QCE Business - Unit 1 - Topic 1 - Fundamentals of Business

Business

an economic activity that provides goods and services to satisfy the needs of consumers

Goods and services

the objects (goods) and the actions (services) that people value and produce to satisfy human needs

Exchange

the transfer of value from one party to another

Outcome

the motive of a business, usually aiming to have a positive outcome

Internal environment

factors that directly influence the approach and the success of the operations inside a business

Owners/Management

the leadership role that influences efficiency and effective business function

Employees

the people who make the products and provide the services

Organisational structure

Refers to the levels of management and division of responsibilities within an organisation

Organisational culture

The system of shared beliefs and values that develops within a business and guides the behaviour of its members

External environment

Factors that directly influence the operations of a business

Competitors

Any business that is in the same industry and offers the same good or service

Supplier

Provides the resources that a business needs to operate

Interest groups

Organisation that shares a common interest and desire together for the benefit of an industry

owners/management

the leadership the fosters an efficient and effective business

employees

an essential factor internal factor of a business

efficiency

using resources in such a way as to maximize the production of goods and services

stakeholder satisfaction

Fulfill stakeholder motives and meeting those wishes

5 stages of business life cycle

Seed, Start up, Growth, Maturity, Post Maturity

Seed stage

Business is just an idea

Significant expenditure of money and time

Introduce business plan

Start up stage

Viability of business is established; riskiest stage

Gain stakeholder satisfaction

Marketing is major focus for business strategy

Growth stage

Business either established or expands

Rapid growth can mean resources are over extended

Implementation of quality practice strategies

Maturity stage

Business should be at top of its industry

Environmental factors are most challenging for business as innovations are made

Need to strategise competitiveness

Post maturity stage

Business may be steady, in decline or in renewal

Challenging to determine direction of business

Need to adopt market research strategies and innovation to keep up with the economy

Profit based business

A business with the aim of making profit from goods and services

Not for profit business

Profit does not benefit business, benefits community concern

Government owned corporation

Business established by government in response to community need, sectors such as energy, water and rail

Government business enterprise

Commonwealth entity that is governed by public governance 2013 act.

Created to fulfil commonwealth recognised purpose

Sole trader

Owned by one person, bound by unlimited liability

Partnership

Owned by 2-20 partners, bound by unlimited liability

Private company

A company owned by private owners that does not sell shares to the public. Separate legal entity

Public company

A large business listed on stock exchange. Separate legal entity

Vision statement

Aspirational statement of what the business would like to achieve in the future

Mission statement

Actionable statement, defines business' culture, value and ethics

Goals

Statements of direction that identify what a business wants to achieve.

Objectives

Statements of intention that provide direction for achieving a goal

Strategy

How to reach a goal

Tactic

Specific actions to achieve business strategy

Business goals

Profitability

Employment

Growth

Market share

Societal needs and wants

Sustainability

Business functions

Marketing

Operations

Human resources

Finance

Leadership styles

Authoritative

Bureaucratic

Charismatic

Transactional

Authentic

Transformation

Management styles

Autocratic

Persuasive

Participative

Laissez-Faire

Consultative

Macro external factors

Socio cultural

Technological

Environmental

Economic

Political

Legal

Ethics