Common business terms and concepts are a critical element of business acumen. In this training video, learn definitions for common terms, concepts, and frameworks like business model, P&L, SG&A, Porter's Five Forces, growth horizons, segments, value chain, ROI, fixed costs, variable costs, and CAPEX.
- It's important to know the definitions of…common business terms.…This is so you know what people are talking about,…and so you can contribute to the conversation.…What I'd like to offer are some of the most common terms…you may hear used day to day.…First is the business model.…A business model is the plan implemented by a company…to generate revenue and make a profit from their operations.…The model includes the components and functions of the…business, as well as the revenues it generates and…the expenses it incurs.…
A value chain is a high level model for how businesses…receive the materials as inputs, add value to those…raw materials through various processes, and then sell…their finished products to customers in the marketplace.…Strategy is how the business chooses to compete.…It looks at the market, the competitors,…the products being sold, and the services being offered,…then lays out a plan to win over time.…Porter's five forces is a framework used to assess…the market environment and how you're going to compete.…
- What business are you in?
- What's your market and who is your competition?
- What problem does your business solve?
- How are your products and services created? What are your pricing and growth strategies?
- How do you measure performance?
With the answers in hand, you can be assured your have the knowledge to make the best decisions for your business.
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- Define and explain business acumen.
- Describe different types of growth horizons.
- Identify critical elements of knowing your business.
- Explain the effects of price changes on profits.
- List common growth methods.
- Evaluate your initiative pipeline.
- Define common business terms.
- Assess trends and your competitive environment.