Objectives
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
Name one decentralised business management strategy
Laissez-Faire
Participative
Consultative
What is a sole trader?
A sole trader business has one person who owns and runs the business.
Define the term stakeholder
Parties that have a vested interest in the activities of a company
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
What is the most centralised management style
Autocratic
What is the maximum number of shareholders in a publicly listed company?
There is no maximum number of shareholders.
True or false: All stakeholders stand to benefit financially from the success of the company
False. Not all stakeholders have a financial interest in the company, or even want it's success - for example, competitors.
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.
What is an advantage of participative management style?
Employer/employee relations are positive and there is reduced likelihood of industrial disputes. Employees are more likely to accept management decisions.
Motivation and job satisfaction are optimal, because employees feel they have played an active role in allocating tasks and implementing actions to meet objectives.
Employees have a greater opportunity to acquire more skills.
There are opportunities for employees to put forward ideas. This power-sharing approach encourages the development of work teams, and employees display high levels of commitment.
There is a high level of trust, often resulting in improved employee performance.
Give an example of a Social Enterprise
The Big Issue, HoMie, OxFam.
Other correct answers accepted.
Give a specific example of a stakeholder of Drouin McDonalds, and explain their interest.
Interest?
Owners
Managers
Employees
Customers
Suppliers
General Community
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.
What conditions are best for a lasseiz-faire management style?
- Where staff have a lot of experience
- Where they are wanting to foster creativity and innovation
Define limited liability
When the shareholders will not be held personally responsible for the debts of a company.
What are the interests of a Supplier as a stake holder?
Providing quality materials at a good price, so they can continue to receive business.
Expecting to be paid promptly and in full, so they are interested in the financial success of the business.
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.
What is it called when staff take too many days off because they are not comfortable with the management style?
Staff Absenteeism
What type of liability do the shareholders have in a partnership?
Unlimited liability, meaning they will be held personally responsible for the debts of the company
Define Corporate Social Responsibility
The obligations of a business over and above it's legal responsibilities to the wellbeing of it's employees, customers, the community and the environment.