aos 1 Flashcards
sole trader
a self employed person who owns their business as an individual
sole trader deep dive
-simple to set up
-has unlimited liability
-owner full control of their assets
unlimited liability
the buisness owner/s are personally liable for the debts of the company
partnerships
a group of 2-20 people who own a business together
partnerships deep dive
- relatively inexpensive
- personally liable
private limited companies
an incorporated business that is owned by shareholders and not listed on the stock exchange
private limited company deep dive
-limited liability
-limited to 50 shareholder
-more complex to start
- business operations are controlled by directors and owned by shareholders
public listed company
an incorporated business that is owned by shareholder, run by directors and listed on the stock exchange
public listed company deep dive
- limited liability
-money earned belongs to company
-business operations controlled by directors and shareholders
social enterprises
a profit making business with social objectives, whose surpluses are reinvested towards that social objective
social enterprise deep dive
has a public or community benefit
government business enterprise
a business that is owned by the government, but aims to act under general business principles and make a profit
government business enterprise example
australia post
defence housing australia
making a profit
profit- the surplus remaining after total costs are deducted from total revenue
increasing market share
market share- a businesses percentage of total sales within an industry
increasing market share deep dive
how to increase
-lower costs
-increase your quality
-increase advertising
improving efficiency
efficiency-how well resources are used to achieve objectives
what happens if not efficent
what happens if not efficient
-waste raw materials and time, pay for more labour then we should
-business costs go up
- sell less
productivity
in business ratio of outputs produced compared to inputs required
improving effectiveness
the degree to which stated objectives have been achieved
improving effectiveness deep dive
business stated objectives
-increase profit
-to increase market share
fulfilling market needs
market need- the desire or demands of customers
fulfilling a social need
social need- to fulfil a social need is to make society a better place through the actions of the business
meeting shareholder expectations
share- a portion of ownership in a company
shareholder- a person who owns at least one share in a company, making them a partial owner
how are shareholders expectations met
-return on their investment
-reinvest their profit or share with owners
divined
a sum of money paid by a company to its shareholder out of it’s profit
owners
interested in the success of the business from a financial and a personal reputation position
return on investment
what the owner gains financially from the business compared to the sum they invested
managers
interested in the success of business from a job security, financial position
employees
interested in the success of business from job security, financial and career development position
customers
interested in the success from the consumption position.
Want goods and services to be high quality and well priced
general community
interested in the success of the business from an indirect effect position
suppliers
interested in the success of the business from a financial and associated reputation position
likely to be strongly invested
owners vs employees conflict
owners want to maximise their return on investment so they reduces the wages will potentially improve profit
managers vs customers conflict
managers are interested in the success of the business from job security and financial position
employees vs shareholders conflict
employees want higher wages but this may come at the expense of profits which may potentially damage dividends
managers vs suppliers conflict
management wants to keep costs down to improve profits but suppliers want higher prices to cover their costs
autocratic management
autocratic- a management style where the leader dictates what the objectives are and how they should be achieved
autocratic advantages
-manager retains all the control
- time is used efficiently
autocratic disadvantages
manager retains control
persuasive management
a management style where the leader dictates what the objectives are and persuades employees as to how they should be achieved
persuasive advantages
- time is used efficiently
-may maintain employe morale better
persuasive disadvantages
-no employee input could lead to less informed decisions
-employees may not feel empowered
consultative management
a management style where the leader asks employees for their opinions before making a decision
consultive advantages
asking for suggestions broadens the pool of ideas
-seeking employee input boosts their satisfaction
consultive disadvantages
The time taken to consult can slow down the decision-making process.–
Some employee suggestions may be ignored, which could cause resentment.
Participative management
A management style where the leader shares decision-making responsibility with their team.
Advantages- participative
Teamwork and group decision-making should lead to the optimum final decision.
-This management style recognizes the skills and abilities of employees and empowers them to make decisions
Laissez-faire management
A management style where employees are totally responsible for the decision-making and operation of the business.
Laissez-faire management- advantages
very trusting and empowering for employees, given complete freedom and responsibility.
-Can be very creative, with a high degree of individual responsibility
Laissez-faire management- disadvantages
This can potentially lead to a loss of control or conflicts between staff over direction
The appropriateness of management styles
Nature of task as an impact on management style
Time has an impact on management style
Employee experience as an impact on management style
Manager preference as an impact on management style
nature of the task
more important task the more manager is going to want to control it moving towards an autocratic management
-more creative tasks would be more beneficial with team efforts so move to the laissez faire side of the continuum
time
when time critical management move towards a more autocratic whereas an extended time frame move to participative style
experience of the employees
inexperienced employees may not be worth asking their opinion- autocratic
more experienced employees can trust their input and opinions leaning towards the laissez-faire style
preference of the manager
managers will revert back to style that matches their personality
management skills
communication skills
delegation skills
planning skills
leadership skills
decision-making skills
interpersonal skills
communication skills
communication-the transfer of information from a sender to a receiver
delegation skills
delegation- the transfer of authority and responsibility from a manager to an employee in relation to specific tasks
manager remains accountable for the work
planning skills
the process of thinking about the strategies and tasks requires to best achieve a business objective
leadership skills
guiding the business and employees toward achieving business objectives
-establishes a clear vision
-sharing that vision with others
decision making skills
the process of purposely choosing a course of action from a set of alternatives to achieve business objectives
interpersonal skills
relating to relationships or communication between people
cooperate culture
the shared values, beliefs, and practices of a business
can be determined by
-the way employees dress and behave
-language the employees use
official culture
the values and beliefs that a company is trying to convey to the public. Usually observed in mission statements, logos, slogans and symbols
real culture
what it axtully is
explain
discuss
describe
anaylsis
