decline of the production cost per unit of output (average cost) as the volume
of output increases.
Financing (also known as Second-round financing)
capital for the initial expansion of a company that is producing, shipping and
has growing accounts receivable and inventories.
financing provided in the early
stages of the
process, usually during
Small- and medium-sized enterprises. Companies
whose headcount or turnover falls below certain limits. According to the World
Banks definition, an SME has no more than 300 employees and annual turnover /
total assets no more than US$ 15 million.
new business, at the earliest stages of development and financing.
incurred before a business can commence operations.
In business portfolio
analysis, a significant organizational segment that is analyzed to develop
organizational strategy aimed at generating future business or revenue. SBUs
vary in form, but all are a single business (or collection of businesses), have
their own competitors and a manager accountable for operations, and can be
independently planned for.
agreement between two or more enterprises to conduct specified business process
in a joint manner. This usually relates to
technology development or
and distribution efforts.
providing reimbursement to an individual, company or a government is a firm
fails to complete a contract.
Sustainable competitive advantage
is the prolonged benefit of
implementing some unique value-creating strategy based on unique
combination of internal organizational
that cannot be replicated by competitors.
(Strengths, Weaknesses, Opportunities, Threats) Analysis
strategy development tool that matches internal organizational strengths and
weaknesses with external opportunities and threats.
Synergy is the energy or force created by the working
together of various parts or processes. Synergy in business is the benefit derived from combining two or more elements (or
businesses) so that the performance of the combination is higher than that
of the sum of the individual elements (or businesses).
Systems thinking is the ability to things
as a whole (or holistically) including the many different types of
relationships between the many elements in a complex system.
Team is a group whose
members influence one another toward the accomplishment of (an) organizational objective(s).
of technological feasibility
method in which a firm combines and utilizes labor and capital resources to
produce goods or services; the application of science for commercial or
of managerial techniques most suitable for ensuring that the technological
factor is exploited for achievement of an enterprise's goals.
movement of information about a technology or intellectual property from one
party to another for use.
and scheduling techniques used to maximize productivity.
for instruments, tactics, and methods available to a manager for making a deal.
The person who is unfamiliar with the tools one has for use is handicapped in
cutting deals. Some tools are: money, securities, rights, options, perquisites,
tax benefits, employment, licenses, distribution rights, leases, royalties, etc.
graphic symbol, device or slogan that identifies a business. A business has
property right to its trademark from the inception of its use (in USA) or since
its registration (in Europe). Trademark laws guarantee that a
special mark placed on a certain kind of goods indicates the origin of the
goods; more specifically the manufacturer of the goods or a service provider.
commercially valuable idea that is not disclosed to the public. Competitive
advantage gained by a business through use of a unique manufacturing process or
process by which an insurer determines whether or not and on what basis it will
accept an application for insurance. In an experience-rated plan, premiums are
based on a firm's or group's past claims; factors other than prior claims are
used for community-rated or manually rated plans.
selling proposition (USP) defines your competitive
advantage. Your must identify what makes you different from your competitors
and emphasize these advantages in your marketing.