Nature of Business
Define a business.
the organised effort of individuals to produce and sell, for a profit, the products (goods and services) that satisfy individuals’ needs and wants, in order to make a profit.
Identify the THREE quality management strategies.
Quality control, quality assurance, quality management
SMEs contribute to what percentage of Australia's GDP?
99%
According to the classical approach to management, what are the THREE main roles of a manager?
planning, organising, controlling
How do we classify the geographical spread of businesses?
local, national, global
What are the TWO unincorporated legal structures?
Sole trader & partnership
What are the THREE main transformed resources?
materials, information, customers
What are the THREE reasons an SME needs finance?
Establish a business, operate a business, expand a business
What are the FOUR stages of the human resource cycle?
Acquisition, development, maintenance, seperation
What are the two MAIN cycles a business goes through in the economic cycle?
Booms & busts
The Competition and Consumer Act (2010) is administered by which organisation?
Australian Competition and Consumer Commission (ACCC)
What does the triple bottom line refer to?
The economic, environmental and social performance of a business.
What are the FIVE keys to SME success?
Flexibility, reputation, market niche, entrepreneurial ability, access to information
What are the seven P's of the marketing mix?
What are the TWO main causes of business decline?
society/general public, managers, employees, environment, owners/shareholders, customers
What does cost leadership refer to?
When business' try to gain a competitive advantage by aiming to have the lowest costs in the market.
Provide TWO examples of short-term debt finance options for SMEs
Bank overdraft, commercial bill, factoring
COMPETITION, LEGISLATION, TECHNOLOGY, SOCIAL CHANGES
Identify the FOUR stages of the business life cycle.
establishment, growth, maturity, post maturity
Identify ONE challenge of the growth phase in the business life cycle.
Managing expansion effectively
Maintaining product/service quality
Increased competition
Need for additional finance
Recruiting and training staff
The Body Shop campaignin for human rights and sustainability is an example of what type of goal?
Social
Identify ONE illegal misleading practice under the Competition and Consumer Act
misleading or deceptive conduct, unconscionable conduct, false or misleading representations regarding goods or services, offering goods or prizes in the supply of goods or services and then not providing them, conduct that may mislead the public, bait advertising.
What is does effectiveness measure?
The degree to which a goal has been achieved
What are the THREE factors influencing a business' competitiveness?
number of competitors, ease of entry into a market, local and foreign competition