Outcome 3 Flashcards
What are Natural Resources?
Items used by the business that come from the environment
What are Capital Resources?
Tools and Machinery used to produce goods
What are Labour Resources?
People who provide their skills, knowledge and effort to the Business
What is Equity?
Funds contributed by the owner(s) of a business to start and build the Business
What are shopping centres?
A large shopping centre allowing multiple businesses to sell products there
What are home-based businesses?
Can include service providers, such as a hairdresser in a garage
What is a retail shopping strip?
Usually developed on a major road and transport link, usually includes a local milkbar
What is an online presence?
Doesn’t have a physical location
Visibility
Being seen is likely to attract customers to the business
Complementary
This an help attract customers to the business if nearby, e.g. tyre fitters being close to a car mechanic.
Cost
A business must assess whether the location justifies the cost, e.g. main road
Proximity to competitors
Will they take away or be able to attract more customers than you
Proximity to suppliers
Being close to suppliers reduces the cost of transport to and from both businesses
Proximity to customers
Being in a relevant location to customers which will attract them to your business.
Benefits of Purchasing an existing business
Existing customer base, stock has already been acquired, seller may offer advice and training, equipment is already there
Costs of Purchasing an existing business
Some employees may resent change, the image of the business may be difficult to change, the success of the business may have been due to the previous owner
Benefits of establishing a new business
The owner has more freedom over business, the owner can determine the pace of growth and change
Costs of establishing a new business
High risk and difficulty to obtain finance, there will be no customer base, employing staff will be expensive and profits might not start straight away
Sole Trader
A business owned and operated by one person
Independent, employing his own employees, managing independently and working on solutions independently
Partnership
An unincorporated business structure with a minimum of two and a maximum of 20 owners, e.g. family owned business, profits will need to be shared individually
Private Listed Companies
An unincorporated business with a minimum of one shareholder and a maximum of 50 non-employee shareholders. E.g. 7-11 is a private listed company, with less than 50 non-employee shareholders.
Public listed Companies
An unincorporated business with a minimum of one shareholder (and no maximum) and whose shares are openly traded on the Australian securities exchange. E.g. Woolworths is an example of a Public Listed Company
Online Business Model
Main operations revolve around the internet (e.g. Google, eBay)
Bricks and Mortar business model
Traditional business with a physical location (e.g. local milk bar)
Import and Export
Deals with international trade goods (e.g. Noble Grain Australia
Franchise
Licensed to operate under the business model of an existing business (e.g. Subway)
Social Enterprise
Aims to improve wellbeing of others (e.g. YGAP)
Market Research
Involves collecting and analysing data and information to assist the business in its understanding of potential customers and competitors
Business Plan
A written statement of the goals and objectives for the business, and the steps to be taken to achieve them
SWOT Analysis
(Strengths, Weaknesses, Opportunities and Threats) A type of situational analysis that looks at where the business currently stands
Strengths
What is the business good at?
Weaknesses
Where does the business need to improve?
Opportunities
How can the business improve and grow?
Threats
What could harm the business?
SRB
Socially Responsible Business
What is an SRB
Needs to consider how it can go above and beyond its basic legal requirements to improve welfare of its stakeholders, including its employees
SRB Benefits
Attracting Customers who tend to avoid unethical businesses
Attracting and retaining staff, reducing the cost of recruitment and training
Improving staff morale which increases productivity
SRB Internal Environment responsibilities
Offering fair pay to workers
Ensuring safe and healthy working conditions
Employing disadvantaged groups
Implementing socially responsible policies for staff to follow
Legal Support Services
A solicitor, who provides advice on legal matters such as business formation, registration, contracts and legislation
Financial Support Services
An accountant or bank manager, who provides advice on all financial management issues and taxation abligations
Technological Support Services
An IT manager, who is able to provide setting up websites, purchasing equipment, improving productivity, setting up social media and online marketing
Community-Based Support Services
Service Clubs, which provide advice for your business, support your business and gives information on how to run your business
Formal and Informal Network Support Services
Government, Chambers of Commerce, Victorian Chamber of Commerce and Industry (VCCI), Small Business Association and Trade Associations. Which provide training trade, legal and financial help, tax advice and advice on land zoning
Business Mentors Support Services
Experienced Owners, which give advice, training, variety of issue knowledge and strategies to plan out your business in the future.
