AFR Business Case Studies

4 Ps

The four major controllable factors of the marketing mix: product, price, position and promotion.

Accounting reports

Reports showing an organisation's financial position.

Accounting standards

Rules that govern the practice of accounting. The standards are legally binding.

Acquisition(s)

When a company actively seeks to purchase another business, usually through buying a controlling interest in its shares, to facilitate growth and expansion.

Acquisition/s

When a company actively seeks to purchase another business, usually through buying a controlling interest in its shares, to facilitate growth and expansion. See also merger, takeover

Acronym

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.

Actuaries

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.

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.

Alliances

When businesses join together to achieve a favourable outcome for both parties.

Ambassadors

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.

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...

ASX

Abbreviation for the Australian Stock Exchange. This is the market where shares are bought and sold.

At-call

Funds that can be accessed at anytime.

ATM

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.

Audit/auditing

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.

Auditors

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.

Benchmark/ing

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.

Biofuel

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.

Biotech

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.

Bottom Line

The net profit or loss of a company or organisation.

Brainstorming

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...

Brand

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...

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 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.

Branding

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,...

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.

Call-to-action

Words in a sales promotion message that urge immediate action such as ‘ring now for…’

Capital

One of the four essential productive resources, capital refers to funds invested into a business and used for the production of goods and services.

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.

Caricature

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...

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...

Change management process

The steps that have been planned out to implement change management within an organisation.

Charter

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.

Civilian

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.

Co-operatives

Businesses that are owned by their members, and are set up to directly benefit the members.

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.

Commission

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.

Company values

The operating philosophies or principles that guide an organisation’s internal conduct as well as its relationship with its customers, partners and shareholders.

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.

Competitiveness

The ability of a company to compete effectively with other firms.

Compliance

To act in accordance with the requests of another party or with legal or regulatory requirements.

Consolidated

Bringing together of two or more businesses to form one. By consolidating, a business hopes to be more competitive.

Constructive Behaviour

Actions that help yourself or others.

Consumer-driven

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...

Consumers

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

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...

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 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...

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...

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'.

Credit

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.

Cross-train

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.

Culture

The typical pattern of doing things in an organisation. The business culture determines how different levels of staff communicate with one another as well as how employees deal with clients and customers....

Custom-built

An item built to order by combining selected components to a customer’s specifications.

Customer

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.

Demographic

The specific characteristics of the target audience. It includes variables like age, income, gender and occupation.

Deregulated

The process of freeing up previously restricted markets to a range of competitors.

Design element(s)

The factors that contribute to the appearance and functionality of a product.

Differentiate/ differentiation

Emphasising some aspect(s) of a product or service that makes it stand out from the similar product or service sold by other producers.

Direct customer business model

A way of doing business that involves selling directly to end customers instead of through intermediate distributors and resellers.

Direct Marketing

Sending messages directly to consumers through various means including flyers and e-mail. Direct marketing usually includes a call to action in the material.

Direct report

A staff member who reports directly to a manager.

Direct reports

People in the organisation who are directly accountable to a particular manager.

Distribution

The movement of goods and services from the supplier to the final consumer.

Diversification strategy

An approach to investment that emphasises the need to have a range of investment types as part of an investor's portfolio. This allows the risk of investment to be spread.

Diversified

The participation of a business in a range of different sectors and/or industries. It can result in improved income streams and a method of spreading risk.

Dividend(s)

The part of a company's earnings that is distributed to shareholders in return for their capital - they are paid regularly (usually half-yearly) and provide some indication of the company's success.

Division

An independent unit within a company or group of companies which has a focus on a particular aspect of the business - divisions can be established by product/service type, geography or customer.

Domestic market

The buyers and sellers within a company's own country.

Dotted line

An indirect reporting line to a supervisor. In a company's organisational chart, employees will have a line that shows their immediate supervisor. A dotted line is used to show an indirect report.

Dual-listed company

A registered public company that has its securities traded on more than one stock exchange.

Due diligence

The process of investigation into the details of a potential investment, such as the examination of operations, management and financial reports.

Economic Progress

Enhancement of the nation's income whilst maintaining the national wealth that will support future consumption.

Economic sustainability

The concept of creating business policies that are financially supportable over a long period of time without taking away too many financial resources of the organisation.

Economically sustainable

Business policies that are financially supportable over a long period of time without taking away too many financial resources of the organisation.

Economies of scale

Factors that cause the average cost of producing or providing something (such as insurance products/services) to drop as output increases.

Efficiency

Increased output using the same number of inputs.

EFTPOS

Electronic funds transfer at point of sale.

Electronic direct marketing

This involves sending messages directly to consumers through various electronic means including mobile phone, SMS messages and email. Electronic direct marketing usually includes a call to action in the...

Employee engagement

Where employees are fully involved in, and enthusiastic about their work, and act in a way that furthers the interests of the business.

Employee retention

The number of employees that remain with a business over a particular period of time. High levels of retention are seen to reflect good HR practices and employee relations.

Employer of choice

Organisations that have policies and practices in place that attract higher calibre people to work for them and where the organisation is able to retain them for longer than their competitors.

Employment brand

Influences the way prospective and current and employees view the business and the employment experience that the business offers.

Endorsement

Granting formal and explicit approval.

Enhanced greenhouse effect

When human activity increases the gases that are a natural part of the atmosphere, for example, carbon dioxide, methane, nitrous oxide and fluorocarbons which trap heat above the world’s surface.

Entrepreneur

A person willing to take risks and start new business ventures.

Entrepreneurship

The willingness to take risks and start new business ventures.

Entreprenurial

Willing to take risks and start new business ventures.

Environmental Managment System (EMS)

Tools for managing the impact of an organisation's activities on the environment.

Environmental Progress

A reduction of threats to the environment and improvements in the health of our ecosystems.

Equal employment opportunities (EEO)

Equitable policies and practices in recruitment, selection, training and promotion.

Equity raising

Equity is the ownership interest in a company in the form of shares. Equity raising here would be the buying up of shares to increase this ownership interest.

Ethical practice/s

Codes of conduct, policies and procedures adopted by society, an organisation or industry.

Ethical standards

Refers to the beliefs of a business about what is considered right or wrong behaviour; these beliefs guide business practice.

Ethics/ethical

Refers to the beliefs of a business about what is considered right or wrong behaviour; these beliefs guide business practice.

European Union Emissions Trading Scheme (EU ETS)

The greenhouse gas emissions trading scheme operating within the European Union.

Execution

The practical management activity of 'getting things done' that allows a business to actually achieve its goals. The term was popularised by business leaders Larry Bossidy and Ram Charan.

Export/s

Goods or services that are sold to overseas consumers by domestic producers.

External environment

Factors external to the business that influence its operation and actions. They include such things such as economic conditions, consumer behaviour and technological developments.

Feasibility study

An analysis of the likelihood that a project will meet its planned targets

Fee-for-service

Charging a fee for each service performed.

Feedlots

A location where cattle are feed a high protein grain based diet to reach exact market specifications.

Financial reports

...

Financially literate

To be informed and aware of financial issues and terminology.

Flighting

A media schedule that involves more advertising at certain times and less advertising during other time periods.

Float time

The amount of time an activity can overrun without delaying the whole project

Flow-on effects

When one area of progress is affected as a consequence of a decision e.g. as production rises, so might national wealth.

Foundation

An organisation that exists to further a particular cause. It assists people by distributing money or providing support on the basis of set criteria.

Franchise(d)

A franchise is a business relationship between a franchisor (someone who owns the business) and a franchisee (an independent person who pays a fee to use their established business name, expertise and...

Franchisees

A person who pays a fee to another business operator to distribute their goods/services and use their established business name, expertise and knowledge.

Free-to-air

Television that is available free to any households with a television. There are five free-to-air stations in Australia.

FTSE 100 Index

A share index of the 100 most highly capitalised UK companies listed on the London Stock Exchange.

Function

Activities undertaken by a particular section or division of a business, for example, the HR division. Also referred to as a department.

Generation Y

Those born between 1982-2000. Often marketers and others try to understand different markets by looking at the typical behaviours and purchasing patterns of different generation groups.

Genetic technology

Use of genetic material in order to change one or more of the characteristics of an organism.

Global

The development of organisations as competitors in an international marketplace. Organisations need to become more competitive internationally due to the development of the Internet, worldwide communication...

Global business

Commonly referred to as a multinational or transnational business, it is a business that has its main office in one country, but operates in other countries as well.

Global warming

A rise in the temperature of the Earth's atmosphere caused by an increase in greenhouse gases, such as carbon dioxide, which traps the sun's heat and causes changes in climate.

Globalisation

The development of organisations as competitors in an international market. Organisations need to become more competitive internationally due to the development of the Internet, worldwide communication...

Glossary

Goodwill

An intangible asset based on the reputation and past financial viability of a business.

Governance

The framework of rules and practices by which a board of directors ensures accountability, fairness, and transparency in a company’s relationship with its all stakeholders.

Gross Domestic Product (GDP)

The total value of all goods and services produced in the economy in one year.

Halo effect

Where the perceived positive features of a particular item extend to create a positive perception of a broader brand.

Health and Safety at Work

Legislation concerned with protecting the safety, health and welfare of people engaged in work or employment.

Hierarchy

An organisational structure that has a number of levels and a chain of command by which decisions are made at an organisation's top levels and passed downwards

Holistic

Considering something in totality and more than a collection of parts.

HR systems

Formalised and organised arrangement of the human resource management function.

Human capital

The set of skills which an employee acquires on the job, through training and experience, and which increase that employee's value in the marketplace.

Human resource management

A functional area of management involved with the employment relationship between an organisation and its employees; the effective use of employees in order to enhance organisational performance.

Human Synergistics Organisational Cultural Inventory (OCI) Tool

A widely used tool for measuring organisational culture. It provides a profile of an organisation’s operating culture, in terms of the behaviours that members believe are required to fit in and...

Humanitarian

A person or organisation devoted to the promotion of human welfare and to social reforms. It can involve working on special aid projects both within Australia and overseas.

Idea culture

A workplace that encourages employees at all levels to contribute their ideas as a way to improve business operations.

Individual Development Plan (IDP)

A plan for training and development which individual employees discuss and agree with their manager which aims to contribute to their performance at work and enhance their career prospects. The IDP is...

Induction

The process of introducing a new employee to the workplace. Typical activities include familiarisation with company policies, introduction to fellow employees and early training.

Industrial action

Various forms of disruption to the activities of a business intended to highlight or terminate a grievance or disagreement between the workforce and the employers.

Industrial relations

Refers to the legal environment relating to employment including occupational health and safety, anti-discrimination, employment relations, recruitment and dismissal with the key aim of ensuring equity...

Information society

A society in which the creation, use and distribution of information is a significant economic, political, and cultural activity.

Infrastructure

The basic framework or underlying foundation established in a country or community in which business, industry or other societal functions can develop. This can include transport and other facilities,...

Initiatives

Specific projects or programs undertaken to achieve objectives in the near-term, such as to reduce costs, increase efficiency, or improve sales performance.

Innovative

A characteristic of a product, service or company, creative or different.

Innovator

A person willing to try new and creative approaches to solving problems or doing things.

Insurance

When people pay money into a pool to cover the cost of damage or replacement of their assets should an incident occur.

Intellectual capital

The intangibles of a business that underpin future growth such as a person's ideas and knowledge.

Interim

Temporary or provisional.

Intermediary-based insurer

An insurer who sells policies to customers through intermediaries, such as brokers, agents, motor dealerships and financial institutions.

Internal brand knowledge

Employee product awareness and feedback from employees to strengthen brand management.

Internal environment

The internal aspects of a business such as staff, systems, structures and culture that are directly managed. See also, external environment.

Investment

The outlay of a sum of money to be used in such a way (e.g. for the purchase of shares, property or equipment) that a profit or increase in capital may be expected.

Investors

Individuals or firms who outlay a sum of money to be used in such a way that a profit or increase in capital may be expected.

ISO14001

A standard specifying the actual requirements for an environmental management system. It applies to those environmental aspects which the organisation controls and over which it can be expected to have...

Job analysis

An examination of the exact requirements - skills, attributes, tasks and the like - that are required for a position.

Joint venture/s

Two or more companies who form a partnership to provide a product or service, usually resulting in the establishment of a separate company. They occur as a result of the clear synergy the two businesses...

Key performance indicator/s

Specific criteria used to measure how efficient and effective a business has been in achieving strategic goals.

Key result area

A criterion or factor against which success is measured.

Knowledge management

Refers to the systems used to manage information. Examples might include databases, intranet services etc.

Labour

Physical and mental contributions made to production by employees.

Lease

The right to use property or land for a limited period of time.

Legislation

An alternative word for law, which is passed by federal or state governments.

Levy/ies

A charge paid by producers and an industry to fund activities such as research and development (R&D), training and marketing and promotion.

Licensing

When a business grants permission to another party to undertake a particular activity.

Line managers

Managers directly responsible for the production and delivery of the goods or service.

Liquefied Natural Gas

Natural gas that has been liquefied by refrigeration or pressure (to -161 degrees centigrade), to facilitate storage and transport.

Listed company

A company that has its shares available for trade, as a public company, on the Australian Securities Exchange.

Livestock exports

Export of live animals including sheep, cattle, goats, diary cattle, alpacas and camels.

Lobbying

Where an individual, a group of people or an organisation applies pressure on another person, organisation or government to bring about change on a particular issue, behaviour or law.

Local procurement

Acquiring goods and services from local suppliers in the community.

Localisation

The process of modifying products or services to account for differences in distinct markets.

Logo

An image which represents a brand or product.

Macro environment

The external environment affecting a business including economic, legal, technological, political and social factors

Management systems

Systems designed to establish policies and objectives and to achieve those objectives within organisations

Market Based Management (MBM)

A business strategy that puts the needs and wants of customers at the centre of all business activity.

Market capitalisation

The value of the company on the stockmarket, expressed in dollars, after multiplying current share price by the number of shares in issue. See also, capital markets, listed company, public company

Market leader

The firm that has the largest share of the market, measured by sales (value or volume). See also, market share

Market research

...

Market share

The proportion of the total market of a product or service that is held by an individual business. Usually expressed as a percentage.

Market specifications

Features or aspects of the final product requested by consumers.

Market trends

The general direction in which the market is moving to anticipate and meet changing needs

Marketing

The range of activities that relate to identifying, anticipating and satisfying customer needs (profitably) by means of standard tools such as market research and promotion. See also, marketing strategy,...

Marketing mix

Term used to emphasise the importance of mixing or blending various factors such as product, price, placement and promotion to achieve marketing objectives. Marketing mix is generally accepted as...

Marketing plan

A plan to achieve one or more marketing objectives for a product.

Marketing plan

Term used to emphasise the importance of mixing or blending various factors such as product, price, placement and promotion to achieve marketing objectives.

Marketing position

The share or percentage of the market a business has based on sales revenue. Can also relate to the how the business wants the product or brand to be viewed by the market. See also, market leader

Marketing strategy

A marketing plan designed to achieve marketing objectives; long-term plans designed to enable an organisation to identify and meet the wants and needs of its customers. See also, marketing

Marketplace

A place or situation where buyers and sellers meet to exchange goods and services.

Mentor

An assigned person who offers advice and support to another, often an employee.

Mentoring

Providing support or guidance for a person.

Merchant

A professional who deals with trade, dealing with commodities that they do not produce themselves, in order to produce profit.

Merger

Where two companies join together on an equal footing to operate as one business. See also, acquisition, takeover

Methodology

...

Methodology

A set of inter-related phases, activities and tasks that make up the project process.

Microsite

...

Mission statement

The statement of an organisation's current and future business goals

Modular buildings

Buildings that are constructed in a factory-controlled environment away from the building site. Modules are then linked together to form multi-purpose buildings

Monopoly

Situation where there is only one provider of a product or service in a particular market.

Multi-channel

The use of several media platforms including print, telematics, Internet and mobile communications to provide a service to customers.

Multi-national companies

A company that produces or sells it goods or services in more than one country

Multi-platform format

An advertising package that includes a range of entitlements such as billboards, online integration, product placement and television commercials.

National Minimum Wage

The lowest wage a worker can legally be paid, as determined by government. Similar to the Australian Award wages system

Nationally accredited qualification

A qualification that is recognised across Australia.

Net income

Income after all expenses and taxes have been deducted, and used in calculating a variety of profitability and stock performance measures.

Niche

To sell or provide a product or service that is needed but not being provided by other businesses.

Niche (market)

A small, narrowly defined section of a market. The needs of this market are usually met by innovative companies with specialist services and activities.

Non-profit

Not conducted or maintained for the purpose of making a profit. Instead, it operates to serve a public good.

Not-for-profit

Not conducted or maintained for the purpose of making a profit. Instead, it operates to serve a public good.

Objectives

Measurable goals or outcomes.

Online community/ies

A group of people with a common interest who communicate via online methods as opposed to face to face.

Operating profit

Revenue from a firm's regular activities less costs and expenses and before income deductions. See also, net income, working capital

Operational efficiency

A measurement where a business works to achieve the best use of resources in production process involving the lowest possible cost and using the minimum quantities of resources.

Operational management

The day-to-day management of systems or processes that create goods and/or provide services and which contributes to the achievement of short-term aims or objectives. See also, operations

Operations

The integration of processes from around a business, implemented by an organisation, in order to satisfy and implement customers' needs. See also, operational management

Organic

Production of food under a natural system using minimal or zero synthetic chemicals.

Outsourced

When an organisation gets external organisations to perform tasks, for example, marketing or distribution

Overdraft

A type of loan that allows the account holder to withdraw more funds, up to a specified amount, than what is actually held in the account. Interest is paid on the amount overdrawn.

Partnership

A type of organisation where multiple partners manage the business and are responsible for its profits and losses, debts and liabilities.

PAYG

Pay As You Go Taxation. The type of tax paid by most wage and salary earners whereby tax is taken straight from an employee's salary before they get it.

Perennial plants

...

Performance culture

Attitudes, values and beliefs in an organisation that have a strong emphasis on results and performance. Rewards provided are based on levels of performance achieved.

Performance management

The process of creating a work environment or setting in which people are enabled to perform to the best of their abilities.

Performance-based remuneration system

A system where pay is determined by the actual performance on agreed tasks and targets.

Personality endorsement

Refers to a person informing the public that he/she approves of a product/service and is happy to be associated with it.

Personality merchandising

When a real person(s) is used to promote the sale of products and/or services.

Philanthropic work

The effort to increase the well-being of humankind through charitable aid or donations to others who need help.

Point of sale

The area where a sale or transaction occurs in a retail environment. This area is considered highly effective for product placement.

Policy

A set of rules to guide decisions and actions.

Pool/pooling

When a group of people share things in common for the benefit of all those involved.

Positioning

The combined marketing strategies that result in how the organisation wants a product ot brand to be perceived by the market. Positioning is directly related to brand values, market demographics and the...

Positioning territory/ies

A strategic statement of what differentiates a product or brand competitively in the market and in the mind of a target consumer.

Poverty cycle

The continuation of poverty unless interrupted by outside intervention.

Powerbrand

A brand which covers several best selling products and which is known world wide

Premiums

The amount of money to be paid for the contract/policy of insurance.

Principal/loan principal

The amount borrowed.

Private company

A company that has a limited number of private shareholders (owners) and is not listed on the stock market.

Private sector

Business organisations owned or controlled by private individuals or shareholders.

Privateer

Privateer in the sense of Motor Sport refers to an individual who owns/drives his own racing car and has no factory/corporate backing.

Privatisation/privatised

The transfer of ownership from the public sector (government) to the private sector.

Privatised

When the ownership and operation of an organisation is transferred from government to the private sector.

Pro bono services

Work undertaken either free of charge or at a substantially reduced rate.

Procedures

Protocols or a set of guidelines or rules for use in various circumstances.

Product attributes

The broad range of characteristics that make up the total product in addition to the obvious use to the consumer. These include reputation, convenience and back up support.

Product categories

The generic term that is accepted industry-wide to describe a group or sub-group of similar products.

Product development

An aspect of the product management process where it is changed, enhanced or modified to better meet the needs of the market.

Product differentiation

Establishing the way(s) a product will be different to its competitors. This difference is then reinforced through advertising and promotion.

Product integration

When an advertiser pays to have their products directly placed into the television program along with other platforms such as online integration and billboards, in addition to the traditional commercial...

Product penetration

The amount of product and awareness of a product in a marketplace. How much of a company's product is being successfully sold to each customer.

Product placement

Placing an advertiser's product directly into a television show where viewers at home can see the products during the show (and sometimes used by the characters on the show).

Product segments

The division of a company’s products in to distinct groups or segments.

Product Stewardship

Recognises that manufacturers, retailers, government and consumers share a responsibility to manage the impacts of products throughout their lifecycle, including their ultimate disposal.

Production systems

The stages or sequences of operations and procedures involved in the production of a product or service.

Productivity

The average real production per worker per unit of time.

Productivity plans

Intentions and actions the aim to maximize the average real production per worker per unit of time.

Profit Margin(s)

The difference between the cost of a product and the price at which it is sold.

Profit(s)

The excess of income earned by a business over its expenses.

Project management

The methods and disciplines used to define goals, plan and monitor tasks and resources, identify and resolve issues, and control costs and budgets for a specific project.

Project Manager

A leader who plans, budgets, co-ordinates, monitors and controls the workers and firms involved in a project.

Promotion

Making products and services better known through a range of activities. Generally, promotion is communicating with the public in an attempt to influence them toward buying products and/or services.

Promotional strategies

The range of activities that can be used by management to promote a product. These include advertising, direct marketing, sales promotion and sponsorship.

Prosperous

To develop as being successful or thriving.

Prototype(s)

A working model developed in the design stage of a product - used as test prior to developing the final product.

Public company

A company which has an unlimited number of shareholders and is listed on a stock exchange, e.g. the ASX. This allows the public to buy and sell shares in the company. See also, capital markets listed...

Public image

How an organisation is perceived by outsiders.

Public limited company

A type of limited company (a company in which the liability of members for the company’s debts is limited) whose shares may be offered for sale to the public.

Public relations

A functional area of management that involves communicating the image and view of the business to a range of stakeholders including employees, the broader community, media, investors and government.

Public sector

That part of the economy that is controlled by government spending and includes organisations such as police, state schools and public hospitals.

Publicly-listed (company)

A company listed on the Australian Stock Exchange where the public may buy and sell shares in the company.

Qualitative research

Research based on anecdotal feedback from clients providing information on how and why people make the purchasing decisions they do. Information can usually be collected through surveys, interviews and...

Quality

Standards of value and performance that meet or exceed both internal and external customer needs and requirements.

Quality assurance

A recognised, and often, certified achievement of a level of quality in the production of a good or provision of a service. Certification is obtained from a quality assurance authority.

Quality controller

The person responsible for ensuring quality at every stage of the production process.

Quality management

The system of managing standards of value and performance that meet or exceed both internal and external customer needs and requirements.

Quantitative research

A market research technique that attempts to obtain measurable findings from a sample of consumers.The research focuses on measuring and counting facts and the relationships among variables, and seeks...

Quota

A prescribed number.

Recruitment

The process of attracting potential candidates to apply for employment opportunities available at an organisation.

Registered Training Organisations

Organisations or institutions that offer activities designed to improve the competence and ability of individuals to better enable an organisation to meet its objectives. RTOs provide nationally recognised...

Regulatory framework

The system of laws enacted by Federal, State and local governments that affect the conduct of businesses in an industry

Regulatory requirement/s

A law, licence or restrictions imposed on an industry or business by a government.

Reinforcement

When one aspect of progress improves and strengthens another

Reinsurance

A means of transferring risk from one organisation to another and is effectively insurance for insurance companies.

Remuneration and rewards

A combination of salary, bonuses, recognition and benefits that employees receive relative to their role and performance.

Research and development (R&D)

Future-oriented, longer term activities that result in technological advances based around three stages: research, invention and innovation.

Resources

Materials, labour, technology and machinery.

Responsible and sociable consumption

The purchasing of products and services perceived to have a positive (or a less negative) influence on the environment or engaging businesses that attempt to effect related positive social changes.

Retailer

Organisation selling in relatively small units to the final consumer

Retention

The proportion of employees retained in existing employment compared to the previous year.

Revenue

The income generated from sale of goods or services, or any other use of capital or assets, associated with the main operations of an organisation before any costs or expenses are deducted. Revenue...

Risk analyses

The systematic research, examination and measurement of the risk associated with different business activities. Allows business to make informed decisions and plans for the future.

Risk management strategy

A plan devised by an organisation that attempts to manage negative uncertainties.

Risk/Risk management

The task of managing (or reducing) the risk (chances) involved in the course of business i.e. the chance of loss is effectively reduced. In business, this is using a range of strategies to manage the...

Royalties and licence fees

A fee paid to the owner of an idea or product for the right (or permission) to produce that product.

S&P/ASX 100 Index

Represents an index of the 100 largest and mid-capitalised companies listed on the Australian share market

Savings

Money set aside for future use.

Scams

A fraudulent, dishonest or deceptive way of getting money from consumers.

Scheduling

Co-ordinating the multiple related tasks and objectives of a project into a timeline, specifying the order and allotted time for each part.

Search engine marketing (SEM)

A form of Internet marketing that seeks to promote websites by increasing their visibility in search engine result pages through the use of search engine optimisation, paid placement,contextual advertising,...

Search engine optimisation (SEO)

The process of improving the volume or quality of traffic to a web site from search engines via 'natural' or un-paid search results.

Shareholder

The owner of shares in a company.

Skill set

A combination of the knowledge, talent, and abilities that are needed to perform a specific job

Skills drain

If few positions exist within an industry, highly skilled and trained workers will seek positions elsewhere, usually overseas.

Skills gap

A deficiency in the skills required by employees in relation to those that are required to effectively complete their job role.

Small and medium-sized enterprises (SME's)

Small businesses are generally seen as having between 1- 19 employees and medium-sized businesses up to 250 employees, but definitions can vary slightly

Social and ethical responsibilities

Practices and policies that take into account business objectives which match society's expectations of how a company should be behave.

Social issues

Matters that affect society. For example, environmental issues, poverty, human rights, disctimination and crime.

Social media

The online tools used to share content, profiles, opinions, media etc, facilitating conversations and interaction online. Includes blogs, message boards, podcasts, bookmarks, wikis, vlogs, networks, communities...

Social progress

Increases in the wellbeing of the population; a reduction of threats, and increases in social cohesion, protection and enhancement of democratic rights.

Social responsibility

Where a business undertakes activities that are seen to not just have benefit for that business (such as adding to shareholder value) but have measurable benefit (or limited negative outcomes) for the...

Socially responsible

Activities of business that are seen to not just have benefit for that business (such as adding to shareholder value) but have measurable benefit for the broader society.

Socio-economic

Relating to the management of people and contributions to the economy.

Specifications

The identification of particular characteristics of goods and services desired by consumers which act as objectives for production decisions

Spin-off (company)

A way of starting a new company by separating from an existing one

Sponsor involvement

When a business develops an association with a particular program that provides benefits to all parties involved.

Sponsorship

A partnership between organisations or an event in which the sponsor (supporter) publicly endorses an activity and ties its reputation with that of the organisation or event being sponsored. See also,...

Staff retention

The rate at which a company turns over staff. A high staff retention level can suggest that employees are satisfied with their current employment arrangements.

Stakeholder groups

...

Stakeholders

A person or group who has an interest in how a business operates or functions. Examples include management, owners, employees, customers, shareholders, the local community and government. See also, stakeholder...

Standardisation

The use of products that are identical and so interchangeable

Start-up (company)

A company that has been started from scratch. Usually used to describe a company still in its preliminary trading stages

State-Owned Enterprise

A business managed or operated by the government.

Statutory authority

An organisation established under a specific law that mandates certain requirements and obligations. Ownership and control of a statutory authority rest with the government. See also, legislation

Strategic

Long-term goals and objectives (usually 3-5 years).

Strategic decision

A long-term intention developed by management that will affect the activities and actions of the business. These decisions could result in major change. See also, strategy

Strategic partnerships

Alliances that are formed by two or more companies that will have a mutual benefit in the medium to long term

Strategy

The major forward plan by which an organisation sets out to achieve its objectives. See also, business plan, strategic decision

Subsidiaries

A company where the controlling interest is owned by another company.

Subsidiy(ies)

A payment, generally by the government or a public sector agency, to the producer or consumer of a good or service, intended to encourage its production, to reduce its cost to consumers or increase competitive...

Succession planning

A human resources function whereby an organisation ensures that the successor for a particular role can be found within the organisation, i.e. if an employee leaves, there is someone with the requisite...

Superannuation

A system where money is placed in a fund to provide for a person's retirement, or after a person's death, for the person’s dependants.

Supply chain

The range of suppliers from which the business purchases materials and resources.

Sustainable development

Development which meets present community needs without compromising the ability of future generations to achieve their own needs and aspirations. See also, economic sustanability, sustainability, sustainable...

Sustainable growth

...

Sustainable procurement

Choosing supplies for the business operation that minimise environmental impact and use of resources (people, natural and physical).

Sustainable/sustainability

Capable of being maintained at a steady level without depleting financial, community, or natural resources.

Synergy

When two or more forces come together and lead to extremely positive outcomes. Expressed mathematically as 2+25!

Takeover

The gaining of control of a business. See also, acquisition, merger

Talent management

A conscious, deliberate approach undertaken by a company to attract, develop and retain people with the aptitude and abilities to meet current and future organisational needs.

Target demographic

A particular market segment/group at which a marketing campaign is focused.

Target market

The group of customers that a product or service is designed to satisfy

Tariff

A tax imposed on imported goods to make them more expensive and thus protect the domestic market.

Team work

When people within a workplace work together cooperatively.

Telecommute

Refers to a situation when employees are able to work from home. Instead of commuting via transport to an actual office, they are able to replace commuting with telecommunication links to their place...

Tender

A process by which one can seek prices and terms for a particular project (such as a construction job) to be carried out under a contract.

Time to market

The length of time taken in the product development process from product idea to the finished product.

Total Quality Management (TQM)

A comprehensive and structured approach to organisational management that seeks to improve the quality of products and services through ongoing refinements in response to continuous feedback.

Trade barriers

Regulations such as tariffs, quotas and subsidies to protect domestic producers.

Trade-offs

When one area of progress improves at the expense of another as a result of a decision

Trades Union Congress

The organisation that represents British trade unions at a national level

Training

Activities designed to improve the competence and ability of individuals in order to better enable an organisation to meet its objectives

Triple bottom line

Organisations operating to achieve economic objectives such as market success, environmental objectives such as sustainability, and social objectives.

Triple bottom line reporting

Measuring and reporting business performance using economic, social and environmental indicators.

Turnover

The amount of money earned by a business through sales of goods and services.

Underwriting

Underwriting involves measuring risk exposure and determining the premium that needs to be charged to insure that risk. The information used to evaluate the risk will depend upon the type of coverage...

Unique selling point

The reason why somebody should buy from you and not your competition. The unique benefits that your products or services offer consumers.

Utility

A basic service such as electricity, gas, or water, or the company that provides such a service.

Value add

An enhancement to a product or service.

Value add returns

Profit made from additional value created at a particular stage of production or through marketing.

Values

The beliefs a company stands for, often including what behaviours are expected from employees

Vertically integrated

An arrangement whereby the same company owns all the different aspects of making, selling and delivering a product or service.

Viral campaign

The exchange of an idea between people that serves to promote a service or brand, encouraging the recipient of the idea to also spread the concept to other participants.

Vision

A long-term direction or view that a business holds that will affect future planning and actions, i.e. where the business is heading

Volatility

The extent to which an investment is likely to fluctuate (or change) over a given period of time

Web 2.0

Associated with web applications that allow interactive information sharing, user-centred design and collaboration on the internet. A Web 2.0 site allows users to interact with each other. Examples include...

White Paper

An authoritative report or guide helping readers to understand an issue, solve a problem, or make a decision. White papers are used in two main spheres: government and business-to-business...

Word of mouth

A term often used in marketing when customers pass on recommendations about a product or service through conversations. It is often considered to be the best form of promotion of a product.

Workforce planning

...

Working capital

The resources that are available to meet the short-term debts of the business. See also, net income, working capital

Working to rule

Performing only the bare minimum of duties. See also, industrial action

Zero harm

To minimise harm to people, host communities and the environment.

Glossary

Case Study Pages:

Glossary of Terms