BUSINESS AND MANAGEMENT GLOSSARY

Above The Line - Marketing and advertising through mass-media, such as television, radio,
newspapers, magazines, Internet, etc., which is less personal than Below The Line Marketing.
Companies usually use advertising agencies for ATL marketing
Ad hoc - Created or done for a particular purpose as necessary and not planned in advance.
Adoption Curve - A graph showing the rate at which a new piece of technology is bought by
people for the first time. It is based on the idea that certain people are more open for adaptation
than others.
Appraisal - A review of performance, capability, needs, etc., typically of an employee, in which
case the full term is normally 'performance appraisal'.
Assets - Anything of value which is owned by an individual, company, organization, etc.
Avant Garde - New or original and often unconventional techniques, concepts, products, etc.,
usually associated with the arts and creative areas
Balance Sheet - A financial statement of an individual, company or organization, which shows
assets and liabilities (money owed) at a specific date.
Bell Curve - Survey/sample distribution term. 'Bell curve' is the common informal term for a
graph with a large rounded peak in the middle, sloping sharply to the right and left and then
tapering more gently at the extreme ends of the graph. It's a bell-shape, hence the name. The
term 'bell curve' refers also to this sort of statistical distribution, even if it is not actually graphed.
Technically in probability theory, mathematics and marketing, etc., the 'bell curve' is 'normal'
distribution or Gaussian distribution (after German mathematician ohann Carl Friedrich Gauss).
Below The Line - BTL. Describes marketing which has a short-term duration, such as non-
media advertising, direct-mail, e-mail, exhibitions, incentives, brochures, etc., which is targeted
directly at the consumer/customer. Often used by companies on a limited budget.
Boilerplate - A section of standard text, especially a contract clause, inserted into legal
documents, or instead increasingly referring to a standard section of code inserted into computer
programs or other digital applications.
Buzzword - A word or phrase which has become fashionable or popular, or sounds technical or
important and is used to impress people.
Cash Flow - The movement of money into and out of a company, organization, etc.

Conference Call - A telephone call which allows three or more people to take part at the same
time.
Conglomerate - A corporation which consists of several smaller companies with different
business activities.

Contractor - An individual, company, etc., who agrees to provide goods and/or services to
another individual or company under the terms specified in the contract.
Corporate Governance - Corporate governance refers to the (ideally visible, transparent,
published) policies and practices by which an organization is directed and managed at executive
level, with particular focus on the executive board's accountabilities to shareholders and other
stakeholders, especially concerning avoidance of risk, and the competence, ethics and propriety
of the leadership, typically a chairman and board of directors
Cost Of Living Allowance - COLA. A salary supplement which a company pays to employees
because of an increase in the cost of living.
Cost Of Sales - Also known as Cost Of Goods Sold (COGS). The cost of providing a service or
manufacturing a product, including labour, materials and overheads.
Cost To Serve - An accounting/business/strategy term and method of analysis which calculates
the total costs of product/service provision for a particular customer, or potentially for a broader
customer grouping. This method of profitability analysis shifts all indirect costs to be direct costs
(directly attributable, as used, per customer), and thereby enables greater clarity in assessing
strategy and priorities than relying merely on gross margin indicators.
Daughter Company - A company that is controlled partly or completely by a holding or parent
company
Debriefing - A meeting or interview in which a person or group of people report about a task or
mission just completed or attempted.
Decision Tree - A diagram which starts with an initial decision, and possible strategies and
actions are represented by branches which lead to the final outcome decided upon.
Dotcom - an internet business, or the internet business sector.

Dutch Auction - A type of auction which opens with a high asking price which is then lowered
until someone accepts the auctioneers price, or until the sellers reserve price has been reached.
Emotional Intelligence - The ability or skill of a person to understand and control their emotions,
and to understand and assess and respond appropriately to the feelings and situations of others.
Employee Stock Option - Allows specified employees the right to purchase shares in the
company at a fixed price.
Enterprise - A company or business. A business project, often one which is sometimes difficult
and/or risky.
Exchange Rate - Also known as Foreign Exchange Rate. The rate, which can vary from day to
day, at which a country's currency can be exchanged for another country's currency.
Extrapolation - The estimation or determination of what will happen in the future by extending
(extrapolating) known information or data.
Ex Works - Goods which are delivered to the purchaser at the plant or place where they are
manufactured.
Fast Moving Consumer Goods (FMCG) - Products (and the related industry) which are sold in
big volumes by big retailers at low profit margins, at keen prices, to domestic consumers -
traditionally foods and groceries, household consumables, etc., and nowadays extending to any
products of short life and disposable/consumable nature
Fast Track - Quick route in a career to success and promotion, associated with high ambition.
Feasibility Study - A preliminary assessment of a new project, including costs, risks, etc., to
determine whether the project will be successful and practical.
Fortune 500 - Published by Fortune magazine, an annual list of the 500 US corporations with
the largest revenue.
Forward Integration - A business strategy whereby a company takes control of its distributors,
therefore guaranteeing the distribution of the controlling company's products.
FTSE - An abbreviation of the Financial Times Stock Exchange (Index), commonly referred to
verbally as 'footsie'.
Full-Time Employee - FTE permanent or ongoing employment in which the employee works at
least the standard number of hours in a working day/week.
Gantt Chart - Developed by Henry Gantt in 1917. A type of bar chart which illustrates the
scheduled and completed work of a project. It shows start and finish dates, compares work
planned to work done and tracks specific tasks.
Gap Analysis - Enables a company to assess the gap between its actual performance and its
potential performance, by comparing what skills, products, etc. are available to what is required
to improve performance, output, etc.
Gross Profit Margin - Expressed as a percentage, what is left from a company's sales after cost
of goods sold is paid out. Gross profit margin is obtained by dividing gross income by net sales.
Gross Domestic Product - Commonly abbreviated to GDP, Gross Domestic Product is a very
frequently used term in business and economics, and basically refers to a nation's total
production at market values
Holding Company - A company which is formed for owning and holding controlling shares in
other companies.
Horizontal Integration - The joining together of businesses which produce similar goods or offer
similar services, or are involved in the same stage of activities, such as production or selling.
Human Resources - HR. The people who are employed by and operate a business or
organization. The department within a company which deals with recruitment, training, employee
benefit, etc.
Income Tax - A tax paid by individuals to the government, the amount of which is dependent on
how much a person earns from their salary and/or other sources of income.
Iron Triangle - A project management term (also called the Project Management Triangle, Triple
Constraint, and variations of these), the Iron Triangle refers to (according to the concept) the
three main inputs and the output of most projects, namely: 1. Scope (or activities), 2. Budget/cost
(or human resources), 3. Time (or timescale or completion date), and the output of Quality (or
performance).
Just-In-Time - JIT. A manufacturing system in which materials and components are delivered
immediately before they are required, in order to increase efficiency, reduce waste and minimise
storage costs.
Kudos - Common management term meaning positive recognition, praise or fame - from the
Greek word kydos, meaning glory.
Laid-Off - In industry, etc., when workers lose their jobs, sometimes temporarily, because there
is no work for them.
Leave Of Absence - The period of time which a person is permitted by their employer to be
absent from their job.
Mainstream - A term applied to activities, ideas, products/services, etc., that are
used/followed/supported by most people.
Mark-up - The amount a producer, retailer, etc., puts on the price of the goods or services they
are selling in order to make a profit. To raise the price of an item which is for sale
Meltdown - A situation in which something, or someone, suddenly dramatically ceases to
function properly
Mentor - Someone who is experienced and gives guidance and support to a person less
experienced to help them develop and grow and achieve their goals.
Middle Management - In organizations and business, managers who are in charge of small
departments and groups of people while reporting to upper management
Mom-and-Pop/Mom-and-Pop Shop - Chiefly and originally an American term for a small shop
or business (e.g., Mom-and-Pop Business) that traditionally was and frequently nowadays still is
run by a married couple, who are often the main staff too.
Mystery Shopper - A person hired by market research companies or manufacturers, etc., to
visit or telephone shops or service providers anonymously in order to assess the quality of goods,
helpfulness of staff, layout of premises, etc.

Net Profit Margin - Usually expressed as a percentage, in business, the money earned after
costs, expenses, taxes, etc., have been deducted.
NIH Syndrome - Not Invented Here. A term used for companies who reject ideas or products
which are not theirs because they originated from outside the company.
Non-Disclosure - A signed formal agreement in which one party agrees to keep certain
information secret. Often used in business when products or projects are being developed.
Non-Compliance - Failure or refusal to obey or comply with a rule, regulation or standard, which
can commonly result in serious action by an inspector or ombudsman.
Obsolescence - The state of becoming obsolete or out of date. Old-fashioned.
Offshore - Refers to accounts, investments, banks, etc., which are in countries where there are
lower taxes and/or little government control, also it refers to operations, production process that
are done outside the origin company country.
Outplacement - A service provided by a former employer which helps a terminated employee
find a new job.
Overheads - In business, regular costs which are incurred, such as wages, rent, insurance,
utilities, etc.
Overtime - Time worked in addition to normal working hours. The pay received, usually charged
at a higher rate, for working outside regular working hours.
Part-Time Worker - Someone who works less hours than a full time employee on a permanent
basis for a company, usually for a set number of hours a week.
Payment By Results - A system of paying employees according to the amount of work they do.
Therefore, the bigger the volume of work output, the bigger the salary.
Per Capita - For each person in the population. Per head. An expression of something (for
example car ownership, consumption, etc.) in relation to the population of a particular city, nation,
etc.
Per Diem - Latin for 'Per Day'. Often refers to money paid to employees for daily expenses or
reimbursements.
PEST Analysis - Political Economical Social and Technological Analysis. A business tool which
is used in strategic planning and helps to understand the environmental influences on a business
or organization.
PPC - Pay-Per-Click (also called CPC, Cost-Per-Click) - A method of internet/website/electronic
advertising by which an advertiser pays according to the number of visitors/users who click on
an advert.
Product Life Cycle - This refers to the (generally very usual and unavoidable) stages that a
product/service passes through from invention/development to maturity to decline until it
becomes obsolete, usually because it has been superseded by competitive/replacement
offerings, and/or to a lesser degree the product/service has saturated the market, i.e., everyone
who wants it has purchased it.
Pro Rata - In proportion to. Refers to the division of costs, profits, income, etc., depending on
the size of each persons share in the whole amount.
Quorum - The minimum number of people who must attend a meeting in order for valid business
to be conducted. The term is from the 15th/16th century and the earliest use of English,
specifically from the Latin phrase used at the start of commissions for committee members,
"quorum vos ... unum esse volumus," loosely meaning, "of whom we specify that ... be one."
Quarterly - Q – Period of time referring to each quarter of the year on which certain payments,
reports and meetings related to business are due.
Resume - A written summary of a person's education, employment record, qualifications, etc.,
which is often submitted with a job application.
Rolling Contract - A contract which runs for a specific period of time and continues to be
renewed for further periods, subject to review.
Royalty - A fee paid for the use of another person's property, for example a copyrighted work,
a patent, a franchise, etc. A payment made to a writer, composer or singer when a book, CD or
performance of their work is sold. A share of the profit paid to the owner of the land which an oil
or mining company is leasing.
Sabbatical - A period of leave which is granted to an employee, sometimes up to a year, in order
for them to study, travel, rest, etc.
Self-Employed - A person who earns their income by operating their own business, rather than
working for an employer and receiving a salary.
Sensitivity Analysis - Looks at the effects of the performance of a system, project, etc., by
changing the variables, such as costs, sales, production, etc.
Silicon Alley - An area in Manhattan, New York, which is known for its Internet and multi-media
companies.
Silicon Valley - An area south of San Francisco, California, which is noted for its computer and
high-technology industries.

SKU - Stock Keeping Unit. A unique number which identifies the price, size, manufacturer, etc.,
which is assigned to a product by a retail store.
State Of The Art - The highest level of development and/or technology applied to a product or
service which is currently available.
Stock - An investor's share of ownership in a company which entitles them to equity in the
company, dividends, voting rights, etc.
Stockbroker - A person or company who buys and sells shares, bonds, etc., on behalf of others,
in return for a fee.
Stock Exchange - An organized market place where shares in companies are traded by
professional stockbrokers.

Stockholm Syndrome - The effect in which hostage victims form emotional attachment or
fondness towards their captors. The Syndrome is named after the 1973 'Norrmalmstorg Robbery'
- an armed raid on Kreditbanken at Norrmalmstorg in Stockholm, Sweden. The bank's
employees were held hostage from 23-28 August, during which time some of the victims became
emotionally attached to their captors, even defending them after being freed. The term
Stockholm Syndrome was first used by criminologist/psychiatrist Nils Bejerot, when assisting
police during the siege, referring to the Syndrome in a news broadcast. It was defined in more
detail by psychiatrist Frank Ochberg to aid the management of hostage situations. While
Stockholm Syndrome chiefly and originally refers to hostage situations the term extends to other
forms of 'traumatic bonding', not necessarily dependent on a hostage situation, more broadly
describing the somewhat counter-intuitive tendency among certain folk for strong emotional
connections to develop within an abusive relationship. At a slightly milder but nevertheless still
very worrying level we see the same principle extending to abusive employment situations and
other 'working' relationships, where badly-treated and exploited workers can develop strangely
positive feelings towards abusive bosses/employers. Whether driven by fear, dependence,
gratitude (for limiting the level of abuse), survival impulse, or various other possible factors, the
Stockholm Syndrome remains puzzling and paradoxical at any level, and yet a very real human
tendency in certain situations
Synergy - The working together of two or more individuals, groups, companies, etc., to produce
a greater effect than working individually
Team Player - A person in any type of profession who works well as a member of a team.

Touch Base - To make contact, usually managers who want to communicate with their staff.
Total Quality Management - TQM. A company management system which seeks to improve
the quality of products and services and to improve customer satisfaction by giving everyone in
the organization the responsibility of achieving and keeping high standards.
Trademark - TM. A symbol, logo, word or phrase which is used exclusively by a company,
individual, etc., so their products or services can be easily identified, A Trademark cannot legally
be used by anyone else.

Troubleshoot - To identify and solve problems which arise in the workplace.

Upselling - A sales technique in which the salesperson tries to persuade the customer to
purchase more expensive and/or more goods than they originally intended.
User Friendly - Easy to learn or use by people who are not experts.

USP - Unique Selling Point/Proposition. The key feature of a product or service which makes it
stand out from the competition.

Value Engineering - In manufacturing, a method of producing a product at the lowest price but
without sacrificing quality, safety, etc., and at the same time meeting the customer’s needs.
Value Share - A share, etc., which is considered to be underpriced and is therefore a good
investment prospect.
VAT - Value Added Tax. A tax paid by consumers which is added to the price of certain goods
and services.
Vendor - A person or business who sells goods, property, etc.
Venture Capital - Money invested in a new business which is expected to make a lot of profit
but which also involves considerable risk.
Vertical Integration - A situation in which a company acquires one or more of the companies
which are involved in the production or distribution processes of its goods/services, for example
a brewer which buys a pub chain, or a clothing retailer which buys a knitwear factory.

Waiver - A formal statement in which someone gives up a right or privilege.

What if?.. Scenarios/Modelling - 'What If?..' Scenarios or Modelling is a form of planning. 'What
If?..' is a vague and general term covering methods of predictive or creative forecasting, in which
scenarios or hypothetical situations are developed, almost always by extending or extrapolating
an existing or historical situation. 'What If?..' methods in planning and problem-solving commonly
seek to identify and predict new events and factors which arise in addition to what may be easily
assumed from basic extrapolation, and therefore entail quite a high degree of creative and
imaginative input. 'What If?..' planning may be organized with computerized systems, or may be
mapped in more basic pen-and-paper terms. Effective 'What If?..' methods will often involve
brainstorming of one sort or another.
White Collar - Refers to employees who work in offices or business rather than manual workers
White Paper - An explanatory document produced by a political group or government or
business or other organization.
Wholesale - The sale of goods in large quantities, usually to retailers who then sell them for a
profit.
Win-Win - Describes a situation or arrangement in which all parties benefit or profit.

Workaholic - A person who is addicted to work.

Working Capital - Also known as Net Current Assets. The amount of funds which are available
to a company for everyday running costs, such as wages, rent, etc.
Work In Progress - Also called Work In Process. Work on a product, contract, etc., that a
company has invested in but is not yet completed. A piece of music, art, etc., which is unfinished
but may be available for viewing or listening.
X-Inefficiency - When a company is not using its employees, machinery, resources, etc.,
effectively, often because of lack of competition.
Yield - The annual income earned from an investment, usually expressed as a percentage of
the sum invested.
Zero-Based Budgeting - ZBB. A system in which a yearly budget for a department in a company
starts at zero with no pre-authorized funds, and the department has to justify its budget requests.
Zero-Rated - Describes goods or services on which the buyer pays no value-added-tax.