basic characteristics and core values of a brand.
Brand planning
Having a fresh, compelling, proposition that makes products and services stand out from the competition. Brand marketing will have the brand planning targeted at specific people who are especially likely to want to buy the products and services, and who will give the return on investment that is ne
Brand recall
The extent to which consumers remember advertising and other messages they have been sent about a brand. It's a type of brand awareness where the consumer recognises or identifies a brand, using information from their memory.
Brand values
The key aspects, message, or factors specific to the brand. A brand value can create an immediate and identifiable association in the mind of a consumer.
Brand-funded entertainment
When a television program receives its revenue from specific advertisers who promote their products during the show.
The public image of a company ranging from its logo, name and design to the image that it projects to other parties. Part of a company’s branding can also include the way it deals with its customers, its advertising or its involvement in the community.
Business ethics
A set of moral principles that an organisation needs to establish and follow.
Business model
The framework within which a business operates. It will describe how a business expects to generate its revenue so that it is a success.
Business objectives
The targets that a business pan sets out to achieve.
Business plan
A written document detailing the overall plan for the business in terms of marketing, operations and finance.
Business planning
The role of establishing the future direction of the business that involves outlining the series of actions required in a given period.
Business strategy
A course of future action that a business sets in place which will guide its future activities, decisions and processes.
Business units
When a business is broken up into distinct groups, for example it may be based on a geographic region.
A company's repurchase of the shares it has issued, usually considered a sign that the company's management is optimistic about the future and that the current share price is undervalued.



Words in a sales promotion message that urge immediate action such as ‘ring now for…’
One of the four essential productive resources, capital refers to funds invested into a business and used for the production of goods and services.
Capital markets
The markets that provide long-term capital through shareholder investment for businesses and other organisations. The markets consist of public companies whose shares can be traded on a stock exchange, e.g. the Australian Stock Exchange.
Carbon footprint
A measure of the environmental impact of a particular individual or organisation's lifestyle or operation, measures in units of carbon dioxide.
Carbon sequestration
The process by which carbon dioxide sinks remove carbon dioxide from the atmosphere.
Carbon sinks
The processes where water bodies and living plants remove carbon dioxide from the atmosphere.
A cartoon representation of a character or person.
Centralised model
A system whereby all functions, roles and responsibilities in a particular area (e.g. human resources) are performed by one central department. Its services are then shared by all other departments. This can help provide consistency within a company.
Certified Agreement
A workplace agreement enshrining employees' entitlements.
Change management
The task of managing change within an organisation. Usually refers to the people side of change. One meaning of managing change refers to 'the making of changes in a planned and managed or systematic fashion'.
Change management process
The steps that have been planned out to implement change management within an organisation.
A statement that outlines the purpose, values and principles that guide the organisation's activities.
Chief Executive Officer (CEO)
Also known as the Managing Director; this is the most senior management person in an organisation.
Those people who do not belong to the military (in other words someone not in the Navy, Army or Air Force).
Climate change
The change in weather, including temperature and rainfall, over a period of time.
Code of Conduct
Provides a definition and outline of acceptable behaviour and conduct that must be followed and also usually gives clarification of unacceptable behaviour.
Collective bargaining
Where, in dealing with employers, unions represent employees across a number of job roles or industries.
Commercial breaks
A paid advertisement shown during a designated gap in a television show on a commercial television station.
Commercial broadcaster
See 'Commercial television'.
Commercial television
A profit-making business that earns its revenue mainly from advertising during its television programs.
The process of transforming the results of research projects into marketable products or services.
A fee paid for to a sales professional for each product sold, usually a percentage of the price of the product.
Company culture
The typical pattern of doing things in an organisation, ‘the way we do things round here’. A set of either formal or informal values and behaviours that exist within an organisation.
The rivalry that exists in a marketplace for the purpose of obtaining market advantage. Markets are based on the concept of competition. Businesses will compete with one another to achieve market dominance or a greater market share. See also, competitiveness
Competitive advantage
Exists when one producer has a more efficient way of combining resources to produce a good or service that gives that organisation a market advantage over its competitors.
Competitive economic sector
Australia operates within a competitive global economy. A competitive economic sector results when an industry is able to compete effectively in a global market.
The ability of a company to compete effectively with other firms.
To act in accordance with the requests of another party or with legal or regulatory requirements.
Bringing together of two or more businesses to form one. By consolidating, a business hopes to be more competitive.
Change or modification to a product or service that occurs in response to consumer needs and preferences. These needs and preferences are obtained using a range of market research techniques including focus groups, data analysis and secondary research.
The user of a product, who may or may not be the purchaser.
Consumption items
Goods or services purchased for immediate use.
Contingency planning
Measures put in place to cope with an unlikely but significant event, e.g. a computer breakdown or factory fire.
Continuous improvement
A principle that expects all employees of an organisation at every level to always seek out better ways to improve performance in business operations.
Control group
In a test or trial, the group that does not receive the new product or process being studies and which is compared to the group that does receive the product or process.
Convergence occurs when two or more factors come together to complement each other and lead to a positive outcome for the business. Often used in relation to a range of technologies that a business may engage to integrate and work together for a desired outcome.
Businesses that are owned by their members, and are set up to directly benefit the members.
Core business value
The most important and fundamental of the beliefs a company stands for.
Core value proposition
The core value of a customer. The most important value to the target audience.
Corporate citizenship
The obligation or responsibility an organisation has to a specific group such as the local community, employees and the like and/or to a wider cause or issue such as the environment.
Corporate governance
The system that sets out the rules and regulations that control companies, creating accountability.
Corporate social resonsibility (CSR)
The obligations or responsibility an organisation has to a specified group such as the local community, employees and the like and/or to a wider cause or issue such as the environment. Often referred to as corporate citizenship.
Corporate social responsibility
The obligations or responsibility an organisation has to a specified group such as the local community, employees and the like and/or to a wider cause or issue such as the environment. Often referred to as corporate citizenship.
Creative agency
A specialist advertising agency that provides inspiration and skill. Agencies and buyers often refer to advertising banners and other forms of created advertising as 'the creative'.
Borrowed funds that must be repaid with a cost known as interest e.g. loans, credit cards, overdrafts, mortgages.
Critical success factor/s
Factor/s identified by a business as being crucial to the success of its long term goals and plans. Without these factors being achieved the goals will not be reached.
Critical success factors
Factors identified by a business as being crucial to the success of its long term goals and plans. Without these factors being achieved the goals will not be reached.
To undergo (or provide) training in different tasks or skills to improve overall performance.
Crude Oil
Oil that is produced from a reservoir (after any associated gas has been removed).
Cultural diversity
The differences in race, age, class, gender, religion and other characteristics of a country’s people.
Cultural fit
Refers to the way individuals fit within an organisation’s values and mode of operation.
The typical pattern of doing things in an organisation, 'the way we do things round here'.
An item built to order by combining selected components to a customer’s specifications.
A person or organisation who buys a product.
Customer experience
The actions and opinions of customers. These are used to develop brand planning.
Customer focus
An approach or attitude which emphasises and values the needs and wants of customers.
Customer insight
An analysis of customer opinions and trends in customer buying.
Customer service
Process that provides time and place benefits for the customer pre-transaction, during the enjoyment of the product and post-transaction.
Customer-driven innovation
Developing changes in products or services as a result of customer demands or expectations.
Customer-focused strategy
An approach or attitude which emphasises and values the needs and wants of customers.