Business basics
What are the 5 stages of the business life cycle.
Seed
Start-up
Growth
Maturity
Post-maturity
The very beginning of the business life cycle - when the business is just a thought or idea.
What does the acronym SMART goal stand for?
Specific
Measurable
Attainable
Realistic
Timely
Define human resources.
The function within the business that aims to build the relationship between employer and employee. Strategies such as flexible work training and workplace conditions, focus on improving the motivation of employees and meeting their expectations.
What is horizontal integration?
A process that involves acquiring, merging, or taking over a company by another company in the same industry.
Identify the four factors that influence the internal environment of a business.
Owner/Manager
Employees
Organisational structure
Organisational culture
Describe the start-up stage
A clear business plan is developed and a legal structure is in place.
What does SWOT stand for and which components are internal and external?
- Strengths & weaknesses
External:
- Opportunities and threats
What are the four key functions of HR.
Recruit and select staff
Develop staff professionally
Maintain, motivate and support staff
Be legally compliant and ethical
What is a merger?
Two businesses of similar size and scale of operations combine into one new company.
What are the two layers of the external environment made up of?
Operating
Macro
Describe the growth stage.
The movement of the business into either an established state or expansion state.
What is a vision statement?
An aspirational description of a business' future direction.
What are four stages of the employment cycle?
Acquisition
Development
Maintenance
Separation
What is acquisition?
One business buys another, often smaller business.
What four stakeholders are included in the operating environment?
Customers
Competitors
Suppliers
Interest groups
Describe the maturity stage.
After expansion or consistent growth, the business should be at the top of its industry and considered matured.
What is a mission statement?
A plan of action for a business; it is an actionable statement. It states the purpose of a business by defining the business' culture, values and ethics.
What is one type of legislation related to HR?
Fair Work Act 2009
Superannuation Guarantee Act 1992
Anti-Discrimination Act 1991
Work Health and Safety Act 2011
What is vertical integration?
A firm's control over single or more levels or stages of its production process or supply chain.
Identify the seven factors that affect the macro environment.
Socio-cultural
Technological
Economic
Environmental
Political
Legal
Ethical
Describe the post-maturity stage.
The business may head in one of three direction: steady-state, decline or renewal.
What is the relationship between goals/objectives and a mission statement?
The are linked as a goal provides a clear direction of what a business wants to achieve in its mission statement.
What is involved in the development stage of the employment cycle?
Identify 3 benefits of horizontal integration.
Economies of scale
Increase product differentiation
Economies of scope
Higher efficiency
Reduced competition
Access to new markets