IB Business SL Study Guide

The act of using and combining various resources (like labor, capital, and raw materials) to create goods or services that meet customer needs.

The different activities a business carries out to achieve its goals, such as production, finance, marketing, and human resources.

Categorization of businesses based on the type of goods or services they provide. Examples include primary (agriculture), secondary (manufacturing), and tertiary (services).

The changes happening within industries as they adapt to new technology, customer needs, and market forces.

Individuals who start and run their own businesses, taking risks to create something new. They are often innovative and have a strong vision.

The process of managing and coordinating the various aspects of a business to achieve its goals. It involves planning, organizing, leading, and controlling.

Individuals or groups who have an interest in a company's success and are affected by its actions.

Stakeholders who are directly involved in the company's operations, such as owners, employees, and management.

Owners who invest capital in a company, expecting a return on their investment.

Individuals who work for the company and contribute to its daily operations.

Stakeholders who are outside the company but have a relationship with it, such as suppliers, customers, communities, pressure groups, competitors, and government.

Businesses that provide resources or materials to the company.

Individuals or groups who purchase goods or services from the company.

The cost per unit of output decreases as production increases because fixed costs are spread over more units.

The average cost per unit output increases as the business grows beyond its optimal size.

A large business gains advantages from producing and selling on a large scale, leading to lower costs per unit.

Small businesses can provide more personalized services because they have closer relationships with their customers.

Increased communication challenges and coordination difficulties in large businesses due to their complex structure.

The need for more supervision in large businesses, leading to increased costs.

STEEPLE is a broader analysis of external factors than PEST, including Social, Technological, Economic, Environmental, Political, Legal, and Ethical factors.

A SWOT analysis examines a company's internal strengths and weaknesses, and external opportunities and threats, helping them make strategic decisions.

Training that takes place within the actual workplace, where employees learn by doing and observing experienced colleagues.

A type of OTJ where a senior employee guides a junior employee, providing support and sharing knowledge.

Training that happens outside of regular working hours, often involving workshops, conferences, or formal courses.

Training provided to new employees when they first join a company, helping them understand the company culture, policies, and their specific role.

Training where skilled employees within a company are used to train new recruits.

Training provided by experts from outside the company, who may have specialized knowledge or skills.

A type of training where the trainee shadows an experienced employee, observing and learning by doing.

A type of OTJ where employees learn by performing a series of related tasks, progressing gradually to more complex ones.

A person who works in multiple jobs simultaneously, often on a part-time or temporary basis.

The process of transferring internal tasks to an external company to reduce costs.

Relocating business activities and processes abroad.

Bringing business operations back to the original country.

The various levels of responsibility in an organization, characterized by a hierarchical structure with seniors and juniors.

Advantages of outsourcing include potentially higher quality, lower costs, and increased focus on core functions.

Disadvantages of outsourcing include the risk of lower quality, ethical concerns, and potential job losses.

Advantages of offshoring include potential for cheaper wages, better access to resources, and currency exchange benefits.

A fixed, regular payment made to employees, typically paid monthly.

Payment for work done per hour, typically used for hourly workers. It emphasizes the time spent rather than the output achieved.

Payment based on the number of units produced or tasks completed. It encourages workers to maximize output.

Financial compensation directly tied to sales performance, where employees earn a percentage of their sales.

An advantage of salary is that it provides job security and a consistent income for employees.

A disadvantage of salary is that it might not motivate employees to go above and beyond, as their pay remains constant regardless of their effort.

A positive aspect of time-based wages is that employees receive extra income for working overtime.

A downside of time-based wages is that they don't incentivize employees to work efficiently. They might slow down their work to ensure they're eligible for overtime pay.