Completely new innovative

Firm venture
Existing rivals established competition
Ask costumers if they like it do market research
Well founded valid
Possible to carry out feasible
New business start up
Money capital
Wrote down what he wanted to do drew up a business plan
Ask for money ask for a loan
Rich people with money who invest in his firm business angels
Ask money form the government ask for a government grant
The cheapest loan possible interest-free
A business plan is a guidea roadmap for a business that outlines what a
businesss goals are and details how these goals will be achieved
Company structure
UP

DOWN

Boss
senior
director
superior
manager

Subordinate
junior
assistant
worker

The Area Sales Manager reports to/ is responsible to/ is accountable to the
Head of Sales.
The Marketing Manager reports to/ is responsible to/ is accountable to the
Managing Director.
Human Resources are responsible for/ are in charge of employing staff.
Our team of sales reps is responsible for/ in charge of the Sales and
Marketing Department.
Interns may also be called to assist /support the head of the Budget
Section in monitoring the status of projects.

Hierarchical structure
Definition: One person or a group of people at the top and an increasing
number of people below them at each successive level

Advantages: Clear chain of command - All know their place, the kind of
decisions they can make
Disadvantages: Activities can be too complicated for a single hierarchy; no
responsibility on lower levels (not motivating)
No unplanned collaboration
Functional structure
Definition: Business organized according to function or role. (e.g., finance,
marketing, HR)
Advantages: Easier management than large hierarchical structure;
Efficiency (experts grouped together)
Disadvantages: concern for success of dept. only (not co.); slower decision
making; Conflicts between departments
Decentralized structure
Large organizations making a range of products are often further divided
into separate operating division
Separate operating divisions; organization along product lines, territory or
clients, e.g., Philips Lighting, Philips Healthcare, Philips Domestic
Appliances and Personal Care
Matrix structure (pl. matrices)
Definition: People report to more than one superior
Advantages: Motivational: Authority and autonomy at lower levels too.
Experts from different fields collaborate
Disadvantages: matrices involving several departments are too complex;
conflicting loyalties
Team / Project oriented
Definition: temporary groups responsible for 1 project -> split up
Advantages: Autonomy; motivation
Disadvantages: Decision making can be difficult; relational problems; only
small and self-disciplined teams with a strong leader function well
Flat or horizontal organizations
Why are companies flattening their hierarchies?
Motivation: managers delegate responsibilities and decision making to
staff; to encourage collaboration within the company

Cutbacks: companies economize in recessions; reduced need for

administrative staff due to advanced IT systems

Chief Operations Officer: Responsible for the corporation's operations,

looks after issues related to marketing, sales, production and personnel.
Leader of the corporation, runs the Board and maintains communication
with the CEO and high-level executives
Chief Executive Officer: responsible for the entire operation of the
corporation and reports directly to the chairman and board of directors.
(Other name: Managing Director)
Chief Finance Officer: Also reporting directly to the CEO, he is
responsible for analysing and reviewing financial data, reporting financial
performance, preparing budgets and monitoring expenditures and costs.
Maslows hierarchy of needs at the workplace
Physiological needs
a fair wage, a meal and rest facilities, and breaks.
Safety needs
Job security, safe working conditions, order, direction
Social needs
team work, social facilities like a club or sports pitch
Esteem needs
how others see us at work, status symbols like cars, offices and new job
titles. Allowing staff to gain qualifications at work, promotion
Self-actualisation
Training opportunities, promotion, challenging job
Overseeing workers - supervising, controlling workers, telling them what to
do
Pay rise, bonus monetary incentive
The opposite of threaten reward Motivators
Hygiene factors
Influence the context of work
Good labour relations

Help employees psychological

growth
A challenging, interesting,
creative job
Responsibility
Recognition
Promotion

Good working conditions

Good wage or salary
Job security
Job safety
Benefits

To employ appoint, engage, hire, take on

Dismiss fire, lay off, make redundant, sack, let go
A legal technique for the resolution of disputes outside the courts arbitration
A council composed of both employer and employees convened to discuss
matters of common interest. a works council
An organisation with powers to hear disputes and make decisions, similar
to a court a tribunal
A complaint a grievance
Resolve problems
Solve an issue
Call a strike
Take industrial action
Have a complaint
Grievance procedure
Products mix
the total sum of products offered by a particular organization. It consists of
both product lines and individual products.
All the courses a university offers constitute its product mix; courses in the
marketing department constitute a product line; and the basic marketing
course is a product item.
Brand recognition be able to recognise a brand
Brand loyalty be loyal to a brand
Brand switching change brands regularly
The sale of two or more competing brands by the same marketer. These
sometimes appeal to different segments of the market. In other cases one
brand may cannibalize another.
Why?
To acquire more shelf space.
To acquire greater market share.
To attract brand switchers by offering something new.
To motivate the workers inside the company by creating internal
competition.
Marketing mix: product, place, promotion and price + people, physical
evidence and process

Promotional tools: public relations, advertising, personal selling and sales

promotions
Factors that determine the type of promotional tools used:
1) The size of the companys budget and the cost of each promotional
tool
2) Market size and concentration
Small market personal selling
Large market advertising
3) Customer information needs
Lots of information and after-sales service needed personal selling
Little info advertising
Personal experience of the product sales promotion
4) The stage in the product life cycle.
Marketing - getting the right goods to the right people, in the right place,
at the right time, with the right level of communications profitably; the aim
is to sell unnecessary
VOCABULARY
BUSINESS PLAN a document drawn up to show how a business is planned
to work
INTEREST-FREE GRANTS money given by government to help pay for
something without calculated percentage for the use of the money
borrowed
VENTURE a business project or activity that involves risk
VENTURE CAPITAL FIRMS an investment company that invests capital in
potentially risky but profitable start-ups for aboveaverage returns
BUSINESS ANGELS a rich investor who provides capital for a start-up in
exchange for ownership equity or a stake in the company
ENTREPRENUER a person who sets up, owns and directs a company and
takes commercial risks
FEASIBILITY ability to complete a project successfully, taking into account
the possible negative and positive outcomes before investing too much
money and time
INCUBATORS an organisation designed to accelerate the growth and
success of entrepreneurial companies through an array of business
support resources and services that could include physical space, capital,
coaching, common services and networking connections
VALIDITY the state of being legally or officially acceptable
STAKE the amount that someone has invested in a company often

expressed as a percentage of the total share capital

SHARE CAPITAL money invested in a business in the form of shares
COMPETITIVE ADVANTAGE what an organisation can do better than its
competitors
A SUSTAINBILITY able to continue over a period of time
SALES PROJECTORS (FORECAST) the sales business expect to achieve in
a particular period of time
BREAK-EVEN POINT where total costs equal total income from sales and
the company makes neither a profit non a loss
REVENUE the total income received by a business before any expenses
are paid
EXIT STRATEGY an investors plan for getting their investment back and
potentially realizing a profit
FOUNDERS the people who establish a company
EMPLOYEES the people who are employed in an organisation
LINE AUTHORITY a system of authority with different levels, one above
another
FUNCTION a specific activity in the company
AUTONOMUS independent, able to take decisions without consulting
someone at the same level or higher in the chain of command
HIERARCHY OF CHAIN OF COMMAND the power to give instructions to
people at the level below in the chain of command
TO REPORT TO to be responsible to someone and to take instructions
from them
TO DELEGATE to give someone else responsibility for doing something
instead of you
CONSULTANT a person who provides expert advice to company
CRISIS a situation of danger or difficulty
INNOVATION a new idea or a method
OBJECTIVE something you plan to do or achieve
PROMOTION when someone is raised to a higher position
PUBLIC SECTOR the section of the economy under government control
STRATEGY a plan for achieving success
SUBORDINATE a person with less important position in an organisation
REFERENCE LETTER statements of former employers or teachers about
your character and abilities
LABOUR RELATIONS relations between the management of a company
and its workers
OUTLETS places of business for selling goods to costumers
PRODUCT MIX all the different products, brands and items that a
company sells

RETAILER businesses that sell goods to individual costumers

LOGO a graphic image or a symbol specially created to identify a
company or a product
PACKAGE wrappers and containers used to enclose and protect a product
BRAND RECOGNITION the extent to which costumers are aware of a
brand, and know its name
SHELVES surfaces in a store on which goods are displayed
MARKET SHARES the sales of a company expressed as a percentage of
total sales in a given market
BRAND SWICHERS consumers who buy various competing products
rather than being loyal to a particular

DISTRIBUTION CHANNEL all the companies or individuals involved in

moving goods or services from producers to consumers
WHOLESALER an intermediary that stocks manufacturers goods and
sells it to retailers and professional buyers
MARKET SEGMENTATION dividing a market into distinct groups of buyers
who have different requirements or buying habits
PRODUCT DIFFERENTIATION making a product appear to be different
from similar products offered by other sellers ( advertising, packing )
MARKET OPPORTUNITIES possibilities of filling unsatisfied needs in
sectors in which a company can profitably produce goods or services
MARKET SKIMMING setting a high price for a new product to make
maximum revenue before competing products appear on the market
SALES REPRESENTATIVE someone who contacts existing and potential
customers and tries to persuade them to buy goods or services
PRODUCT FEATURES the attributes or characteristics of a product, such
as size, shape, quality, price
PRICE EALSTICITY the extent to which supply or demand of a product
responds to changes of price
MARKET PENETRATION the strategy of setting a low price to try to sell a
large volume and increase market share
ADVERTISING AGENCY companies that design advertising for clients
ADVERTISING CAMPAING the advertising of a particular product or service
during a particular period of time
BRIEF the statement of objectives that a client works out with an
advertising agency
TARGET COSTUMERS a defined set of costumers whose needs a company
plans to satisfy
ADVERTISING BUDGET the amount of money a company plans to spend

in developing its advertising and buying media time or space

MEDIA PLAN the choice of where to advertise in order to reach the right
people
COMPARATIVE-PARITY METHOD choosing to spend the same amount of
money on advertising as ones competitors
SAMPLE PRODUCT a small amount of product given to customers to
encourage them to try it
WORD-OF-MOUTH free advertising, when satisfied customers
recommend products to their friends
VIRAL MARKETING trying to get consumers to forward an online
marketing message to other people
TO LAUNCH A PRODUCT to introduce a new product onto the market
MARKET RESEARCH collecting, analysing and reporting data relevant to a
specific marketing situation
POINTS OF SALE places where goods are sold to public
PRODUCT CONCPET an idea for a new product, which is tested with the
target customers before the actual product is developed
SALES REPRESENTATIVE someone who contacts existing and potential
customers and tries to persuade them to buy goods or services

INTRODUCTION STAGE
- low sales volume; costumers have to be persuaded to try the product
- costs are high
- high skim pricing to recover development costs or low penetration pricing
to build market share
- promotion is aimed at educating potential customers and building
product awareness
GROWTH STAGE
- public awareness increases and sales volume rises
- costs are reduced, profitability increases
- the price can remain unchanged because demand is increasing
- promotion is aimed at much broader audience
MATURITY STAGE
- sales volume peaks
- products features may have to change because of competing brands ->
new costs
- prices might have to be reduced because of competitors but also
companies try to defend their market share while maximizing profit
- promotion emphasises product differentiation

DECLINE STAGE
- sales volume begins to go down
- either cost are too high compared to sales so the product is discontinued
or the company reduces costs to minimum
- the price is maintained or greatly reduced to liquidate stock if the
product is discontinued
- no promotion
PRODUCT IS WITHDRAWN FROM THE MARKET

ADDITIONAL INFORMATION and, furthermore, moreover, in addition to,

besides
REASON because, due to, owing to, because of, since
CONTRAST on the contrary, but, whereas, while, on the other hand
PURPOSE so that, in order to
RESULT/CONSEQUENCE therefore, thus, so, that's why, as a result,
consequently
GIVING EXAMPLE for instance, for example
CONCESSION although, however, even though, nevertheless, in spite of,
despite, yet