PEST Analysis

Framework analyzing Political, Economic, Social, and Technological factors

Strategy or Research

Par Value

Nominal or face value of a bond or stock

Finance

Partnership

Business jointly owned by two or more parties

Legal or Structure

Patent

Exclusive right granted for an invention

Legal or IP

Payback Period

Time it takes to recover investment costs

Finance

Payment Gateway

Tech enabling secure online transactions

Ecommerce or Finance

Payroll

Total amount paid to employees for services rendered

HR or Finance

Peer-to-Peer (P2P)

Decentralized platform for direct transactions between individuals

Technology or Finance

Penetration Pricing

Setting a low initial price to gain market share

Marketing

Performance Bonus

Financial reward for meeting or exceeding targets

HR or Compensation

Performance Management

Continuous process of managing employee development

HR

Performance Metrics

Standards for measuring effectiveness or success

Analytics

Performance Review

Evaluation of employee performance over time

HR

Plant and Equipment

Tangible long-term assets used in production

Accounting

Point of Sale (POS)

Place where transactions occur and payments are made

Retail or Operations

Portfolio

Collection of assets or projects held by an entity

Finance or Investments

Portfolio Diversification

Spreading investments across asset classes to reduce risk

Finance or Investment

Portfolio Management

Managing investments to achieve financial goals

Finance

Positioning

Creating a distinct image of a brand or product in consumers’ minds

Marketing

Post-Merger Integration

Combining systems and teams after a company merger

M&A or Operations

Pre-Money Valuation

Company’s valuation before investment or funding round

Startups or Finance

Predictive Analytics

Using data to forecast future outcomes or trends

Data or Strategy

Preferred Stock

Equity with fixed dividends, often without voting rights

Finance

Prepaid Expenses

Payments made in advance for future benefits

Accounting

Price Elasticity

Measure of how demand changes with price changes

Economics or Marketing

Price Skimming

Setting high initial price then lowering over time

Pricing Strategy

Pricing Model

Framework for determining prices (e.g., cost-plus, tiered)

Marketing or Strategy

Pricing Power

Ability to raise prices without reducing demand

Marketing or Economics

Pricing Strategy

Approach to setting product or service prices

Marketing

Principal

Original amount invested or loaned, excluding interest

Finance

Private Equity

Investment in private companies not listed on public exchanges

Finance

Pro Forma

Financial statements or projections based on assumptions

Accounting or Finance

Process Improvement

Enhancing business efficiency and effectiveness

Quality or Operations

Procurement

Process of acquiring goods and services for business use

Operations

Product Development

Creating new products or improving existing ones

Operations or Marketing

Product Differentiation

Making a product distinct from competitors

Marketing

Product Innovation

Developing new or improved products

Marketing or Strategy

Product Lifecycle

Stages of a product from introduction to decline

Marketing or Product Dev

Product Line

Group of related products under a brand

Marketing

Product Mix

Total range of products offered by a company

Marketing

Product Recall

Withdrawing a faulty or unsafe product from the market

Operations or Compliance

Productivity

Output per unit of input or employee

HR or Operations

Profit Center

Business unit responsible for generating revenue and profit

Accounting or Strategy

Profit Margin

Net income as a percentage of revenue

Finance

Profit and Loss Statement (P&L)

Financial report summarizing revenues and expenses

Accounting

Project Lifecycle

Phases from initiation to project closure

Project Management

Project Management

Planning and execution of projects to meet goals

Operations

Promotion

Activities to increase product awareness or sales

Marketing

Public Company

Business whose shares are traded on public stock exchanges

Legal or Finance

Public Relations (PR)

Managing brand image and media relationships

Marketing or Communications

Purchase Order (PO)

Document issued to request goods or services

Procurement

Purchase Requisition

Internal document requesting approval for a purchase

Procurement