Glossary Of Key Terms

Glossary of key terms.

• An Independent Company- An independent company is a company that works for themselfves. This means that they will get all of the money that they make and they don't have to give money to any other companies. An example of an independent company is Apple. Apple use all their own staff and resources to make their products, they don't have independent companies doing it for them. 
• Conglomerate- A big company that is made up of a lot of other independent companies which do different things for the big company. For example: Walt Disney. Walt Disney use independent companies to help make their products. For example: ABC Broadcast Television Network. 
• A Monopoly- A monopoly is when one organisation owns or controls more of the market share of an industry or product than is allowed under the rules of fair competition. The name came from the game, Monopoly. 
• An Oligopoly- An oligopoly is when the market is owned/controlled by a small number of organisations. This describes the current media sector. 
• Globalisation- This is the process enabling financial and investment markets to operate internationally as a result of deregulation and better/improved communications. 
• Cross Media Ownership- This is when one person or group owns more than one form of media, for example: News International has interests in book and publishing newspapers.
• The 'Advertising Cake'- The advertising cake is when the advertising industry is cut into lots of different sections in order to equally share out how much advertising time companies get. 
• A Franchise- A Franchise is a right granted to an individual or group to market a companies goods or services within a certain territory or location. An example of a franchise is Mc Donald's.
• A Merger: In Terms Of Business- A merger is when two companies combine into one company, therefor turning over more money. A example of a merger is T-mobile and Orange, they came together to create EE.
• A Takeover: In Terms Of Business- A takeover is when one company takes over another company, they do this by making a bid for the desired company. If the target company is publicly traded the acquiring company will make an offer for the outstanding shares. An example of this is when The Coop took over Somerfield in early March 2009.  
• Media Convergence- This is when all different types of media combine together to make a single media. Eg: The Ipad is a mix of computer, television, camera etc.