Business Studies Lecture Notes Review

A comprehensive set of vocabulary flashcards covering operations, marketing, finance, and human resources concepts from the lecture notes.

Key Business Functions

The four core areas—Operations, Marketing, Finance, and Human Resources—that organise resources to achieve business goals.

Operations

The business function that manages the transformation of inputs into goods or services (outputs).

Inputs

Resources such as raw materials, labour, equipment, and facilities used in production.

Transformation

The conversion process that turns inputs into outputs.

Outputs

The final goods or services delivered to customers, including warranties and after-sales support.

Productivity

The rate at which inputs are converted into outputs; higher productivity lowers costs and boosts competitiveness.

Efficiency

Using resources in a way that maximises output while minimising waste and cost.

Quality (Operations)

The degree of excellence of a product and its fitness for purpose.

Competitive Advantage

A superior position over rivals achieved through lower cost or product differentiation.

Cost Leadership Strategy

A strategy aimed at being the lowest-cost producer in an industry.

Product Differentiation

Distinguishing goods or services from competitors through unique features or customisation.

Goods

Tangible products that can be owned and physically handled.

Services

Intangible products that exist only while being performed and are consumed at the point of delivery.

Production Process

The full sequence from inputs through transformation to outputs.

Value Adding

Enhancing a product’s worth by improving features, quality, or efficiency during operations.

Strategic Goals (Operations)

Long-term objectives to improve productivity, efficiency, and quality of outputs.

Zoning

Local government regulations that designate permitted land uses for businesses.

Work Health and Safety Act 2011 (NSW)

Legislation requiring businesses to provide safe workplaces, equipment, training, and monitoring.

Health & Hygiene Requirements (Food)

Standards under the Food Standards Code that mandate safe handling by food workers.

Competition and Consumer Act 2010 (Cth)

Federal law governing fair trading, product safety, advertising practices, warranties, and consumer rights.

Quality Management

Strategies to ensure products meet customer expectations; includes QC, QA, and TQM.

Quality Control (QC)

Inspection-based approach to detect defects during production.

Quality Assurance (QA)

Proactive system establishing standards and processes to prevent defects.

Total Quality Management (TQM)

Company-wide philosophy aiming for defect-free processes and customer focus.

Marketing

The process of planning, pricing, promoting, and distributing products to satisfy customer needs profitably.

Marketing Plan

A document outlining strategies to achieve sales objectives and profit maximisation.

Market Analysis

Collection and evaluation of data on market conditions, customers, opportunities, and competitors.

Target Market

A group of consumers with similar characteristics toward whom a product is directed.

Mass Marketing

Approach using one marketing mix to appeal to the entire market.

Market Segmentation

Dividing a market into distinct groups based on demographic, geographic, psychographic, or behavioural traits.

Niche Marketing

Focusing on a narrowly defined micro-segment of the market.

Marketing Mix

The combination of Product, Price, Promotion, and Place used to implement marketing strategy.

Product (Marketing Mix)

The total bundle of tangible and intangible attributes offered to customers, including branding and packaging.

Branding

A name, term, symbol, or design that identifies and differentiates a product.

Packaging

Designing and producing the container or wrapper for a product.

Price (Marketing Mix)

The amount of money charged for a product; directly affects sales volume and profit.

Cost-Based Pricing

Setting price by adding a markup to the cost of production.

Market-Based Pricing

Setting price according to supply-and-demand conditions in the marketplace.

Competition-Based Pricing

Setting price below, equal to, or above competitors’ prices.

Promotion (Marketing Mix)

Communication activities that inform, persuade, and remind customers about a product.

Place (Marketing Mix)

Methods of making a product available to customers, including distribution channels and logistics.

Source of Finance

Where funds for business operations come from—either internal equity or external debt.

Equity Finance

Funds provided by owners or shareholders in exchange for ownership interest.

Debt Finance

Borrowed funds that must be repaid with interest.

Short-Term Debt

External borrowing for less than one year, e.g., overdrafts, commercial bills, factoring.

Long-Term Debt

Borrowing for more than five years, such as mortgages, debentures, and unsecured notes.

Cost of Finance

Total expense of obtaining funds, including interest for debt or dividends for equity.

Advantages of Debt Financing

Ownership retained, tax-deductible interest, predictable repayments for budgeting.

Disadvantages of Debt Financing

Mandatory repayments, cash-flow pressure, collateral requirements, credit dependency.

Advantages of Equity Financing

No repayment obligations, access to large capital, improved credibility.

Disadvantages of Equity Financing

Ownership dilution, profit sharing, potential conflicts, time-consuming to raise.

Forecasting

Predicting future financial outcomes (sales, expenses, cash flow) to aid planning.

Total Revenue

The total money received from sales of goods or services.

Human Resource Management (HRM)

Strategic management of acquiring, developing, maintaining, and separating employees to meet business needs.

Human Resource Cycle

Stages of acquisition, development, maintenance, and separation of staff.

Recruitment

Process of finding and attracting suitable applicants for job vacancies.

Internal Recruitment

Filling vacancies with existing employees of the business.

External Recruitment

Filling vacancies with candidates from outside the business.

Hard Skills

Specific, measurable abilities like qualifications, technical know-how, or language fluency.

Soft Skills

Interpersonal attributes such as communication, teamwork, problem-solving, and emotional intelligence.

Wage

Payment based on hours or days worked; often variable each pay period.

Salary

Fixed regular payment agreed in a contract, not tied to hours worked.

Modern Award

Legal document setting minimum pay rates and employment conditions for an industry or occupation.

Enterprise Agreement

Collective workplace agreement between employer and employees (or union) on employment terms.

Financial Statements

Formal records of business financial activities: cash flow statement, income statement, balance sheet.

Cash Flow Statement

Report summarising cash inflows and outflows over a period, assessing liquidity.

Liquidity

The ease with which a business can meet short-term financial obligations.

Income Statement

Report showing revenues, expenses, and resulting profit over a specific period.

Balance Sheet

Snapshot of assets, liabilities, and owners’ equity at a particular point in time.

Assets

Resources of value owned by a business, expected to bring future economic benefit.

Current Assets

Assets expected to be converted to cash or used within 12 months, e.g., inventory, accounts receivable.

Non-Current Assets

Long-term resources providing benefits for more than 12 months, such as property and equipment.

Liabilities

Obligations or debts a business owes to external parties.

Current Liabilities

Debts payable within 12 months, like overdrafts and accounts payable.

Non-Current Liabilities

Debts due after more than 12 months, such as mortgages and long-term loans.

Owners’ Equity

The residual interest in assets after deducting liabilities; owner’s claim on the business.