Business Management JACARANDA Units 1 & 2 VCE

Title page......Page 1
Copyright page......Page 2
Contents......Page 3
How to use this resource......Page 6
About eBookPLUS and studyON......Page 8
About the authors......Page 9
Acknowledgements......Page 11
Could you be a successful entrepreneur?......Page 13
1.1.1 Why it is important......Page 15
1.1.2 What you will learn......Page 16
1.2 BACKGROUND KNOWLEDGE Introduction to business......Page 17
1.2.1 Business size......Page 18
1.2.3 Business activity......Page 20
1.3 Identifying business opportunities......Page 23
1.3.2 Entrepreneurship......Page 24
1.3.4 Changing customer needs......Page 25
1.3.7 Global markets......Page 26
1.4.3 To fulfil a market need......Page 28
1.4.4 To fulfil a social need......Page 29
1.5.2 Goal setting......Page 30
1.5.3 Financial goals......Page 31
1.5.4 Social goals......Page 32
1.5.5 Personal goals......Page 33
1.6.1 Business managers......Page 35
1.6.2 Business entrepreneurs......Page 36
1.7.1 Business concept development......Page 38
1.7.2 The relationship between business opportunities and business concept development......Page 39
1.8.2 Initial feasibility studies......Page 41
1.9 APPLY YOUR SKILLS Feasibility studies......Page 43
1.10 APPLY YOUR SKILLS Establishing a business......Page 45
1.11.1 The economy......Page 47
1.11.2 Social wellbeing......Page 49
1.12 EXTEND YOUR KNOWLEDGE Business contribution to the economy — Taxation revenue......Page 52
1.13.1 Government investment in research and development......Page 54
1.13.2 Council grants for new businesses......Page 56
1.13.4 School-based educational programs in entrepreneurship......Page 57
1.13.5 Regional business start-up hubs......Page 58
1.14 EXTEND YOUR KNOWLEDGE Research and development......Page 60
1.15.1 Summary......Page 62
1.15.2 Key terms......Page 63
1.15.3 Review questions......Page 64
1.15.4 School-assessed coursework......Page 67
2.1.1 Why it is important......Page 68
2.1.2 What you will learn......Page 69
2.2 Business environments......Page 70
2.2.2 The operating environment......Page 71
2.2.3 The macro environment......Page 72
2.3.2 Laws related to establishing a new business......Page 74
2.3.4 Health regulations......Page 75
2.3.5 Employment regulations......Page 76
2.3.8 Environmental protection legislation......Page 77
2.4.1 Values and beliefs......Page 79
2.4.2 Trends......Page 80
2.5 EXTEND YOUR KNOWLEDGE Societal attitudes and behaviours......Page 82
2.6.1 Economic conditions and influences......Page 84
2.6.2 Interest rates......Page 85
2.6.4 Business and consumer confidence levels......Page 86
2.7 Technological issues......Page 88
2.7.1 Developments in technology......Page 89
2.7.2 The future of business technology......Page 90
2.8.1 Overseas competitors and markets......Page 92
2.8.3 Exchange rates......Page 93
2.8.4 Protection of intellectual property at a global level......Page 94
2.8.5 Online sales......Page 95
2. 9.1 Corporate social responsibility......Page 96
2.9.3 Planning the production of goods and services that are in society’s best interests......Page 97
2.10 EXTEND YOUR KNOWLEDGE Corporate social responsibility and the triple bottom line......Page 100
2.11 APPLY YOUR SKILLS Corporate social responsibility management practices......Page 103
2.12.1 Customers......Page 106
2.12.2 Competitors......Page 108
2.13.1 Suppliers......Page 110
2.13.2 Special interest groups......Page 111
2.14 APPLY YOUR SKILLS Effect of factors from the external environment......Page 113
2.15.1 Summary......Page 115
2.15.2 Key terms......Page 117
2.15.3 Review questions......Page 118
2.15.4 School-assessed coursework......Page 120
3.1.1 Why it is important......Page 122
3.2 Internal factors affecting business planning: resource needs......Page 123
3.2.2 Labour......Page 124
3.2.3 Capital......Page 125
3.3.1 Different types of business location......Page 126
3.3.2 Factors affecting choice of business location......Page 128
3.4 Sources of finance......Page 131
3.4.1 Equity finance......Page 132
3.4.2 External sources of finance: debt finance......Page 133
3.4.4 Factors affecting the choice of finance......Page 135
3.5 Purchasing an existing business or establishing a new business......Page 137
3.5.2 Starting a new business from scratch......Page 138
3.6.1 Different types of legal structure......Page 140
3.6.2 Sole trader business......Page 141
3.6.3 Partnership......Page 142
3.7.3 Public listed companies......Page 144
3.8 EXTEND YOUR KNOWLEDGE The right legal structure for the business......Page 146
3.9.1 The business model......Page 151
3.9.2 Online business......Page 152
3.9.4 Social enterprise......Page 153
3.9.5 Franchise......Page 155
3.9.6 Import and export......Page 156
3.10.1 Legal and financial advice......Page 158
3.10.3 Community-based services......Page 159
3.10.5 Formal networks federal, state and local governments......Page 160
3.10.7 Business mentors......Page 161
3.11 EXTEND YOUR KNOWLEDGE Planning decisions and the internal environment......Page 162
3.12 Planning tools and business plans......Page 164
3.12.2 SWOT analysis......Page 165
3.12.3 Business plans......Page 166
3.13.1 Developing and constructing a business plan......Page 169
3.13.2 SWOT analysis......Page 170
3.13.3 Business planning wasn’t meant to be easy......Page 171
3.14 Corporate social responsibility management issues regarding business planning......Page 172
3.14.2 How to be socially responsible......Page 173
3.14.3 Socially responsible policies......Page 175
3.15 APPLY YOUR SKILLS Planning decisions in response to internal factors......Page 176
3.16.1 Summary......Page 179
3.16.2 Key terms......Page 180
3.16.3 Review questions......Page 182
3.16.4 School-assessed coursework......Page 184
Looking beyond the business idea......Page 187
4.1.1 Why it is important......Page 189
4.1.2 What you will learn......Page 190
4.2.2 Business name registration......Page 191
4.2.4 Taxation regulations......Page 192
4.2.5 Work health and safety regulations......Page 194
4.2.6 Consumer protection and fair competition......Page 195
4.2.7 Local government legal requirements......Page 199
4.3 EXTEND YOUR KNOWLEDGE Legal requirements created by the three levels of government......Page 202
4.4.2 Choosing the right bank account......Page 207
4.5 Establishing financial control systems......Page 209
4.5.2 Cash-flow management......Page 210
4.5.4 Inventory control......Page 211
4.5.5 Auditing......Page 212
4.6.1 Record-keeping systems and strategies......Page 213
4.6.3 Cash book......Page 214
4.6.5 Balance sheet......Page 216
4.6.6 Other record-keeping strategies......Page 217
4.7 EXTEND YOUR KNOWLEDGE A basic record-keeping strategy — establishing a cash book......Page 219
4.8 Choosing suppliers......Page 222
4.8.5 Corporate social responsibility......Page 223
4.9.1 Policies......Page 226
4.9.2 Procedures......Page 227
4.9.3 Types of policies......Page 228
4.9.4 Ensuring policies and procedures comply with legal requirements and establish routines......Page 229
4.10 APPLY YOUR SKILLS The need for policies and procedures......Page 230
4.11 Technological and global issues......Page 235
4.11.1 Technological issues......Page 236
4.11.2 Global issues......Page 238
4.12 APPLY YOUR SKILLS Evaluate and justify decisions when establishing a business......Page 241
4.13.1 Summary......Page 245
4.13.2 Key terms......Page 246
4.13.3 Review questions......Page 247
4.13.4 School-assessed coursework......Page 249
5.1.1 Why it is important......Page 250
5.1.2 What you will learn......Page 251
5.2 Marketing, establishing a customer base and achieving business objectives......Page 252
5.2.2 Establishing a customer base......Page 253
5.2.3 Marketing and business objectives......Page 254
5.2.5 Performance indicators......Page 256
5.3.2 The internal environment......Page 259
5.3.3 The external operating environment......Page 260
5.4 Market research practices......Page 262
5.4.1 Determining information needs......Page 263
5.4.2 Collecting data tools and techniques......Page 264
5.4.3 Analysis and interpretation......Page 265
5.5.1 Market segmentation......Page 267
5.6.1 Consumer trends......Page 270
5.6.2 Consumer behaviour......Page 271
5.6.3 Factors influencing consumer behaviour......Page 272
5.7.1 The ‘product’ element of the marketing mix......Page 274
5.7.3 Pricing strategies......Page 277
5.8 The 7Ps of marketing: place and promotion......Page 280
5.8.1 Distribution channels......Page 281
5.8.2 The ‘promotion’ element of the marketing mix......Page 282
5.9.1 People......Page 284
5.9.2 Physical evidence......Page 285
5.9.3 Process......Page 286
5.10 APPLY YOUR SKILLS You’ve got the product but no-one knows about it yet!......Page 287
5.11 EXTEND YOUR KNOWLEDGE The target market and the marketing mix......Page 289
5.12.1 Product life cycle......Page 290
5.13.3 Complaints, returns and refunds......Page 296
5.13.6 Catering to a multicultural market......Page 297
5.14.1 What is public relations?......Page 298
5.14.3 The importance of image......Page 299
5.14.4 Elements of the image......Page 300
5.14.5 Characteristics of the publics......Page 301
5.15 Public relations strategies......Page 303
5.15.1 Planned public relations......Page 304
5.15.4 A crisis communication plan......Page 306
5.16.1 Crisis management......Page 309
5.16.2 Critical safety messaging......Page 310
5.16.3 Socially and environmentally responsible messaging......Page 311
5.17.1 Recovering from negative public relations......Page 312
5.17.2 Managing public relations......Page 313
5.18 Corporate social responsibility issues in establishing a customer base......Page 314
5.18.1 Criticisms of marketing......Page 315
5.18.2 Socially responsible marketing......Page 316
5.19 APPLY YOUR SKILLS: Establishing a customer base, marketing and establishing positive public relations......Page 318
5.20.1 Summary......Page 320
5.20.2 Key terms......Page 323
5.20.3 Review questions......Page 324
5.20.4 School-assessed coursework......Page 327
6.1.1 Why it is important......Page 328
6.1.2 What you will learn......Page 329
6.2.2 The responsibility for staffing......Page 330
6.3.1 Human resource planning......Page 332
6.4.2 Impacts on staffing needs......Page 335
6.5.1 Job analysis......Page 337
6.6.1 Recruitment......Page 340
6.6.2 Advantages and disadvantages of different recruiting methods......Page 341
6.7.1 Employee selection......Page 342
6.7.2 Selection options......Page 343
6.8.1 The role of recruitment agencies......Page 346
6.8.2 Recruitment and selection......Page 347
6.9.1 Employment arrangements......Page 348
6.9.2 National Employment Standards......Page 349
6.10.1 Employment contracts......Page 351
6.10.2 Business loyalty......Page 352
6.10.3 Terms of notice......Page 353
6.11.1 Conditions of employment......Page 354
6.11.2 Remuneration......Page 355
6.11.4 Achieving work−life balance......Page 356
6.12.1 Job security......Page 357
6.13 Legal obligations for staffing......Page 360
6.13.1 Work (occupational) health and safety legislation......Page 361
6.13.3 Equal employment opportunity......Page 362
6.13.4 Employers’ obligations......Page 363
6.13.5 Agencies supporting equal employment opportunities......Page 364
6.14 EXTEND YOUR KNOWLEDGE Maintaining a healthy workplace......Page 366
6.15.1 The induction process......Page 368
6.15.2 The benefits of induction......Page 369
6.16.1 Overseas recruitment......Page 370
6.16.3 Transnational corporations opening and closing branches......Page 371
6.16.4 Offshoring......Page 372
6.17.1 Recruitment and selection......Page 373
6.17.2 Employment arrangements......Page 374
6.18.1 Safe working conditions......Page 375
6.18.2 Fair working conditions......Page 376
6.19 APPLY YOUR SKILLS Gender equality in the workplace......Page 377
6.19.2 Addressing sexual harassment......Page 378
6.20.1 Summary......Page 380
6.20.2 Key terms......Page 382
6.20.3 Review questions......Page 383
6.20.4 School-assessed coursework......Page 385
Glossary......Page 386
Index......Page 394