Business Management Glossary Terms

A situation where the countries and businesses of the world are more closely connected than ever before as a result of developments in communications and technology. Business success is linked to business developments in other parts of the globe and in global financial markets. Many Australian businesses already see themselves as competitors in one world market.

A brief statement of an organisation’s general purpose or a list of its main objectives. Sometimes referred to as a vision statement.

Dollar earnings from the sale of goods and services during a period; gross takings before any deductions are made. The term turnover is a commonly used alternative.

The dollar value of what an organisation owns—for example, land, buildings and equipment.

A large business organisation that is owned and based in one country but has branches or subsidiaries in others. The term multinational corporation has the same meaning.

A measure of efficiency obtained from data about levels of output (product) achieved from a quantity of inputs. It is a measure of how well an organisation is using its resources.

A profit-making corporation that is owned by a government (publicly owned).

The particular area of responsibility of a manager. Typical functions include production, human resources, finance, marketing and research and development.

A planned course of action that uses an organisation’s resources to achieve an outcome or advantage in support of its objectives.