Unit 2 exam Flashcards
What are the 5 legal requirements for establishing a business?
registering a business name, registering a website domain, trade practices legislation, business tax compliance and work safe insurance
what is a business name?
the title that a business operates under and what customers use to identify the business.
How do you register a business name?
- obtain an Australian Business Number (ABN)
- Register the name at the Australian Securities and Investments Commission (ASIC)
What is a website domain?
a website address that identifies a business’s online site
how to register a website domain
- check if the domain name you want is taken or trademarked
- if not, register for the domain through auDA (.au Domain Administration)
what is the trade practices legislation?
the law that governs how a business interacts with customers and competitors.
what are some things that the trade practice legislation does?
ensure businesses commit to warranties, prevent businesses from colluding (businesses within the same industry raising prices so all of them do), and make sure businesses don’t falsely advertise
What is business tax compliance?
the extent to which an
individual or business
meets tax obligations
what is work-safe insurance?
compulsory insurance that assists employers to meet their obligation of financially compensating and supporting employees who become injured or ill because of their work
What are the 5 factors businesses should consider when choosing suppliers?
Price, quality, reliability, location and socially responsible suppliers
what is the factor of reliability?
that suppliers can deliver the right quantity of inputs at the required time
what are 4 CSR (socially responsible suppliers) considerations when choosing suppliers?
fair and ethical treatment of employees, local suppliers, ethical sourcing of materials and using environmentally friendly practices
what are policies?
written statements that outline the expected performance and behaviour of employees
what are procedures?
a series of actions that employees must follow in order to abide by the business’s policies
what is the difference between policies and procedures?
policies are the rules of what is expected of employees, whereas, procedures are the actions taken to abide by the policies
what is an example of a workplace policy that makes the business more efficient?
customer service policy
what is the customer service policy and how does it make the business more efficient?
The customer service policy instructs employee behaviour when interacting with customers, when doing this properly it allows for customers to become satisfied but also ensures more customers can be served
what is an example of a workplace policy that allows the business to establish business routines?
absence and time off policy
what is the absence and time off policy?
It ensures employees are aware of how to notify employers of any absences and schedule when they need time off
how does the absence and time off policy help to create business routines?
It ensures that the employees can get into a routine of telling the employer early if they can’t make their shift allowing them to get a replacement quicker.
what are overseas suppliers?
individuals or businesses that sell raw materials or resources in a country overseas.
what are 3 advantages of generating contacts with overseas suppliers?
has a wider range of suppliers to choose from, has access to cheaper resources, and the business reputation may improve if overseas suppliers provide ethically-sourced inputs
what are 3 disadvantages of generating contacts with overseas suppliers?
- lower quality, which can decrease customer satisfaction
- Supplies can be damaged during delivery, increasing expenses associated with waste,
- challenging to maintain communication with overseas suppliers due to timezone differences
what is a customer database?
a collection of information about existing and potential customers
what are 2 advantages of having a customer database?
- enable a business to predict the desires of potential customers and produce goods and services that satisfy these needs, increasing sales
- allows a business to maintain relationships with existing customers and meet their needs
what is a target market?
a specific group of consumers that a business aims its marketing efforts towards
how is the target market determined?
via market segmentation
what are the 4 topics under market segmentation?
demographic, geographic, psychographic and behavioural characteristics
what are 6 demographic characteristics?
- Age
- Gender
- Income
- Education
- Nationality
- Occupation
what are 3 geographic characteristics?
- Size of city
- Rural or urban
- Climate of location
what are 5 psychographic characteristics?
- Lifestyle
- Personality; introverted, extroverted, ambitious
- Hobbies
- Attitudes
- Social class
what are 3 behavioural characteristics?
- Regular or first-time product users
- Purchasing frequency
- Reason behind the purchase; quality, service, speed, or price
what are the 7 elements of the marketing mix (7Ps)
product, price, place, promotion, people, physical evidence and process
what is product?
a good or service that is offered to consumers to satisfy a need or want
what is price?
the amount that a customer pays for a good or service
what is a type of pricing and what does it entail?
Competiton-based pricing, setting pricing similar to competitors
what is promotion?
the marketing communications used by a business to inform, promote, and remind its target market about its product
what is people?
the individuals that influence a customer’s perception of a business and its products
what is place?
an element of the marketing mix relating to how a business distributes its product to customers
(place) what are the 3 types of distribution channels?
producer to customer, producer to retailer to customer, producer to wholesaler to retailer to customer
what is physical evidence?
the environment in which the business and customer interact
what is process?
the procedure set in place throughout the entire customer purchasing experience at a business
what are 3 examples of physical evidence in a business?
facilities, ambience (atmosphere of the workplace), and digital world (website, social media)
what is the relationship between staff performance and completing business objectives?
when staff performance is high so will business objectives
what are the 5 main business objectives?
- to make a profit
- to fulfil a social need
- to fulfil a market need
- to increase market share
- to meet shareholder expectations
what is the definition of making a profit?
a business needs to earn more revenue than its accumulated expenses.
what is the definition of fulfilling a social need?
Businesses can fulfil social needs by using their operations to benefit the community and the environment.
what is the definition of fulfilling a market need?
Businesses can fulfil a market need by offering goods and services that meet customer needs
what is the definition of increasing a market share?
a business needs to increase the total sales it makes within its industry
what is the definition to meet shareholder’s expectations?
businesses should generate consistent profit to return some to their shareholders
what is a management strategy to make a profit?
Provide training for employees so they feel valued by the business and have the appropriate skills to complete their job
what is a management strategy to increase market share?
Implement sales incentive programs that reward employees for bringing in new customers and increasing market share
what is a management strategy to meet shareholder expectations?
Implement a recognition and rewards program to acknowledge and appreciate employees’ contributions
what is a management strategy to fulfil a market need?
Provide flexible work arrangements, to accommodate employees’ work-life balance needs
what is a management strategy to fulfil a social need?
Engage employees in CSR initiatives, allowing them to contribute to social causes and feel a sense of purpose in their work
what is the purpose of the National Employee Standards (NES)?
to ensure that employees are getting their minimum entitlements and are treated fairly when working
what is an award?
a legal document that outlines the minimum wages and conditions of work for employees across an entire industry
what is an agreement?
a legal document that outlines the wages and conditions of employees and is applicable to a particular business or group of businesses
what are agreements and awards a part of?
contracts of employment
what are the 3 employer expectations?
contracts of employment, loyalty and terms of notice
what is contracts of employment?
is a legal document that outlines the wages and work conditions of an employee within a business.
what does an employee contract normally include?
job title, hours of work and amount of pay
what is loyalty?
when an employee is committed to supporting the business to achieve its objectives.
what are terms of notice?
written communications that an employee must provide to a business within a certain amount of time before leaving their position.
how can improved loyalty help increase business performance?
When employees trust and respect their employer, they are generally more productive and motivated to achieve business objectives
what are 3 ways a business can consider CSR when staffing?
having a gender-balanced workplace, hiring a diverse range of ethnicities, hiring all age groups
