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Preliminary Business Studies Topic 1: Year 11
Transcript of Preliminary Business Studies Topic 1: Year 11
to goods in the process of production
an example of a value chain would be:
bauxite is mined
aluminium ingots are smelted
these are turned
into engine blocks
these are fitted as part of a car
most businesses exist to make a profit
however many government businesses, charities and NGOs exist for wider goals and are less concerned with making a profit
Questions relevant to incomes.
1. Give reasons why the incomes of women tend to be less than men, given that in 2010 average full time earnings for men where $69 233 whereas women where $56 950.
2. Why do you think there is such a difference between the average wages paid to miners and the average income paid to retail workers?
3. Currently a significant number of jobs are exported to other countries. Many of Australia's communications and banking businesses, for example have established call centres in India rather than Australia.
* Why would they do this?
* What are some of the advantages of this course of action?
* Are there benefits for countries like India?
* How will the business owners benefit?
4. What are the benefits of foreigners working on 457 visas to the Australian economy? (Watch You Tube below)
5. Outline the content of the SMH article, link below.
Questions relevant to choice.
1. Do some internet research to find out about "Choice" magazine.
* Outline the purpose of this magazine.
2. Think about a good or service you have recently purchased. It might be a mobile phone, a piece of clothing or shoes or something to do with entertainment.
* Why did you purchase the brand you did rather than a competing brand?
Jot down your thoughts and share with a partner.
Questions relevant to innovation.
Audi's slogan is 'Vorsprung durch technik' which translates to 'advancement through technology'.
1. Do research to find out some of the technical innovations of the
company over time.
Woolworths did things better, and was more successful than Coles, until another company purchased Coles and made changes. Now Coles is catching up to Woolworths.
2. What sort of things did
do better that allowed it to out outcompete
in the past?
Who now owns Coles?
What has been the latest developments in this competitive situation?
3. What are the applications of drones?
4. What are the innovations of Tesla vehicles?
Local, national or global
other small businesses
this is based on geography
separate legal entity
other small businesses
Questions related to the legal structure of business
1. A sole trader refers to a business owned by one person.
Does that mean that the sole trader business can have only one person working in the business?
Do sole trader businesses need to register their business name with the NSW Fair Trading?
2 List the defining characteristics of a partnership. What businesses are commonly partnerships?
3. Why are the people involved in a partnership advised to have a partnership agreement?
4. Why is a company form of ownership better suited to medium to large business size?
5. What does the phrase "separate legal entity" mean in reference to a company?
6. What things can a company do in its own right?
7. Explain the term "unlimited liability". What businesses does this apply to?
Claudia intends to start a business as an electrician, having worked in this trade for 10 years and saved for start up costs. She needs to investigate the different types of legal structure available to her.
The legal structure of a business takes into account the different forms of ownership, the number of owners, the liability of the owners and other matters. The different options for Claudia include:
Discuss the legal structures that Claudia might consider when establishing a business.
A franchise business can be in the form of sole trader, partnership or possibly held by a private company. The franchisee pays fees to a franchisor to operate that business under a licencing agreement.
Is the Falcon going the way of the Dodo? Stephen Ottley
March 4, 2011
Flagging sales have put the locally-produced Falcon on the endangered list
The Ford Falcon is becoming an endangered species. Pressure is mounting on Ford Australia’s local manufacturing operation as the iconic Falcon model continues its sales slide.
The latest car sales figures released yesterday show that Falcon sales have slumped to less than half its arch-rival, the Holden Commodore. Only 1,572 Falcons were sold in February according to the sales numbers released by the Federal Chamber of Automotive Industries (FCAI).
In stark contrast Holden sold 3,829 Commodores, making it the biggest selling car in the country.
Advertisement: Story continues below The decline raises questions about the viability of Ford’s Australian manufacturing operations. Sales of locally-built Fords have almost halved in the past five years as buyers have flocked to smaller cars, and things have got even worse this year, with sales in the first two months dropping by almost a third.
In contrast, Ford’s smaller Focus and Fiesta cars are selling well. The situation raises questions about Ford’s decision to abandon plans to build the next-generation Focus in Australia.
The car was due to be built at Ford’s Broadmeadows headquarters from later this year, but Ford decided instead to focus on developing a four-cylinder Falcon, dubbed EcoBoost, late this year.
Ford Australia spokesman Neil McDonald tried to put a positive spin on the sales figures.
“Obviously Focus is one of our important new vehicles this year, along with a host of other models in the pipeline - new Territory, Falcon LPi, Falcon EcoBoost and Ranger. Focus arrives in Q3 and it will deliver some high-tech, efficient modern motoring solutions in that competitive small car segment.”
The decision to abandon local Focus production brought into sharper focus this week by Holden’s high-profile launch of its locally made small car, the Cruze.
Holden managing director Mike Devereux said the car was vital for Holden to add more production to its South Australian factory. He believes car makers need to produce at least 100,000 cars locally in order to get economies of scale.
The Cruze currently comfortably outsells the Falcon, despite being imported from Korea.
Currently Ford’s Broadmeadows plant is operating well below its maximum capacity of 120,000 vehicles per year; last year it sold only 50,000 locally made cars in Australia. McDonald says adding the EcoBoost Falcon will entice buyers back to large cars.
“With rising fuel costs consumers are becoming more acutely conscious of fuel economy,” he says. “EcoBoost Falcon will deliver the performance of a six cylinder with the fuel economy of a four, without sacrificing space and creature comforts, which Falcon customers expect and demand of their vehicles.”
Ford secured $42 million from the Green Car Innovation Fund to develop the EcoBoost Falcon and diesel-engined Territory SUV.
But it wasn’t just bad news for Ford and the Falcon. Large car sales are continue to drop as buyers look for smaller, more fuel efficient vehicles. Even the Commodore is down 9.5 per cent year-to-date.
The trend to smaller cars is also putting pressure on the whole local manufacturing industry, that comprises Ford, Holden and Toyota, and is reliant on large and medium cars. The latest figures from the FCAI show that locally made cars are down 21.4 per cent year-to-date, with less than 20,000 sold.
Ford Falcon sales decline
2003 – 73,220
2004 – 65,384
2005 – 53,080
2006 – 42,390
2007 – 33,941
2008 – 31,936
2009 – 31,023
2010 – 29,516
What factors precipitated the GFC?
What is the relevance of
consumer and business confidence
to an economy?
economic automatic stabillizers
Quiz: Economic cycle
What forms of
(the governments powers of spending and taxation) has the Australian Government used in recent years?
The Nature of Business
Frank Lowy is an Australian businessman. He is a co-founder of the Westfield Group, operator of over 100 shopping centres in Australia, New Zealand, the United States and Great Britain.
entrepreneurship and risk
quality of life
Suggest some ways that profits are maximised.
Business can provide:
quality of life at work
labour saving, health care and entertainment products
high incomes to enable purchase of the above
a tax contribution for government services
QUIZ: The role of business
What do businesses do?
What are entreprenuers?
How are managers different?
How is today's workforce different to that of around 1980?
What were the average full time male earnings in 2015?
What factors cause the earnings of women to be lower?
What is productivity?
Why is product innovation critical to a business?
Give three reasons why the income paid for one job might be different to another job?
What is an 'award', in reference to employment?
What body is responsible for awards at a Federal level, that is, they apply over the whole of Australia?
Apple are a very innovative 'tech' company, renowned for being design savvy.
What have been their key products?
How do businesses protect their innovations?
The two ways a company may build wealth for individual shareholders are capital gains and dividends. Explain these terms.
What are common ways ordinary Australians build wealth?
Business can provide quality of life through the goods and services they provide.
How else could business provide quality of life?
How could business have a negative effect on quality of life?
Quicksilver is a company that provides surf gear. Innovation is important to stay ahead of other competing businesses. They have recently developed a new range of compression board shorts. There are three parts to the shorts that allow them to appear as normal board shorts but have an inner layer that uses compression technology. They intend to sell these products as both fashion and performance aid. Compression aids muscle recovery. The new compression board shorts are a first for Quicksilver and this innovation may help their competitive position.
Why is innovation important to the Quicksilver company?
The role of business
businesses produce goods or deliver services and create profits
Stakeholders in a business:
The role of business in society:
producing goods and services
entrepreneurship and risk
quality of life
producing goods and services
economic growth provides jobs and rising living standards
economic growth is measured by GDP which is gross domestic product
inflation is a rise in the general level of prices of goods and services over a period of time
businesses are not legally separate from their owners.
these business have
businesses are legally separate from their owners.
these businessess have
Unincorporated businesses include:
Incorporated businesses include:
any number of shareholders
listed on ASX
must issue prospectus before listing
must issue annual report
abide by Corporation Laws
shareholders elect Board of Directors
Board appoints CEO
one to fifty shareholders
not listed on ASX
abide by Corporations Law
eg: Australian Postal Corporation, City Rail
Factors influencing the choice of legal ownership
Explain these terms:
NSW Department of Fair Trading
'affordable solutions for better living'
the world's largest retailer
affordable, sustainability, good design and functionality
500m customers each year
300 stores in 36 countries
10 000 item product line
wood production and upolstery products in Poland
prototype testing, kitchens, bookcases in Sweden
1943 - business is started by 17-year-old Ingvar Kamprad in Sweden
1956 - first flatpack
1958 - first store opens
: p. 53
Section 1 and 2
The firm is known for the attention it gives to cost control, operational details and continuous product development, allowing it to lower its prices by an of average two to three per cent over the decade to 2010, while continuing its global expansion. Some of these stores operate as franchises.
IKEA, is not, in fact, a Swedish company, but a company controlled by the Dutch stichting – a tax exempt, nonprofit foundation – to which Ingvar Kamprad transferred his ownership shares in 1982. In 2011 further separation occured moving profits from the Kamprad family to the foundation.
2011, IKEA announced its plans for a wind farm in Dalarna County, Sweden, furthering the furniture giant's goal of running on 100 percent renewable energy.
In common with some other retailers, IKEA has launched a loyalty card in some of its locations called "IKEA family".
The biggest store in the Southern Hemisphere is in Tempe, Sydney, Australia.
Types of business
Influences in the business environment
These are outside the control of the business's managers. However the manager can repond in a way that gives it an advantage over its competitors.
the economic cycle
deregulation, globalisation, financial products including derivatives
the impact of general and specific locational influences
attitudes, values and beliefs of society
together with social trends
the framework of laws and regulations
the ideas of political parties that are related to business
includes trade unions and trade and professional associations
that can inhibit change
technology is about how things are done in business
refers to markets where other businesses are providing products for the same need
these are increasingly global, and increasingly utilise the internet
Euro debt crisis
Preliminary Business Studies: Topic 1
What occured with the
of the finance industry in Australia?
Give examples of
operating externally upon Qantas.
Give examples where
are satisfying the same need in high tech consumer products.
external legal situation
may constrain the development of high tech consumer products.
Describe how the marketing and sale of a dangerous product may be constrained by the
external legal situation
Explain how recent
developments have affected Qantas.
Fitness First, 'My Kitchen Rules' , and the 'Wii' product are indicative of what
How has the
affected property developers in the USA?
Quiz: External influences on business
A derivative instrument is a financial instrument which derives its value from the value of some other financial instrument or variable.
influence of markets
These are within the control of the business's managers.
goods and services may meet customers needs better, may be better quality, better value or provide better customer service
this will have a strong influence on the success of many businesses
management and business culture:
business culture needs to be based on 'best practice' rather than the way things have been done in the past
Managers need to be aware of all the things that contribute to the overall customer need and develop a product that meets that need.
What do you think the
overall customer need
for these vehicles is?
Why do you think the former McDonalds on King Street Newtown, closed?
What are the advantages and disadvantages of a large retail shopping mall?
This is the new
Range Rover Evoque
brands were acquired by the huge Indian company
and funds were available for development of new models.
Range Rover Evoque
management and business culture
Business refers to the
of the managers and employees within the business.
List some points that are relevant:
People need to embrace change
Business culture needs to be based on best industry practice
Best practice is the most competitive business that involves ideas such as: efficiency, quality production and high level of customer service
Examine and discuss page 68 and 69 of your text.
External inluences: business managers can respond to them, but not control them.
Internal influences: managers can exercise control over these.
Internal and external stakeholders
Business growth and decline
Stages of the business life cycle
Post - maturity
owners / shareholders
What are the
three key factors
over which management can exercise control?
What is the most important aspect of a businesses product or service?
Explain how the
Range Rover Evoque
What are the reasons for many
on King Street, Newtown?
main distribution centre
What do you think the following features of a particular work environment says about its
Bicycles or scooters for efficient travel between meetings; dogs; lava lamps; massage chairs; large inflatable balls.
Employees sharing cubes, yurts and huddle rooms – and very few solo offices.
Laptops everywhere – standard issue for mobile coding, email on the go and note-taking.
Football, pool tables, volleyball courts, assorted video games, pianos, ping pong tables, and gyms that offer yoga and dance classes.
Grassroots employee groups for all interests, like meditation, film, wine tasting and salsa dancing.
Healthy lunches and dinners for all staff at a variety of cafés.
Break rooms packed with a variety of snacks and drinks to keep Googlers going.
What factors make form a
What are the challenges of the growth stage of the business life cycle. Discuss the strategies that managers use to meet these challenges.
Managers will need to meet certain challenges in the growth phase of the business life cycle as there will be demands on all resources including
The demand for the businesses products will increase rapidly. This may place demands on the
side of the business, as any
will need to be sorted.
The increase in production and sales may necessitate additional staff. These staff will need to be selected and trained. Staff duties may need to be redesigned to maintain
, as you may find several staff trying to solve the same problem.
Cash flow problems
will probably arise as the money from
may take time to be paid to the business by retailers. This time lag will be difficult if customers take full advantage of the terms offered. At the same time staff and suppliers will have to be paid on time.
As the success of a product becomes evident
will emerge. The competition may try to undercut on price.
Various strategies are used by managers to cope with the challenges.
The business life cycle
Responding to challenges at each stage of the business life cycle
Establishment stage challenges:
getting the finance and market share needed to grow, negative profits, huge workload
Growth stage challenges:
as with establishment, cash flow problems, staff shortages, competitors may emerge
Maturity stage challenges:
market for product is saturated, finding new ways of growing the business
Post maturity stage challenges:
falling sales and market share, renewal is rare, ethical challenges encountered with cessation
Contributing factors to business decline
some businesses don't embrace change, they don't keep up with the changing needs of customers
some businesses have a lack of finance this means they can not pay their bills
managers fail to establish a business culture through things like induction programs and training programs
product or service becomes outdated
Voluntary and involuntary cessation
the legal process of winding up a business
assets of the company are sold and proceeds are distributed to creditors
first priority among creditors will be secured creditors
all stakeholders may lose through the liquidation process
1. List 4 things about each of these forms of
2. To what extent can managers control external influences?
Managers cannot control the various external influences. What they can do is to plan to meet these challenges.
3. Discuss the external influence of
on Qantas and Woolworths.
Woolworths has adopted the avaliable technology of an automated warhouse/distribution centre at Minchinbury in Western Sydney. The result of this technology is that costs are minimised and that allows Woolworths to be more competitive.
In recent years, there has been significant development in technology regarding passanger airplanes. The Airbus A380 has a larger carrying capacity and both it and the Boeing Dreamliner have far greater fuel efficiency. Qantas has had to acquire these planes to remain competitive with other airlines. New planes don't have to be serviced as often as older planes. Qantas is rationalising its fleet to fewer models to reduce servicing costs.
4. Discuss the external influence of
regarding Australia's mining companies such as BHP Billiton, Rio Tinto and Newcrest Mining.
Australia is endowed in a wide range of mineral resources. China and India are the two fastest growing economies with huge populations going through a rapid development phase. They require large quantities of resources and Australia is in a good geographic location to provide these at competitve rates. Argentina also have these minerals although they are further away and at a competitive disadvantage.
5. Discuss how
have influenced businesses such as Fitness First and Woolworths.
Healthy living is becoming a lifestyle choice, people are living longer and are interested in quality in life. Businesses such as Fitness First are taking advantage of this external influence by offering aggressive marketing for gyms around the nation. Their marketing strategies have allowed them to knock out much of their competition.
Woolworths have responded to the external social trend for a healthy lifestyle by marketing themselves as 'The Fresh Food People'. Woolworths introduced deli and bakery sections to the stores.This gained them a huge advantage over their competitor Coles. Woolwoths also realised that customers wanted a more pleasant shopping experience and they catered to this by renovating and expanding their stores.
11.Discuss how all the mentioned businesses are effected by the
The economic cycle describes the expansion and contraction of the economy over time. When the economy is expanding, business profits and employment will grow. When the economy contracts, business profits and employment will fall. In 2007, the world economy was hit by the Global Financial Crisis (GFC) which was the worst reccession since the 1930s. The number of people flying, and flying in business and first class dropped dramatically. Qantas adopted a number of strategies;
They reconfigured the planes so they had more economy seats.
They cut flights that were not popular.
They put some of their planes into storage.
They laid off some staff.
They changed some routes from Qantas to JetStar
They cut fare prices to attract customers
These strategies allowed Qantas to overcome the GFC.
The structure you choose for your business should fit ..........................., like a good pair of shoes. A poor choice of business .......................... can prove painful. The most common business structures are sole trader, ........................., private company and ................ company. Each has advantages, and disadvantages.
In deciding what structure to choose, you should consider such factors as the type and ............. of the business, ........................ requirements, the degree of ownership ...................... and taxation.
is the simplest and most ........................ form of business structure to set up. As a sole trader you can trade under your own .................... However, if you wish to have other words in the title of the business then you must ...................... a business name. Registration of a business name does not make the sole trader a ....................... legal ..................... You will still be responsible for any actions of the business and personally ................... for all business debts.
is defined by the Partnership Act 1892 (NSW) as the ........................... which exists between persons carrying on a business in common with a view to profit. It involves an agreement between two or more parties to enter into a ............................. binding relationship.
It's wise to have a .......................... written partnership ....................... because it sets out each partner's responsibilities and reduces the likelihood of disputes. For example, one partner may be contributing more money or .................. to the business and therefore be entitled to a greater ..................... in the business. An agreement can also cover what happens if the structure is dissolved or changed, for example, through the ............................ or death of one of the partners.
is a more complex business structure formed by one or more people who wish to have a business that is a ...................... legal ................... to themselves.
Private companies are .......................... under the Corporations Law. The establishment and ongoing administrative costs associated with ............................ can be high. This is why the structure is generally considered to be better suited to ........................... to large businesses.
is also regulated by ......................... Law. A public company is a company that is listed on the Australian Securities ......................... and has the ability to raise funds from the general ....................., subject to certain disclosure requirements being met.
Do you know these?
Reserve Bank of Australia
David Jones heads mid-market
March 23, 2012 Read later
The department store sector has been on the downhill slope for at least the past two years while retail spending overall has recorded subdued by steady growth.
DJs and Myer have been caught out trying to run 20th century businesses when we’re well into the second decade of the 21st. The successful retail world has already adapted and moved on.
So one should be loath to add further verbiage to that granted the DJs saga, except for the nice observation made by a banker of all people: look at the DJs’ flagship Sydney store – last century it was considered relatively upmarket. Now it’s not.
The “up” part of the market has moved beyond some ground floor marble and a bloke playing a piano. Within a stone’s throw are a host of much glitzier, more expensive retail experiences better skilled at enticing people who enjoy spending more money than they have to for stuff. DJs is, at best, fighting to hold on to a perch as upper-mid-market.
And just around the corner is Zara, the Spanish equivalent of Sportsgirl but done well, showing how mid-market can be very successful. And there are more such foreign retailers on the way to maintain the pressure on sleepy Australian companies that were doing nicely out of not having to do all that much.
The current CEO’s plan is to roll out more stores which will make David Jones more mid-market as it makes it less exclusive. It’s not an experience to visit a David Jones store – there’s one in the local mall.
David Jones aims for 10% of sales online
February 24, 2012 Read later
Upmarket department store chain David Jones hopes to make about 10 per cent of its sales online as it tries to lure new customers and avoid closing stores.
Quiz: Internal influences on business
The role of business
Types of business
Influences in the business environment
Business growth and decline
Term 1 2016
íf the shoe fits
developing a new way of doing something or a new product
the people who are prepared to task business risks
the difference between the price at which the good is sold and the cost of producing it
Chief Executive Officer - the top manager
is the direction and action of a business to meet the needs of markets and to fulfil stakeholder expectations
Teaching and learning strategies including 'Students learn to':
Activity text p. 13, Investigate Gloria Jeans
Investigate and learn about the new Boeing 787 Dreamliner and consider the entreprenuerial risks involved with creating this commercial jetliner.
What has been the companies investment in this project?
What does the word 'strategy' mean? What is the Boeing strategy for this jetliner?
Who are the stakeholders of Boeing?
Create a fact file on this Boeing project.
literacy development - text p. 14
distinguish between a good and a service
Teaching and learning strategies including 'Students learn to':
Can you explain the difference between 'íncome' and wealth?
What is meant by the concept 'income distribution'?
Consider income distribution in the USA:
CEOs in Britain and Canada earn 20 times as much as the average worker, in Japan 11 times, and in the USA it is 343 times that of the average worker
the net wealth of the average USA family wealth dropped from $126,000 in 2007 to $77,000 in 2010
the top 1% of the USA has more wealth than the bottom 90%
Investigate wealth distribution in Australia
What is meant by a quintile?
What proportion of wealth does the top quintile of Australian households have?
The 787 was pitched as the airline of the future – a revolutionary plane that that would use new technology to bring aircraft design into the 21st century. The Dreamliner is made of carbon-fiber reinforced plastic composite. More radically still, pneumatic and hydraulic systems have been ditched for electric systems.
The technological leap was always likely to cause teething issues. But these were exacerbated by Boeing's decision to massively increase the percentage of parts it sourced from outside contractors. The wing tips were made in Korea, the cabin lighting in Germany, cargo doors in Sweden, escape slides in New Jersey, landing gear in France.
The plan backfired. Outsourcing parts led to three years of delays. Parts didn't fit together properly. Shims used to bridge small parts weren't attached correctly. Many aircraft had to have their tails extensively reworked. The company ended up buying some suppliers, to take their business back in house. All new projects, especially ones as ambitious as the Dreamliner, face teething issues but the 787's woes continued to mount. Unions blame the company's reliance on outsourcing.
Bill Dugovich, communications director at SPEEA, the professional aerospace union, said his members had first voiced their concerns in 2002. "Outsourcing in general lengthens supply lines, creates problems with language and culture and is extremely hard to coordinate. You have seen a plethora of problems at Boeing. Things get outsourced then they have to come back to Boeing to get fixed," he said.
Dr Amar Gupta, dean of Pace University in New York, has studied the construction of the Dreamliner and is not convinced that outsourcing itself is the issue. "We have been outsourcing since the industrial revolution," he said. The problem is one of communications, he argues, and complexity. A car has roughly 15,000-20,000 parts; a plane has more than 2,000,000 parts.
"The concern is that each organisation did what it was asked but there was a failure to bring the whole thing together, to integrate the systems," he said. Gupta thinks that with better communication and organisation – what he calls "24 hour knowledge factories" – outsourcing could pull off feats as complex as the Dreamliner.
Australian entrepreneur: Frank Lowy
Frank: second from left
Westfields London: At the time of its opening in 2008 it was reported to be the largest shopping centre in Europe.
His 74m yacht, Ilona.
Teaching and learning strategies including 'Students learn to':
students research the importance of innovation to firms such as Audi, Woolworths (see p. 20 of text) and Easyfoods (p. 22-23 of text)
students research an Australian entrepreneur
students do the oral questions in the circular frame
students do Worksheet 1.1 of text p.29 including ranking activities
students practice writing using the scaffold at the end of this sub - topic
The Superpit gold mine at Kalgoorlie, WA.
Describe the employment role of business and how it has changed.
ut of a population of 23m the workforce is approximately 11m. Employment allows businessess to produce goods and services. It allows employees to earn an income and provides for quality of life and purpose to life.
he Australian workforce has a undergone a number of significant changes since the 1980's.
There is a much greater emphasis on skilled jobs.
he participation of young people in education and training has increased.
here has been an increase in the proportion of the workforce working part-time, casual or under contract.
he population and workforce has aged.
he participation of women in the workforce has increased.
here has been a shift in employment between different industries
abour shortages are experienced in some industries.
here is increased emphasis on the workforce providing for their own retirement.
hange in employment is ongoing.
Out of 23m Australian's approximately 11m are in the workforce
employment provides business with workers needed to produce goods and services and of course returns incomes to the workers, as well as adding meaning, purpose and a social dimension to their lives
in the past 30 years ther have been substantial changes in employment patterns and trends and the situation of change is ongoing
these changes include an increasing:
emphasis on skilled jobs
emphasis on education and training
participation of women
requirement for people skills
difference in income according to occupation
proportion of part time, casual and contract employment
movement between jobs
reliance on personal superannuation
these changes include a decreasing:
relevance of gender stereotypes
number of jobs in manufacturing
there is an increased 'blurring of life and work' due to technology and an increase of focus on 'work / life balance
and certain industries experience shortages
this is the main idea of each paragraph
these sentences ELABORATE, provide EVIDENCE or EXAMPLES
you can also link back to the question if useful
Writing for business studies is factual and to the point.
If appropriate it may be useful to list factors in dot point form.
Punctuation including full stops, and capital letters for beginning a sentence and proper nouns is vital.
Leave a line between
Sum up or restate the key points you have made
I have done the supporting
sentence for you for this
usinesses can be grouped by the different legal ways they can be owned. In establishing a electrician business Claudia has the possibilities of sole trader, partnership and private company.
he sole trader is the simplest form of business ownership.
Advantages of the sole trader include:
Disadvantages of the sole trader include:
partnership form of ownership would allow Claudia to join with another or others to form a business:
The sole trader is the simplest form of business ownership.
Advantages of a partnership include:
Disadvantages of the partnership include:
private company is another form of ownership possible for Claudia. With this option the business would become a seperate entity to its owners.
Advantages of the private company include:
Disadvantages of the private company include:
y recommendation for Claudia would be
Individual income tax rates
Legal structure comparisions
To make it obvious for you I have made the first letter of each paragraph in yellow
What is a government enterprise?
Business legal structure
What do you think would be the best legal structure in the following situations:
x plans to start a suburban cafe
x plans to commence minerals exploration which will require considerable capital and substantial risk
x and y are partners and plan to buy a small franchise type business
x and y plan to start a hairdressing salon
x, y and z plan to join together to form a law firm
x is a highly successful private company involved in large scale beef farming and plans to grow through major land purchases which would require more capital
x plans to purchase a high turnover McDonalds franchise
sets interest rate policy in Australia
Rolls Royce: 'China is our biggest market'
1. Describe what an 'award' will contain.
2. List the charactersitics of a micro business.
3. List the characteristics of a medium business.
4. Provide reasons why some jobs are paid higher than others.
5. Define 'patent'.
6. Explain how businesses contribute to innovation?
7. What is the return to investing in a company called?
8. Explain the difference between income and wealth.
9. What are the characteristics of an entreprenuer?
10. What type of business assets depreciate?
11. What is the purpose of a prospectus?
12. List and describe the five industry sectors.
13. What businesses are involved with the secondary sector?
14. What does deregulation mean?
15. What is involuntary business cessation?
16. Name some industries in Australia that have been deregulated.
17. What strategies could be used in the maturity stage of the business cycle?
18. Why might voluntary cessation take place?
19. What are the social influences on business?
20. What occurs in the process of incorporation?
21. How does incorporation incourage investment?
22. Describe the liability of private and public companies.
23. What is a prospectus?
24. What is meant by the legal structure of a business and what options are there?
25. What factors will influence the choice of legal structure for a business?
26. Define the economic cycle.
27. What occurs during a boom phase of the economic cycle?
28. Define productivity.
29. What are the four stages of the business life cycle?
30. Who are the external stakeholders of a business?
Who are the internal stakeholders of a business?
customers dont know product
retailers reluctant to stock
takes time to get recognition for product
expenses are higher than sales revenue
profits are likely to be negative
businesses lose money in this stage
rapid increase in sales
pressure on resources, particularly cash and labour
cash problems develop
competitors attracted by increasing sales
sales level off
market for product is saturated
time to employ professional managers
focus on remaining competitive
Post maturity characteristics
final stage of life cycle
falling sales and loss of market share
cash flow problems emerge
business may decline unless there is a renewal strategy
Business legal structure
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Qantas is under pressure over its switch from Singapore to Dubai as its hub to Europe as well as fare discounting on the route announced last week by China Southern. The Chinese airline is muscling into the Australia-London route, via its home city of Guangzhou, and in the short-term is dramatically undercutting Qantas fares.
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External influences on the business environment.
External influences are largely ............. the of the control of the business. They include influences related to:
the level of e............ activity
the f............. system
the c.............. situation
Economic external influences
Businesses will be affected by the level of economic activity. The level of economic activity varies according to the business c........ The economic cycle is the .............................................................................. This is usually measured by annual growth in ......... An upswing in the level of economic activity is associated with:
An upswing will generally increase opportunities for most businesses.
A downswing in the business cycle will make circumstances more difficult for most businesses. A downswing in the economic cycle is associated with:
A downswing may mean a business has reduced p........, may reduce its w.................., and may make it difficult to undertake new investment.
Examples of businesses facing difficult economic circumstances include Australian mining companies who face lower prices for their products due to a slowing of economic activity, paticularly in C...........
Financial external influence
The main influence has been financial deregulation. This occurred back in the 1980s.
Main changes that occurred:
• The floating exchange rate (this made for a more responsive economy)
• International banks were allowed to operate in Australia
• The number of merchant banks (cater to large business) expanded: Macquarie Bank
• More domestic banks were encouraged besides the ‘big four’
The effect of these changes (or deregulation, which is the removal of government regulation) was to provide a large increase in the availability of funds for businesses to expand.
Generally a business needs finance to expand and this falls into two categories:
• Debt finance…this is borrowed funds from a bank or another business and there is a contractual agreement to repay the funds with interest at specified periods
• Equity finance…this is finance provided internally by the owners and it often refers to profits that are reinvested into the business rather than being distributed as dividends
Geographic external influence
Key factors here have been: