Nature of Business
An SME can be defined a business with less than ___ employees?
200
A manager must coordinate the four key business functions. What are they?
Human resources; Operations; Marketing; Finance
Name the 2 strategies that can be used to gain a competitive advantage
Product Differentiation
What do the letters SWOT stand for?
Strengths
Weaknesses
Opportunities
Threats
Name 2 types of market concentration
Perfect competition; Monopolistic Competition; Oligopoly; Monopoly
Name 2 benefits of quality management
• reduced waste and defects
• reduced variance in final output
• strengthened competitive position
• improved reputation and customer satisfaction
• reduced costs
• increased productivity and profits.
What are the 3 establishment options for starting an SME?
New, Existing, Franchise
Behavioural
Classical
Contingency
What are 3 external influences in the business environment
economic, financial, geographic, social, legal, political, institutional, technological, competitive situation, markets
Name 4 skills of management
interpersonal, communication, strategic thinking, vision, problem-solving, decision-making, flexibility, adaptability to change, reconciling the conflicting interests of stakeholders
Name 3 sources of information for an SME owner
Accountants, Lawyers, Trade organisations, Libraries, ABS, Business mentor, Government, Bank Managers, Chambers of commerce, TAFE, professionals, government agencies
Name 3 influences on establishing an SME
Personal qualities
Sources of information
Business Idea
Establishment options
Market
Finance
Legal
Human Resources
Taxation
What are the four stages in a Business Life Cycle?
Establishment
Growth
Maturity
Post Maturity
This approach to management typically focuses on leading, motivating communicating with staff and teams.
Behavioural Approach
What are three benefits of a business plan?
Tests viability of the business
Proactive vs reactive owner
Identifies strengths and weaknesses
Forces owner to justify their actions
Indicates owners level of commitment
Assists in maintaining business operation
Assists in obtaining financial resources
What are 3 roles of Human Resources
Recruitment
Training
Employment contracts
Separation - involuntary/involuntary
Training
Name 3 industry sectors in which a business may be classified
Quaternary; Tertiary; Secondary; Primary; Quinary
What are the four elements of the Human Resources Cycle?
Acquisition
Development
Maintenance
Voluntary
What is the break even quantity formula?
BEQ = Fixed Costs / (Price - Variable Costs)
What is the formula for COGS?
COGS = Opening Stock + Purchases - Closing Stock