Define Flashcards
environmental sustainability
a systematic and process driven approach to controlling the aspects of a business that have a significant impact on the environment. it can be applied to any business of any size to demonstrate the company’s commitments to on going environmental issues on both a local and national scale
supply chain
A supply chain is the network of suppliers from which the business purchases resources. it typically starts with the sourcing of natural resources, followed by manufacturing activities such as component construction and assembly
Union
Labour unions or trade unions are organizations formed by workers from related fields that work for the common interest of its members. They help workers in issues like fairness of pay, good working environment, hours of work and benefits.
customer
customers are the groups of individuals that purchase the goods and services of a business. customers are essential for business success as they are the reason for why a business exists
Competitor
the businesses or individuals that offer rival goods and services. they are important for business planning since it is a must to respond to any change in the action of competitors
resources
the requirements needed to run a buisness. A resource can be anything from natural e.g. raw materials, Labour e.g. employees and capital such as machinery
internal environment
is made up of elements created by the people within the business. in an internal environment, the business has control over factors such as location, resources, sources of finance, equity, business structure and models
operating environment
is made up of stakeholders external to the business which have a direct impact on the operation of the business. the four main stake holders are customers, competitors, suppliers and special interest groups
the external environment
comprises the conditions and trends in the economy and society within which the business has no control over. factors that business have no control over are;
Political and legal influences, societal attitudes, economic conditions, technological issues and global issues
Sole Trader
a Buisness structure where one owner operates the business. The owner takes responsibilities for the operation of the business
Sole Trader - Benefits and Costs
Advantages
-Inexpensive and easy to set up, Complete Control and less gov regulations
Disadvantages
-Diffucult to operate when sick, hard to finance, someone else can take it down.
PartnerShip
A Business that is owned by 2-20 partners. There is no seperate legal entity and it is a uniccoperated ownership structure (Voula and Son Plumbers)
Partnership - Benefits and costs
Advantages
- Risk is shared, low start up cost and workload is shared
Disadvantages
-Divided loyalty and authority, Personal unlimited liabily and that it could be threatened if a partner leaved
Private Limited company
A structre with 2-50 stakeholders in which they are legally seperate from the business. (eg Family Business) To be A PL company they have to be registerd with ASIC
Private Limited company- Benfits and costs
Advantages
-Limited liability, growth potential and greater source of finance
Disadvantages
- Higher degree of complexity in establishment, cost of formation and double taxation
Public Limited company
A structure with unlimited number of shareholders (min of 5) and it has to be listen on the Australian Securities Exchange (ASX) eg(Woolworths)
Public Limited company- Benefits and costs
Advantages
-limited liability, easier to attract public finance and no threat of owner
Disadvantages
- Need for more accountability, too much growth and higher establishing cost
Buisness plans- Executive Summary
Describing the business and objectives
Buisness plans- Operations plan
Outlines how the business will be set up and human resources
Buisness plans- Financial Plan
details how business will be financial, protested cash flow and revenue
Buisness plans- Marketing plan
Outlines key info from the industry the business will be entering and how it fits in
Objective
where the business wants to go in the future. It is a statement of purpose, e.g. wanting to grow a business . Business objectives are the stated, measurable targets of how to achieve business aims.
Business plan
A written statement of the goals and objectives for the business and the steps to be taken to achieve them. The plan provides info that lenders need to know and it shows the business being organised
Mission Statement
A written document that sets out the reasons for the existence of the organisation. an example could be bunnings and thier mission to provide a wide range of tools thier customers
Discuss
Pros and cons
Compare
Similarites and differences
Evaluate
Strengths and weaknesses discussed in detail. And conclusions
Define
2 sentences
Distingush
The difference between
Outline
Brief description of terms or topic
Explain
Make meaning of something clear and detailed
