Business SAC 1 flashcards

Define Technical Development

Technical Development:

Applying new knowledge or technology to improve how a business operates or what it makes.

Define Research and development

Research and Development (R&D):

The process of creating new or improved products, services, through investigation and experimentation.

Discuss Global markets and explain the advantages

Global Markets: When businesses sell their goods or services in multiple countries.

Advantages of Global Markets:

• Increased Sales: The potential to reach a larger customer based

• Reduced Dependence: Less reliance on the local economy.

• Longer Product Life Cycle: Extend the life of a product by selling in new markets.

Explain the motivation and reasons behind starting a business

• Financial Independence: The desire to control your income and wealth.

• Personal Independence: Being your own boss and making your own decisions.

• Making a Profit: Earning more money than you would in a job.

• Fulfilling a Market Need: Recognizing a need or gap in the market and providing a solution.

• Fulfilling a Social Need: Making a positive impact on the community or environment.

Explain the two different types of goals of an organization, expand and explain each of the goals individually

 Financial Goals: These relate to money and profitability.

• Making a Profit: Earning more money than the costs of running the business.

• Increasing Sales: Selling more products or services.

• Increasing Market Share: Gaining a larger portion of the total sales in the industry.

• Expanding the Business: Growing by opening more locations or offering new products/services.

• Maximizing Return on Investment: Making the most profit relative to the amount of money invested.

• Improving Operations: Making the business more efficient and productive.

Social Goals: These relate to the impact the business has on society.

• Community Service: Supporting local events or charities.

• Provision of Employment: Creating jobs.

• Social Justice: Treating employees and customers fairly.

• Ecological Sustainability: Protecting the environment.

Identify the differences between a for-profit and not-for-profit organization

For-Profit: A business that aims to make a profit for its owners or shareholders.

Not-For-Profit: An organization that focuses on a social or charitable purpose rather than making a profit. Any profit made is reinvested into the organization's mission.

Identify the differences between Initial feasibility studies and Initial market research

Initial Feasibility Study: An assessment to determine if a business idea is practical and likely to succeed. It looks at the market, operations, financial aspects, and the owner's ability.

Initial Market Research: Collecting and analysing information about a specific market to understand customer needs, competition, and market conditions.

What three questions are an economy set up to answer?

 

1.  What goods and services are produced?

2.  How do we produce those goods and services?

3.  How are those goods and services distributed; that is, who will receive the goods and services produced?

If you were set up your own business, explain in detail four goals you may have (use an example)

Goal 1 (Financial): Make a profit of $50,000 in the first year of operating a coffee shop (this is the objective).

Goal 2 (Financial): Increase sales by 15% each year by offering a loyalty program and expanding the menu with new breakfast items.

Goal 3 (Social): Provide fair wages and opportunities for employees, including training and career development.

Goal 4 (Personal): Achieve a good work-life balance, working a maximum of 50 hours per week so I can spend time with my family.

What can Market conditions tell an organization?

Market conditions help a business understand:

• If the idea is new or already exists

• Who the customers are

• Why they would buy the product

• What needs and wants the product satisfies

• The size of the market

• The location of the market

• Who the competitors are

• What makes the product different from others

List the factors that can cause the needs of customers in a market to change

Changing Incomes: More or less money available to spend.

Changing Tastes and Fashions: Trends that influence demand.

Changing Prices: Of related goods (complementary or substitute).

Changing Population: Demographic shifts (age, gender).

Changing Expectations: Beliefs about future prices or income.

Changes in the Number of Customers: More or fewer potential buyers.

How does a business contribute to the nation? Be specific, detailed and thorough with your explanation

 

Economic Wellbeing:

Employment: Creates jobs, providing income for people and reducing the need for government support.

Taxation Revenue: Pays taxes (income tax, GST, etc.) that fund government services.

Economic Growth: Produces goods and services, increasing the overall value of the economy.

Export Earnings: Sells products overseas, bringing money into the country and improving the balance of payments.

R&D: Invests in research and development, leading to innovation, increased efficiency, and new products.

Social Wellbeing:

Career Development: Provides opportunities for career growth and personal development.

Innovation: Develops new technologies, products, and services that improve quality of life.

Corporate Social Responsibility: Acts ethically and sustainably, considering the impact on employees, customers, and the environment.

Contribution to the Nation:

Innovation: Businesses create new products and services, leading to economic growth and improved living standards.

Community Service: Businesses contribute to local communities through sponsorship, donations, and volunteering.

Social Justice: Businesses treat employees fairly and promote equality.

GBE is a Government Business Enterprise, list some examples

• Australia Post

• NBN Co

• Defence Housing Australia

• Water corporations.

Identify and explain the differences between Innovation and Entrepreneurship

Innovation: Creating or improving a good, service, or process.

Entrepreneurship: Starting and running a new business, often in response to an opportunity and taking on risk to make a profit.

Explain what SMART means in terms of goals and provide an example

SMART Goals:

Specific: Clearly defined.

Measurable: Can be tracked.

Attainable: Realistic and achievable.

Relevant: Important to the business.

Time-bound: Has a deadline.

    *   Example: Increase website traffic by 20% in the next six months by implementing a social media marketing campaign.

A business can be defined as small, medium and large – how many employees in each – provide an example of each

Small: Fewer than 20 employees (Example: local café, accounting firm)

Medium: 20 to 199 employees (Example: a manufacturing plant)

Large: 200 or more employees (Example: a major retail chain, or mining company)

List and explain the motivations behind starting a business

Motivations for starting a business include seeking financial and personal independence, aiming to make a profit, addressing market needs, and contributing positively to society.

Explain the characteristics that a business owner would need to possess to be successful

Self-Motivation: Driven to succeed.

Self-Discipline: Able to stay on track and follow through.

Leadership Skills: Manage and motivate others.

Organizational Skills: Plan and manage tasks.

Risk-Taking Ability: Willing to take calculated risks.

Decision-Making Skills: Make good choices.

Good Communication: Able to listen and express ideas.

Financial Literacy: Understand financial statements and manage cash flow.

Explain why goals are important for a business

• Provide direction for the business.

• Help the business measure its performance.

• Motivate employees and owners.

• Help in planning and decision-making.

• Provide a basis for strategic planning.

Describe the concept of SMART goals

SMART goals are clear and achievable objectives that are

• specific

• measurable

• attainable

• relevant

• time-bound.

What is the difference between business goals and business objectives?

Business Goal: A broad statement of what a business wants to achieve (e.g., increase profitability).

Business Objective: Specific, measurable steps taken to achieve a goal (e.g., increase sales by 10% in the next quarter).

How does a business work out their Target Market?

• Identify who is most likely to buy the product or service.

• Consider demographics (age, gender, income, etc.).

• Consider psychographics (interests, values, lifestyle).

• Analyse market research to understand customer needs.

• Define a specific group to focus marketing efforts.

How is a feasibility study conducted?

Assess the Market: Analyse demand, competition, and customer needs.

Consider Operations: Describe the product/service, resources needed, location, and legal requirements.

Analyse Commercial Feasibility: Assess financial aspects, sales forecasts, and funding needs.

Appraise Owner's Management Ability: Assess skills and experience.

Determine if others have tried the idea: Find out if anyone else has tried and what happened.

Explain how a business can contribute to the economy and the Social Wellbeing of the country

A business contributes to the economy by creating jobs, paying taxes, driving innovation, and fostering community development, while also enhancing social wellbeing through career growth and responsible practices.

How do the government encourage and promote a culture of innovation and entrepreneurship?

Government Investment in R&D: Provides grants and tax incentives.

Council Grants: Supports new businesses locally.

School-Based Programs: Educates students about entrepreneurship.

Regional Business Hubs: Provides support and resources for start-ups.

Funding and Subsidies: Offer financial assistance to businesses for innovation and growth.

Policy and Regulation: Create an environment that encourages competition and innovation.

In detail – discuss the motivations for starting a business, both financial and personal

 

Financial Motivations:

Desire for increased income: Earn more money than in a job.

Financial Independence: Control income and build wealth over time.

Potential for financial rewards: The opportunity to make significant profits.

Personal Motivations:

Independence and autonomy: Being your own boss and making decisions.

 Personal satisfaction: Feeling pride in building something from scratch.

Fulfilling a passion or interest: Turning a hobby into a business.

Flexibility: Controlling working hours and location.

Personal growth: Developing new skills and experiences.

Making a Difference: Contributing to society or community.

Explain what business goals are and how they differ from objectives

Business goals are broad statements of desired outcomes, while business objectives are specific, measurable actions taken to achieve those goals.

Describe the possible contents of an initial feasibility study

An initial feasibility study typically includes market analysis, operational considerations, financial assessments, evaluation of the owner's management skills, and research on existing similar ventures.

Explain what SMART goals are and why they are so important to a business

SMART goals are

• specific

• measurable

• attainable

• relevant

• time-bound

objectives that provide direction, enhance performance measurement, motivate employees, assist in planning, and support strategic decision-making within a business.

What makes someone an entrepreneur?

• Identifying opportunities.

• Creating something new or improving existing products/services.

• Taking risks.

• Being persistent and determined.

• Having a clear vision.

• Demonstrating initiative.

• Exhibiting innovation and enterprise.

What is a business concept?

An idea for a new business; includes the product or service offered, target market, and how the business will operate. (an entrepreneur’s vision for the business.)

Explain the relationship between business opportunities and business concept development

Business concept development is the process of turning a business idea into a concrete plan. The business concept develops after assessing different business opportunities. When a potential business owner is identifying business opportunities, they will then need to develop a concept based on the specific opportunity.

Corporate Social Responsibility is so important to a business, discuss why

Reputation: Improves brand image and customer loyalty.

Employee Relations: Attracts and retains employees.

Risk Management: Reduces the risk of legal issues and negative publicity.

Long-Term Sustainability: Helps ensure the long-term success of the business.

Ethical Considerations: It's the right thing to do!

Why is Market Research so important – discuss the different methods

Importance:

• Helps understand customer needs and preferences.

• Identifies potential customers.

• Assesses competition.

• Minimizes the risk of launching an unsuccessful product.

• Helps set prices and marketing strategies.

Methods:

Surveys: Asking people questions through questionnaires.

Interviews: Talking to people individually to get detailed information.

Focus Groups: Gathering a small group to discuss a product or service.

Observation: Watching how people behave.

Online Research: Using the internet to gather data.

Analysing Existing Data: Using government and industry reports.

Experiments: Testing new products or marketing campaigns with a sample group.

What are the contributions businesses make to the Australian Economy?

Businesses contribute to the Australian economy by creating jobs, generating taxation revenue, driving economic growth, earning export income, and investing in research and development.

What are the contributions a business makes to the Social Wellbeing of Australia?

Businesses contribute to the social wellbeing of Australia by fostering career development, driving innovation, practicing corporate social responsibility, supporting community services, and promoting social justice.

Describe the methods by which the federal and state governments invest in research and developments.

Direct Funding: Providing grants to businesses, universities, and research institutions.

R&D Tax Incentive: Offering a tax offset (discount) to encourage businesses to invest in R&D.

Cooperative Research Centres: Supporting partnerships between businesses and the research sector.

Specialised Programs: Providing targeted funding for specific industries or technologies.