AQA Business GCSE Unit 3 key terms

The process of buying goods and services including dealing with: • demand • selection of suppliers • analysing and negotiating prices • making the purchase • managing payments.

The network of organisations, people, activities, information and resources that take the product/service from supplier to customer.

The amount produced by a worker/machine/factory in a given time; the ability to produce more output with fewer resources.

The cost advantage of producing on a large scale. As output increases the unit cost decreases.

The relationship between the business and the customer that puts the customer’s requirements at the centre of the operation to build brand loyalty.

Organising procurement to ensure that the production process never runs out of stock, reducing the number of sales lost due to insufficient raw materials

Continually working to reduce the resources used to create products: raw materials, labour, machines and premises

Managing the movement of supplies and products to ensure the timely delivery of supplies to the production process and finished products to customers.

Contracting another business to carry out some of the business’ activities, often to reduce costs.

A philosophy that involves everyone in the business in the quest for continual improvement in the attitudes, practices, structures and systems that combine to create a top-quality product.