Business Studies in Action

Description

FMPrelims Half Title page Title page Copyright page Contents About this resource Accessing online resources Acknowledgements c01RoleOfBusiness Topic 1 Role of business 1.1 Overview 1.1.1 Introduction 1.1.2 Why learn about business? 1.1.3 Importance of business to you 1.2 The nature of a business 1.2.1 Producing goods and services 1.3 Other roles of business 1.3.1 Profit 1.3.2 Employment 1.3.3 Incomes 1.3.4 Choice 1.3.5 Innovation 1.3.6 Entrepreneurship and risk 1.3.7 Wealth 1.3.8 Quality of life 1.4 Review 1.4.1 Summary 1.4.2 Key terms c02TypesOfBusiness Topic 2 Types of businesses 2.1 Overview 2.1.1 Introduction 2.2 Classification by size 2.2.1 Determining the size of a business 2.3 Classification by geographical spread 2.3.1 Local 2.3.2 National 2.3.3 Global 2.3.4 Discuss the global expansion of one Australian business 2.4 Classification by industry sector 2.4.1 The five main industry sectors 2.4.2 Primary industry 2.4.3 Secondary industry 2.4.4 Tertiary industry 2.4.5 Quaternary industry 2.4.6 Quinary industry 2.4.7 How changes in external influences have contributed to the growth of the tertiary, quaternary and quinary industries in Australia 2.5 Classification by legal structure 2.5.1 The four main legal structures 2.5.2 Incorporated and unincorporated business structures 2.5.3 Sole trader businesses 2.5.4 Partnerships 2.5.5 Types of companies 2.5.6 Proprietary (private) companies 2.5.7 Public companies 2.5.8 Government enterprise 2.6 Factors influencing choice of legal structure 2.6.1 Size of the business 2.6.2 Ownership 2.6.3 Finance 2.6.4 Other factors 2.7 Review 2.7.1 Summary 2.7.2 Key terms c03InfluencesInTheBusinessEnvironment Topic 3 Influences in the business environment 3.1 Overview 3.1.1 Introduction 3.1.2 Business environment 3.2 External influences: economic, financial, geographic, social, legal 3.2.1 Economic influences 3.2.2 Financial influences 3.2.3 Geographic influences 3.2.4 Social influences 3.2.5 Legal influences 3.3 External influences: political, institutional, technological, competitive situation, markets 3.3.1 Political influences 3.3.2 Institutional influences 3.3.3 Technological influences 3.3.4 Competitive situation influences 3.3.5 Markets 3.4 Internal influences on business 3.4.1 Product influences 3.4.2 Location influences 3.4.3 Resource influences 3.4.4 Management influences 3.4.5 Business culture 3.5 Stakeholders 3.5.1 Owners/shareholders 3.5.2 Managers 3.5.3 Employees 3.5.4 Customers 3.5.5 Society 3.5.6 Environment 3.6 Review 3.6.1 Summary 3.6.2 Key terms c04BusinessGrowthAndDecline Topic 4 Business growth and decline 4.1 Overview 4.1.1 Introduction 4.2 Business life cycle — stages and responding to challenges 4.2.1 Establishment stage 4.2.2 Growth stage 4.2.3 Maturity stage 4.2.4 Post-maturity stage 4.3 Factors that can contribute to business decline 4.3.1 Reasons for business decline 4.4 Voluntary and involuntary cessation 4.4.1 Cessation of business — voluntary or involuntary 4.4.2 Voluntary cessation 4.4.3 Involuntary cessation 4.4.4 Bankruptcy 4.4.5 Voluntary administration 4.4.6 Liquidation 4.4.7 Identify problems that arise for stakeholders when companies go into liquidation 4.5 Review 4.5.1 Summary 4.5.2 Key terms Topic1NatureOfBusinessReview Topic 1 Nature of business review Nature of business: Practice examination c05NatureOfManagement Topic 5 Nature of management 5.1 Overview 5.1.1 Introduction 5.2 Features of effective management 5.2.1 Contemporary definition of management 5.2.2 Effective management 5.3 Skills of management — interpersonal,communication, strategic thinking and vision skills 5.3.1 Interpersonal (people) skills 5.3.2 Communication skills 5.3.3 Strategic thinking skills 5.3.4 Vision skills 5.4 Skills of management — problem-solving, decision-making, flexibility, adaptability to change and reconciling the conflicting interests of stakeholders 5.4.1 Problem-solving skills 5.4.2 Decision-making skills 5.4.3 Flexibility and adaptability to change skills 5.4.4 Reconciling the conflicting interests of stakeholders 5.4.5 Discuss strategies that could reconcile the conflicting interests of stakeholders 5.5 Review 5.5.1 Summary 5.5.2 Key terms c06AchievingBusinessGoals Topic 6 Achieving business goals 6.1 Overview 6.1.1 Introduction 6.2 Business goals 6.2.1 Profits 6.2.2 Market share 6.2.3 Growth 6.2.4 Share price 6.2.5 Social goals 6.2.6 Environmental goals 6.2.7 Achieving a mix of business goals 6.3 Staff involvement 6.3.1 Innovation 6.3.2 Motivation 6.3.3 Mentoring 6.3.4 Training 6.4 Review 6.4.1 Summary 6.4.2 Key terms c07ManagementApproaches Topic 7 Management approaches 7.1 Overview 7.1.1 Introduction 7.2 Classical approach to management 7.2.1 Classical–scientific approach 7.2.2 Classical–bureaucratic approach 7.2.3 Management as planning 7.2.4 Management as organising 7.2.5 Management as controlling 7.2.7 Leadership styles 7.2.8 Autocratic leadership style 7.3 Behavioural approach to management 7.3.1 Management as leading 7.3.2 Management as motivating 7.3.3 Management as communicating 7.3.4 Teams 7.3.5 Participative or democratic leadership style 7.4 Contingency approach to management 7.4.1 Adapting to changing circumstances 7.4.2 Compare and contrast approaches to management 7.5 Review 7.5.1 Summary 7.5.2 Key terms c08ManagementProcess Topic 8 Management process 8.1 Overview 8.1.1 Introduction 8.2 Coordinating key business functions and resources 8.3 Operations 8.3.1 Goods and/or services 8.3.2 The production process 8.3.3 Quality management 8.3.4 Explain the benefits of quality management practices 8.4 Marketing 8.4.1 Marketing fundamentals 8.4.2 What is marketing? 8.4.3 Identification of the target market 8.4.4 Marketing mix 8.5 Finance 8.5.1 Accounting — introduction and scope 8.5.2 Finance — introduction and scope 8.5.3 Financial statements 8.5.4 Cash flow statements 8.5.5 Income statement 8.5.6 Balance sheets 8.5.7 Assess the role of the income statement and the balance sheet when describing the financial performance of a business 8.6 Human resources 8.6.1 Recruitment 8.6.2 Training 8.6.3 Employment contracts 8.6.4 Separation of human resources 8.7 Ethical business behaviour 8.7.1 Business ethics 8.7.2 Ethical issues 8.7.2 Encouraging ethical business behaviour 8.8 Review 8.8.1 Summary 8.8.2 Key terms c09ManagementAndChange Topic 9 Management and change 9.1 Overview 9.1.1 Introduction 9.2 Responding to internal and external influences 9.2.1 Internal influences 9.2.2 External influences 9.3 Managing change effectively 9.3.1 Identifying the need for change 9.3.2 Setting achievable goals 9.3.3 Resistance to change 9.3.4 Management consultants 9.4 Review 9.4.1 Summary 9.4.2 Key terms Topic2BusinessManagement Topic 2 Business management c10SmallToMediumEnterprises Topic 10 Small to mediumenterprises (SMEs) 10.1 Overview 10.1.1 Introduction 10.2 Definition and role of SMEs 10.2.1 Definition of an SME 10.2.2 Common characteristics of SMEs 10.2.3 The number of SMEs 10.2.4 The role of SMEs 10.3 Economic contribution of SMEs 10.3.1 Contribution to gross domestic product 10.3.2 Contribution to employment 10.3.3 Contribution to the balance of payments 10.3.4 Contribution to invention and innovation 10.3.5 Explain how SMEs can enter the global market for long-term growth 10.4 Success and/or failure of SMEs 10.4.1 Success of SMEs 10.4.2 Failure of SMEs 10.5 Review 10.5.1 Summary 10.5.2 Key terms c11InfluencesInEstablishingASmallToMediumEnterprise Topic 11 Influences in establishing a small to medium enterprise 11.1 Overview 11.1.1 Introduction 11.2 Personal qualities 11.2.1 Qualifications 11.2.2 Skills 11.2.3 Motivation 11.2.4 Entrepreneurship 11.2.5 Cultural background 11.2.6 Gender 11.3 Sources of information 11.3.1 Professional advisers 11.3.2 Government agencies 11.3.3 Other sources 11.4 The business idea 11.4.1 Identifying business opportunities 11.4.2 Competition 11.5 Establishment options 11.5.1 Setting up a new business — starting from scratch 11.5.2 Buying an existing business 11.5.3 Buying a franchise 11.6 Market considerations 11.6.1 Goods and/or services 11.6.2 Price 11.6.3 Location 11.7 Finance 11.7.1 Sources of finance 11.7.2 Cost of finance 11.8 Legal considerations and influence of government on SMEs 11.8.1 Business name 11.8.2 Zoning 11.8.3 Health regulations 11.8.4 Other regulations 11.9 Human resources 11.9.1 Skills 11.9.2 Costs — wage and non-wage 11.10 Taxation 11.10.1 Federal and state taxes 11.10.2 Local government rates and charges 11.11 Review 11.11.1 Summary 11.11.2 Key terms c12TheBusinessPlanningProcess Topic 12 The business planningprocess 12.1 Overview 12.1.1 Introduction 12.2 Business planning process 12.2.1 The role of the business plan 12.2.2 What is a business plan? 12.2.3 Benefits of a business plan 12.2.4 Business planning process 12.3 Sources of planning ideas 12.3.1 Situational analysis 12.4 Vision, goals and objectives 12.4.1 Vision 12.4.2 Business goals 12.4.3 Long-term growth 12.4.4 Explain how SMEs can enter the global market for long-term growth 12.5 Organising resources 12.5.1 Organising resources — operations 12.5.2 Organising resources — marketing 12.5.3 Organising resources — finance 12.5.4 Organising resources — human resources 12.6 Forecasting 12.6.1 Total revenue and total cost 12.6.2 Break-even analysis 12.6.3 Cash flow projections 12.7 Monitoring and evaluating 12.7.1 Monitoring 12.7.2 Evaluating 12.7.3 Monitoring and evaluating sales 12.7.4 Monitoring and evaluating budgets 12.7.5 Monitoring and evaluating profit 12.8 Taking corrective action — modification 12.9 Review 12.9.1 Summary 12.9.2 Key terms c13CriticalIssuesInBusinessSuccessAndFailure Topic 13 Critical issues in business success and failure 13.1 Overview 13.1.1 Introduction 13.2 Importance of a business plan 13.2.1 Business plan: presentation and preparation 13.3 Management — staffing and teams 13.3.1 Staffing 13.3.2 Teams 13.4 Trend analysis 13.5 Identifying and sustaining competitive advantage 13.5.1 Price/cost strategy 13.5.2 Differentiation strategy 13.5.3 Ensuring long-term success 13.6 Avoiding overextension of financing and other resources 13.6.1 Overextension of other resources 13.7 Using technology 13.7.1 Internet applications (e-business and e-commerce) 13.8 Economic conditions 13.8.1 Economic conditions that promote business success 13.8.2 Economic conditions that lead to business failure 13.9 Review 13.9.1 Summary 13.9.2 Key terms Topic3BusinessPlanningReview Topic 3 Business planning review Business planning: Practice examination BMGlossary GLOSSARY