Business Basics and Objectives
Small 'V' Medium 'V' Large Businesses
Contributions of Small Business to the Economy
Business Environments
Business Environments
100
What an organisation expects to achieve over a set period.
What is an Objective
100
An organisation that provides goods and/or services to consumers in order to make a profit.
What is a Business?
100
Goods and services produced in Australia and sold to overseas customers.
What are Exports?
100
The surrounding conditions in which the business operates. It can be divided into two broad categories: internal and external.
What is the Business Environment?
100
Sometimes called the micro environment, includes those factors over which the business has some degree of control.
What is the Internal Environment?
200
Define strategies and how they relate to objectives.
Actions taken to achieve objectives. They are the activities carried out designed to attain the goals of the business.
200
A business with less than 200 full-time equivalent employees and/or less than $10 million turnover
What is a Small to Medium Sized Enterprise (SME)?
200
A system set up to determine what to produce, how to produce and to whom production will be distributed.
What is an Economy?
200
Includes those factors over which the business has little control. It may be further divided into two categories: operating and macro.
What is the External Environment?
200
Another name for the Internal Environment
Micro Environment
300
Explain with examples, the distinction between financial vs. non-financial objectives
Financial objectives such as increasing sales, increasing profit, increasing return on investment are concerned with improving the financial position of the business with the ultimate aim being to earn a profit for the business. Non-financial objectives or social objectives are things like community service, providing jobs, protecting the environment and they sit alongside the financial objectives.
300
a) The business’s share of the total industry sales for a particular product. b)A company that has branches in many different countries.
What is Market Share? What is a Multinational Company?
300
The total market value of all final goods produced by a country over a set period of time. Occurs when the real value of goods and services increases over a set period of time.
What is GDP (Gross Domestic Product)? What is economic growth?
300
Another name for the Operating Environment.
Task Environment
300
Identify the factors in the internal environment
employees, managers, management style, corporate culture and company policies.
400
Identify the key features all organisations have in common
Both must ensure that finances are available to allow the organisation to survive and pay its bills both must be accountable for their actions All organisations must also maintain high ethical standards in terms of behaviour that is considered to be right (acceptable) and wrong (unacceptable).
400
Identify the number of employees according to the Australian Bureau of Statistics (ABS) business register for Small, Medium, and Large Businesses
Small: less then 20 Medium: 20 - 199 Large: over 200
400
List 4 four ways Small Businesses contribute to the economy.
i. Employment ii. Export earnings iii. Taxation iv. Economic growth
400
Identify the factors in the operating environment
The four main stakeholders are: i. customers ii. suppliers iii. competitors iv. special interest group (lobby groups)
400
Identify the factors in the macro environment
i. Political ii. Economic iii. Legal iv. Technological v. Social
500
Explain the difference between profit and non-profit organisations in terms of Objectives Owners Distribution of Profits Employees
Main objective financial 'V' main objective social Shareholders in LSO, one owner in Sole Trader or several owners in Partnership 'V' no real owners except those who benefit from the organisations work Profits distributed owners(if Sole Trader all goes to the sole owner, if a company dividends are paid to shareholders) 'V' profits are ploughed back into the business to further its work Paid employees 'V' some paid and some volunteers
500
Outline 4 measurements that can be used to determine the size of a business
the number of employees — those who are hired to do work for the organisation the number of owners (of the business) — for example, a sole trader is a type of business that has one owner market share — the proportion of total market sales the business has compared to competitors the legal structure — for example, is the organisation set up as a sole trader, partnership or company
500
Describe 2 ways a Small Businesses contributes to the economy.
i. Employment – create jobs in the business and in the community. (50% employees in private sector are employed in small business (2014)) ii. Export earnings – sell goods and services overseas, contributing approximately $1.2 billion to Australia’s export earnings. iii. Taxation – business pays tax and employees pay tax. Taxation is used to provide goods and services that may benefit the whole community, such as a better education system iv. Economic growth – contributes significantly to GDP. In 2013 it contributed to around 40 per cent of GDP.
500
Explain the difference between internal and external environments
The internal environment, or the micro environment, includes those factors over which the business has some control, such as employees, managers, management style, corporate culture and company policies. The external environment includes those factors over which the business has little control, such as economic conditions, government policy, competitors and technology. It may be further divided into the operating environment and the macro environment
500
Explain the difference between operating and macro environments
A business’s operating environment, sometimes called the task environment, is made up of stakeholders external to the business who have a direct impact on the operation of the business. The macro environment is the wider environment in which the organisation operates. The organisation has less control over these factors than internal environment factors. Nevertheless, organisations need to be able to adapt to change caused by these external macro factors when they occur.
M
e
n
u