Nature of Business
A business that extracts natural resources, such as a mining company or farm, operates in this industry.
What is the primary industry?
Employees, managers and owners are examples of groups with an interest in the activities and performance of a business.
What are stakeholders?
Planning, organising and controlling are associated with this management approach.
What is the classical approach?
Recruitment, training and managing employment contracts belong to this key business function.
What is human resources?
Strengths, weaknesses, opportunities and threats.
What is a SWOT analysis?
This directive verb requires you to provide the characteristics and features of something.
What is describe?
A business owned and operated by one individual with unlimited liability has this legal structure.
What is a sole trader?
Rising interest rates and inflation affect consumer spending and business costs. These are examples of this external influence.
What is the economic influence?
A manager makes decisions independently and expects employees to follow instructions with little input.
What is an autocratic leadership style?
This financial statement records cash flowing into and out of a business over a period of time.
What is a cash flow statement?
Buying the right to operate using another business's established brand, products and business system is this establishment option.
What is a franchise?
This directive verb requires you to show how things are similar and/or different.
What is compare?
A business has experienced rapid increases in sales, employees and market share. It is most likely in this stage of the business life cycle.
What is the growth stage?
A restaurant develops a workplace where employees are encouraged to share ideas, work collaboratively and provide excellent customer service. This is an example of this internal influence.
What is business culture?
A manager encourages teamwork, motivates employees and involves them in decision-making.
What is the behavioural approach?
Product, price, promotion and place collectively form this marketing strategy.
What is the marketing mix?
Employees refuse to adopt a new computer system because they are comfortable with the existing system and fear they may not have the skills required.
What is resistance to change?
If this directive verb appears, simply identifying a factor isn't enough. You need to show why or how something occurs by establishing cause and effect.
What is explain?
A business owned by between 1 and 50 non-employee shareholders, which has a separate legal identity from its owners.
What is a private company?
A retailer introduces self-service checkouts after competitors adopt them and customers begin expecting faster service. Identify TWO external influences involved.
What are technological influences and the competitive situation/market influences?
A manager normally allows employees to participate in decisions but takes direct control during an unexpected factory emergency.
What is the contingency approach?
The manager adapts their management approach to changing circumstances.
One financial statement shows revenue and expenses to determine profit, while another shows the assets and liabilities of the business.
Name BOTH.
What are the income statement and balance sheet?
Sales reports show that customers are increasingly purchasing online rather than in-store. Management uses this information to recognise that its existing strategy needs to change.
This demonstrates what stage of managing change?
What is identifying the need for change through business information systems?
A question asks:
“________ the classical and behavioural approaches to management.”
To answer correctly, students should identify the components of each approach and investigate their similarities and differences.
What is compare?
A successful restaurant has experienced stable sales for several years, but competitors are introducing new products and attracting younger customers. Identify the life-cycle stage and one appropriate response.
What is maturity? The business could respond through innovation, product development, new marketing strategies or expansion into new markets to renew growth and avoid decline.
A manufacturer can increase profits by moving production overseas, but doing so would result in Australian employees losing their jobs. This demonstrates this management challenge.
What is reconciling the conflicting interests of stakeholders?
Management must balance the interests of owners/shareholders, who may want higher profits, with employees, who value job security.
A business faces falling sales because customer preferences are rapidly changing. The manager identifies the long-term direction the business should take and develops a plan to reposition it.
Identify TWO important management skills being demonstrated.
What are vision and strategic thinking?
Other justified answers could include problem-solving or decision-making.
Marketing promises customers next-day delivery. Operations must therefore redesign its production process, while HR recruits additional workers and Finance provides funds for new equipment.
This demonstrates what major Business Studies concept?
What is the interdependence of key business functions?
wo entrepreneurs are considering starting from scratch or purchasing an existing business. Give ONE major advantage of each option.
New business: What is the ability to design the business from the beginning according to the owner's goals and ideas?
Existing business: What is gaining an established customer base, employees, systems, suppliers and trading history?
A question asks:
“________ how effective management can improve business performance.”
A high-quality response should identify relevant components, show the relationships between them and draw out their implications for business performance.
What is analyse?