The full IBMastery analysis of the ELE PLC case (November 2022 - Paper 1) is ready for you now in the member's area.
We've gone through the case and created an exhaustive video analysis, to help you prepare for the November Business Management exam. This video will save you time and stress and of course help you do a lot better.
Here is an excerpt for you, the key term definitions. The full analysis for our members contains much more analysis.
Internal sources [of finance] (19) - Internal sources of finance refer to money that comes from within a business. There are several internal sources a business can use, including owners capital, retained profit and selling assets.
Long-term [supply] contracts - (20) - An agreement between the companies wherein the buyer agrees to purchase products or services from a seller over the term of that agreement.
Board of Directors (25) - They are responsible for managing and supervising the activities and affairs of the corporation. Generally, the directors are elected by the shareholders.
Productivity levels (18) - Output per unit of input, such as output per employee. It is a measure of efficiency.
Motivation (31) - The process that initiates, guides, and maintains goal-oriented behaviours.
Absenteeism (32) - The practice of regularly staying away from work or school without good reason.
Batch production (33) - A method whereby a group of identical products are produced simultaneously (rather than one at a time).
Cellular manufacturing (34) - a process of manufacturing involving the use of multiple "cells" in an assembly line fashion. Each of these cells is composed of one or multiple different machines which accomplish a certain task. The product moves from one cell to the next, each station completing part of the manufacturing process.
Business-to-business (B2B) supplier (36) - where one business makes a commercial transaction with another. This typically occurs when: A business is sourcing materials for their production process for output, i.e. providing raw material to the other company that will produce output.
Business-to-consumer (B2C) (37) - the business model of selling products directly to customers and thereby bypassing any third-party retailers, wholesalers, or any other middlemen.
Compressor (37) - a mechanical device that increases the pressure of a gas by reducing its volume.
Market research (39) - an organised effort to gather information about target markets and customers: know about them, starting with who they are.
Stratified sampling (40) - a method of sampling from a population which can be partitioned into subpopulations.
Gap in the market (41) - a business opportunity. It's when a company has identified something that customers need, but it isn't currently available.
Distribution channel (44) - a path that a product or service could take on its way to market. A direct distribution channel is one where a company sells directly to the consumer, usually through their website or retail store.
Director (49) - A person who is in charge of an activity, department, or organisation.
Range of products (50) - A product range refers to variations of a single product that are made in order to create similar yet distinctly different products.
Point-of-sale (53) - The time and place where a retail transaction is completed.
Financed from retained profits (54) - When a business makes a net profit, the owners can use some or all of this to finance the costs of a business.
Diversification (55) - The process of a business enlarging or varying its range of products or field of operation. A common path towards diversification is to reduce risk or volatility by investing in a variety of assets.
External finance (58) - Using funds that firms obtain from outside of the firm. It is contrasted to internal financing which consists mainly of profits retained by the firm for investment.
Mantra (60) - A word or phrase that is repeated often or that expresses someone's basic beliefs.
Internal recruitment (69) - When an organisation looks to fill jobs with their current employees, sourcing talent from other teams, departments, and job functions within a company.
Formative appraisal (73) - A measure of employee performance at the beginning, middle and end of a training placement or at regular intervals during an employee's employment. The purpose is to inform the employee about their performance; where they have done well and areas in which they can improve.
Summative appraisal (73) - A measure of employee performance which holds the employee accountable for their performance, in ways that are more serious than formative appraisals. It often leads to new targets being set and sometimes has financial implications.
Line manage (74) - The management of employees who are directly involved in the production or delivery of products, goods and/or services. Line managers are the main point of contact between the management and the staff.
Staff recruitment (77) - The process of finding, screening, hiring and eventually onboarding qualified job candidates.
Market share (Oliver’s report) - The percent of total sales in an industry generated by a particular company.
Sales revenue (Oliver’s report) - The income from sales. Unit price X the number of units sold. It does not deduct any costs or expenses associated with operating the business.
Majority shareholders (86) - A majority shareholder owns and controls over 50% of a company's outstanding shares. This type of shareholder is often company founders or their descendants. Minority shareholders hold less than 50% of a company's stock, even as little as one share.
Urbanisation (110) - the increase in the proportion of people living in towns and cities.
Innovative (114) - Using new methods, or thinking.
Disruptive technology (114) - Technologies that creates a new market and value network or enters at the bottom of an existing market and eventually displaces established market-leading firms, products, and alliances.
Business model (115) - Describes how an organisation creates, delivers, and captures value, in economic, social, cultural or other contexts.
First-mover advantage (118) - The competitive advantage gained by the initial significant occupant of a market segment.
Brand (119) - A name, term, design, symbol or any other feature that distinguishes one seller's good or service from those of other sellers.
Overheads (128) - The ongoing expense of operating a business. Overheads are the expenditure which cannot be conveniently traced to or identified with any particular revenue unit, unlike operating expenses such as raw material and labour.