Business Planning and Management Flashcards
What are the 5 keys to Success?
- Flexibility
- Reputation
- Market Niche
- Access to Information
- Entrepreneurial Ability
What are the sources of Information a business can use to support their success?
Government Organisations, The Internet, Other people/ Business owners, Books/ Manuals, Trade Association and Industry Bodies, General Media
Types of Staff Payment?
Wage -Hourly Rates
Salary- Yearly Pay, (in increments)
Award- minimum legislated entitlement
What are some Non-Wage Costs?
- Equipment
- Insurance
- Commission
- RDO’s
- Rewards, Bonuses and Incentives
What are the factors to consider when buying a SME?
Location: Popularity, Competition, Logistics
Goodwill: Past and Future performance, culture and reputation, $ value
Potential Issues: Socioeconomic climate, transport, accessibility, zoning and legal
What does a SWOT Analysis Include?
Strengths, Weaknesses, Opportunities, Threats
What is the segmentation of Target Market?
Demographic- Age, Gender, Income
Geographic- Location
Psychographic- Lifestyle and Personality
Behavioural- Interactions with Product and Service
What records are monitored in relation to accounting and finance?
- Sales
- Expenses
- Borrowings
- Assets
What are the main sources of finance?
-External Lenders: Banks, Credit
- Sale of Shares
- Investors
What are the 2 types of finance?
- Debt Finance
- Equity Finance
What is Revenue?
Money Entering the business through sales or investors
What are expenses?
Money exiting the business through bills or purchases
What is Profit?
Financial Gain, The difference in revenue and expenses
What are Assets?
Items of Value, either current (short term) or non-current (long term)
Current- Stock, computers
Non Current- Building, Vehicles
What are Liabilities?
Items which are owed to others, either current (short term) or non current (long term)
Current- Product
Non Current- Mortgage
Vision vs Mission Statements
Vision- What they see in the future for the business
Mission- More realistic, precise and accurate -Current, aim of business, actual activity
What is Marketing Mix?
The 4 P’s
Product, Price, Promotion, Place
How do we Forecast?
- Market Research
- Sales History
- Expert Opinion
- Past Experience
- Competitors
- Technology
What are the Management approaches?
Classical: Hierarchy, Rules
Behavioural: Team Based, Employees Involved in Decision Making
Contingency: Flexibility and Adaptation to suit circumstances
What are the purposes of Management?
Management as:
Planning/Organising/Controlling, Leading, Motivation, Communication, Working as a team
What are the leadership styles?
Autocratic- Controlling
Democratic- Inclusive
What are the 9 Skills of Managers?
Vision, Decision Making, Strategic Thinking, Interpersonal Skills, Problem Solving, Communication, Flexibility, Adapt to Change Reconciling the conflicting interest of stakeholders
Factors that lead to change?
- Economic Cycle
- Seasons
- Employees/ Ownership
- Demand and Supply
- Consumer Preferences
- Technology
What can poorly managed change lead to?
-Overall Business Decline
-Employee Resistance
-Decreased Profit
-Deceased Productivity
-Increased Employee Tensions
= Business Failure/ Closure
Changes can be ____ and _____
Internal and External
What are Ethics?
Standards of behaviour or moral position, influences decisions and what is seen as wrong/ right and the values of management
What are the Key Business Functions?
Operations: Process of Inputs and Outputs
Marketing: Sell the outputs, determines outputs, cogs and employee needs
Human Resources: Combines skills of owners and employees to perform tasks
Finance: Financial resources to operate the business
Tangible Vs Intangible?
Tangible: Outputs you can touch
Intangible: Service/Process that completes a need/want but isn’t always visible as an output
Inputs vs Outputs?
Inputs: Resources used in the operations process
Outputs: The End Product
Inputs–> ________ _____–>Outputs
Transformation Process
What is the Transformation Process and How do we Transform?
Conversion/ Change of Resources into products, operations process is to add value to the input.
How do we transform?
1. Labour Intensive: Manual Labour
2. Assembly Line: Mass Production
3. Automated: factories, robots
What is Value adding?
Equipment, Labour, Materials, skills and ability, money/cash flow, access to resources/facilities, vision, knowledge
What is Quality Control and Assurance
Purpose to minimise waste and cost, create a consistent product
Having a quality system in place to meet standards
Financial Objectives of a Business?
INCREASED SALES, DECREASE COSTS, MAXIMISE PROFITS
Advertising, Budgets, Efficiency, Growth, Product Development, Liquidity, Solvency
Debt vs Equity Finance?
Debt: External Sources- borrowed from banks, investors, other firms. Involves contractual agreement that specifies interest and repayment
Equity: Internal Sources- provided by owners. Business capital or shares. Also Net Profit reinvested
3 Statements for Financial Information
Cash Flow Statement
Balance Sheet
Revenue Statement
What are the HR Functions?
- Hiring
- Performance Management
- Learning and Development
- Career Planning
- Total Rewards
- Employee Communication
- Heath and Safety
- Wellbeing
- HR Strategic Planning
- HR Operation
- Industrial Relations
Types of Pricing?
Cost Plus Margin
Market Price
Competitors Price
Discount Price
