1
Which of the below are not an overextension of finances?
a. Big value of loans
b. Used up the maximum amount of credit card
c. Constantly paying only minimum amount off the credit.
d. Budget the cash flow before making any purchase
d
Establishment: The start of the a business, owner will decide the name, location, products etc
Growth: Business starts to growth, increasing sales and customer base, more people know about the business.
Maturity: The sales starts to slow down, more competition in the market
Post-maturity: Owner has to decide which strategies to use (Renewal-new product/market; Steady state-remain the same; Cessation-close down the business)
Explain classical management, with 1 advantage and 1 disadvantage of this method.
behavioural management uses autocratic management to control the operation, the higher management owns power to decision while employees do not have the power to input opinion.
- Lower waste, fast production, fast decision
- Lower staff satisfaction and motivation
Explain behavioural management, with 1 advantage and 1 disadvantage of this method.
Behavioural management emphasize human relationship, teamwork and communication. Employees have the power in decision making.
- Higher staffs' satisfaction and motivation, build employees' confidence
- Required experienced employees, slower decision making
Explain contingency management, with 1 advantage and 1 disadvantage of this method.
Contingency management assumes there's no single way to manage a business. Management method changes according to the needs, from autocratic to flexible.
- Adaptability to change according to market needs; high effectiveness
- More waste due to fast changes; higher costs
Explain the marketing strategies (4Ps)
Product: design of the product, functions, branding
Price: Lower price
Place: ex: luxury items sold in shopping malls, agricultural items sold in farmers market etc
Promotion: Discount, buy one free one, introductory discount etc
Explain 2 roles of SMEs in Australia.
Contribute to GDP; Employment opportunities; Provide choices in the market; Driving innovation; Support communities
Provide 2 quality management strategies and explain it.
Adaptability to change, will allow the business to adapt to external change and increase or maintain the performance of the business.
Interpersonal skills, motivated employees are more willing to contribute to business, resulting in a better output and lower costs.
Other example: Reduce waste, clear objectives, quality control, use of technology ect
Explain the transformation of Goods & Services.
Input resources (Raw materials, human resources, machine etc), manufacturing (Turning raw materials into semi-finished goods or finished goods, or services), and output of the goods and services (Final products, processed information, services etc)
Explain how government influences the business decision.
- Business need to follow the laws covering employment, health and safety
- Consumer protection
- Taxation
Explain the progress of liquidation.
After bankruptcy and receivership, the assets of the business will be sold and the recovered money will be used to pay creditors and shareholders.
What is a competitive advantage? Give any 2 examples
The unique edge that allow business to outperform its competitors.
- Lower price, unique branding, better quality, good service
In business cycle, what strategies can be used in growth phase?
Expansion, advertisement. employee training, professional consultant, product development, diversification, reduce waste etc
List 2 external influences that affect business decision, and explain them.
Competition; economic; financial; legal; politic etc
Explain the defiinition of stakeholder and give 2 examples.
Any people or group who will affect or be affected by business decision
- Employer, employee, nature, shareholder, customer supplier etc
List out 2 different types of cessation and give examples for each of them.
Voluntary cessation
- Retirement; resignation
Involuntary cessation
- Involuntary redundency; termination