Basic Operational Management Glossary from POME by Gautam Koppala
Basic Operational Management Glossary
Basic Operational Management Glossary
24/7 - Twenty four hours a day, seven days a week.
24-Carat/Karat - The purest form of gold (karat is US-English spelling, too soft for jewellery, hence gold jewellery is made of 22-carat, 18-carat, or 9-carat gold, etc., in which other metals such as copper are mixed. Carat is a measure of purity in which 24 parts equate (virtually) to 100% gold. 18-carat is therefore 75% gold. Less than 10-carat gold is generally not sold as gold. The carat measure of diamonds is different, for which carat is a measure of weight (1 carat = 200mg).
24-hour Society - Refers to a way of life available to many in the modern world in which people can work socialize, shop, bank, etc., 24 hours a day. The phenomenon has caused significant new thinking in business, management, marketing, etc., and continues to do so.
360 Degree Feedback - An appraisal method typically entailing feedback about a manager given by fellow workers.
360 Degree Thinking - A term used for considering all options in business, etc., as opposed to having narrow field vision.
38 Ways of Persuasion - The classic semi-serious guide to winning arguments featuring in The Art of Always Being Right, by German philosopher Arthur Schopenhauer (1788-1860).
72 Rule - More commonly known as the Rule of 72, with variations 69 and 70, these are standard figures used by financial folk in calculating quickly the years required for an investment to double (or to halve) at a given interest rate. Typically 72 is divided by the compound interest rate to give the approximate years. 72 is more popular than 69 or 70 because it is quite reliable and easily divisible quickly by lots of different numbers.
80/20 Rule - The theory that 20% of effort produces 80% of results, and very many similar effects; also known as Pareto Rule or Pareto Principle, after its originator.
86 - 'Secret' code used by restaurant and bar staff when refusing service or ejecting a customer from the premises, and more recently referring to a menu item not available, which is sometimes a lie to achieve the first meaning. The term has existed since the early 1900s and no-one knows the true derivation, although increasingly daft ones are suggested.
A la Carte - Technically la carte, an eating-place menu from which individual dishes at separate prices can be ordered, or less commonly where a side dish may be ordered at no extra charge, from the French phrase meaning 'to the menu'. Increasingly now applied to non-food services in which individual selections are offered rather than fixed provisions.
A1 - Top quality rating, applicable to various business situations, e.g., credit-worthiness, and more general references to quality and fitness for purpose.
Abilene Paradox - Observed in many poor or daft decisions by groups or committees, in which the collective decision is considered silly by individual members. From Jerry B Harvey's book The Abilene Paradox and other Meditations on Management (Jossey-Bass, 1988): a family decide to go to Abilene, as suggested by someone believing others might want to go, though he had no strong personal view. The trip was a waste of time, after which it emerged that no-one wanted to go. The effect can also apply in elections and especially tactical voting, whereby the collective effect produces an outcome nobody wants.
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.
Abram's Law - Construction industry theory relating to concrete strength as determined by the ratio of water to cement.
Absolute Advantage - Being able to produce goods more cheaply than other countries.
Abstract - A brief summary covering the main points of a written article or research project.
Accelerator - A company which supplies office space, marketing services, etc., in exchange for payment, to help get new companies started.
Acceptance Bonus - The amount paid to an employee who agrees to perform a difficult task.
Accessory Goods - products required by commercial operations to conduct business, such as: office copiers, automobile wheel balancers, auxiliary power supplies, air compressors, etc.
Accounts - An individual's or company's financial records. Also an arrangement to keep money with a financial institution, e.g., a bank, building society, etc.
Accounts Payable - short term debts incurred as the result of day-to-day operations.
Accounts Receivable - monies due your enterprise as the result of day-to-day operations.
Accretion - Growth or increase in the value or amount of something..
Accrual - The accumulation of payments or benefits over time.
Accrual Based Accounting - an accounting method that enters income and expenses into the books at the time of contract versus when payment is received or expenses incurred.
Across The Board - The involvement of, or affect on, everyone or everything in an industry or company.
Actuals - Real costs, sales, etc., that have occurred, rather than estimations or expectations.
Ad hoc - Created or done for a particular purpose as necessary and not planned in advance.
Ad Rotation - Describes the rotation of advertisements on a web page - each time a user clicks on a different page or returns to a page they've viewed previously in the same session, a different advert appears on the screen.
Added Value - Enables and justifies a profit in business.
Addendum - An added section of information in a letter or report.
Adjunct - A thing which is added or attached as a supplementary, rather than an essential part of something larger or more important.
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.
Adverse Event - Term used when a volunteer in a clinical trial has a negative or unfavourable reaction to a drug, etc.
Advertising - The promotion and selling of a product or service to potential customers. To announce publicly or draw attention to an event, etc.
Advertising Standards Authority (ASA) - The UK self-regulatory body funded by the advertising industry for ensuring that all advertising adheres to ASA standards, notably not to offend or mislead people. Equivalents named the same exist in other countries.
Advertorial - An advert in a magazine or newspaper that is written like an article giving facts rather than appearing as an advertisement for a product.
Affidavit - A sworn signed statement of fact used as evidence in court whose signature has been witnessed by a commissioner of oaths or other authorised officer, for example a notary. Medieval Latin for 'he has stated on oath', from affidare, meaning to trust.
Affiliate - A company or person controlled by or connected to a larger organisation. In web marketing an affiliate normally receives a commission for promoting another company's products or services.
Ageism - Unfair prejudice or discrimination on the grounds of a person's age.
Aggregate - A whole consisting of the combination of smaller separate elements.
Aggregate Planning - The process of planning and developing the best way of producing the right amount of goods, at the right time and at the minimum cost, based on the total number of items which need to be produced, and the amount of materials, equipment and workers necessary for production.
Aggressive Growth Fund - A high risk investment fund in which shares are expected to increase in value very quickly in the hope of making large profits.
Agile Development Method - A type of business development which gets things moving quickly and adapts during the development, as distinct from conventional planning and project management implementation.
Agio - The percentage charged by a bank for exchanging one form of currency or money, into another that is more valuable.
Agitprop - Political propaganda (published ideas designed to motivate people into certain political views or actions) typically in art, music, literature, etc., a portmanteau word combining the original Russian words agitsiya (agitation) and propoganda, where the term grew from the state department responsible for disseminating communist ideas and information to its people in the 1930s. In the west the term is more associated with publication of left-wing or socialist ideas, often targeted against a governing right-wing authority.
Agribusinesss - Farming industry on a large corporate scale.
A-list - A list of the most celebrated or sought-after companies or individuals, especially in show business and entertainment.
Alpha Test - The first stage of testing a new product, especially computer software or hardware, carried out by a developer under controlled conditions.
Amalgamate - When two or more companies combine or unite to form one large organisation.
Amortize - To gradually reduce and write off the cost of an asset in a company's accounts over a period of time.
Anchor Tenant - The first and most prestigious tenant, typically a store in a shopping centre, that will attract other tenants or shoppers.
Ancillary Staff - People who provide necessary support to the primary activities and work of an organization, e.g: schools, hospitals.
Annuity - Often used to provide a pension. An annuity is a fixed regular payment payed over a number of years to a person during their lifetime.
Antediluvian - An interesting and humorous metaphorical description of something (for example a product or service or concept) that is obsolete, old-fashioned or primitive, or devised a long time ago. 'Ante' is Latin for 'before', and 'diluvian' is from Latin 'diluvium' meaning 'deluge', so the overall literal meaning is 'before the flood', being the biblical flood and Noah's Ark, etc. Antediluvian is therefore a clever way to say that something is (so old as to be) 'out of the Ark'.
Appellant - A person appealing to a higher court against a decision of a lower court or other decision-making body.
Apple Box - Used in films, TV, etc. Wooden boxes of various sizes which are used to elevate actors and celebrities.
Appraisal - A review of performance, capability, needs, etc., typically of an employee, in which case the full term is normally 'performance appraisal'.
Arbiter - A person who settles a dispute or has the ultimate authority to decide the outcome of a matter.
Arbitrator - An independent person or body officially appointed to settle a dispute.
Archive/Archives - A collection of records no longer active. Also pluralised - archives - meaning the same, and referring to the place of storage.
Articles Of Association - The document which lists the regulations which govern the running of a company, setting out the rights and duties of directors and stockholders, individually and in meetings.
Aspirational Brand - A brand or product which people admire and believe is high quality, and wish to own because they think it will give them a higher social position.
Asset Stripping - Buying a stricken company and selling off its assets with no thought for the future of the company or its people, customers, etc.
Assets - all real or intellectual property owned by the enterprise that has a positive financial value.
Assets - Anything of value which is owned by an individual, company, organisation, etc.
Atmosphere - In films, TV, etc., a general crowd of people, extras.
Attrition - The process of reducing the number of employees in an organisation by not replacing people who leave their jobs.
Auditor - A qualified person who officially examines the financial records of a company to check their accuracy.
Auteur - An artist or creative, for example a film director, whose personal style is recognizable because he/she keeps tight control over all aspects of the work.
Autocratic - Offensively self-assured or given to exercising unwarranted power. Expecting to be obeyed and not caring about the opinions and feeling of others.
Avant Garde - New or original and often unconventional techniques, concepts, products, etc, usually associated with the arts and creative areas.
Avatar - An identity, often in cartoon form, which can be chosen from a selection or created by the person using it to represent themselves in a website chatroom, etc.
Average Daily Rate - In the hotel industry a calculation of the average price at which a hotel room is booked each night based on total daily revenue divided by the number of rooms sold. The term may have more general meanings in other contexts.
Back Shift - A group of workers or the period worked from late afternoon until late at night in an industry or occupation where there is also a day shift and a night shift.
Back with Music - In the entertainment business, films, TV, etc., dialogue which is spoken over music.
Back-End Load - A fee or commission paid by an individual when they sell their shares in an investment fund.
Backscratching - Informal term for reciprocity or returning favours, as in the term 'you scratch my back and I'll scratch yours'.
Back-To-Back Loan - A loan in which two companies in separate countries borrow each other's money at the same time for a specific period at an agreed upon interest rate.
Bait-and-Switch - In retail sales, when customers are lured by advertisements for a product at a low price, then find that the product is not available but a more expensive substitute is.
Balance Sheet - A financial statement of an individual, company or organisation, which shows assets and liabilities (money owed) at a specific date.
Balance Sheet - a statement of assets and liabilities.
Balloon - Describes a long term loan in which there is a large final payment when the loan matures.
Bancassurance - The selling of both insurance and banking services, usually by a major bank.
Bank Loan - A loan made by a bank to an individual, company, etc., for a fixed term, to be repaid with interest.
Bank Run - Lots of sudden and heavy cash withdrawals at the same time from a bank or banks, because customers believe the banks may become insolvent.
Bankers Hours - A short working day, often with a long lunch break.
Barriers to Entry - conditions that create difficulty for competitors to enter the market. For example, copyrights, trademarks, patents, dedicated distribution channels and high initial investment requirements.
Bean Counter - An informal derogatory term for an accountant, especially one who is perceived or suggested to be overly concerned about expenditure detail.
Beanfeast - Also known as a beano - an annual party, dinner, or outing given by an employer for its employees.
Bear Market - In the stock market a period of declining prices in which investors continue selling shares, expecting the prices to fall further.
Bear Raid - The practice, in the stock market, of attempting to push the price of a stock lower by selling in large numbers and often spreading unfavourable rumours about the company concerned.
Behemoth - A large and powerful organisation. (originally from Hebrew, behemot - beast)
Bells and Whistles - Extra features added often more for show than function, especially on computers, cameras, etc., to make the product more attractive to buyers.
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.
Bench Warrant - An order issued by a judge for an absent defendent to be arrested and brought before a court.
Benefit Principle - A taxation principle which states that those who benefit more from government expenditure, financed by taxes, should pay more tax for the product or service than those who benefit less.
Benefits Realisation - Also Benfits Realisation Management, or if you prefer the US Englisg it would be Benefits Realization. This refers to the translation of projects into real and perceived positive effects, seemingly a concept devised originally in the field of IT and ICT (Information and Communications Technology) project management, where projects are notoriously difficult to manage successfully and generate clear end-user appreciation. The term, abbreviated to BRM, is increasingly applied more widely to change management and project management of all sorts, representing an additional final stage of project management process, for which a manager is sometimes specifically responsible.
Best Boy - The person on film sets, TV, etc., who is the assistant to the electrician.
Beta Test - The second test of a product, such as computer hardware, software, or even a website, under actual usage conditions, before the final version is used by or sold to the public.
Bid Bond - A sum agreed to be paid by a company that wins a contract if the work is not carried out.
Big Bang - Occurred (UK) on 27th October 1986, when major technology changes took place on the London Stock Exchange chiefly to replace manual systems with electronic processes.
Bikeshed Colour effect/Colour of the Bikeshed Law/The Bicycle Shed Law/Parkinson's Law of Triviality - This was originally a concept or 'law' proposed by C Northcote Parkinson in his (1957/8) book Parkinson's Law: The Pursuit of Progress, which also gave us Parkinson's Law itself. The revived Triviality Law was popularized in 1999 by Poul Henning Kamp, a computer developer, effectively and accidentally renaming it the Bikeshed Colour effect. Essentially the law contends that people in organizations (due to human nature and organizational behaviour) inevitably spend a disproportionately large amount of time and effort on trivia matters - especially attempting to apply personal influence - while neglecting the really important issues because they are difficult to understand, and consequently more difficult to influence.
Bilateral - Agreement or involvement or action by two parties, people, companies, countries, etc.
Black Economy - Money earned in private cash transactions, which is untraceable, and therefore untaxable.
Black Knight - A company which makes a hostile takeover bid for another company that does not want to be bought.
Blamestorming - Portmanteau term contrived from Brainstorming and Blame, referring to meetings or discussions seeking to allocate responsibility for a failure or disaster. Popularised in the late 1990s by viral emails which listed amusing office terminology.
Blatherskite - A person who talks at great length without saying anything useful. Originally a Scottish 16thC expression adopted into American slang from the song Maggie Lauder during the US War of Independence.
Blind Test - Research method in which people are asked to try a number of similar products which are not identified by brand name, to decide which product is the best.
Blind Trial - A trial, with two groups of people, to test the effect of a new product, especially in medicine. One group is given the real product while the other group is given a placebo or 'sugar pill', which does not contain any medication.
Blue Chip - On the stock market, shares of a large company with a good reputation, whose value and dividends are considered to be safe and reliable.
Blue Law - In the US, a law which regulates and limits activities for religious reasons, such as Sunday working or shopping.
Blue-Sky Law - In the US, a law designed to protect the public from buying fraudulent securities.
Blue-Sky Thinking - Open-minded, original and creative thinking, not restricted by convention.
Bodhisattva - From Buddhism, a person who seeks enlightenment for the good of, and motivated by a compassion for, other people. In Western thinking we could see this to be similar to Maslow's notion of 'trancendence' in the pursuit of self-actualization, notably helping others to self-actualize. Not an easy concept to explain; in the spectrum of human behaviour it's about as far away that can be imagined from the pursuit of a merchant banker's bonus or the Presidency of Europe, if you'll forgive the clichs.
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.
Bold-Faced Names - Informal term for celebrities, used mostly in the USA.
Bona Fides - Credentials showing someone's true identity. (Latin - with good faith)
Bonded Warehouse - A warehouse in which imported goods are stored under bond, until the import taxes are paid on them.
Bonus - An extra sum of money given to an employee on top of their salary, often for achieving targets.
Bonus Culture - Term used when companies give their executives huge bonuses in addition to their large salaries, even if their performance has been poor, especially leaders of financial institutions.
Book Depreciation - A decrease or loss in value of a company's assets, as recorded in the company's finances.
Bookkeeping - The recording of a business's transactions, such as sales, purchases, payments, income, etc.
Boomlet - A small period of rapid growth in trade and economic activity.
Bootstrapping - Starting a business from scratch and building it up with minimum outside investment.
Bossnapping - Believed to have started in France, the unlawful imprisonment of a boss, in the offices of a company or on the site of a corporation, by employees who are protesting against redundancy, closure of the company, etc.
Bottom Fishing - Buying the cheapest investments available which are unlikely to fall much further in value.
Bounty Hunter - In the US, someone who pursues criminals or fugitives and brings them to the police in exchange for a monetary reward.
Boutique - A small shop typically selling fashionable and expensive items such as clothing. The term 'boutique' is now increasingly applied to various other sectors and products to denote small-scale and high individual or hand-made quality, for example Boutique Hotels, below.
Boutique Hotel - A small individual hotel, commonly within a historic building, with luxurious stylish themed and furnished rooms, typically independently owned.
Bracket Creep - Slowly moving into a higher tax bracket with small pay increases over a period of time.
Brain Drain - The loss of highly skilled people to another region, country or industry, where they can work in a better environment and/or earn more money.
Brainstorming - Problem solving in small groups, contributing ideas and developing creativity.
Brand - A unique identifying symbol, trademark, company name, etc., which enables a buyer to distinguish a product or service from its competitors.
Brand Association - Something or someone which make people think of a particular product.
Brand Loyalty - When a consumer repeatedly buys a particular brand of product and is reluctant to switch to another brand.
Bread and Butter - The main source of income of a company or an individual.
Break Even - To make enough money to cover costs. In business, the point at which sales equals costs. To make neither a profit or loss.
Break-Even Point - the point at which revenues are equal to expenses.
Bridging/Bridging loan/Bridge - A short term loan, normally at high rates of interest calculated daily, which 'bridges' a period when funds are unavailable, typically when payment has to be made before finance can be released from elsewhere to cover the transaction.
Brinkmanship - The practice of pursuing a tactic or method to the point of danger or damage, typically employed in competitive situations in which it is felt that the tactic will unsettle or cause the withdrawal of the adversary/ies. Dervies from the word brink, meaning the edge of a cliff or other dangerously high point.
British Standards Institution - BSI. An organisation which sets out formal guidelines to help businesses, etc., produce or perform more efficiently and safely. The BSI operates in more than 25 countries, and represent UK interests in other organisations, such as the ISO - International Organisation For Standardization.
Brown Goods - Household electrical entertainment appliances such as televisions, radios and music systems.
Brownfield - Previously developed land, either commercial or industrial, which has been cleared for redevelopment.
Brown-noser - Insulting slang term for a sychophant, originally 1930s US military slang (brown-nose). Brown-nosing describes crawling or creeping to please a boss; an amusingly disturbing interpretation of various expressions which juxtapose the head of the follower with the backside of the boss, as in the rude slang metaphors: kissing arse/ass, arse-licking, bum-licker, etc.
Bubble Economy - An unstable boom when the economy experiences an unusually rapid growth, with rising share prices and increased employment.
Budget - Allocation of funds or the estimation of costs for a department, project, etc., over a specific period. The management of spending and saving money.
Built To Flip - Companies which have been sold soon after they have been created, so that money can be made quickly.
Bull Market - On the Stock Market, a prolonged period in which share prices are rising and investors are buying.
Bullet Point - A symbol, e.g. a dot or a square, printed at the beginning of each item on a list.
Business Angel - Also known as Private Investor. A, usually wealthy, individual who invests money in developing (often high risk) companies, and who provides their advice, skills, knowledge and contacts in return for an equity share of the business.
Business Plan - A written document which sets out a business's plans and objectives, and how it will achieve them, e.g. by marketing, development, production, etc.
Business Services - services offered to commercial enterprises, such as: equipment maintenance, supplying of part time personnel, engineering, design and management consulting, etc.
Business To Business - B2B. Commercial transactions or activities between businesses.
Business To Consumer - Transactions in which businesses sell goods and/or services to end consumers or customers.
Button Ad - A small advertisement on a website, typically measuring 120 x 90 pixels.
Buy-in - Purchase of a company where outside investors buy more than 50% of the shares, so they can take over the company.
Buzzword - A word or phrase which has become fashionable or popular, or sounds technical or important and is used to impress people.
C E Mark - Conformite Europeenne (European Conformity). A symbol on many products sold in the European Union indicating that they have met health, safety and/or environmental requirements, ensuring consumer and workplace safety.
Cafeteria Plan - A system which allows employees to choose from a selection of benefits which may be tax-advantaged, such as retirement plan contributions, health benefits, etc., in addition to their salary.
Calculated Risk - A risk which has been undertaken after careful consideration has been given to the likely outcome.
Call Account - A bank account, which usually pays a higher rate of interest, from which investors can make instant withdrawals.
Callable - Usually applies to bonds or convertible securities which can be bought back, at an agreed price, before maturity, by the company or government which sold them.
Callipygian - Having well-shaped beautiful buttocks.
Cap And Collar - The upper and lower limits of interest rates on a loan, usually fixed for a specific period of time.
Capital - the financial investment required to initiate and/or operate an enterprise.
Capital - The net worth of a business, including assets, cash, property, etc., which exceeds its liabilities (debts). The amount of money invested in a business to generate income.
Capital Allowance - Money spent by a company on fixed assets, such as buildings, vehicles, machinery, which is deducted from its profits before tax is calculated.
Capital Flight - The sudden movement of money from one country or investment to another in order to reduce risk, such as high inflation, or to increase profit.
Capital Gains Tax - Tax payable on profits made on the sale of certain types of assets by a company or individual.
Capital Outlay - Money which is spent for the acquisition of assets, such as land, buildings, vehicles, machinery.
Capitalization Issue - When a company converts its spare profits into shares, which are then distributed to existing shareholders in proportion to the amount of shares they already hold.
Capitialism - When an economic system of a country is controlled and profited by private individuals and corporations, rather than the government.
Capped-Rate - Interest rate, usually on a loan, which cannot rise above the upper set level but can vary beneath this level.
Carbon Credit - Allows the right to emit a measured amount of harmful gases, such as carbon dioxide, into the air, and can be traded between businesses and countries.
Carey Street - To be heavily in debt or bankrupt. Originates from Carey Street in London where the bankruptcy court was situated.
Carload - A shipment of goods which, typically by weight, qualifies for a lower shipping rate. The term 'Less than carload' refers to a shipment which is below the given size/weight necessary to qualify for such a rate. The term originated from USA railway freight car transportation and also applies to other methods of freight transport, notably shipping containers, hence similar terms containerload and 'less than containerload'.
Carnet - An international official permit which allows you to take certain goods, e.g. for display or demonstration, into another country, duty free, for a specific period - usually 12 months.
Carpet Bomb - To send an advertisement to a large number of people by e-mail or onto their computer screens.
Cartel - A group of separate companies or nations which together agree to control prices and not compete against each other. Also known as a Price Ring.
Cash Based Accounting - an accounting method that enters income and expenses into the books at the time when payment is received or expenses incurred.
Cash Call - A request by a company to its shareholders to invest more money.
Cash Cow - A steady dependable source of income which provides money for the rest of a business.
Cash Flow - The movement of money into and out of a company, organisation, etc.
Cash Flow - the transfer of monies into and out of an enterprise.
Cash Flow Forecast - Also called Cash Flow Projection. An estimate of the amounts of cash outgoings and incomings of a company over a specific time period, usually one year.
Casting Vote - The deciding vote cast by the presiding officer to resolve a deadlock when there are an equal number of votes on both sides.
Catch-22 - Much misused expression, it refers properly only to a problem whose solution is inherently self-defeating. Wrongly it is used to describe any insurmountable or difficult problem. It's from Joseph Heller's book of the same name;
Category Killer - Large companies that put smaller and less efficient competing companies out of business.
Cattle Call - Term used in the entertainment industry for a large number of actors, etc., who are all auditioning for the same job.
Caveat Emptor - When the buyer takes the risks and is responsible for checking the condition or quality of the item purchased. (Latin - Let the buyer beware)
Central Counterparty - Acts on behalf of both parties in a transaction, so that the buyer and seller do not have to deal with each other directly.
Chain Of Command - A system in a business, or in the military, in which authority is wielded and delegated from top management down through every level of employee. In a chain of command instructions flow downwards and accountability flows upwards.
Chamber Of Commerce - A group of business owners in a town or city who form a network to promote local business.
Channel Of Distribution - Also known as Distribution Channel. A means of distributing a product from the manufacturer to the customer/end user via warehouses, wholesalers, retailers, etc.
Check The Gate - A term used in the film industry after a shot is taken on a film set. The gate, or opening in front of the camera, is checked to make sure that there is no dirt, hair, etc., present.
Class A Spot - In the media, commercials which are run on a prime time network.
Class Action - A lawsuit in which one person makes a claim and sues on behalf of a large group of people who have similar legal claims, usually against a company or organisation.
Clicklexia - Ironic computing slang for a user's tendency to double-click on items when a single click is required, often causing the window or utility to open twice.
Clicks And Mortar - Also known as Clicks and Bricks. Refers to businesses which trade on the Internet as well as having traditional retail outlets, such as shops.
Clickstream - A record of an internet user, including every web site and web page which have been visited, and e-mails sent and received.
Click-Through - When a person clicks on an advertisement on a web page which takes them to the advertisers website.
Clip-Art - Ready made pictures of computerised graphic art which can be copied by computer users to add to their own documents.
Close Company - In the UK, a company which is controlled by five or less directors.
Code-Sharing - An arrangement between different airlines in which they all agree to carry passengers on the same flight using their own flight numbers.
Coercion - Forcing someone, by some method or other, to do something or abstain from doing something against their will.
Collateral - assets that can be pledged to guarantee a loan.
Combined Ratio - In insurance, a way of measuring how much profit has been made by comparing the amount of money received from customers to the amount paid out in claims and expenses.
Commercial Monopoly - The control of a commodity or service by one provider in a particular market, virtually eliminating competition.
Commercial Paper - An unsecured and unregistered short-term agreement in which organizations can borrow money from investors who cannot take the assets from the organization if the loan is not repaid.
Commission - In finance, a payment based on percentage of transaction value, according to the local interpretation of value (e.g., based on total revenue, or gross profit, etc).
Commission Broker - A person who buys and sells shares, bonds, etc., on a commission basis on behalf of their clients.
Companies House - A government agency in the UK which is responsible for collecting and storing information about limited companies. The companies must file annual accounts or face penalties.
Comparative Advantage - See definition for Competitive Advantage.
Compensation Fund - A fund set up by a company or organisation from which to pay people who have suffered loss or hardship which has been caused employees or members of the company or organisation.
Competition Law - Known as Antitrust law in the US, regulates fair competition between companies, including the control of monopolies and cartels.
Competitive Advantage - A position a business gains over its competitors.
Competitor - A business rival, usually one who manufactures or sells similar goods and/or services.
Competitor Analysis - Also called Competitive Analysis. A company's marketing strategy which involves assessing the performance of competitors in order to determine their strengths and weaknesses.
Compliance Officer - A corporate official whose job is to ensure that a company is complying with regulations, and that its employees are complying with internal policies and procedures.
Compound Interest - Interest which is calculated on not only the the initial loan, but also on the accumulated interest.
Compulsory Purchase - When an organisation has the legal right to force the sale of land, property, etc., usually to build motorways or railways.
Concept - A thought or notion. An idea for a new product, advertising campaign, etc.
Concierge - An employee of e.g. an hotel who provides a service to guests, such as handling luggage, delivering mail and messages, making tour reservations, etc.
Conciliation - To bring two disputing sides together to discuss the problem with the aim of reaching an agreement.
Conditional Sale - A purchasing arrangement, usually where the buyer pays in instalments but does not become the legal owner of the goods until the full purchase price has been paid.
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.
Conservator - In law, a guardian or protector appointed by a court to manage the affairs, finances, etc., of someone who is too ill or incapable of doing so themselves.
Consortium - A group of businesses, investors or financial institutions working together on a joint venture.
Constructive Spending - Helping the local economy by buying home produced goods, holidaying in your own country, etc., rather than buying imported goods and holidaying abroad.
Consultant - An expert who is paid by a company, individual, etc., to give advice on developing plans and achieving goals.
Consumer - An individual who uses goods and services but who may not have been the purchaser.
Consumer Credit - Also called Personal Credit or Retail Credit. Loans given to consumers by financial institutions for household or personal use.
Consumer Debt - Money owed by people in the form of loans from banks or purchase agreements from retailers, such as 'buy now pay later'.
Consumer Panel - A group of selected people, usually a cross-section of a population, whose purchasing habits are monitored by an organisation, in order to provide feedback on products, services, etc., which are used.
Consumer Price - The price which the general public pays for goods and services.
Consumer Price Index - CPI. A measure of inflation which involves regularly monitoring the change in price for everyday goods and services purchased by households.
Consumer Protection - Laws which protect consumers against unsafe or defective products, deceptive marketing techniques, dishonest businesses, etc.
Consumer Watchdog - An independent organization that protects the rights of individual customers and monitors companies to check for illegal practices.
Consumption Tax - Tax paid which is based on the price of services or goods, e.g. value added tax.
Contango - A situation in which the price of a commodity to be delivered in the future exceeds the immediate delivery price, often due to storage and insurance costs.
Contingency Fee - In law, a fee that is payable to the lawyer out of any damages which have been awarded to the client by a court. There is no payment if the case is unsuccessful.
Contingent Liability - This is recorded as a debt on a company's accounts which may or may not be incurred, depending on the outcome of a future event, such as a court case.
Contra Entry - In accounting, an amount entered which is offset by another entry of the same value, i.e., a debit is offset by a credit.
Contraband - Goods prohibited by law from being exported or imported. Smuggling.
Contract Of Employment - A contract between an employee and an employer which specifies terms and conditions of employment, such as hours to be worked, duties to perform, etc., in return for a salary, paid benefits, paid holiday, etc., from the employer.
Contract Of Purchase - Also called Purchase Agreement. A legal document which states the terms and conditions, including price, of the sale of an item.
Contract Worker - A person who is hired by a company (but not as an employee), often through an employment agency, for a specific period of time to work on a particular project.
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.
Control Account - An account which a company keeps in addition to its official accounts, in order to cross-check balances, etc., to ensure that the official accounts are accurate.
Controlling Interest - The ownership of more than 50% of the voting shares in a company, which enables the owner of these shares to make decisions, direct operations, etc.
Convene - To gather together for an official or formal meeting.
Convenience Goods - goods often used by the consumer, but the consumer is unwilling to spend "shopping time" to acquire them. This covers a broad spectrum of products including candy, cigarettes, drugs, newspapers, magazines and most grocery products.
Convention - A large formal meeting of politicians, members, delegates, sales people, etc.
Convertible - Refers to a security (bonds or shares) which can be exchanged for another type of security in the same company.
Convertible Currency - Currency which can be quickly and easily converted into other countries currencies.
Conveyancer - A specialist lawyer who is an expert in conveyancing, i.e., legal work carried out connected to the selling and buying of property.
Cooling-Off Period - A period of time after the exchange of contracts, purchasing agreements, etc., during which the purchaser can change their mind and cancel the contract, and usually get any deposit paid reimbursed.
Cooperative - An organisation or business which is owned and run by its employees, customers and/or tenants, who share the profits.
Cooperative Marketing - Also known as Cooperative Advertising. When two companies work together to promote and sell each others products. A manufacturer or distributor who supports, and often pays for, a retailers advertising.
Copyright - An exclusive legal right to make copies, publish, broadcast or sell a piece of work, such as a book, film, music, picture, etc.
Core Earnings - A company's revenue which is earned from its main operations or activities minus expenses, such as financing costs, asset sales, etc.
Corporate Advertising - Also called Institutional Advertising. Advertising that promotes a company's image, rather than marketing its products or services.
Corporate Hospitality - Entertainment provided by companies in order to develop good relationships with its employees, customers, other businesses, etc.
Corporate Image Advertising - a "corporate image" ad is designed to primarily promote the enterprise and secondarily promote the products or services of the enterprise.
Corporate Ladder - The order of rank, position, etc., in a company from junior to senior, which can be progressed or 'climbed' by employees.
Corporate Raider - A term used for an individual or company who purchases large numbers of shares in other companies, against their wishes, in order to gain a controlling interest in the other companies, or to resell the shares for a large profit.
Corporate Social Responsibility - CSR. An obligation of a company to adhere to legal guidelines in order to meet the needs of its employees, shareholders and customers, and also to be concerned about social and environmental issues.
Corporate Veil - A term which refers to the fact that a company's shareholders are not liable for the company's debts, and are immune from lawsuits concerning contracts, etc.
Corporation - A large company or a group of companies which is legally authorised to act as a single entity, separate from its owners, with its liabilities for damages, debts, etc., limited to its assets so that its shareholders and owners are protected from personal claims.
Corporation Tax - A tax which limited companies and other organisations, such as societies, clubs, associations, etc., pay on their profits after adjustments for certain allowances.
Correspondence Course - A study course using written correspondence, books, etc., which are sent to you by post from learning institutes.
Corruption - Lack of honesty or integrity. Illegal behaviour, such as bribery, by people in positions of authority, e.g. politicians.
Cost Accounting - Managerial accounting which calculates, records and controls the operating costs of producing goods or services.
Cost Control - A management process which ensures that departments within a company or organisation do not exceed their budget.
Cost Cutting - Reducing an individual's, company's, etc, expenditure.
Cost Effective - Producing a product, offering a service, etc., in the most economical way to the benefit of the company and the customer.
Cost Leader - A company which has a competitive advantage by producing goods or offering services at a lower cost than its competitors.
Cost of Goods - the direct costs involved in producing a product or service which usually includes labor and materials.
Cost Of Living - The standard cost of basic necessities which people need to live, such as food, housing and clothes.
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 of Sales - the cost of goods plus the expenses involved in selling and delivering the product or service.
Cost Overrun - The amount by which the actual cost of a project, etc., exceeds the original budget.
Cost Per Click - CPC. The amount of money an advertiser pays to a website publisher every time a visitor clicks on an advert displayed on the publisher's website which links to the advertisers website.
Cost-centre - Part of a business or organisation such as a marketing department, or quality assurance department, which is a cost to operations and does not produce external customer revenues or profit through trading.
Cottage Industry - A small business in which production of goods or services are based in the home rather than in a factory or on business premises.
Counterbid - To make a higher offer than someone else in a bid to buy something.
Counterclaim - In a court of law, a claim made against you (plaintiff) by the person (defendant) you are making a claim against.
Counterpart - A person or position which has a corresponding function in a different organization, country, etc. The corresponding function naturally is also a counterpart. Also a copy of a legal document.
Countersign - To add a second signature, where required, to a document or cheque, in order to make it valid.
Countervailing Duty - An additional tax imposed on certain imported goods which have been produced very cheaply in their country of origin, in order to bring the price of the goods up to the true market price to protect the importing country's producers.
Courier - A person who carries and delivers messages, documents, packages, etc., often between companies. A person employed by a travel company as a tourist guide.
Covenant - A written promise, sometimes part of a contract, to perform, or not to perform, a particular action.
Cover Charge - A fixed fee charged by a nightclub or a restaurant with live entertainment, which covers, or part covers, the cost of musicians, DJs, etc.
Cowboy - A dishonest, often unqualified, business person, especially one who overcharges for bad quality work. Not to be confused with the cowboy of top-shelf publications.
Crapola - Items of little importance or poor quality. Rubbish.
Crawling Peg - A system of frequently adjusting a country's exchange rate by marginal amounts, because of inflation, etc.
Creative Director - A person who usually works in the advertising or entertainment industry and is responsible for planning and managing the creative aspects of an advertising or promotional campaign.
Credit - An arrangement in which an item for sale is received by the purchaser and paid for at a later date. A loan. The positive balance in a bank account. An amount entered in a company's accounts which has been paid by a debtor.
Credit Analysis - The process of analysing a company's financial records and assessing its ability to repay a loan, etc.
Credit Crunch - Also known as Credit Squeeze. This usually precedes a recession. A situation in which loans for businesses and individuals are difficult to obtain when a government is trying to control inflation, because of the fear of bankruptcy and unemployment.
Credit History - A record of an individual's or company's debt repayment, used by lenders to asses a borrowers ability to repay a loan, mortgage, etc.
Credit Rating - Information based on a person's or company's financial history, which determines their ability to repay debts, loans, etc. Lenders use this information when making a decision regarding a loan approval.
Credit Rationing - When a bank or money lender limits the amount of funds available to borrowers, or interest rates are very high.
Credit Repair - The process of helping to improve a person or company's credit rating, sometimes by disputing or correcting credit history discrepancies.
Credit Union - A financial institution, similar to a bank, whose members create the funds from which they can obtain loans at low rates of interest.
Creditor - A person, business, etc., to whom money is owned.
Crib - Plagiarism. To copy someone else's written work and pass it off as your own.
Crisis Management - Actions taken by a company to deal with an unexpected event which threatens to harm the organisation, such as a loss of a major customer, bad publicity, etc.
Criterion - A principal or standard by which other things or people may be compared, or a decision may be based.
Critical Mass - The minimum amount of customers, resources, etc., needed to maintain or start a business, venture, etc. The point at which change occurs e.g., when a company is able to continue in business and make a profit without any outside help.
Cronyism - In business and politics, showing favouritism to friends and associates by giving them jobs or appointments with no regard to their qualifications or abilities.
Cross Guarantee - Also known as Inter Company Guarantee. A guarantee by a group of companies to be responsible for the debts, etc., of another company in the group if it fails to repay them. The group also use the guarantee to raise capital or take out multiple loans.
Cross Merchandising - Also known as Add-On Sales. In retailing, the practice of putting related products together on display in order to encourage customers to purchase several items.
Crowdsourcing - Term first coined by Jeff Howe in 2006 in Wired magazine. Describes when an organisation delegates a task to a large number of individuals via the Internet, thereby using the general public to do research, make suggestions, solve a problem, etc., usually without being paid.
Crown Jewel - The most valuable and profitable asset of a company or business.
C-Suite - The Chief Officers or most senior executives in a business or organisation.
Cube Farm - An open office which is divided into cubicles.
Culpability - Blame or liability for harm or damage to others, from Latin culpa meaning fault.
Currency Bloc - A group of countries that use the same currency, for example the Euro.
Current Account - A bank account which can be used to make deposits, withdrawals, cash cheques, pay bill, etc.
Current Assets - Also called Liquid Assets. A company's cash or assets which can be converted into cash usually within one year, including shares, inventory, etc.
Current Assets - Assets that can be converted quickly to cash.
Current Liabilities - All debts incurred in the normal day-to-day business and due within one calendar year.
Current Liability - In business, a liability or debt which must be paid within one year from the time of the initial transaction.
Current Ratio - A financial ratio which gives an indication of whether or not a company can pay its short-term debts.
Customer - An individual, company, etc., who purchases goods and/or services from other individuals, companies, stores, etc.
Customer Loyalty - Describes when a customer prefers to buy a particular brand or type of product, who prefers a particular shop, or who stays with the same company, such as a bank, insurance company, phone company, etc.
Customer Relations - The relationship a company has with its customers and the way it deals with them. The department in a company which is responsible for dealing with its customers, for example complaints, etc.
Customs Duty - A tax which must be paid on imported, and sometimes exported, goods, to raise a country's revenue and to protect domestic industries from cheaper foreign competition.
Customs Union - A group of nations which have agreed to promote free trade, for example, not to charge tax on goods which they trade with one another, and to set taxes for nations which are not members of the group.
Cutover - Also known as 'Going Live'. The point in time a company or organisation, etc., replaces an old program or system with a new one.
Cut-Throat - Ruthless and intense competition. An unprincipled, ruthless person.
Cyber Monday - In recent times, the busiest online shopping day of the year, in the USA typically the Monday after Thanksgiving Day (the fourth Thursday of November); in the UK typically the first Monday in December.
Cybersquatting - The illegal activity of buying and registering a domain name which is a well-known brand or someone's name, with the intent of selling it to its rightful owner in order to make a profit.
Damage Limitation - The process of trying to limit or curtail the amount of damage or loss caused by a particular situation or event.
Dark Net - A term for online private websites and networks concealed from and inaccessible to unauthorised users in which materials are shared, normally illegally and anonymously.
Daughter Company - A company that is controlled partly or completely by a holding or parent company.
Dawn Raid - A sudden planned purchase of a large number of a company's shares at the beginning of a days trading on the stock exchange.
Day Player - In the entertainment industry, actors, etc., who are hired by the day.
De Facto - Latin - Existing in reality or fact, with or without legal right.
Dead Cat Bounce - A derogatory term used on the stock exchange to describe a huge decline in the value of a stock, usually a share, which is immediately followed by a temporary rise in price before continuing to fall. From: "Even a dead cat will bounce if it falls from a great height".
Deadbeat - A person or company who tries to avoid paying their debts.
Dear Money - Also known as Tight Money. When money is difficult to borrow, and if a loan is secured then it would be paid back at a very high rate of interest.
Debenture - Unsecured certified loan over a long period of time with a fixed rate, based on the trust that payment will be made in the future.
Debriefing - A meeting or interview in which a person or group of people report about a task or mission just completed or attempted.
Debt - Money owed to another person or organisation, such as a loan, mortgage, etc., which is required to be paid back, usually with interest.
Debt Exposure - Money that a lender risks losing if the borrower fails to pay it back.
Debt Service - the regular payments required to keep a loan current.
Debt-Equity Swap - An arrangement between a lender and a debtor, usually a company, in which the lender agrees to reduce the debt in exchange for newly issued shares from the borrower.
Decertification - In employment this refers specifically to action taken by workers to disassociate themselves from a trade union which previously represented them. Aside from this the general meaning refers to withdrawal of certification of one sort or another.
Decision Consequence Analysis - A process for helping decision makers, usually in the pharmaceutical and petroleum exploration industries, decide where resources such as time, money, etc., should be invested.
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.
Deed Of Partnership - A legal document which sets out how a partnership is to be run, and also the rights of the partners. A Deed Of Partnership is not compulsory but it helps to avoid any misunderstandings or disputes in the future.
Deep Throat - In business, an anonymous source of top secret information. First used in this sense in the reporting of the US Watergate scandal.
Deep Web - Also known as the Invisible Web, said to contain about 500 times more information than the generally accessible world-wide web, the Deep Web comprises data held by secure organizations, for example military and government.
Defence Document - A document that a company's shareholders receive which explains why an offer to buy the company should be rejected.
Gautam Koppala,
POME Author
Basic Operational Management Glossary from POME by Gautam Koppala
By: GAUTAM KOPPALA
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