Topic: An assignment of about some definitions

The definitions are given below:

Business
An economic system in which goods and services are exchanged for one another or money, on the basis of their perceived worth. Every business requires some form of investment and a sufficient number of customers to whom its output can be sold at profit on a consistent basis.

Management
1. The organization and coordination of the activities of an enterprise in accordance with certain policies and in achievement of defined objectives. 2. The directors and managers who have the power and responsibility to make decisions to manage an enterprise.

Marketing
The management process through which goods and services move from concept to the customer. As a practice, it consists in coordination of four elements called 4P's: (1) identification, selection, and development of a product, (2) determination of its price, (3) selection of a distribution channel to reach the customer's place and (4) development and implementation of a promotional strategy. As a philosophy, marketing is based on thinking about the business in terms of customer needs and their satisfaction

Demand
1. Commerce: A claim for a sum of money as due, necessary, or required. 2. Economics: (i) Desire for certain good or service supported by the capacity to purchase it. (ii) The aggregate quantity of a product or service estimated to be bought at a particular price. (iii) The total amount of funds which individuals or organizations want to commit for spending on goods or services over a specific period. See also law of supply and demand. 3. Law: An assertion of a legal right, such as to seek a compensation or relief.

Want
1. Unfulfilled desire. 2. Unwilling and detrimental lack of life's necessities.

Mohammad Mamun Sikdar, 09.02.02.025

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Cost leadership
Strategy used by businesses to create a low cost of operation within their niche. The use of this strategy is primarily to gain an advantage over competitors by reducing operation costs below that of others in the same industry.

Differentiation strategy
Approach under which a firm aims to develop and market unique products for different customer segments. Usually employed where a firm has clear competitive advantages, and can sustain an expensive advertising campaign. It is one of three generic marketing strategies that can be adopted by any firm.

Mission statement
A written declaration of an organization's core purpose and focus that normally remains unchanged over time. A mission is Different from a vision in that the former is the cause and the latter is the effect. Something to be accomplished whereas a vision is something to be pursued for that accomplishment. It is also called company mission, corporate mission or corporation purpose.

Vision statement
An aspirational description of what an organization would like to achieve or accomplish in the mid-term or long-term future. It is intended to serves as a clear guide for choosing current and future courses of action. See also mission statement.

Objective
An end that can be reasonably achieved within an expected timeframe and with available resources. In general, an objective is broader in scope than a goal, and may consist of several individual goals. Objectives are a basic tools that underlying all planning and strategic activities. They serve as the basis for policy and performance appraisals.

Fixed cost
A periodic cost that remains more or less unchanged irrespective of the output level or sales revenue, such as depreciation, insurance, interest, rent, salaries, and wages.

Variable cost
A periodic cost that varies in step with the output or the sales revenue of a company.
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Breakeven point
Point in time or in number of units sold when forecasted revenue exactly equals the estimated total costs; where loss ends and profit begins to accumulate. This is the point at which a business, product or project becomes financially viable.

Contribution
1. General: Imposed or required payment. 2. Accounting: Amount left over after direct (variable) costs are deducted from the sales revenue. Also called gross income, this sum pays for indirect (fixed) costs and contributes to net income. 3. Insurance: Proportional sharing of loss by the insurers when more than one policy is taken by the insured for the same peril. Under a contract of indemnity, the insured cannot profit from his or her misfortune irrespective of the number of policies. 4. Law: Right of a joint debtor who pays entirely a debt to recover from other joint debtors their individual shares of the debt.

Thank You

Mohammad Mamun Sikdar, 09.02.02.025

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