consultant

a person who provides expert advise to a company

crisis a situation of danger or di culty

innovation a new idea or method

objective (noun) something you plan to do or achieve

promotion when someone is raised to a higher or more important position

public sector the section of the economy under government control

strategy a plan for achieving success

subordinate a person with a less important position in an organization

labour relations interaction between employers and employees

job security knowing that there’s a risk of losing one’s employment

wage money paid to manual workers

bene ts advantages that come with a job, apart from pay

incentives things that motivates or encourages people to do something

job rotation regularly switching between di erent tasks

corporate culture a company’s shared attitudes, beliefs, practices and work relshps.

hierarchy a system of authority with di erent levels, one above the other

chain of command a system of authority with di erent levels, one above the other

function a speci c activity in a company e.g. production, marketing, nance

autonomous independent, able to take decisions without consulting someone

line authority power to give instructions to people at the level below in the CoC.

to report to to be responsible to someone and take instructions from them

to delegate to give someone else responsibility for doing something instead of u

Collectivist believing that the group is more important than the individual

Compromise reducing demands or changing opinions in order to agree

Confrontation a face-to-face disagreement or argument

Connections understanding or knowing without consciously using reason

Eye contact looking directly at the people you are talking or listening tp

Glocalization an invented word, combining worldwide and regional concerns

Improvise to do something when necessary without having already planned it

Interrupt to cut into someone else’s turn to speak

Logic thought based on reason and judgement rather than feelings and
emotions

Lose face to be humiliated or disrespected in public

Status respect, prestige or importance given to somebody

curriculum vitae (Britain)

resume (America)

cue a sign or signal for someone to do something

critical mass the number of people needed to start and sustain a change

leadership ranks top levels of management

outperforming doing better than others, nancially

pro tability the ability to make a good return on capital invested in business

return on equity the amount of money a company earns on the investment of its
shareholders

voluntary done by choice, without legal obligation

Compulsory required, obligatory, necessary according to the law

Come across meet or nd unexpectedly or by accident

Quota an o cially imposed number or quantity

Imposed

Compliance obeying laws or regulations

Obeying following rules or instructions

Dissolution the ending or termination of an organization

Apprentices trainees, people still learning their job

convert someone who changes their beliefs

Accountability being o cially responsible for something

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 Board of directors a group of persons chosen to govern the a airs of a corporation or
other large institution

Competitor a rival, a person who sells the same service or goods

A rmative actions a policy designed to redress past discrimination against woman and
minority groups through measures, to improve their economic and
educational opportunities

Export goods products sent/ sold to another countries

Real estate property: building such as o ces, houses, ats or apartments

Labour work done in return for money

To delocalize to move your factories to another region or country

Advanced countries countries with high levels of income per person that are well
integrated into the global economy

Warehouse a large building used for storing goods

Mainentance the work that is done to keep something in good condition

Primary sector the part of the economy that draws raw materials from the natural
environment

Secondary sector the part of the economy that transforms raw materials into
manufactured goods

Tertiary sector the part of the economy that involves services rather than goods#

Goods the physical objects that someone produces

Industrial production

Inventory is a company's reserves of raw materials, parts, work in process,

and nished products

Component is any of the pieces or parts that make up a product or machine

Plant is a collective word for all buildings, equipment and other facilities
used in the production process

economies of scale are the cost savings arising from large-scale production

Outsourcing means buying products or processed materials from other

companies rather than manufacturing them

Manufacturing (synonym) producing; fabricate

Supply chain is a network of organizations involved in producing and delivering

goods or a service

Location means the geographical situation of a factory or other facility

Lead time is the time needed to perform an activity such as manufacturing a

product or delivering it to a customer

Capacity is the max rate of output that can be achieved from a production
process

Embedded in (synonym) included, incorporated, built-in, encased

Equity the value of a business activity

Disruptive disturbing; causing confusion or disorder

Procurement (synonym) obtaining, acquisition; (de. Bescha ung)

Standard of living Quality of life based on ownership of necessities and luxuries that
make life easier.

Founder someone who establishes an organization

Risk premium the potential cost of taking a chance

Exponentially increasing or decreasing more and more quickly as time passes

Procurement the buying and reselling of goods that have already been produced

Prosperity the state of being successful usually by making a lot of money

Stability a situation in which something is not likely to move or change

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 10 Quality
Bountiful providing a large amount of good things

Headaches things that cause di culties

Regulation o cial rules or the act of controlling something

Reworking changing or improving a product or service

Scrapping getting rid of things which are no longer useful or wanted

Service to examine a machine and repair any faulty parts

Warranties guarantees: written promises to repair or replace products that

develop a fault

1 Products

Outlets places of business for selling goods to customers (shops, stores,

kiosks, etc.)

Product mix all the di erent products, brands and items that a company sells

Retailers businesses that sell goods or merchandise to individual consumers

Logo a graphic image or symbol specially created to identify a company

or a product

Packaging wrappers and containers used to enclose and protect a product

Brand recognition the extent to which consumers are aware of a brand, and know its
name

Shelves surfaces of a company expressed as a percentage of total sales in a

given market

Market share the sales of a company expressed as a percentage of total sales in a

given market

Brand switchers consumers who buy various competing products rather than being
loyal to particular brand

Pricing the cost of something

Locations outlets, stores

High frequency passage where many pedestrians pass by a location

Base cost cost of a product or service when all expenses are considered such
as building, employees, etc.

Trialing when a product is o ered in speci c location or region to see if it will

be successful; if successful, the product will be more extensively
o ered

Sampling when small samples are given out for free to see if customers are
satis ed with the products

Launch start to sell a product on the market

1 Venture Capital

Competitive advantage what an organization can do better than its competitors

Sustainable able to continue over a period of time

Sales for cast the sales businesses 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 pro t nor a loss

Revenue the total income received by a business before any expenses are
paid

Exit strategy an investor's plan for getting their investment back and potentially
realizing a pro t

Founders the people who establish a company or other organization

Personnel (sta ) the people who are employed in an organization

Failure tolerant (risk tolerant) the degree to which one is willing to accept uncertainty in an
investment

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 1 Bonds
Cash ows the money a company receives minus the money it spends during a
certain period

Equity part ownership of a company in the form of stocks or shares

Mutual funds funds operated by investment companies that invest people's

money in various assets

Pension funds funds that invest money that will be paid to people after they retire
from work

principal the amount of capital making up a bond or other loan

maturity the length of time for which a bond is issued (until it is repaid)

Coupon the amount of interest that a bond pays

Insolvent (bankrupt) unable to pay debts

Creditors people or institutions to whom money is owed

Dividends payments by companies to their shareholders

Market-makers businesses that buy and sell securities

Bid (bid price) the price at which a buyer is prepared to buy a security at a
particular time

O er (o er price) the price at which a seller is prepared to sell a security at particular

time

Yield the rate of income an investor receives from a security

Soared (to soar) rose quickly

Kickstart to revive or stimulate something

Benchmark a standard used when comparing other things

Slum, Recession, Depression a period when the economy is contracting

Rally an improvement or increase in prices

Defaulting (to default) failing to repay a loan

To go burst (belly up) another word for going bankrupt

Gilts-edged stock (gilts) British government bonds

Treasury notes US government bonds

Securitization the packaging of bonds containing partly safe debts and partly very
unsafe debts

AAA rating done by bond rating agencies, considered as very high standard (as
safe as gold standard)

Credit history record of whether an individual or an organization has a good credit

or bad credit rating

Central bank government agencies that set government interest rate

Tax deductible companies or individuals can deduct certain expenses from their
pro ts or income before paying tax

Subprime mortgages housing loans lent to people with bad credit ratings

1 Stocks
Successful companies can issue stocks or shares (certi cates representing part ownership of the
company) to raise capital to expand their operations.

Going public stocks o ered for sale to nancial institutions and the general public
changes the business from private to a public company

Initial public o ering IPO(US) otation(BR) selling stocks for the rst time

Hedge funds private investment funds for wealthy investors that trade in securities
and derivatives, and try to get high returns whether markets move
up or down

To rise after previously falling revived a little, share prices recovered

To rise a little advanced a little stronger

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 To rise a lot shot up, rocketed, jumped

To fall a little slipped, slightly weaker

To fall a lot crashed, plummeted, plunged

Bubble rapid rise or rapid lose, i.e. value of housing

ba e-gab a jargon trying to say clever things, but in actuality only designed to
confuse public and actually have little meaning

Shorting shares borrowing shares from a fund or company that isn't planning to sell
them in the short term, selling them waiting for their price to fall, and
then buying them back at a lower price and returning to the original
owner

1 Derivatives
DERIVATIVES are nancial instruments whose prices are dependent upon, or derived from,
underlying assets such as stocks, bonds, commodities, currencies, interest rates, and markets
indices.

A FUTURE is a contract agreement to buy or sell a security, commodity or nancial instrument at

a predetermined price, at a predetermined point in the future.

AN OPTION o ers the buyer the right, but not the obligation to buy (call option) or sell (put option)
an asset at an agreed-upon price (the strike price), either during a certain period of time, or on a
speci c date.

COMMODITIES are raw materials or primary products such as metals, cereals, co ee, etc., that
are traded on special markets.

HEDGING means making contracts to buy or sell commodities or nancial assets in the future, at
a pre-arranged price, as a protection against price changes.

SPECULATION on the contrary, means buying assets in the hope of making a capital gain by
selling them later at a higher price (or selling them in the hope of buying them back at a lower
price).

AN INTEREST RATE SWAP is an agreement to exchange future interest payments with another
company or nancial institution , e.g. a oating rate loan for a xed interest rate loan.

A CURRENCY SWAP is an agreement between two parties who exchange principal and xed rate
interest payments on a loan in one currency for principle and xed rate interest payments on an
equal loan in another currency.

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 1 Accounting and nancial statements

Income all the money received from business activities during a given period

Expenditure all the money that a business spends on goods or services during a
given period

Budget a nancial operating plan showing expected income and

expenditure

Asset anything owned by a business - cash, buildings, machines,

equipment, etc.

Liabilities all the money that a company will have to pay to someone else in
the future, including debts, taxes and interest payments

Debit an entry in an account, recording a payment made

Credit an entry in an account, recording a payment received

Intangible (adjective) describing something without a material existence, which

you can't touch

Accrued adjective describing a liability which has been incurred but not yet
invoiced to the company

Deferred delayed or postponed until a later time

Cast-accounting calculating all the expenses involved in producing something,

including materials, labor, and all other expenses

Tax accounting alculating how much an individual or a company will have to pay to
the local and national governments (and trying to reduce this to a
minimum)

Auditing inspecting and reporting on accounts and nancial records

Accounting preparing nancial statements showing income and expenditure,

assets and liabilities

Managerial (management accounting) providing information that will allow a business to

make decisions, plan future operations and develop
business strategies

Creative accounting using all available accounting procedures and tricks to disguise the
true nancial position of a company

Book keeping writing down the details of transactions (debits and credits)

Balance sheet (statement of nancial position) statement showing the value of a business's
assets, its liabilities, and its capital or
shareholders' equity (money the business has
that belongs to its owners)

Cash ow statement a statement giving details of money coming into and leaving the
business, divided into day-to-day operations, investing and
nancing

Income statement a statement showing the di erence between the revenues and
expenses of a period

Shareholders’ equity all the money belonging to the company's owners

Intangibles assets whose value can only be turned into cash with di culty (e.g.
reputation, patents, trade marks, etc.)

Additional paid-in capital capital that shareholders have contributed to the company above
the nominal or par value of the stock

Accrued expenses expenses such as wages, taxes and interest that have not yet been
aid at the date of the balance sheet

Total receivables money owed by customers for goods or services purchased on

credit

Accounts payable money owed by suppliers for purchases made on credit

Prepaid expenses money paid in advance for goods and services

Retained earnings pro ts that have not been distributed to shareholders

Property(Plant/Equipment tangible assets such as o ces, machines, etc.

Goodwill the di erence between the purchase price of acquired companies

and their net tangible assets

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 Total liabilities the total amount of money owed that the company will have to pay
out

AMERICAN ENGLISH BRITISH ENGLISH

Accounts payable Creditors

Accounts Receivable Debitors

Additional Paid-in Capital Share Premium

Annual Stockholders Meeting Annual General Meeting

Common Stock Ordinary Shares

Net income Pro t

2 Market Structure and competition

Market leader rm with the largest market share; often the rst company to have
entered the eld, or at least the rst to have succeeded in it

Market share the speci c percentage of total industry sales of a particular product
achieved by a single company in a given period of time

Market challenger the second largest market share

Market followers companies that allows other more dominant rms to lead the way
within the marketplace that it does business in

Market segmentation the division of a market into identi able groups, esp to improve the
e ectiveness of a marketing strategy

Niche having speci c appeal

Di erentiated distinct

Unique selling proposition reason for anyone to buy the product

Cluster a group of similar things (e.g. companies) situated close together

Landlord a person or organization that owns a building or an area of land and

rents it to other people

Entrepreneur a person who starts their own business, especially when this
involves taking risks

headhunter a recruiter of important personnel for companies

Attorney an alternative American term for a lawyer

Vulnerable likely to be attacked

Patent the o cial legal right to produce or sell an invention for a particular
number of years

Dominate to have control over something, or to be the most important person

or thing

Address or tackle to try to deal with a problem

Industrial clusters groups of companies in the same industry that establish themselves
in the same area

21 Takeovers

(to) acquire to buy or take control of a company or part of a company, often by

buying shares in it

Horizontal integration a situation in which a company buys another company that has the
same activities

Vertical integration a situation where a company buys companies that are its suppliers
and customers, taking over more stages of an industrial or
commercial process

(To) merge to join together, or to be joined together, to make a larger company,

organization, department, etc

Supply chain the system of people and organizations that are involved in getting a
product from the place where it is made to customers

Backward integration a situation in which a company controls the supply of goods and
services it needs by buying the company that supplies them, or by
going into the same business as that company

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Forward integration the situation in which a company buys another company of the type
that it supplies goods or services to

Raid an attempt to take control of a company by buying a lot of its shares

Buyout a situation in which a person or group buys most or all of the shares
belonging to a company and so gets control of it

Controlling interest if someone has a .......t in a company, they own enough shares in it
to control its management

Friendly takeover in...takeovers, the board of directors agrees with the takeover

Hostile takeover In.....takeovers, the employees of the target rm are often concerned
about losing their jobs.

to bid (verb) to compete to buy something by o ering a particular amount of

money for it

Fee an amount of money paid for a particular piece of work or for a

particular right or service

Conglomerate a very large business organization consisting of several companies

that often sell di erent types of product or service

(To) leverage to use borrowed money to buy a company

Synergy the combined power of a group of things when they are working
together that is greater than the total power achieved by each
working separately

Market capitalization the total value of a company's shares on a stock market

Subsidiary a company that is controlled by another

Asset stripping the activity of buying companies cheaply so that their assets can be
sold separately at a pro t

antitrust authority/ competition commission in the UK, an organization that makes sure
that there is fair competition between
businesses. It was called the Monopolies and
Mergers Commission until 1999

Retail outlet a store that sells goods to the public

Corporate raider a person or company that buys a large number of another

company's shares, often in order to get control of it

Takeover bid an o er or attempt to take control of a company by buying enough

of its shares to do this, or the amount of money o ered

24 Corporate social responsibility

Discrimination treating some people in a worse way than you treat other people

Undermine making something weaker

Free Enterprise an economic system in which anyone can raise capital - form a
business and o er goods or services

conforming complying with or following (rules etc)

Embodied expressed, given a material form

Ethical according to generally accepted beliefs based on morals.

Insofar as to the degree or extent that

Harm causes damage to

Proponents supporters, people who argue in favor of something

Custom a usual way of behaving

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 25 E ciency & Employment

exible labor market a situation in which it is easy for companies to hire non-permanent
sta

downsizing decreasing the number of permanent employees working for an

organization

outsourcing/Contracting using other businesses as subcontractors to supply components or

services

job sharing employing two or more people on a part-time basis to perform a job
normally available to one person working full time

relocation/delocalization moving some of a business's activities (e.g. accounting, production)

to another play or country

delayering removing unproductive parts of the management hierarchy to make

organizations more exible and e cient

rationalization/Restructuring reorganizing a company, business or system in a new way to reduce

costs and improve e ciency and e ectiveness

contract work temporary employment by an organization to do speci c project or

piece of work

casual work temporary employment that is not regular or xed

rightsizing another way of saying downsizing, though it could also describe

increasing the size of an organization, perhaps as an attempt to
correct a previous downsizing

employ someone appoint, engage, hire, recruit, take on

redundant pertaining to jobs, when one is not or no longer needed or useful

(due to technical changes some jobs are not longer available )

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