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Business Management Unit 1 Georgie Hrehoresen > AOS2 > Flashcards

AOS2 Flashcards

1
Q

The internal environment

A

Factors over which a business has some degree of control over

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2
Q

the external environment

A

factors which the business has little to no control over

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3
Q

the external environment: macro factors

A

legal and government regulations, societal attitudes and behaviours, economic conditions, technological considerations, global considerations, CSR

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4
Q

the external environment: operating environment listed

A

*customer needs and expectations
*competitors behaviours
*suppliers and the supply chain

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5
Q

the relationship between internal and external environments

A

both environments affect eachother

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6
Q

how the internal environment affects the external environment listed

A

*types of business models
*business resource needs
* business locations
*business planning

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7
Q

types of businesses listed

A

sole trader
partnership
private limited company
public listed company
social enterprise
government business eneterprise

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8
Q

sole trader

A

a business structure that’s owned and operated by one individual

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9
Q

partnership

A

a business structure that’s owned by 2 to 20 owners

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10
Q

private limited company

A

an incorporated business structure that has at least one director and a max of 50 shareholders

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11
Q

public listed company

A

an incorporated business that has an unlimited amount of shareholders

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12
Q

social enterprise

A

a type of business that aims to fulfill a community or environmental need by selling goods or services

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13
Q

government business enterprise (GBE)

A

a business that’s owned and operated by the government

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14
Q

main business models listed

A

online businesses
bricks and mortar
direct to consumer
franchise
importer
exporter

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15
Q

business model

A

the way in which a business conducts operations in order to generate profit

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16
Q

online businesses

A

a business model where goods and services are traded via the internet

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17
Q

types of online businesses listed

A

advertising based websites
freemium
brokerage
merchant

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18
Q

bricks and mortar

A

a business model that has a physical store presence

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19
Q

direct to consumer

A

a business model where products are sold directly to consumers with no intermediaries involved

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20
Q

franchise

A

a business model that grants another person the right to operate under its name, use its systems and sell it’s good services

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21
Q

importer

A

purchases goods and services from overseas and sells them in its home country

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22
Q

exporter

A

produces goods and services in its home country and sells them to overseas buyers

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23
Q

private limited company

A

an incorporated business structure that has at least one director and a max of 50 shareholders

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24
Q

advantages of private limited company listed

A

*limited liabilities
*pay company tax rate
*life of the company can live longer than directors

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25
Q

disadvantages of private limited company listed

A

*more complex and expensive to establish
*shares cannot be traded freely

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26
Q

public listed company definition

A

an incorporated business that has an unlimited amount of shareholders

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27
Q

advantages of public listed company listed

A

*limited liability
*easier to raise capital by selling more shares to public
*life of company can live longer than directors (perpetuity)

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28
Q

disadvantages of public listed company listed

A

*high costs in establishment
* time consuming to establish
*possible loss of control

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29
Q

social entreprise definition

A

a type of business that aims to fulfill a community or environmental need by selling goods and services

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30
Q

social entreprises are not…..

A

charities

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31
Q

advantages of social enterprise listed

A

*meeting a social need can encourage community support, increasing profit
*improved morale within the business as employees value the work they’re doing

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32
Q

disadvantages of social enterprise listed

A

*difficult to focus on financial and social objectives
*difficult to obtain finance to begin the business

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33
Q

government business enterprise (GBE) defintion

A

a business thats owned and operated by the government

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34
Q

advantages of government business enterprise (GBE) listed

A

*provides healthy competition to private sector
*maybe invest in areas that the private sector may hesitate to invest

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35
Q

disadvantages of government business enterprise (GBE) listed

A

*strategic directions can change with changing governments
*there can be political inferences
*GBEs may not be as productive as private sector businesses (possible lack of accountability)

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36
Q

business models definition

A

the way in which a business conducts operations in order to generate profit

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37
Q

main business models listed

A

*online businesses
*bricks and mortar
*direct-to-consumer businesses
*franchise
*import and export

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38
Q

online businesses defintion

A

a business model where goods and services are traded via the internet

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39
Q

advantages of online businesses listed

A

*easy access for customers
*websites set up easily
*money saved on business location

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40
Q

disadvantages of online businesses listed

A

*customers unable to try product, may be reluctant to purchase
*customer service isn’t as straight forward
*development and maintenance can be costly

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41
Q

types of online businesses listed

A

*advertising-based websites
*freemium
*brokerage
*merchant

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41
Q

types of online businesses listed

A

*advertising-based websites
*freemium
*brokerage
*merchant

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42
Q

bricks and mortar definition

A

a business model that has a physical store presence

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43
Q

bricks and mortar definition

A

a business model that has a physical store presence

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44
Q

bricks and mortar advantages listed

A

*face to face interaction, allowing for strong customer relationships
*customer ability to test products and see them in person before purchase

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45
Q

disadvantages of bricks and mortar listed

A

*customers must be able to physically access store
*in busy periods customers will be forced to wait and employees may feel overwhelmed
*time consuming both when it comes to the establishment and operation costs

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46
Q

disadvantages of bricks and mortar listed

A

*customers must be able to physically access store
*in busy periods customers will be forced to wait and employees may feel overwhelmed
*time consuming both when it comes to the establishment and operation costs

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47
Q

direct to consumer defintion

A

a business model where products are sold directly to consumers with no intermediaries involved

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48
Q

direct to consumers advantages

A

*customer convenience, able to buy and receive products directly from one place
*reliable sales data, easier to understand customer base
*obtain higher profit margin

49
Q

direct to consumer disadvantages

A

*difficulty growing business
*high competition, relatively easy to set up
*inability to reach as many customers

50
Q

direct to consumer disadvantages

A

*difficulty growing business
*high competition, relatively easy to set up
*inability to reach as many customers

51
Q

franchise definition

A

a business model that grants another person the right to operate under its name, use its systems and sell its goods or services

52
Q

franchise definition

A

a business model that grants another person the right to operate under its name, use its systems and sell its goods or services

53
Q

franchise advantages listed

A

*established and known business name and reputation
*establish customer base/suppliers
*training and development programs

54
Q

franchise disadvantages listed

A

*establishment costs and purchasing licence can be expensive
*royalties go to franchiser
*limited flexibility

55
Q

importer definition

A

purchases goods and services from overseas and sells them in its own country

56
Q

importer advantages listed

A

*can expand sales
*cheaper labour overseas
*can create local job opportunites through exporting

57
Q

imporer disadvantages listed

A

*can be difficult to deal with different systems and regulations
*jobs can be lost for domestic producers
*longer waiting times when importing

58
Q

exporter defintiion

A

produce goods and services in its home country and sells them to overseas buyers

59
Q

exporter advantages

A

*access to overseas customer bases increases sales
*growth in Aus industries, increases demand for products
*overseas customers may be willing to pay more, as they dont have access to similar products

60
Q

exporter disadvantages listed

A

*may be difficult to understand overseas cultures and laws
*higher transportation costs

60
Q

exporter disadvantages listed

A

*may be difficult to understand overseas cultures and laws
*higher transportation costs

61
Q

purchasing an existing business definition

A

established businesses are already operating with all factors included with purchases

61
Q

purchasing an existing business definition

A

established businesses are already operating with all factors included with purchases

62
Q

establishing a new business definition

A

must bring a product or service to the table that’ll draw consumers in

63
Q

establishing a new business benefits listed

A

*owner has freedom to set up the business exactly as he/she wishes
*owner can determine the pace of growth and change
*there is no goodwill for which the owner has to pay
*if funds are limited it’s possible to begin on a smaller scale

64
Q

establishing a new business costs lists

A

*there’s a high risk and a measure of uncertainty.
*without a previous business reputation, it may prove difficult to secure finance
*if the start up period is slow then profits may not be generated for some time

65
Q

establishing a new business costs lists

A

*there’s a high risk and a measure of uncertainty.
*without a previous business reputation, it may prove difficult to secure finance
*if the start up period is slow then profits may not be generated for some time

66
Q

business resources definition

A

human, physical and knowledge factors that provide a business with a basis to perform the activities involved in its day-to-day operations

67
Q

business resources are divided into

A

*natural
*labour
*capital

68
Q

natural resources definition

A

raw materials from the environment that used in the production of goods and services

68
Q

natural resources definition

A

raw materials from the environment that used in the production of goods and services

69
Q

supplier considerations affecting use of natural resources listed

A

*cost
*quality
*location
*reliability

70
Q

nature of resources affecting use of natural resources listed

A

*perishability
*storage requirements
*security requirements
*seasonal availability

71
Q

CSR affecting use of natural resources listed

A

*environmental standards of suppliers
*social standards of suppliers
*environmental impact of sourcing
*location of suppliers

72
Q

labour resources definition

A

the people who provide the business with their skills and qualifications to conduct business activities

73
Q

cost affecting labour resources listed

A

*wages and salaries
*quantity
*timing

74
Q

quality affecting use of labour resources listed

A

*qualifications
*skills and knowledge
*training

75
Q

CSR affecting use of labour resources listed

A

*improving employees wellbeing
*providing job security

76
Q

capital resources definition

A

made goods used in the production of goods services

77
Q

capital resources definition

A

made goods used in the production of goods services

78
Q

supplier considerations affecting use of capital resources listed

A

*cost
*quality

79
Q

nature of resources affecting use of capital resources listed

A

*capability
*operation requirements
*maintenance requirements

80
Q

csr affecting use of capital resources listed

A

*environmental sustainibility
*social sustainibility

81
Q

business locations defintion

A

the physical or non-physical place that a business operates from

82
Q

in business locations its always important to consider (listed)

A

*visibility
*accessibility
*proximity
*cost

83
Q

business location types listed

A

*shopping centres
*retail shopping strips
*home businesses
*online businesses

84
Q

factors affecting the choice of shopping centres listed

A

*visibility and accessibility
*cost
*proximity
*area demographics
*laws and regulations

85
Q

advantages of shopping centres listed

A

*greater exposure to customers
*high foot traffic
*facilities provided
*parking available
*delivery options usually underground
*employees can catch public transport

86
Q

disadvantages of shopping centres listed

A

*increased competition
*set opening hours, less flexibility
*rent typically more expensive

87
Q

factors affecting the choice of location of retail shopping strips

A

*high visibility and accessibility, can be easily seen and are generally accessible by public transport
*cost is dependant on locations popularity
*competitors dependent on size, bigger shopping centres=more competitors
*must consider demographic of locals, cater for their needs
*may impact ability to put up signage or renovate

88
Q

advantages of retail shopping strips listed

A

*fewer competitors than shopping centres
*local member of area likely to visit, can create customer loyalty
*employees can save time and money travelling to work

89
Q

disadvantages of retail shopping strips listed

A

*local customers may spend less time if they only come for specific items
*less foot traffic compared to shopping centre
*often less parking available for those who drive to work
*rent can be expensive if strip is located in established area

90
Q

factors affecting the choice of home businesses listed

A

*low visibility and accessibility
*low cost as all operations are occuring from home
*competitors are unlikely
*usually advertised online, local demographic is irrelevant
*still register business name

91
Q

advantages of home businesses listed

A

*flexibility in business hours
*if employee have family members and live on premises, easy to access
*travel time eliminated as employees most likely love on premise
*no need to rent business location
*business owners can access tax deductions for living expenses

92
Q

home business disadvantages listed

A

*less visibility as business is located in residential area
*lack of privacy, customer may need to access the house
*less living space available
*difficult to establish work life balance

93
Q

factors affecting the choice of online business listed

A

*no in person visibility
*no rental costs
*large group of competitors as all websites are easy to access
*convenient for owner, can work from any location = great flexibility
*need to consider laws and regulations regarding shipping, permits and taxes

94
Q

advantages of online business listed

A

*wider customer base
*customers can access anywhere anytime
*easily advertised, social media
*work flexibility
*establishing or adapting can be much quicker
*no rent for a retail store location

95
Q

disadvantages of online business listed

A

*many competitors that sell similar products
*no physical presence or visibility, need frequent advertising
*customers cannot touch, try feel product
*employees may work alone
*there can be costs associated with maintenance tech support

96
Q

disadvantages of online business listed

A

*many competitors that sell similar products
*no physical presence or visibility, need frequent advertising
*customers cannot touch, try feel product
*employees may work alone
*there can be costs associated with maintenance tech support

97
Q

sources of finance definition

A

businesses cannot start without the appropriate finance or funds to pay for its operating expenses

98
Q

sources of finance listed

A

*equity (internal)
*debt (external)
*grants (external)

99
Q

equity definition

A

the funds contributed by the owners of a business to start and build the business

100
Q

types of equity listed

A

*personal equity
*private equity
*public equity

101
Q

personal equity defintiion

A

acquired by the business owner contributing their own funds to a business

102
Q

private equity definition

A

acquired by the business selling its shares to specific selected individuals who have been approved

103
Q

public equity definition

A

acquired by the business selling its shares to general public

104
Q

debt definition

A

money thats been lent to a business by an external source that must be paid back over time with interest

105
Q

factors affecting debt

A

*debt capital mostly as the business has to pay interest
*loans can be suitable for various time periods
*high degree of control
*sole traders and partnerships

106
Q

grant definition

A

money provided by a government or another organisation for a particular reason

107
Q

factors affecting grants listed

A

*no cost
*low flexibility
*less control
*business structure has minimal impact

108
Q

overdraft facilities definition

A

agreements between banks and businesses or individuals, that allow a bank account to be withdrawn below zero

109
Q

factors affecting overdraft facilities listed

A

*high interest rates, relatively expensive
*highly flexible, use at anytime
*high level of control, but banks can terminate their service at anytime
*business structure has minimal impact, companies can access high overdraft

110
Q

factors affecting overdraft facilities listed

A

*high interest rates, relatively expensive
*highly flexible, use at anytime
*high level of control, but banks can terminate their service at anytime
*business structure has minimal impact, companies can access high overdraft

111
Q

business plan definition

A

a business plan is a written statement of the goals and objectives for a business, and the steps to be taken to achieve them

112
Q

benefits of developing a business plan listed

A

*helps test the viability of the business
*identifies the business’s strengths and weaknesses
*forces the business owner to justify their plans and action

113
Q

elements of the plan listed

A

*executive summary
*operations plan
*financial plan
*marketing plan

114
Q

limitations of business plan

A

the owner may spend more time planning than actually creating and selling their product/service

115
Q

SWOT analysis definition

A

is a planning analysis tool that helps a business identify its internal strengths and weaknesses, as well as any external oppurtunities and threats

116
Q

SWOT analysis broken down (listed)

A

*Strengths - that should be maintained (internal)
*Weaknesses - that should be minimised (internal)
*Opportunities - to be taken advantage of (external)
*Threats that should be addressed (external)

117
Q

csr in business planning definition

A

must actively plan csr initiatives in consultations with stakeholders

Business Management Unit 1 Georgie Hrehoresen (6 decks)

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