Building an organisation from scratch takes a great deal of effort and energy. In the short article directly below, you will find a list of informative terms and definitions to start you off.
There are so many things going on in the day to day life of any company, whether it is small or big. Within it there is a number of men and women working in different departments that are in charge of various tasks. Even so to make sure that all of these tasks go according to plan, there is always somebody to oversee them. At the lower level you find your line managers and departmental mangers, who make decisions on an almost everyday basis. But as you go higher up the corporate hierarchy you will come across men and women like the CEO or the CFO who are in charge of the whole company and who make decisions that will have a much larger impact on the future of the business they are leading. Various firms also have shareholders, who own shares of that company and for that reason have an interest in how the business is run without being closely involved. To remain informed on how the company is doing and any new advancements they attend an annual general meeting, or AGM for short, and that is perhaps one of the most basic business terms you really need to know. Every public company has to hold one every year, like the Telecom Italia AGM that is always an important event for their shareholders. During an AGM, shareholders are presented with an annual report about the company’s performance and strategy.
There is no use in creating a good if no one is familiar with it. To be sure that their target audience knows about the existence of their product, providers resort to the help of marketing. Put simply, marketing is the study of a relationship between the producer and the consumer that will help companies put the best product on the market, and it is certainly among the most helpful common business terms you will ever come across. Every business has their own marketing plan, like Dell marketing strategy as an example.
Any firm exists to produce either a product or a service to then sell it for a profit. A profit is one of the most basic financial terms and concepts that you will encounter in the business world, and in basic terms a profit is gained when the revenues from selling the good or a service exceed the costs involved in its production. If a company goes public, it has to announce its earnings to the public, including its profits, like Nestlé profits for instance. These costs involved in the computation of the profit can either be variable or fixed, and these are two important financial terms that any businessperson has to be very well aware of. Fixed costs, as the name suggests, are any costs that do not vary with output, like rent and workers salaries; variable costs on the other hand will change with the volume of output, like the cost of buying raw materials for example.