Topic 1 & 2
Identify one business objective
- to make a profit
- to increase market share
- to fulfil a social need
- to meet shareholder expectations
Identify two skills of a successful business operator
-Communication
-Delegating
-Planning
-Leading
-Decision Making
-Interpersonal
List one feature that a feasibility report should include
´A description of the business idea
´Profiles of the key people involved
´A description of the market
´Supply analysis
´Whether there is a threat of substitutes
´Identifying key competitors
´Assessing financial feasibility
´Location and layout
´Personal circumstances of the person with the business idea
Identify one contribution to nation
-Employment
-Economic Growth/Gross Domestic Product (GDP)
-International Trade
-Taxation revenue
-Infrastructure
-Research and development
Identify one method by which a culture of business innovation and entrepreneurship may be fostered in a nation
government investment in research and development, council grants for new businesses, business mentorships, school-based educational programs in entrepreneurship, and the creation of regional business start-up hubs.”
Identify 3 sources of business opportunity
Innovation and Entrepreneurship
Recognizing Market Opportunities
Changing Customer Needs
Research & Development
Technological Development
Global Markets
Identify 3 characteristics of successful business managers and entrepreneurs
1.Willing to take risks
2.Innovative thinkers
3.Resilient
4.Confident
5.Flexible
6.Ability to work independently
Define feasibility study
Initial research that is required to determine whether the business concept is potentially viable.
Explain how businesses can contribute to the nation in regards to employment
´Businesses employ people, and this provides individuals with the income to purchase goods and services. Paid work is important as employment levels are closely linked to quality of living standards.
Explain one methods by which a culture of business innovation and entrepreneurship may be fostered in a nation
Answers based on clarity of response
Distinguish between business objectives and business strategies
Business objectives are the stated, measurable targets of how to achieve business goals whereas ´A business strategy is a description of exactly how the business plans to achieve its business objectives. The ability of a business to meet its stated objectives is referred to as business effectiveness.
(No mark given if you don't say 'whereas')
Define Communication
Communication can either be one-way or two-way, depending on the level of employee involvement. Communication is important between staff, customers, suppliers and the community. Communication can be verbal, in written form or orally, or non-verbal, through body language or visuals.
Explain the importance of a feasibility study
Using the information gathered about the industry and the potential customer base, the entrepreneur will now need to determine whether the business idea is feasible. The entrepreneur needs to determine if the business they wish to create can survive and be profitable.
What is an example of a business partaking in social contributions
Answers will vary - inline with environmental or social need being addressed (e.g. recycling)
Explain how government investment in research and development is a methods by which a culture of business innovation and entrepreneurship may be fostered in a nation
-Providing grants to small and medium businesses to encourage new products, processes and services or advice for people.
-Providing resources, mentors, funding and access to business networks to support innovative start-up ideas.
Explain the business objective of meeting shareholder expectations
Shareholders expect to make a return on their investment. Shareholders can receive a return either through dividends, or an increase in the value of their shares.
Apart from communicating, describe two other skills of successful business operators
Delegating
Delegating occurs when the authority and responsibility to carry out specific activities is transferred from a manager to an employee. The manager delegating the task remains accountable for the outcome of the delegated work, but allows the employees to make their own decisions.
Planning
Planning is the ability to identify business objectives and determine methods or strategies to achieve those objectives. Planning can be either strategic, tactical or operational.
Leading
Leading is the ability to influence or motivate people to work towards the achievement of business objectives. Good managers lead by example and encourage and praise good performance.
Decision-Making
Decision making involves identifying available options and then choosing one course of action from the alternatives. Effective decision making involves being able to make decisions within a particular time frame.
Interpersonal
Refers to management’s ability to deal or liaise with people and build positive relationships with staff. This type of manager uses clear communication when working with staff and is sensitive to their needs, not threatening.
Describe the market research and its purpose
Is a systematic approach which assists a business to make decisions about consumers and the marketplace.
´Market research will assist to identify and evaluate the industry in which they will be operating. It will also indicate whether there are sufficient customers or clients willing and able to pay for the goods and services being offered. It can include surveys, focus groups, interviews, libraries, government agencies and trade associations.
Apart from employment describe one contribution to the nation in detail
GDP - ´Gross Domestic Product (GDP) is known as the total market value of production in a country over a period of time, minus the costs of production. Economic growth is important for any nation as it provides the chance to ensure improved living standards.
International Trade - important to a nation as it allows businesses and individuals to gain access to good they may not otherwise have been able to purchase. Businesses can also used imported parts and materials in the production of goods in Australia
- Taxation Revenue - If businesses are successful, then they pay company and other business-related taxes. This money can then be used by governments to provide services to the population.
- Infrastructure - The foundations and investment needed in a country to provide the means for an economy to operate. It can include transport, communications, education, power and electricity services.
- R&D - ´Businesses are able to support the standard of living of Australians by continually looking at new and improved ways to provide goods and services.
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Explain the creation of regional and start-up hubs as methods by which a culture of business innovation and entrepreneurship may be fostered in a nation
´Business Hubs: A place where businesses and individuals go to seek support and have a place and space to use without having to set up their own office.
´
´This can be particularly beneficial for regional businesses, who perhaps don’t have access to the same technology, equipment and office space as those city-based businesses.
Explain as to how Global Markets is a source of business opportunity
Looking overseas can reveal innovation and ideas that have not yet reached Australia. Often franchises that have been successful overseas are successfully introduced into Australian markets.
Alternatively, several Australian entrepreneurs have realised the benefits of expanding their business’s internationally.
Apart from 'willing to take risks', describe two other characteristics of successful business managers and entrepreneurs
. Innovative thinkers
Successful business operators are usually able to come up with new ideas, then develop and improve them. This often requires a creative mind.
. Resilient
A business owner must be prepared to persist and persevere over the long-term. Patience and determination are required to see things through. A successful business can take years of hard work.
. Confident
Self belief and enthusiasm are business assets. Successful business development requires a person to possess the confidence that they have something that the market or customers wants to buy.
Flexible
Business owners need to have the ability to adapt and change direction when required. This may be as a result of changing tastes, consumer demands, or altering market conditions. To do this, business owners need to be able to make quick decisions.
Ability to work independently
Successful entrepreneurs are often intrinsically (internally) motivated to achieve personal goals, enjoy challenges and are naturally competitive.
Define intellectual property and provide 2 examples
´Once a business concept and original ideas, known as intellectual property, have been created and developed, protection must be obtained against others copying or stealing them.
´This involves registering original ideas or a work idea as one’s property.
Examples include:
-Patent
-Trademark
-Design
-Copyright
-Trade secrets/confidentiality
Explain international trade as a contribution to the nation
International Trade - important to a nation as it allows businesses and individuals to gain access to good they may not otherwise have been able to purchase. Businesses can also used imported parts and materials in the production of goods in Australia
Explain how council grants for new businesses is a method by which a culture of business innovation and entrepreneurship may be fostered in a nation
´Include money and incentives provided to businesses and individuals to pursue business ideas and development.
´
´Many local councils provide support and grants for businesses in their local area. These council grants are available in areas such as start-ups, business growth grants and relocation and expansion grants.