The Business Idea
Define entrepreneurship
Entrepreneurship is the process of establishing a business to satisfy a need in the market whilst also taking on the associated risks.
Define the term external environment
The external environment refers to all the factors outside of a business, which is has minimal to no control over. It includes the operating and the macro environment.
Define CSR & state what it stands for
Corporate Social Responsibility
CSR is the ethical conduct of a business beyond its legal obligations, and the consideration of social, economic, and environmental impacts when making business decisions
What are two customer relations strategies a business can use in establishing marketing for their business?
Quality Customer Service
Loyalty Programs
Define staff
The people who work for a business in exchaage for payment
Name three common business objectives
- Make a profit
- Increase market share
- Improve customer satisfaction
etc
List all the elements within the internal, operating, and macro environment
Internal: Owners & Managers, Employees, Corporate Culture
Operating: Customer, Competitors, Suppliers, Interest Groups
Macro: Political, Economic, Social, Technological, Legal, Environmental
What is the difference between a policy and a procedure? Give me an example of each
Procedures are the series of actions that employees must follow in order to abide by the businesses policies. EG: procedure for a dress code policy would outline what to do for staff in incorrect uniform (ie; attempt to provide with suitable alternatives, otherwise send home unpaid)
List the 7P's of the Marketing Mix
Product, Price, Place, Promotion, People, Process, Physical Evidence
List all the methods of both internal and external recruitment
Internal: Intranet, Word of Mouth
External: Websites, Recruitment Agencies, Social Media
List the 5 motivations for starting a business
(1) Personal independence (2) Financial independence (3) To make a profit (4) To fulfil a market need (5) To fulfil a social need
List and briefly explain the four sources of finance a business can utilise in establishing itself
(1) Equity capital (personal, private, public)
(2) Debt capital (loans)
(3) Grants (government or local council)
(4) Overdraft facilities (withdraw bank below zero)
A business owner uses the business bank account to pay for personal holidays. Explain one risk of doing this.
Does not separate personal and business spending.
This may be an issue when trying to validate the financial position of the business.
This is also an issue as reporting to the ATO for tax purposes may be inaccurate
Describe the strategy of complementary pricing and provide an example
Complementary pricing is when a business sets a low price for one item and a high price on another item that is typically bought alongside the cheap item
Examples: Printers and ink cartridges... Razors and razor blades... Coffee machines and pods
Compare job descriptions and job specifications
Job descriptions are the duties, tasks, and responsibilities associated with a role, whereas job specifications are the skills, knowledge and qualifications required by a candidate in order to complete the role successfully. While both are included on a job advertisement to potential candidates, they are different due to the nature of what they disclose - descriptions being job related and specifications being candidate related
List four ways entrepreneurs and entrepreneurial businesses contribute to the economic and social wellbeing of the nation. Briefly explain two of your answers.
(1) Employment (2) Taxation (3) Infrastructure (4) R&D (5) Economic growth (6) International trade
List and explain the types of legal business structures a business can choose from when establishing their business
(1) Sole trader (1 owner, unlimited liability)
(2) Partnership (2-20 owners, unlimited liability)
(3) Private company (max 50 shareholders, limited liability)
(4) Public company (unlimited shareholders, limited liability)
(5) Social enterprise (objective to max profit, but donate it to social/enviro cause)
(6) Government Business Enterprise (owned by gov, provides competition to private sector)
Outline two reasons why establishing record-keeping strategies is important for a business
One reason why keeping a businesses financial records is important is that is enables a business to conduct valid audits when financial transactions are recorded. Another reason why using record-keeping strategies is important is that it enables a business to form accurate business reports that help them announce or evaluate the financial position of the business
List the four steps in the market research process and outline the two types of market research
Steps: (1) Define the problem (2) Collect the data (3) Analyse the data (4) Interpret the data
Types: (1) Primary (2) Secondary
1. Interviews (CBCS: any)
2. Psychological testing (CBCS: HPE, EY, etc)
3. Work testing (CBCS: EY, Data#3, etc)
4. Online selection (CBCS: any)
Discuss global markets as a source of business opportunity
Positives: Expanded customer base, increased revenue, extended product life cycle
Negatives: Cultural and language barriers, regulatory and legal compliance issues, logistical issues, fluctuations in the exchange rate
Explain how a positive corporate culture could improve employee productivity and business performance
A positive corporate culture, the shared set of values, behaviors and practices, directly influences how employees feel, communicate, and execute their jobs. When businesses prioritise trust, transparency, and wellbeing, it generates improvements in both employee output and overall business results.
List and explain two legal requirements a business should consider when establishing a business.
(1) Registering a business name (2) Registering a website domain (3) Trade practices legislation (4) Business tax compliance (5) Work Safe insurance
What are the two types of Public Relations strategies? Provide a real-life business example for each.
Planned PR (EG: Spotify Wrapped, Dove's 'real beauty' campaign)
Crisis PR (EG: Volkswagon, Ultra Violette)
Outline and explain the National Employment Standards. In your response, list at least 4 of the 11 NES.
NES are the minimum entitlements a business must provide its full-time and part-time employees. Only some of the NES are applicable to casual workers. The FWC ensures that businesses comply with the NES, and the FWO investigates non-compliance. Examples of the NES include maximum weekly hours, parental leave, public holidays, long service leave, etc