Year 10 Business Management revision

Operations management

Involves coordinating activities involved in producing the goods and services that a business sells to its customers

Human Resources Management

The process of managing the relationship between employees and the business

Marketing

The process of implementing strategies to price, promote, and distribute products to customers

Finance

An area of management that handles the monetary requirements of a business so it can start, function and grow

What is a business?

A business is an organisation that provides products (goods and/or services) to consumers to make a profit

Unincorporated

When the business owner and the business are viewed as the same legal entity

Incorperated

The establishment of the business owner and the business as separate legal entities

Unlimited liability

When the business owner is held personally responsible for the business's debts

Limted liability

When the business owner is not held personally responsible for the business's debts

Australian Securities Exchange (ASX)

Where companies can raise money by selling shares publicly to investors who will then have partial ownership of the company

Shareholders

Shareholders are part owners of a business as they purchase company shares

Profits

The total revenue earned minus total expenses incurred

Dividends

Regular sums of money paid out to shareholders for a business's profit

Sole Trader

A sole trader is a type of business owned by one person

Features of a sole trader

Simple and cost effective, Unincorporated, Unlimited liability, can retain all profits, makes all business decisions

Partnership

A partnership is a type of business owned by 2-20 people

Features of a Partnership

Simple and cost effective, partners share profits, unlimited liability, disputes between partners can occur, partnerships can be made verbally or in a written agreement

Private Limited Company

A private limited company is a type of business with 1-50 private shareholders who are specifically selected and approved by the business

Features of a Private Limited Company

Incorporated, Limited liability, greater ability to raise funds by inviting investors into the business

Public Listed Company

A public listed company is a type of business with unlimited number of shareholders, and whose shares are freely traded on a stock exchange

Features of a Public Listed Company

Incorporated, Shareholders earn a portion of business profits through dividends, strict government regulations, limited liability, greater ability to raise funds

Business objectives

Business objectives are the desired outcome that a business intends to achieve within a specified period of time, which guides the direction and decision making of the business

Expenses are

The cost of operating a business

Revenue

The amount of money a business generates from its normal business activities

To make a profit

Profit is the money earned from deducting expenses from revenue. Revenue is the income earned such as sales, where expenses are the costs of the business such as materials and wages

To increase market share

Market share is a business's portion of the total industry sales for a particular good or service expressed as a percentage, compared to its competitors

To meet shareholder expectations

To meet shareholder expectations involves ensuring shareholders receive a return on their investment

To fulfil a social need

To fulfil a social need involves focusing on providing goods or services with a purpose of making the world a better place

Communication Flow

Refers to the direction of information transfer between managers and employees

One way communication

Orders are one way usually from the manager to the employee directly (Top down)

Two way communication

Both the manager and the employee are communicating with each other

Decision making

Refers to determining a course of action for a business from a set of alternatives

Centralised Decision making

Manager makes all decisions

Decentralised Decision making

Manager and employees make decisions collaboratively

Control

Refers to managers using a level of supervision and direction when managing employees

Centralised Control

Manager has all the control in business decisions

Decentralised Control

Employees have a say in business decisions

Level of employee involvement

Refers to the level of engagement within the company

Low

Medium

High

Autocratic Management Style

When the manager tells employees the decisions that have been made and what to do

Characteristics of a Autocratic Management Style

One way communication, Centralised Decision making, Centralised Control, Low employee involvement

Persuasive Management Style

When the manager provides additional information in order to 'sell' the decisions and convince employees

Characteristics of a Persuasive Management Style

One way communication, Centralised Decision making, Centralised Control, Low employee involvement

Consultative Management Style

Where the manager seeks feedback from employees before making a decision

Characteristics of a Consultative Management Style

Two way communication, Centralised Decision making, Centralised control, Medium employee involvement

Participative Management Style

Where managers and employees work together to make a decision

Characteristics of a Participative Management Style

Two way communication, Decentralised Decision making, Decentralised control, Medium employee involvement

Laissez-Faire Management Style

Where employees are given full control and decision making powers

Characteristics of a Laissez-Faire Management Style

Two way communication, Decentralised Decision making, Decentralised control, High employee involvement

DDL

Define, Detail, Link to business example or issue

BLT

Because, This leads to, Therefore

DDL taskwords

Describe/explain

BLT taskwords

Describe how, explain how, analyse how, outline why, describe why, explain why

Advantage and strength BLT taskwords

Justify, Discuss (However between the 2 BLTS in discuss)