Business Exam Rev Flashcards
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Explain the characteristic of a successful business entrepreneur
Having a vision, ability to spot opportunities and have a clear goal as how to achieve it
Ambition - Being ambitious is required to achieve long-term goals
Official Corporate Culture
Official corporate culture is that which the company wants to achieve and is written down in policies and mission statements.
3 motivations behind starting a business
- Desire for independence
- Freedom to innovate and problem solve without permission
- Potential wealth and financial independence
List and explain skills a business owner should have?
Communication - Effective written and verbal communication skills will help you build good working relationships.
Problem-solving - Be able to solve problems when they come
Time management - Be able to manage time efficently
Vision statement
The desired image of what you want your business to become in the future
Market Research
Collecting vital info about the target audience, market, and competition
Goal - Setting
Setting a predetermined target that a business or individual plans to achieve in a set period of time
Feasibility study
An assessment of the practicality of a proposed plan or project
Entrepreneurship
the activity of setting up a business or businesses, taking on financial risks in the hope of profit.
Corporate culture
a set of beliefs and behaviors that guide how a company’s management and employees interact and handle external business transactions.
Mission statement
A concise explanation of an organisations reason for existence and purpose + intentions
List and describe sources of business opportunity
Innovation - new or improved products, or methods of doing things
Gap in the market - a group of customers whose needs are not currently being met.
Technology - Technology helps increase the efficiency of systems, products and services.
Global Markets - where goods, services, and labor are exchanged throughout the entire world.
Real corporate Culture
What actually happens in the workplace, is not always to policy an procedures
Innovation
Coming up with new ways to do things or new products
Entrepreneur
An individual who creates a new business, bears most of the risk but enjoys all the reward
Objective
Measurable targets that are set in the pursuit of reaching our goals
Social Enterprise
A business that distributes its profits to benefit the community (or an environmental issue)
Where do market opportunities come from?
- Changes in demographics - e.g increase in young family members - child care and kindergarten
- Changes in legislation - changes in law - lead to greater demands on related goods and services
- Turning a hobby into a business - from going to the gym to a personal trainer to a gym owner
What is research and development important for?
Creating new products or finding new applications for existing products
How are decisions made before settings goals?
- Identify the broad outcome - What do I want?
- Gather information to inform the decision - what do I know? / Need to know?
- Identify Alts - This could lead to A-B-C?
- Weigh the evidence - which pathway has the best results in getting what I want?
- Make a choice from the alts
- Put it into action
- Monitor/evaluate - How did it go? / Any improvements?
Value statement
A statement on what the business sees as its priorities and principles often reflected in the organisational culture
Objectives are S.M.A.R.T
Define S.M.A.R.T
S - Specific - contained to a topic
M - Measurable - can be assessed against a target
A - Attainable - Within the capabilities of the person
R - Realistic/Relevant - Can be met
T - Timely -Start and End point
Levels of Objectives
Strategic - Long term, up to 5 years
Tactical - 1-2 years
Frontline - Now - actions to meet current objectives
Personal - your role in meeting the organisational objectives - your contribution
Concept development (list and explain)
- The business concept - the idea/product
- Market research - Customer –> Competition –> Demand
- Refine concept - what we found out and it’s impact on the concept
- Feasibility study - Will it be successful? / Driving vs Restraining forces
- Business plan - How we are going to put the concept into action
What is S.W.O.T analysis?
S - Strength - in the business e.g: workers
W - Weakness - in the business E.g: funds
O - Opportunities - outside the business E.g: loyal customers
T - Threats - outside the business E.g: competitors
Intellectual property
The rights over the creations of mind or design or application or invention
Types of intellectual property include
Patent: granted for exclusive exploitation of any device, substance, method, or process that is
new, inventive or useful
Trademark: a right granted for exclusive exploitation of numbers, letters, words, phrases, sounds, smells, shapes, logos, pictures, an aspect
of packaging, or a combination of these
Design: features of shape, configuration, a pattern or ornamentation that make a product
unique
Copyright: original expression of ideas (not the ideas themselves); for example, in art, songs, literature, films, computer programs, articles and
photos
Trade secrets/confidentiality: intended to stop employees from releasing your ideas to others; for example, a secret recipe.
Economic Contribution
Business or industrial events that add value to the performance of countries
TAX collected from workers is called:
P.A.Y.E - Pay As You Earn
Infrastructure
Def - The utilities needed to allow business to function
Provision of infrastructure by governments to support business growth
Types of entrepreneurial support
- Research and Dev grants - gov gives funds to investigate new or improved approaches to deal with issues
- Local Council grants - local govs give funds to solve local issues
- Business Hubs - Space where businesses come together and share facilities to establish their business , They share cost, ideas, employees over the site
- School based educational programs
3 main business environments
- Internal - concerns all business activities the organisation is in control of: culture, policies/procedures, employees, production. All these groups have a vested interest and are internal stakeholders, the internal environment has 100% control over it’s stakeholders
- Operating - concerns all business activities the organisation has direct links to that are external business BUT we may be able to influence: Customers, Suppliers Competitors, Interest groups
- Macro environment - concerns all business activities that is imposed on the organisation. The business has no control on actions that take place in the macro environment, must accommodate the issues e.g: Tech, Societies attitudes, Economic conditions
Business Legal Structures
- Sole trader
- Partnership
- Priv company
- Public comp
Sole Trader
- Simplest form of Business structure
- Owner makes all business decisions
- Most affordable
- Keeps all business profit/loss
- Liable to meet all business financial obligations
Unlimited Liability
Your personal assets can be taken and used to pay off business debts
Partnership
- Partnership between 2-20 people that come together to operate a business
- Legally governed by a formal partnership agreement
Private comp
- Can have between 1-50 stakeholders
- Recognised by Pty Ltd (Proprietory Limited)after it’s name
- Can sue, Can be sued
Public comp
- Open number of shareholders
- Have Ltd(limited) after it’s name
- They have lower tax rate then sole traders
Other types of Business Models
Social Enterprise
Gov Business Enterprise
Social enterprise
- Set up to help others or support a cause
- in business to make profit used to help the issue they support
Gov Business Enterprise
- Where Gov runs a business e.g: Aus post
- Ran to make profit
- Shareholder is the gov
- All profit goes to gov
Types of Online Business Models
- Direct selling of products to consumers
- Advertising Model
- Affiliate Model
- Brokerage Model
- Subscription Model
- Info Model
- Community Model
Bricks and Mortar
- The building functions as the business site
- Face-to-face interactions with customers
Franchise
The business
Franchisor
Business owner selling system to others
Franchisee
Person who has paid to use the business system
Economic Main Resources
- Land, Natural Resources
- labour
- Capital - The equipment needed to construct the product being made
CSR
When a business operates above and beyond its legal requirement in undertaking business activities (operations)
Corporate Social Responsibility falls in 3 areas
S - Socially
E - Environmentally
E - Economically
Socially
Not lying or making false claims on products/services
Environmentally
- Uses renewable resources
- Low pollution
- sustainable
- minimise waste
Economically
- Fair wage/pay
- not exploiting workers
- paying fair price for inputs
- considering local suppliers before overseas suppliers
Operating Environment Stakeholders
- Customers
- Suppliers
- Special interest groups
- Competitors
