AOS1 Flashcards
What are the different types of businesses?
- Sole Trader.
- Partnership.
- Public Company.
- Private Company.
- Franchise.
- Social Enterprise.
- Government Business Enterprise.
Sole trader.
Self employed person, who owns and runs a business alone; as an individual.
Partnership.
2-20 people going into business together, can be general or limited.
Public company.
Listed on the stock exchange, meaning the public can buy shares to invest in the company, have UNLIMITED shareholders.
Private Company.
Must have no more than 50 shareholders. Not listed on stock exchange therefore it doesn’t usually sell its shares to the public.
Franchise.
Granted the right to distribute a manufacturer’s product within a specified territory or location, generally using the manufacturer’s identity name or trademark.
Social Enterprise.
Businesses that trade intentionally tackle social problems and improve communities. It is driven by a public/community cause.
Government Business Enterprise.
Features of both private and public sectors. They engage in profit-seeking commercial activities. They are required to execute government policies. Controlled by the government.
Key legal requirements.
- Registering a business name.
- Registering a website domain.
- Trade practice legislation.
- Business Tax compliance.
- Worksafe Insurance.
External Professionals.
- Bookkeepers.
- Sales professionals.
- Marketing Consultants.
- IT technicians.
- Accountant.
- Lawyers.
What is the role of external professionals?
When establishing a business, the owner can engage the services of a variety of professionals external to the business.
Importance of functional control systems.
Providing accurate information this is needed for effective decision making process etc.
- Opening and closing times.
- Location.
- Staff rostering.
- Handling money.
- Record keeping.
Choosing suppliers.
- Prices of suppliers.
- Quality of goods.
- Reliability.
- Proximity.
- Corporate social responsibility.
Corporate social responsibility.
- Welfare of the community.
- Requires a business to go beyond legal obligations to operate in an ethical manner.
Policies.
- Broad guidelines to be followed by all employees.
- Reflect on the legal requirements. of business and behaviours.
Policies eg.
- Drug + Alcohol Policies.
- Privacy policies
- Requirement Policies.
Procedures.
How the policy is acted upon. A step-by-step set of instructions. Actions that enable a policy.
Technology or Global Issues.
It may affect decision-making when establishing a business.
If businesses fail to take advantage of new technology and global issues, they may be behind other competitors. Owners must learn about any changes that could affect the business.
Public relations.
Businesses’ relationship with the public.
Social media and email marketing.
Social media:
- Connect with the public.
- Inexpensive.
- Track progress through several likes.
Email:
- Inexpensive.
- Need permission.
- Unsubscribe.
Search engine optimisation. (SEO)
When someone Googles your product or service category, they find your website.
AI
Collect data, learn customer behaviours and analyse the information to help achieve goals.
Data Analytics
Information you can collect about the operations of your business.
By analysing data:
- Identify trends.
- Plan for the future.
- Make decisions.
Data management.
Collecting, keeping and using data efficiently.
Different types of publics.
- Internal.
- General.
- Local Community.
- Citizen-action.
- Media.
- Government.
Business objectives
- Make a profit through increased sales. (rev-expenses).
- Increase market share by being competitive.
- Meet shareholder expectations through increased profits.
Planned public relations.
- Campaign objectives.
- Intended public.
- Strategies.
- Implement a campaign.
- Evaluate results.
Crisis Situation.
Unfavourable event that impacts a business.
Crisis communication plan.
Minimise the negative impact that the crisis will have on the reputation and relationships of a business.
Corporate social responsibility.
Businesses’ behaviour that is required beyond the law. To benefit the community and environment. Builds reputation.
Customer profile
- Behaviour and needs a business can satisfy.
- Location.
- Interests.
- Demographics.
How to evaluate a business’s performance?
Performance indications:
- Measure achievement.
- Sale analysis.
- Market share analysis.
- Marketing profitability.
Brand Identity.
Any aspect of a business that a customer identify with.
Internal factors:
- Owners and managers.
- Employees.
- Culture and policies.
External factors:
Operating:
- Customers.
- Competitors.
- Suppliers.
Macro:
- Legal.
- Economic.
- Technological.
- Social.
Market Segmentation.
- Demographic.
- Geographic.
- Psychographic.
- Behavioural.
Target Market.
A certain group of people to sell/advertise to.
Niche Market
Narrowly selected target market segment.
Consumer behaviour.
Businesses can examine consumer behaviour to see what motivates an individual.
7 P’s of marketing.
- Products.
- Price.
- Place.
- Promotion.
- People.
- Physical Evidence.
- Process.
Products.
The tangible and intangible aspects of the good or service sold.
Price.
Fairly priced depending on a number of factors and pricing methods applied.
Place.
Where and how the product is distributed.
Promotion.
Methods used to inform the target market of the product.
People.
Everyone that is involved in the business selling the product.
Physical Evidence.
Those aspects can be seen or experienced by the customer.
Process.
Includes the business’ operating systems that may impact the customer.
Product life cycle stages.
Introduction; Consumer awareness, up prices.
Growth; Promotion + distributions.
Maturity; Sales mature.
Decline; Fall.
Extension; Improve products.
Human resource management.
Effective management of formal relationships between employer and employees
Employment Cycle
- Establishment phase.
- Maintenance phase.
- Termination phase.
Staffing needs:
- Right no. of staff.
- Right qualifications.
- Suitable positions.
- Motivated.
Effects of technology on staffing.
Create jobs, therefore requiring re-training and new employment.
Can affect the way employees conduct their work.
Job analysis.
Job description + job specification.
Job design.
- The kind of job.
- Variety of jobs.
- Number of jobs.
Internal recruitment methods.
Use existing employees.
- Email.
- Word of mouth.
- Promoting employees.
- Consider existing records.
- Notice board.
+ & - of Internal recruitment methods.
External recruitment methods.
Outside of the business.
- Company website.
- Social media.
- Recruitment agencies.
- Advertisements.
+ & - of External recruitment methods.
Selection methods.
- Interview.
- Psychological testing.
- Work testing.
- Online selection.
Employer expectations.
Behaviour + quality of work that a business believes is reasonable for employees.
What an employer expects from employees.
- Committed to the job.
- Punctual.
- Work cooperatively.
- Excellent customer service.
- Loyal to business.
Employee expectations.
What an employee expects from an employer.
- Correct payment.
- Secure + flexible working arrangements.
- Honest and fair treatment.
- Safe work environment.
- Constructive feedback.
Employee induction.
Acquainting new employees with the business.
Benefits:
- Reduces stress + anxiety.
- Welcomed.
- Understanding of business.
- Greater awareness of safety policies and laws.
Overseas recruitment.
Sending employees overseas to improve businesses, they will also employ locally, with lower-paying rate workers (offshoring).
