Labor markets are where wages, salaries and conditions of work are established by the forces of supply and demand for labor.

Large business normally a company employing over 200 employees and having a significant share of the market.

Laws
Definition #1. Enactment established by government authority.
Definition #2. Formal recognition of the mores considered necessary in the interests of the society as a while, with imposed sanctions for violation.

Leadership is the process of influencing others to work willingly towards a goal, and to the best of their capabilities. Note that leadership and management are not the same (although managers can be leaders). A leader does not have to be a boss; and managers can be bad leaders.

Leadership style is an individual's approach to leadership (e.g. Tells, Sells, Consults, Joins).

Styles of leadership (Managing styles): 1) Autocratic or "tells"; 2) Persuasive or "sells"; 3) Consultative; 4) Democratic or "joins".

Characteristics of different styles of leadership: 1. Autocratic - The manager makes all the decisions, and issues instructions, which must be obeyed without question. 2. Persuasive - The manager still makes all the decisions, but believes that subordinates have to be motivated to accept them in order to carry them out properly. 3. Consultative - The manager confers with subordinates and takes their views into account, but has the final say. and 4. Demographic - Leader and followers make the decision on the basis of consensus.

Strengths of different styles of leadership: 1. Autocratic: 1.1 Quick decisions can be made when speed is required. 1.2 It is the most efficient type of leadership for highly programmed routine work., 2. Persuasive: 2.1 Employees are made aware of the reasons for decisions. 2.2 Selling decisions to staff might make them more committed. 2.3 Staff will have a better idea of what to do when unforeseen events arise in their work because the manager will have explained his intentions. 3. Consultative: 3.1 Employees are involved in decisions before they are made. This encourages motivation through greater interest and involvement. 3.2 An agreed consensus of opinion can be reached and for some decisions consensus can be an advantage rather than a weak compromise.3.3 Employees can contribute their knowledge and experience to help in solving more complex problems. and 4. Demographic: 4.1 It can provide high motivation and commitment from employees. 4.2 It shares the other advantages of the consultative style (especially where subordinates have expert power).

Weaknesses of different styles of leadership: 1. Autocratic: 1.1 It does not encourage the subordinates to give their opinions when these might be useful. 1.2 Communications between the manager and subordinate will be one-way and the manager will not know until afterwards whether the orders have been properly understood. 1.3 It does not encourage initiative and commitment from subordinates. 2. Persuasive: 2.1 Communications are still largely one-way. Sub-ordinates might not accept the decisions. 2.2 It does not encourage initiative and commitment from subordinates. 3. Consultative: 3.1 It might take much longer to reach decisions. 3.2 Subordinates might be too inexperienced to formulate mature opinions and give practical advice. 3.3 Consultation can too easily turn into a facade concealing basically, a sells style. and 4. Demographic: 4.1 The authority of the manager might be undermined. 4.2 Decision-making might become a very long process, and clear decisions might be difficult to reach. 4.3 Subordinates might lack enough experience.

Leading indicators Time series that change in the same direction but in advance of company sales. (Philip Kotler)

Learning Changes in an individual's behavior arising from experience. (Philip Kotler)

Individual learning styles: 1) Theorist seeks to understand underlying concepts before applying them in practice, and to take and intellectual, 'hands-off' approach based on logical argument, 2) Reflector likes to observe phenomena, think about them and then choose how to act, 3) Activist likes to deal with practical, active problems and does not have much patience with theory, 4) Pragmatist likes to study if they can see its direct link to practical problems.

Learning contract Undertaking by an individual, with the advice of his or her superiors, to enhance his or her technical, interpersonal and managerial skills over a defined period, in a structured way, and with results in view.

Details of the learning contract: 1) the type of "learning" process, 2) the expected achievement, 3) the timescale required.

Learning organization is the organization in which knowledge is created, valued and distributed.

Learning organization supposed to be good at: 1) systematic problem solving, 2) experimentation, 3) learning from past experience, 4) learning from others' experience, 5) transferring knowledge.

Learned disciplines of learning organization: 1) System thinking, 2) Personal learning and growth, 3) Mental models, 4) Shared vision, 5) Team learning.

Leasing Acquiring fixed assets without incurring capital expenditure to do so.

Legal status is the standing of an organization in the eyes of the law, e.g. a sole trader is unincorporated.

Legislation
Definition #1. Legislation is the process of making laws.
Definition #2. Legislation is the enactment of new laws.
The impact of legislation on a business: 1) Consumer protection, 2) Monopoly and merger, 3) Product liability, 4) Environmental protection, 5) Restrictive practices, 6) Trade descriptions, 7) Trademarks, 8) Sale of goods, 9) Patents, 10) Contract, Company law.

Main legislation Acts and Codes:
I. Assurance on labeling and description of goods: 1) Trade Description Act 1968, 2) Weights and Measures Act 1985, 3) Food Safety Act 1990.
II. Assurance on quality and expected performance: 1) Sale of Goods Act 1979, 2) Supply of Goods and Services Act 1982.
III. Assurance of safety: 1) Consumer Protection Act 1987, 2) Medicines Act 1968, 3) Poisons Act 1972.
IV. Restraint of objectionable sales promotion: 1) Broadcasting Act 1990, 2) Food Safety Act 1990, 3) The British Codes of Advertising and Sales Promotion; 4) The Institute of Sales Promotion Promotional Handling Code of Practice; 5) The Institute of Sales Promotion Competition Rules; 6) The Institute of Purchasing and Supply (IPS) Rules for Trade Promotions; 7) Trading Standards Officer Code of Practice for Traders on Price Indications.
V. Assurance on fair payment Terms ­ Consumer Credit Act 1974.
VI. Relating to trade promotions: 1) IPS Ethical Code, IPS Rules for Trade Promotions, 3) Incorporated Society of British Advertisers' Trade Incentives - Good and Bad Practice.

Letter is a written or printed communication addressed to someone and sent through the post.

Business letter structure:
A Formal points (Letterhead; Date; References; Recipient's name, designation, address; Greeting): "Dear Sir/Madam/Sirs", "Dear Mr. Bloggs".
B Subject heading "Re: Executive Vice President Advertisement, June 30 edition".
C Opening paragraph (reason, or confirmation of reception, or important details).
D Substance of message.
E Closing paragraph (Offer to: meet and discuss, send the check, confirmation, call for request of further information): "I look forward to: doing business, a long and fruitful partnership"; "I'll be arrange a meeting", "We can talk about this on the telephone if you need further clarification", "Should you have any further queries then please do not hesitate to contact me. I look forward to seeing you shortly", "Yours faithfully", "Yours sincerely".
F Formal points (Author's signature, Printed name Position, and Enclosure reference

Writing 'yes' letters: 1) Give good news straight away, 2) Explain good news, clearing up any likely questions, 3) Close with goodwill statement.

Writing 'no' letters: 1) Open with a neutral "buffer" statement, 2) Explain the reasoning behind the bad news, 3) Give the bad news.

Leverage is the name given to the power to exert maximum effect from the combination of communications techniques used.

Liabilities is the financial obligations of a business e.g. to creditors, debenture-holders and, in the case of a bank loan or overdraft, to a bank.

Licensing see Market entry methods.

Lifestyle A person's pattern of living as expressed in his or her activities, interests, and opinions. (Philip Kotler)

Lifestyle trends: 1) Instant gratification (live now pay later), 2) Easy credit attitudes (to finance the good life), 3) Naturalism (return to nature but retaining material confronts), 4) Personal creativity (desire for self-expression/improvement), 5) Consumerism (concern for price/quality/service/environment), 6) New work ethic (working for live, not living for work), 7) Novelty and change, 8) Health and fitness, 9) Energy and environmental friendliness, 10) Value for money, 11) Supranational, 12) Global orientation.

McCann-Erikson Men life-style categories:
1. Avant Guardians. Concerned with change and well-being of others, rather than possessions. Well educated, prone to self righteousness.
2. Pontificators. Strongly held, traditional opinions. Very British and concerned about keeping others on the right path.
3. Chameleons. Want to be contemporary to win approval. Act like barometers of social change, but copiers not leaders Self-admirers. At the young end of the spectrum. Intolerant of others and strongly motivated by success. Concerned about self-image.
4. Self-exploiters. The 'doers' and 'self-starters', competitive but always under pressure and often pessimistic. Possessions are important. 5. Token triers. Always willing to try new things to 'improve their luck', but apparently on a permanent try-and-fail cycle. Includes an above average proportion of unemployed.
6. Sleepwalkers. Contented under-achievers. Do not care about most things, and actively opt out. Traditional macho views.
7. Passive endurers. Biased towards the elderly, they are often economically and socially disfranchised. Expect little of life, and give little.

McCann-Erikson Women life-style categories:
1. Avant Guardians. 'Liberal left' opinions, trendy attitudes. But out-going, active, sociable.
2. Lady Righteous. Traditional, 'right-minded' opinions. Happy, complacent, with strong family orientation.
3. Hopeful seekers. Need to be liked, want to do 'right'. Like new things, want to be trendy.
4. Lively ladies. Younger than above, sensual materialistic, ambitious and competitive.
5. New unromantics. Generally young and single, adopting a hard-headed and unsentimental approach to life. Independent, self-centred.
6. Lack-a-daisy. Unassertive and easy-going. Try to cope but often fail. Not very interested in the new.
7. Blinkered. Negative, do not want to be disturbed. Uninterested in conventional success - in fact, few interests except TV and radio.
8. Down-trodden. This group is shy, introverted, but put upon. Would like to do better. Often unhappy and pressurized in personal relationships.

Taylor Nelson life-style categories:
1. Self-explorers. Motivated by self-expression and self-realization. Less materialistic than other groups, and showing high tolerance levels.
2. Social resisters. The caring group, concerned with fairness and social values, but often appearing intolerant and moralistic.
3. Experimentalists. Highly individualistic, motivated by fast-moving enjoyment. They are materialistic, pro-technology but anti traditional.
4. Conspicuous consumers. They are materialistic and pushy, motivated by acquisition, competition, and getting ahead. Pro-authority, law and order.
5. Belongers. What they seek is a quiet, undisturbed family life. They are conservative, conventional rule followers.
6. Survivors. Strongly class-conscious, and community spirited, their motivation is to 'get by'.
7. Aimless. Comprises two groups, (a) the young unemployed, who are often anti-authority, and (b) the old, whose motivation is day-to-day existence.
See also Life-style research.

Life-style research is a technique designed to identify attributes of respondents in the form of their lifestyle with the aim of targeting or segmenting a market.
The techniques of date collecting: 1. Diaries - Selected users are asked to keep daily diaries of all activities undertaken. These are then analyzed by a research; 2. Purchase recording - Users are given a bar code reader at home and asked to scan all products that they purchase. The reader registers where and when they bought each product an how much it cost.
See also ACORN.

Likert scale is a scaling technique which attempts to measure attitude.

The form of possible responses of likert scale: 1) Strongly agree, 2) Agree, 3) Neither agree nor disagree, 4) Disagree, 5) Strongly disagree.

Limited companies see Trading organization.

Limited problem solving Buying behavior in cases in which buyers are aware of the product class but not familiar with all the brands and their features. Buyers engage in limited information search and evaluation. (Philip Kotler)

Limiting factor/ key factor Anything which limits the activity of an entity. An entity seeks to optimize the benefit it obtains from the limiting factor. E.g. 1) shortage of supply of a resource, 2) restriction an sales, 3) shortage of skilled labor, 4) problems with raw materials suppliers.

Line authority is the authority a manager has over a subordinate.

Line extensions Adding another variation to a product line, also can include brand extension, when an established brand name is used in a new product category; for example - Jello pudding pops. (Responsive Database Services, Inc)

Line of best fit Represents the best linear relationship between two variables.

Linear additive models Models of consumer behavior based on an estimation of the number of attributes which a particular product has, multiplied by the score each attribute is perceived to have, multiplied by the weighting that each attribute is perceived to have.

Linear regression analysis by the least squares method Statistical technique to calculate a line of best fit.

Liquidity ratios: 1) Current ratio or working capital ratio = Current assets / Current liabilities, 2) Acid test ratio = Current assets less stock / Current liabilities.

Logistics see Physical distribution.

Long run is the period of time over which all factors of production can be varied.

Lowest price strategy is a pricing strategy based on setting the lowest prices available.

Loyalty Adding another variation to a product line, also can include brand extension, when an established brand name is used in a new product category; for example - Jello pudding pops. (Responsive Database Services, Inc)

Research has shown that it can be up to six times more expensive to acquire a new customer than it is to retain an existing one and so customer loyalty is extremely important.

Aspects of building customer loyalty: 1) Delivering customer satisfaction i.e. providing a quality product which meets the customer expectation, 2) Customer care to ensure customers are valued and looked effectively.

Benefits of customer loyalty: 1) New customer more expensive than existing one, 2) Long-term links - stability to organization, 3) Increased contact and knowledge of customer needs - long-term planning of output, 4) Clear understanding of customer needs ­ fewer returns and complaints, 5) Positive 'word of month' recommendations . improving company. s competitive position, 6) Well-serviced and satisfied customers is less sensitive to price.

Improving customer loyalty: 1) Identify and segment customers (80/20), 2) Select and target those customers deemed suitable for the relationship marketing approach (not very price sensitive), 3) Staff should be trained in the relationship approach and offered relevant incentives., 4) Customer care targets should be allocated and monitored, 5) Pricing policy should be revised to reward loyal customers, 6) Specific customer needs should be identified by sales staff, 7) Innovate to meet customer needs.