Management Glossary

  Terms beginning with b
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basis point

0.01 percent (i.e., 1 percent  = 100 basis points). Thus, when it is said that an interest rate was raised 25 basis points, that means that one quarter of a percentage point was added to the interest rate.

This can be confusing if not expressed carefully. An interest rate that went from 2% to 2.5% increased 25% (i.e., one-quarter of the original 2%), but the rate when up by one-half of one percentage point, i.e, 50 basis points.

Contributed by: Managerwise Staff

benchmarking
Comparing an organization's activities, processes, procedures and results to those of another organization that is considered to be an industry leader or otherwise a model of efficiency and/or effectiveness.
Contributed by: ManagerWise Staff

bereavement leave

Paid time off granted after the death of a member of an employee's family.

bill of sale
A document that states what goods are being sold, specifies the terms and conditions of the sale and, on fulfillment of the terms and conditions, transfers title for the specified goods from the buyer to the seller.
Contributed by: ManagerWise Staff

blackout period
A period of time during which employees (possibly just senior employees and employees in job roles that give them access to important financial information) are not allowed to trade in their employer's stock. This is expressed as a number of days before a material event such as (typically) the release of a quarterly or annual financial report or (possibly) the announcement of a major acquisition (either as the buyer or seller).
Contributed by: Managerwise Staff

blanket order
An order for up-to a specific dollar or unit amount of a product and/or service or set of products and/or services. No specific dates are specified for shipping of the goods or provision of the services, however an expiry date will likely be specified. The customer, including possibly individuals not authorized to place a blanket order, will then place individual orders under the blanket order, as required.
bleeding edge
The adoption of a technology or the implementation of a business theory that is so new as to have not undergone any significant real-world testing. Therefore, the adoption of the technology or implementation of a theory might result in a severe cost or disadvantage for the adopting/implementing company.
Contributed by: Managerwise Staff

board of directors

A group of people elected by the owners (shareholders) of a company and charged with the responsibility of overseeing the the management of the company. B. oard responsibilities do not include the day-to-day running of the company. Instead, the board of directors' primary responsibility is to protect the interests of the company's owners (shareholders) through financial and strategic oversight.

Members of the board can also be employees of the company, typically serving in an executive role, but it is generally recognized that, to ensure good governance, the board should include a number (some people say it should be a large majority) of non-executive (also referred to as "outside") directors. This will help to see that the company serves the interests of its owners, not just the interests of its management.

Contributed by: Managerwise Staff
See: non-executive director

boilerplate
Standardized text that can be pasted (usually unchanged) into legal and other documents.
Contributed by: ManagerWise Staff

book value
The tangible value of an asset as recorded in an organization's financial statements. The book value may differ from the value that the asset could be sold for in the open market. However, since accounting rules generally require that the value of an asset of an organization be reduced to market value when that is lower than the value previously recorded in the company's books, book value should always be less than or equal to market value.

The book value of an entire company does not include the value of any intangible assets, such as goodwill, that may be recorded in the company's financial statements.
Contributed by: ManagerWise Staff

Boston Matrix

A model developed by the Boston Consulting group that uses a two by two matrix to categorize companies' products into one of four groups, stars, dogs, problem children and stars, based on the growth of the market for those products and the market shares of the individual products.

Market
Growth
High Problem
Children
Stars
Low Dogs

Cash
Cows

   Low  High
  Market Share
Contributed by: Managerwise Staff
See: problem children, stars, dogs, cash cows

bounded rationality

A theory that states that managers cannot possibly consider all aspects of and all information concerning a problem and, therefore, only consider the subset of information and aspects that they consider to be most relevant to effective problem-solving.

Contributed by: Managerwise Staff
See: procedural rationality, satisficing

BPO
Business Process Outsourcing
Contributed by: Managerwise Staff
See: business process outsourcing

BPR

business process reengineering

Contributed by: Managerwise Staff
See: business process reengineering

brainstorming
A process that attempts to generate a wide variety of innovative and relevant ideas. In order to not stifle creativity, a brainstorming session generally avoids analyzing the ideas beyond a very high level.
Contributed by: ManagerWise Staff



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