Term
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Definition
Organization that provides goods or services to earn profits
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| Difference between a business's revenues and its expenses |
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| Everything outside an organization's boundaries that might affect it |
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Term
| Domestic Business Environment |
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Definition
| The environment in which a firm conducts its operations and derives its revenues |
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Term
| Global Business Environment |
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Definition
| The international forces that affect a business |
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| Technological Environment |
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Definition
| All the ways by which firms create value for their constituents |
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Term
| Political- Legal Environment |
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Definition
| The relationship between business and government |
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| Sociocultural Environment |
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Definition
| The customs, mores, values and demographic characteristics of the society in which an organization functions |
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Definition
| Relevant conditions that exist in the economic system in which a company operates |
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Definition
| A nation's system for allocating its resources among its citizens |
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| Resources used in the production of goods and services- labor, capital, entrepreneurs, physical resources, and information resources |
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| Physical and mental capabilities of people as they contribute to economic production |
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| Funds needed to create and operate a business enterprise |
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| Individual who accepts the risks and opportunities involved in creating and operating a new business venture |
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| Tangible items organizations use in the conduct of their businesses |
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| Data and other information used by businesses |
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| Economy that relies on a centralized government to control all or most factors of production and to make all or most production and allocation decisions |
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| Economy in which individuals control production and allocation decisions through supply and demand |
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Definition
| Political system in which the government owns and operates all factors of production |
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Definition
| Mechanism for exchange between buying and sellers of a particular good or service |
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| System that sanctions the private ownership of the factors of production and encourages entrepreneurship by offering profits as an incentive |
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| Economic system featuring characteristics of both planned and market economies |
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| Process of converting government enterprises into privately owned companies |
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Definition
| Planned economic system in which the government owns and operates only selected major sources of production |
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Term
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Definition
| The willingness and ability of buyers to purchase a good or service |
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Definition
| The willingness and ability of producers to offer a good or service for sale |
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| Principle that buyers will purchase more of a product as its price drops and less as its price increases |
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Definition
| Principle that producers will offer more of a product for sale as its price rises and less as its price drops |
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| Demand and Supply Schedule |
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Definition
| Assessment of the relationships among different levels of demand and supply at different price levels |
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Definition
| Graph showing how many units of a product will be demanded (bought) at different prices |
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| Graph showing how many units of a product will be supplied (offered for sale) at different prices |
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| Market Price (Equilibrium Price) |
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Definition
| Profit-maximizing price at which the quantity of goods demanded and the quantity of goods supplied are equal |
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Definition
| Situation in which quantity supplied exceeds quantity demanded |
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| Situation in which quantity demanded exceeds quantity supplied |
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| Economic system that allows individuals to pursue their own interests without undue governmental restriction |
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| Vying among businesses for the same resources or customers |
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| Market or industry characterized by numerous small firms producing an identical product |
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| Market or industry characterized by numerous buyers and relatively numerous sellers trying to differentiate their products from those of competitors |
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| Market or industry characterized by a handful of (generally large) sellers with the power to influence the prices of their products |
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| Market or industry in which there is only one producer that can therefore set the prices of its products |
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| Industry in which one company can most efficiently supply all needed goods or services |
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| A statistic that helps assess the performance of an economy |
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| Short-term pattern of economic expansions and contractions |
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| The total quantity of goods and services produced by an economic system during a given period |
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| The total quantity and quantity and quality of goods and searches people can purchase with the currency used in their economic system |
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| Gross Domestic Product (GDP) |
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Definition
| Total value of all goods and services produced within a given period by a national economy through domestic factors of production |
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| Gross National Product (GNP) |
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Definition
| Total value of all goods and services produced by a national economy within a given period regardless of where the factors of production are located |
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Definition
| Gross domestic product (GDP) adjusted to account for changes in currency values and price changes |
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Term
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Definition
| Gross domestic product (GDP) measured in current dollars or with all components valued at current prices |
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Definition
| The principle that exchange rates are set so that the prices of similar products in different countries are about the same |
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| A measure of economic growth that compares how much a system produces with the resources needed to produce it |
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| The economic value of all the products that a country exports minus the economic value of all the products it imports |
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Definition
| The amount of money that government owes its creditors |
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Definition
| Condition in which the amount of money available in an economic system and the quantity of goods and services produced in it are groaning at about the same rate |
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Definition
| Occurs when widespread price increases occur throughout an economic system |
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Term
| Consumer Price Index (CPI) |
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Definition
| A measure of the prices of typical products purchased by consumers living in urban areas |
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| The level of joblessness among people actively seeking work in an economic system |
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| A period during which aggregate output, as measured by GDP, declines |
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| A prolonged and deep recession |
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Definition
| Policies used by a government regarding how it collects and spends revenue |
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Definition
| Policies used by a government to control the size of its money supply |
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Definition
| Government economic policy intended to smooth out fluctuations in output and unemployment and to stabilize prices |
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| Process by which the world economy is becoming a single interdependent system |
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| Product made or grown abroad but sold domestically |
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| Product made or grown domestically but shipped and sold abroad |
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| North American Free Trade Agreement (NAFTA) |
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Definition
| Agreement to gradually eliminate tariffs and other trade barriers among the United States, Canada, and Mexico |
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Definition
| Agreement among major European nations to eliminate or make uniform most trade barriers affecting group members |
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| Association of Southeast Asian Nations (ASEAN) |
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Definition
| Organization for economic, political, social, and cultural cooperation among Southeast Asian nations |
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| General Agreement on Tariffs and Trade (GATT) |
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Definition
| International trade agreement to encourage the multilateral reduction or elimination of trade barriers |
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| World Trade Organization (WTO) |
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Definition
| Organization through which member nations negotiate agreements and resolve disputes about trade policies and practices |
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Definition
| Economic value of all products a country exports minus the economic value of all products it imports |
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| Situation in which a country's imports exceed its exports, creating a negative balance of trade |
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| Situation in which a country's exports exceed its imports, creating a positive balance of trade |
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| Flow of all money into or out of a country |
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Definition
| Rate at which the currency of one nation can be exchanged for the currency of another nation |
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| A common currency shared among most of the members of the European Union (excluding Denmark, Sweden, and the United Kingdom) |
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Definition
| The ability to produce something more efficiently than any other country can |
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Definition
| The ability to produce some products more efficiently than others |
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| National Competitive Advantage |
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Definition
| International competitive advantage stemming from a combination of factor conditions, demand conditions, related and supporting industries, and firm strategies, structures, and rivalries |
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Definition
| The practice of paying suppliers and distributors to perform certain business processes or to provide needed materials or services |
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Definition
| The practice of outsourcing to foreign countries |
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Definition
| Firm that distributes and sells products to one or more foreign countries |
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Definition
| Firm that buys products in foreign markets and then imports them for resale in its home country |
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Definition
| Firm that conducts a significant portion of its business in foreign countries |
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Definition
| Firm that designs, produces, and markets in many other nations |
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Definition
| Foreign individual or organization that agrees to represent an exporter's interests |
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| Arrangement in which firms choose foreign individuals or organizations to manufacture or market their products in another country |
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| Foreign office set up by an international or multinational firm |
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Definition
| Arrangement (also called joint venture) in which a company finds a foreign partner to contribute approximately half of the resources needed to establish and operate a new business in the partner's country |
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| Foreign Direct Investment (FDI) |
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Definition
| Arrangement in which a firm buys or establishes tangible assets in another country |
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Definition
| Restriction on the number of products of a certain type that can be imported into a country |
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| Government order banning exportation and/or importation of a particular product or all products from a particular country |
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Definition
| Tax levied on imports products |
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Definition
| Government payment to help a domestic business compete with foreign firms |
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| practice of protecting domestic business against foreign competition |
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| Law requiring that products sold in a particular country be at least partly made there |
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Definition
| Law or regulation governing business practices in given countries |
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Definition
| Association of producers whose purpose os to control supply and prices |
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Definition
| Practice of selling a product abroad for less than the cost of production |
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| Service Operations (Service Production) |
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Definition
| Activities producing intangible and tangible products, such as entertainment, transportation, and education |
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| Goods Operations (Goods Production) |
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Definition
| Activities producing tangible products, such as radios, newspapers, buses, and text books |
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Definition
| Activities involved in making products- goods and services- for customers |
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Definition
| Product's ability to satisfy a human want or need |
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Term
| Operations (Production) Management |
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Definition
| Systematic direction and control of the activities that transform resources into finished products that create value for and provide benefits to customers |
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| Operations (Production) Managers |
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Definition
| Managers responsible for ensuring that operations activities create value and provide benefits to customers |
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Definition
| Set of methods and technologies used to produce a good or a service |
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Definition
| Activities for one-of-a-kind or custom-made production |
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Definition
| Activities for producing standardized products for mass consumption |
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Definition
| Level of customer contact in which the customer need not be part of the system to receive the service |
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Definition
| Level of customer contact in which the customer is part of the system during service delivery |
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| Operations Capability (Production Capability) |
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Definition
| Special ability that production does especially well to outperform the competition |
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Definition
| Amount of a product that a company can produce under normal conditions |
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Definition
| Physical arrangement of production activities that groups equipment and people according to function |
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Definition
| Physical arrangement of production steps designed to make one type of product in a fixed sequence of activities according to its production requirements |
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Definition
| A same-steps layout in which a product moves step by step through a plant on conveyor belts or other equipment until it is completed |
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| Combination of "characteristics of a product of service that bear on its ability to satisfy stated or implied needs" |
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Definition
| Dimension of quality that refers to how well a product does what it is supposed to do |
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Definition
| Dimension of quality that refers to sameness of product quality from unit to unit |
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| Master Production Schedule |
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Definition
| schedule showing which products will be produced, and when, in upcoming time periods |
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Definition
| Schedule showing daily work assignments with start and stop times for assigned jobs |
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Definition
| Assigned working times in upcoming days for each employee on each work shift |
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Definition
| Production schedule that breaks down large projects into steps to be performed and specifies the time required to perform each step |
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Definition
| Production schedule specifying the sequence of activities, time requirements, and critical path for performing the steps in a project |
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Definition
| Process of monitoring production performance by comparing results with plans and taking corrective action when needed |
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| Operations control activity for ensuring that production decisions are being implemented |
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Definition
| Process of planning, organizing, and controlling the flow of materials from sources of supply through distribution of finished goods |
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Definition
| Production system designed for smooth production flows that avoid inefficiencies, eliminate unnecessary inventories, and continuously improve production processes |
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Term
| Just-in-Time (Jit) Production |
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Definition
| Type of lean production system that brings together all materials at the precise time they are required at each production stage |
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Definition
| Process of finding and choosing suppliers from whom to buy |
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Definition
| Acquisition of the materials and services that a firm needs to produce its products |
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Definition
| Activities in transporting resources to the producer and finished goods to customers |
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Definition
| Storage of incoming materials for production and finished goods for distribution to customers |
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Definition
| Process of receiving, storing, handling, and counting of all raw materials, partly finished goods, and finished goods |
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Definition
| Action of ensuring that operations produce products that meet specific quality standards |
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| Total Quality Management (TQM) |
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Definition
| All activities involved in getting high- quality goods and services into the marketplace |
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Definition
| Principle of total quality management that holds that quality belongs to each person who creates it while performing a job |
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| Competitive Product Analysis |
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Definition
| Process by which a company analyzes a competitor's products to identify desirable improvements |
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Definition
| Process of evaluating all work activities, materials flows, and paperwork to determine the value that they add for customers |
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Definition
| TQM tool in which collaborative groups of employees from various work areas work together to improve quality by solving common shared production problems |
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Definition
| Program certifying that a factory, laboratory, or office has met the quality management standards set by the International Organization for Standardization |
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Definition
| Certification program attesting to the fact that a factory, laboratory, or office has improved its environmental performance |
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| Business Process Reengineering |
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Definition
| Rethinking and radical redesign of business processes to improve performance, quality, and productivity |
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| Supply Chain (Value Chain) |
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Definition
| Flow of information, materials, and services that starts with raw- materials suppliers and continues adding value through other stages in the network of firms until the product reaches the end customer |
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| Supply Chain Management (SCM) |
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Definition
| Principle of looking at the supply chain as a whole to improve the overall flow through the system |
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