business Flashcards
registering the business name
Businesses need to register their business name, except when the name is that of the owner
website domain
the address of a website on the internet
trade practices legislation
Businesses must ensure they comply with state and federal laws regarding trade practices for their given industry.
business tax compliance
Taxation is a means by which the government finances its expenditure by collecting money from individuals and businesses.
work safe insurance
This compulsory insurance provides injured workers with support if they are injured at work.
external professionals
1) accountant
2) legal advisors
accountant role (external professional)
Accountants can help a business to complete their paperwork. Important financial records such as income statements and balance sheets need to be accurate. Accountants will audit your books and prepare reports for tax purposes.
legal advisor (external professional)
a legal advisor is a lawyer who works internally for a business giving them advice on legal matters.
factors to consider when establishing bank accounts
A business owner should keep the finances of the business separate from their personal finances.
1) bank fees
2) interest rates
3) overdraft facility
4) credit cards
5) convinience and support
5 types of financial control systems
1) budgeting
2) cash-flow management
3) control accounts recievable
4) inventroy control
5) auditing
record-keeping strategies- Income Statements
used primarily to help a business calculate how much profit it has made over a period of time
benefits and limitations of suppliers
Benefits:
-reduce business costs
-Investors and customers (if CSR)
Limitations:
-Increased costs associated with sourcing socially responsible suppliers
corporate social responsibility
managing a business in such a way that the broader social welfare of the community, including its employees, customers, suppliers and the environment, is taken into consideration when making business decisions
the need for policies and procedures
Policies and procedures establish business routines that help a business achieve its objectives and need to be reviewed regularly to ensure that they remain relevant.
ADVANTAGE:
-help employees to know what is expected of them with respect to standards of behaviour and performance
policy
a written set of broad guidelines to be followed by all employees
procedures
a series of actions that enable a policy to be put into practice
legal requirements
A business must ensure that it is familiar with all of the various legal requirements that may affect it, as failing to do so can have serious consequences for the business and its owners.
business routines
Policies and procedures establish business routines that help a business achieve its objectives and need to be reviewed regularly to ensure that they remain relevant.
technological issues
The business world is experiencing rapid technological advancements in the areas of manufacturing, administration, and marketing.
global issues
A business must adapt to the rapidly changing global environment in order to be successful.
customer databases
a customer database is is an organised collection of customer details
overseas suppliers and retailers
A business should consider the price and quality of its suppliers’ goods, as well as the reliability and proximity of the supplier.
how to register business domain
registered through resellers and registrars by visiting the Australian Domain Administration website. registering a domain name generally only costs between $10 and $100 per year.
crisis public relations
the strategies that a business implements when an unforeseen event generates unfavourable publicity that may threaten the image and reputation of the business
financial control systems
the processes, methods and tools that allow a business to accurately monitor and manage its financial performance
legislation
a law made by parliament
marketing
the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational objectives’ (American Marketing Association)
establishing a customer base
the group of customers who might be expected to purchase a business’s goods and services
customer base considerations
1) behaviour and needs
2) demographics
3) interests
4) location and environment
business objectives
Business objectives are goals the business wishes to achieve. In order to achieve business objectives, marketing objectives and strategies must be established.
Market strategies should take into account objectives such as increasing sales, increasing market share, expanding the size of the business and maximising customer service.
brand identity
In promoting a positive brand identity, a business will have to consider both external and internal factors.
internal and (macro) environment factors
1) business owner
2) employees
3) business culture
external (operating) environment factors
1) economic
2) government
3) technological and social forces
market research practices
Market research involves determining what information needs to be discovered, the collection of primary and secondary data, and the analysis and interpretation of the collected data.
data collection techniques
1) primary data
2) the survey method
3) secondary data
analysis and interpretation
the process of focusing on the data that represent average, typical or deviations from typical patterns
market dimensions
1) demographic
2) geographic
3) psychographic
4) behavioural
consumer buying behaviour
the decisions and actions of consumers when they purchase goods and services for personal or household use
consumer trends
Over time, consumer tastes and references change, particularly as consumers’ lifestyles adjust to social, economic or environmental issues.
the 7Ps model of marketing
1: product
2: price
3:place
4:promotion
5:people
6:physical evidence
7:process
price
the amount of money the customer pays to be able to enjoy a product
product
a good, service, experience, idea or information that can be offered in an exchange for the purpose of satisfying a need or want
place
making the product available to the customer, wherever the customer chooses to purchase it
process
the flow of activities or mechanisms that take place when there is any interaction between the customer and a business
physical evidence
everything that the customer sees when interacting with a business
promotion
the methods used by a business to inform, persuade and remind a target market about its products
people
everyone who is involved in the product of a business, whether they are in direct contact with customers or have an indirect connection
introduction
The introduction stage is the period during which a new product is launched into the market. In this stage, the business tries to increase consumer awareness and build a market share for the new product.
the product life cycle
the stages a product passes through: introduction, growth, maturity, decline and extension
growth
The growth stage is a time when the product begins to increase sales to customers. In this stage, brand acceptance and market share are actively pursued by the producers of the product
decline
A product will reach the decline stage when it no longer appeals to the customer. This may be because it has been superseded by newer, or more technologically advanced, competitors or because customer tastes have changed.
maturity
The maturity stage occurs when the product is fully accepted into the market and when sales reach their peak. In this stage, sales plateau as the market becomes saturated.
extension
Instead of going into decline, some products can be revived, and begin a new cycle of growth and eventual maturity. This is the extension stage. It can occur when a product is marketed into new locations, such as through export to other countries.
customer relations strategies
1) providing quality customer service
2) establishing customer loyalty programs
providing quality customer service
Customer service refers to how well a business responds to the needs and problems of the customer.
establishing customer loyalty programs
a rewards-based program offered by a business to customers who frequently make purchases
technological developments in marketing
1) social media
2) email marketing
3) search engine optimisation
4) artificial intelegence
public relations
the planned and sustained effort to establish and maintain goodwill and mutual understanding between a business and its publics. It involves the activities aimed at creating and maintaining favourable relations between a business and its publics.
staffing
agreement an agreement that has been directly negotiated between an employer and the employees of a business or enterprise
performance of staff
how well the job activities of employees are carried out
business objectives
1) making a profit
2) expanding the business
3) increasing market share.
customer base
The customer base is the selection of clients that account for the buyers of a good or service. They are specifically targeted by the business.
green marketing
the practice of promoting and selling products based on their environmental benefits
Financial control systems
Financial control systems are the processes, methods and tools that the business uses to monitor and manage financial performance. The business can use financial control systems to prevent financial problems and losses.
the protection of customer privacy
social responsibility includes going above and beyond what is required by law to protect the data that has been collected from customers.
INCLUDES
1) personal details
2) banking information
3) purchase history
recruitment methods
INTERNAL:
-promotion
-email
EXTERNAL:
-websites
-social media
job analysis
the study of an employee’s job in order to determine the duties performed, the time involved with each of those duties, the responsibilities involved and the equipment required
external environment
factors over which the business has little control. It may be further divided into two categories: operating and macro environment
internal environment
factors over which the business has some degree of control; it is sometimes called the microenvironment.
employment cycle
all stages in the process of employing staff, from initial planning through recruitment, selection, induction, performance management, and eventual termination of employment
freelancers
independent workers who charge businesses or individuals for work on a per job basis
staffing needs
1) job tasks
2) number of employees
3) knowledge and skills
staffing stratergies
1) job analysis
2) recruitment
3) induction
4) selection
job design
details the number, kind and variety of tasks that individual employees perform in their jobs. Jobs may be designed so they include a variety of tasks to keep employees interested and motivated.
selection methods
1) interview
2) online selection
job decription
a summary list of tasks expected to be peformed as part of the job. (duties)
job specification
a detailed list of qualities or characteristics the business is seeking in the role. (personal qualities, prior experience)
full time
an ongoing employment contract that includes all legally required entitlements
National Employment standards
1) long service leave: employees aquire one week for every 60 weeks of continuous service
2) public holidays: entitlements to wage loading, paid day off, minimum shift lengths
part time
working fewer ordinary weekly or monthly hours compared with full-time employees
casual
workers employed on an hourly basis
employee expectations
1) positive relationships with management and co-workers
2) above minimum wages and good working conditions
legal obligations for staffing
1) Occupational Health and Safety (OH&S)
2) Fstaffianti-discrimination and workplace bullying
purpose of employee induction
PURPOSE:
-reduces levels of stress from being ‘new’
-communicate values, beliefs, policys, procedures
method of employee induction
MATERIALS:
1) audio-visual presentation
FACE-TO-FACE:
1) on the job training
2) mentor
3) tour of workplace
market segmentation
when the total market is subdivided into groups who share one or more common characteristic
marketing plan
a document that lists activities aimed at achieving particular marketing outcomes in relation to a good or service. The plan provides a template for future action aimed at reaching marketing objectives, such as establishing a customer base.
market research
a process of systematically collecting, recording and analysing information concerning a specific market
market conditions
the features of a market into which a new good or service is to be introduced, including factors such as the number of potential customers, level of competition and potential for growth
public relations campaign
a series of public relations activities undertaken to achieve a specific objective
