business vocabulary 2

External influences:
Bank rate: the interest rate set by MPC
Business cycle: regular pattern of upturns and downturns in demand and output.
Capacity: the maximum amount of products a company can produce in a period time
Competition policy: government’s approach to ensuring that competition is active enough to provide consumers with goods and services that are high quality and fairly priced.
Consumer durables: goods which for households use but can use it for a period of time or long time.
Consumer protection: a type of law to protect the right of customers
Cycle unemployment: the consequence of an economic downturn.
Deflation: it’s a period of falling demand and prices.
Ethics: decisions which we making should follow moral
Excess capacity: having more production potential than they will use in the future.
Exchange rate: the price of one country’s currency expressed in terms of another.
Inflation: a sustained rise in the average prices of goods within an economy.
Interest rates: percentage of cost of borrowing money.
Investment: use capital to make future returns.
Market: to describe the meeting place between customers and suppliers.
Market economy: economy which allows markets to determine the allocation of resources.
Monopoly: single producer control a market.
Oligopoly: a market which is demand more than supply.
Resistance to change: refuse to change, mistrust of the motives of proposing change, and worried about loss of job security.
Stakeholder: people who interest in an organisation’s performance. (e.g. employees shareholders, customers, suppliers, financiers and local community)
Structural unemployment: happens when there is a change in demand or technology which causes long-term unemployment.
Unfair competition: firm use methods that harmful to the interest of other producers and consumers.

business vocabulary 1

Unit 1:
Accounting and finance:
Break-even point：When total revenue equal to total cost.
Budgetary control: By comparing actual with budget for revenues and expenses. Analyzing the divergences to cope with the unexpected.
Cash flow: cash inflow minus cash outflow
Cash flow forecast: predict a firm’s cash inflow and outflow detailed.
Contribution: total revenue minus variable costs.
Cost centre: a department to distribute the specific costs.
Factoring: a company let someone else to collection debt instead. Get 80% of the value of invoiced sales as cash advance from them.
Fixed costs: a type of cost of company which not change. (e.g. land, machinery
)
Overdraft: a firm spends more then it own, borrow money from bank and It has maximum limit for any period time.
Profit: total revenue minus total cost
Profit centre: a department of a company that has been given authority to run itself as a business within a business.
Safety margin: difference between demand and break-even.
Sale and leaseback: a contract to sale firm and at the same time buying back on a long-term lease.
Share capital: total value of invest from shareholders.
Variable cost: A type of cost which change along with output.
Variance analysis: analysis differences between actual and budget
Venture capital: risk capital,
Working capital: current assets – current liabilities
Zero budgeting: setting budget at zero, demanding that managers should give a full justification for every pound of budget they request.

Using computers in business

Using computers in business is very common nowadays. Because use computers can improve working efficiency. It's really a good tool for communicating, organisation and do some research. So it can save a lot of time and it cost very low, basically it's fix cost.
However, using computers is also a skill. So companies may need to spend money train employees. That's cost money and spend time.

TQM improve management and profit

TQM is a type of Japanese management which stand for total quality management. It means that the whole workforce has to be committed to quality improvements.
Many companies only pay attention to the quality of products. TQM is to improve quality of every part of business like selling, production, communication, finance and so on. So it improves management.
As TQM improve the quality of production, therefor it can reduce the waste therefor costs will be lower. The quality of products will be improved by TQM as well, so products are likely to be inelastic, so we can make selling price higher. Because of the high quality, so products are less likely to be given back and customers are less likely to complain. After TQM companies may easier to communicate with supplier. So it can reduce the cost, keep stock level low and make sure have enough material for production. All these benefits can either reduce costs or increase selling price. So TQM can improve profit.

Vocal Smoke Alarm

Unlike conventional ‘whistling’ smoke alarms, the signal one safety vocal smoke alarm is presently the only alarm that allows a parent or carer to record an emergency vocal message, Research suggests that this is more effective than smoke alarm tones.

This is a good idea, because when smoke alarm ring some people may don’t know what happened or what to do. Instead of strident conventional ‘whistling’, this sounds much better, and can tell people exactly what to do. But this product is not difficult to produce. So if the product is successful, this company may face many competitions in the future. So they can apply patent. For a new product, even it's a good product, how can people know this product? So choose the right way to advertise and sell products is very important.

The best way to motivate Premiership footballers is....

Football is one of the most popular sport in the world. There are many famous footballers in the world. Their wages are higher than normal people. Some have really high wages. As Premiership footballers, they must have very high wages. So use money to motive them is not good enouth. They are in high level in MOSLW stage, so they probability in self-actualization stage. So become famous and more successful person can motivate them. Also, let them to be captain, give them more responsibility. It's a theory Y. If they buy shares of their the football club, they will get power and can make money. In a word, the best way to motivate is giving responsibility and power to them.

The best leadership style

There are four types of leadership, they are Dictatorial Style, Authoritative Style, Consultative Style and Participative Style.
Dictatorial Style: The leader or manager using this style operates like a dictator. They make all the decisions about what, where, when, why, how things are done, and who will do them by themselves. Employees can only do as leaders tell them. It can make employees to be disciplined, but it can cause early retirement or abdicate. Leaders ignores advice employees give, it's not good for management, production and improve products.
Authoritative Style:When leaders want to make decision, they would like to ask people who they think are the most qualified and experienced. To consider his/her views to be most valid. The weakness of this leadership style is they are often denied opportunities to use or exhibit their skills in decision-making venues. The strength of this style is to produce action when it is needed.
Consultative Style: This style is using the skills, experiences, and ideas of others. However, leaders are still who make decisions.
Participative Style: Team member ideas or equal with the leader. It's good for improving creativity. Usually accept team idea over own, but it takes more time to make a decision.

I don't think there is the best leadership style. Each of them has its weakness and strength. So how to use them in correct way and in right situation is the most improtant thing. For creative people who full of good ideas, we can use participative Style. For people who have skill and experience, we can use consultative Style. For people who are lazy and arrogant we can use dictatorial Style.