Terms used in trade such as Product Portfolio,Product,Production Sharing,Professional Liability,Profit,profit margin etc

 

The terms used in business such as Product Portfolio,Product,Production Sharing,Professional Liability,Profit,profit margin etc.

 

This post explains about terms used in business such as Probity, Producers, Product,Product life cycle,Product Portfolio,Product,Production Sharing,Professional Liability,Profit,profit margin etc. These terms used in international business are arranged in alphabetical order and you may add more information about terms used in export business at the end of this article, if you wish.

 

The terms used in business

 

Probity:Probity is the evidence of ethical behaviour in a particular process. It terms of procurement, it is expected that government employees act in such a way that ensures:1.fairness and impartiality2.accountability and transparency of process3.confidentiality and security of information and materials4.effective management of conflicts of interest.

 

process in the UK, where managers and employees representatives, usually from unions, meet to discuss matters relating to the employees working conditions, etc.

 

Proctor - Someone who supervises students, etc., taking exams to prevent cheating. Also a person or agent employed to manage the affairs of another person.

 

The terms used in  business such as Product Portfolio,Product,Production Sharing,Professional Liability,Profit,profit margin etcProcurement method:Queensland Government departments or agencies use 3 different methods - open, limited or selective - to procure goods and services.

 

Procurement:This is the entire process by which all classes of resources (human, material, facilities and services) are obtained. This can include the functions of planning, design, standards determination, specification writing, selecting suppliers, financing, contract administration, disposals and other related functions. For clarity, 'procurement' under the Queensland Procurement Policy (2013) does not include 'grants' as defined in the Financial accountability handbook administered by Queensland Treasury.

 

Producer Price Index (PPI) / Indice des prix des produits industriels :A set of figures showing the movement of prices of goods and services purchased and manufactured by industry over a period of time.

 

producers: The components of the organizational market that acquire products, services that enter into the production of products and services that are sold or supplied to others.

 

Product - The result of a manufacturing or natural process (such as food) which is offered for sale to the general public, usually by a retailer.

 

Product Evangelist - A person who is committed to a promoting a product through demonstrations, talks, blogging, etc.

 

Product Liability - Area of the law in which a manufacturer or retailer is legally responsible for any damage or injury caused by a defective product.

 

Product Life Cycle - This refers to the (generally very usual and unavoidable) stages that a product/service passes through from invention/development to maturity to decline until it becomes obsolete, usually because it has been superseded by competitive/replacement offerings, and/or to a lesser degree the product/service has saturated the market, i.e., everyone who wants it has purchased it. Product life cycle is often shown as a graph of sales volumes or market-share over time. The term 'product life cycle' is very broad - it may refer to a single specific item of one particular supplier, such as a 'Big Mac' burger, or an iPad, or a Colt 45 revolver; or to a product/service in a generic sense across an entire industrial sector, such as a personal computer, or television, or diesel locomotive; or to a technology, such as broadband, radar, the internal combustion engine, or steam-power; or even symbolically to a lifestyle or aspect of civilization, such as agriculture, fire, horse-transport, coins/paper money, Christianity, etc. The product life cycle begins with innovation and novelty, often supported by (commercially) patents or other protective mechanisms such as secrecy, cartels, legislative instruments, etc., during which the prices and gross profit margins of products/services are high (although net profits may be low due to recovery development/investment costs). This is shown as a steep upward curve on a product life cycle graph, reflecting/illustrating sales levels in volumes or revenues or market share, horizontally, passing through vertical time-zones, typically years. The curve then flattens to reflect/illustrate 'maturity' of product/service life, and a period of reasonably constant sales, during which profits should be healthy, even if competition and competing technologies have begun to pressurize prices downwards, because investment costs have been recovered and economies of scale in production and distribution have been achieved. Next the curve to dips gradually downwards, reflecting/illustrating reduced sales levels and the 'decline' of the product/service market appeal. Profits may still be healthy during the decline phase if costs and efficiences are managed carefully, although many corporations persist in investing in and attempting to revive declining products/services, which tends to be wasteful and in vain. Decline may last for many years depending on the product/service/technology concerned, and some technologies may maintain a small specialist niche market indefinitely, such as hot-air balloons, steam trains, archery, and cut-throat razors. Some technologies and specific products enjoy natural resurgences, but this is very rare, for example notably the bicycle (in Europe), whose product life cycle graph would show a steep rise after invention in the 1800s, then a plateau and a decline in the late 1900s, and then another rise as popularity surged again in the early 2000s. The fuel-oil technology product life cycle graph would show a similar double rise, initially for the market in oil-lamp lighting, and then, as the oil-lamp technology was about to become obsolete due to electric light, the motor car was invented. Likely a third fuel-oil demand surge will be enabled just as electric motoring replaces the internal combustion engine. When products/technologies become sufficiently huge, they (and the corporations which own them) can potentially exert influences and protections of vast socio-political dimensions. This effect can arguably be seen in the power of other major technology players such as Apple, Microsoft and Google, and equivalent corporations in fundamentally powerful sectors such as energy, minerals, transport, armaments, etc. In general however, product life cycles have become shorter over past decades and centuries, and are likely to continue to become even shorter in the future. For example, in the Stone Age, stone tools can be considered to have enjoyed an effective product life cycle of thousands of years. In the Middle Ages, candles enjoyed a product life cycle of several hundreds of years. In the European/western industrial age, steam-power enjoyed a product life cycle of two centuries. In the computer age, the product life cycle of the digital wristwatch and 'Walkman' cassette player was no more than two decades. In more recent times, the Myspace phenomenon launched in 2003, bought by News Corporation for $580m in 2005, the most popular website globally from 2006-2008, was in dramatic decline by 2009, and was forced to attempt a complete redesign and relaunch in 2013, effectively signifying the obsolescence of the original concept, an effective life cycle of just six years for a once global industry leader and technology definer. The modern world moves very quickly, and so too now do most product life cycles.

 

Product life cycle (PLC): The stages of development and decline through which a successful product typically moves.

 

product line: A group of products related to each other by marketing, technical or end-use considerations.

 

product mix: All of the products in a seller's total product line.

 

Product Placement - Also called Embedded Marketing. A type of advertising where a company pays a fee to have one or more of its products used as props in a film or television show.

 

Product Portfolio - A variety of products which are manufactured or distributed by a company or organisation.

 

product: Anything capable of satisfying needs, including tangible items, services and ideas.

 

Production Possibilities Schedule - The maximum amount of goods (for example, food and clothing) that a country is able to produce given its labor supply.

 

Production Sharing - Production sharing occurs when a producer chooses to make a product in stages - and in different countries - so that the firm can employ the lowest-cost resources in the production process.

 

Productivity - The rate at which goods are produced based on how long it takes, how many workers are required, how much capital and equipment is needed, etc.

 

Professional indemnity insurance:Insurance that covers legal liability for claims arising out of a breach of professional duty in the provision of professional services.

 

Professional Liability - The legal liability of a professional, such as a doctor, accountant, lawyer, etc., who causes loss, harm or injury to their clients while performing their professional duties.

 

Profit - the total revenue a business earns minus the total expenses. See also Revenue.

 

PROFIT & LOSS (P & L) STATEMENT:A listing of income, expenses, and the resulting net profit or loss. This is also called an income statement.

 

profit margin: The difference between your selling price and all of your costs.

 

The above details describes about terms called in business such as Probity, Producers, Product,Product life cycle,Product Portfolio,Product,Production Sharing,Professional Liability,Profit,profit margin etc. These phrases may help importers and exporters on their day to day business activities. The readers can also add more information about terms used in overseas trade below this post.Terms used in trade such as Principal,Primary Market,Private Line Service,Privatization,Pro Bono etc

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