Essential Business Administration
English Vocabulary Lesson
Knowing business administration vocabulary terms
will help you understand the business system and business
operations. It is important to stay up-to-date with business terms
so that you can communicate effectively with business professionals.
Here are the most common business administration terms you need to
Business Management Vocabulary
Organizational Structure: This term refers to the
way a business is organized and managed. It includes the hierarchy
of positions, responsibilities, and authority.
For example, in a business with an organizational
structure, there is usually a CEO or President at the top.
Underneath them are middle managers and other employees who have
specific roles and responsibilities within the business.
Let's say Marco founds a catering business and decides to be the
CEO. He will then hire other employees for different positions like
catering waiters, cooks, and delivery personnel. These employees
will all have different roles to help Marco run his business
efficiently. As the company grows, the organizational structure will
grow as well. Marco may decide to add additional departments such as
marketing, accounting, and customer service.
Human Resources (HR in short) is the
department within a business responsible for managing employees. It
includes hiring, training, and development of employees.
Let's have a look at an example. Marco's HR team is responsible for
recruiting and training new employees. They will also be in charge
of employee benefits, such as health insurance or vacation days.
Lucia, the HR manager, has been tasked with finding and hiring a new
delivery person for the business. She posts an ad, receives
applications, and then interviews potential candidates. Once she
finds a qualified candidate, she creates an offer letter with the
details of the job and salary. The candidate accepts the offer and
Lucia then follows up to make sure they get all their onboarding
Marketing: Marketing is the process of promoting and
selling products or services. It includes activities such as
advertising, public relations, and sales.
Let's say Marco wants to promote his catering business. He could use
various marketing strategies, such as creating a website, running
ads on social media, or hiring a public relations team to manage his
business's reputation. He could also use sales tactics to attract
customers, such as offering discounts or loyalty programs.
Operations: This business term refers to the day-to-day
activities and processes involved in running a business.
For example, Marco's business operations team is responsible for the
production of his catering business. They make sure the food is
being cooked correctly and delivered on time. They are also
responsible for the business's inventory, ensuring that there are
enough ingredients on hand for each order.
Finance: Finance is the management of a company's money,
including its income, expenses, and investments.
Marco's business needs to be profitable in order to succeed, so he
must manage his business's finances correctly. He and his finance
team will create budgets to track business expenses and monitor cash
flow. They will also analyze business performance data in order to
make informed financial decisions.
For example, in the month of January, Marco and his finance team
look at the business's expenses. They notice that one of the
business's biggest expenses is its food costs. The team decides to
explore other vendors in order to reduce their costs. After finding
a better supplier, they are able to reduce the business's food costs
Strategic Planning: Strategic planning is figuring out
what you want your business to achieve and coming up with a plan to
make it happen. It includes setting business objectives, analyzing
the business environment, and developing a strategy to reach those
For example, Marco decides that his business's goal is to become the
biggest catering business in the city. He and his team analyze the
current business environment to determine how to reach that goal.
They find out that the current competition is fierce and decide to
focus on customer service in order to stand out. They create a
business plan outlining their strategy, and then begin implementing
Along the way, they find out that they need to invest in better
technology in order to provide timely service. In addition, they
decide to focus their marketing efforts on customer reviews and
word-of-mouth. These decisions help Marco and his business achieve
their goal of becoming the biggest catering business in the city.
Business Development: Business development is finding new
ways to make your business grow. This can include expanding to new
locations or offering new products and services. It involves
analyzing business trends, looking for new markets, and establishing
For example, Marco wants to expand his business beyond catering in
order to increase profitability. He and his business development
team look for new business opportunities in other industries, such
as food delivery. After researching the market and establishing
business relationships with potential partners, they launch a food
Corporate governance is the
systems, processes, and policies that a business uses to make
decisions and manage itself. It includes setting business
objectives, developing business policies, and monitoring
For example, Marco develops business policies that outline how
employees should conduct business and interact with customers. He
also creates performance metrics that are used to measure business
success, such as customer satisfaction ratings and financial
returns. These policies and metrics help him monitor business
performance and set business objectives.
Leadership: Leadership is when you help a group of
people work together to achieve something they all want. It
involves inspiring and motivating people, setting business
objectives, solving business problems, and making decisions.
For example, Marco leads his business by providing clear direction
and setting high expectations for himself and his employees. He
motivates his team to reach business goals by recognizing individual
accomplishments and rewarding collective successes. He also solves
business problems by utilizing the strengths and resources of his
Entrepreneurship: Entrepreneurship is the process of
starting and running a new business. This includes coming up with a
new idea, making a plan, and putting that plan into action. It
involves taking risks, setting business objectives, and finding ways
to make money.
For example, Marco starts a catering business from scratch. He
identifies a need in the marketplace and develops an idea to fill
that need. He creates business plans, secures financing, hires
employees, and begins working on the business. He finds ways to
market his business and generates revenue by providing quality
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