business management

Planning phase

establishing goals and allocating resources appropriately

Organising

implementing the plans through procedures

Leading

Motivating employees to achieve business goals

Controlling

Monitoring and evaluating performance of employees and making adjustments to succeed

Management

the process of working with and through other people to achieve the goals of a business.

Manager

a coordinator of resources to achieve goals.

What is Strategic thinking?

Thinking about the future when prioritising today’s goals so a business can survive today, tomorrow and beyond

What is Vision?

The clear, shared sense of direction to help people reach a common goal

What is a Business Goal?

A desired outcome that you intend to achieve

Why are Business Goals important?

They are used to benchmark a business, motivate employees, and create commitment

What is the SMART framework?

A goal-setting system where goals are Specific, Measurable, Achievable, Realistic, and Timebound

What is Staff involvement?

The practice of including employees in the decision-making process

Why is Staff involvement important?

It recognises employee knowledge and skills to increase productivity through mentoring, innovation, and training

What is Mentoring?

A process where a mentor helps develop acceptable attitudes and provides familiarity with the business culture

Why is Mentoring important?

Formal programs ensure equality and a smooth transition into the business while helping staff perform in changing environments

What is Staff innovation?

The process of encouraging ideation through rewards, trust, and resources without fear of consequences for mistakes

What is the Classic Management Approach?

An approach that organises to maximise productivity through labour specialisation and a hierarchical structure

What is the Behavioural Management Approach?

An approach where employees are the main focus and management involves leading, motivating, and communicating

What is the Contingency Management Approach?

A management approach that aims to determine the best course of action based on specific circumstances and situations

What is an Autocratic Management Style?

A style where the manager dictates everything and makes all decisions, often used for speed or with inexperienced staff

What is a Participative Management Style?

A style where employees are encouraged to share their opinions, which is effective for rapidly changing environments

List pros of Autocratic Management Style

Increased productivity through labour specialisation, a clear chain of command, and effectiveness during a crisis

List cons of Autocratic Management Style

Lower staff satisfaction due to repetitive labour, potential conflict between management layers, and slower responses to external changes

List pros of Participative Management Style

Improved staff morale, a higher volume of ideas to improve the business, and better communication/understanding

List cons of Participative Management Style

Decision-making takes longer, requires high employee skill levels, and power can be consolidated to a specific group

Quality management

strategy used to make sure product meets customer expectation.

Quality control

reduces problems through inspections and various points. Slightly reactive as you are finding the mistake, not preventing it.

Quality assurances

setting standards in production to make it easier to achieve perfection. Make sure it is right the first time. E.g ISO standards.

Warranty

an assurance that a business stands by the quality claims of the products.

Quality control Pros

Prevents faulty sales,
Less training,
Non disruptive

Quality control Cons

High resource waste,
Ignores cause of issue,
High costs

Quality assurances Pros

Finds root cause,
Cost efficient ,
Improved reputation

Quality assurances COns

Time consuming,
Requires employee compliance,
May reduce output

Marketing

process of product, placing, pricing, and promoting your product to current and future customers.

Marketing concept approach

putting customers’ needs at top of its priorities. Develops long-term relationships with customers.

Market share

percentage of sales made by a business

Target market

a group of customers with similar characteristics who may buy the product.

Different categories of market segmentation

demographic, geographic, psychographic, behavioural.

What are demographics?

characteristics of the population.

What are geographic segmentation?

where people live

What is psychographic segmentation?

attitudes and values of population

What are behavioural characteristics?

loyalty to a product based on values and beliefs

Niche market

a tiny section of the market made from the overlapping multiple segments

Product

good or service that can be exchanged. Also encompasses its qualities such as size, branding.

Why is Brand important

It is important because it builds customer loyalty and creates a recognizable identity.

Why is Positioning

The place a product occupies in the consumer's mind relative to competing products. It is important because it defines the product's unique value proposition and target market.

Why is Packaging important

Attracts consumer attention, and promotes brand

Why is pricing important for marketing

signals product value and influences consumer decisions

List 3 elements of a product

Brand,Position,Packaging,After sales,Reputation

Cost based pricing

derived from calculating the total cost of production + a markup for profit.

what is Market based pricing

a method of setting prices according to supply and demand.

Competition based pricing

choosing a price based on your competitors.

Penetration pricing

setting prices below your competitor.

Price skimming

a high initial price for new products and then gradually lowering the price.

Loss leader pricing

losing money on a product to bring in customers so they buy more.

Price points

price levels at which the product to refelct quality and provide consumers with multiple choices based on budget

Cost based example

clothing

Market based

Uber surge pricing

Competition based pricing example

fuel

Penetration pricing example

Aldi

Price skimming example

apple iphone launches

Loss leader pricing example

Costco hot dogs

Price points example

Retail Clothing (Kmart / Target) A t-shirt might cost $15.00 exactly, but often ends up priced at $14.99.

What is Promotion

process of creating and maintaining consumer awareness and interest towards a particular product.

List the Aims of promotion

Attract new customers for awareness
Increase brand loyalty by reinforcing product image
Getting current customers to buy more of the product.

What is Personal selling?

sales meet up with customers to make a sale through long term, cost effective relationships.

What is Sales promotion?

activities or materials used by the business to attract interest. E.g free samples

What is Publicity

stories and coverage about the business’ products.

What is Public relations?

activities to create and maintain relationships with different stakeholders. Like festivals

What is Advertising?

mass media used to create awareness. Attracts potential customers.

3 processes of hiring

acquisation,development, maintanence,

Retrenchment

a business gets rid of employees because there is not enough work to pay

Dismissal

behaviour of an employee is unacceptable

Redundancy

occurs when a person’s job doesn’t exist

Involuntary separation

when your job is lost because of the business.

Voluntary separation

when your job is lost because of you.

Retirement

employee leaves to workforce

Resignation

employee quits their job

Awards

legally enforceable minimum conditions for different industries created by the government.

Enterprise agreement

negotiated conditions between employer and employee. Outlines pay, and other factors.

Common law

covers employees who aren’t under any award or agreement. Mainly for specialists.

Acquisition

process of identifying staffing needs and bringing new employees into an organization.

Balance sheet

provides a snapshot of a company’s assets and liabilities.

Assets formula = liabilities + owner’s equity

Assets

Items of value

Current assets

assets converted into cash with 12 months.

Non current assets

Assets that will be kept for more than 12 months.

Stock

goods being sold

Accounts receivable

money owed to the business

Liabilities

debt that the business owes

Current liabilities

debt that needs to paid within 12 months.

Non current liabilities

Debt that will be repaid for more than 12 months.

Overdraft

allows money that they don’t have to be withdrawn.

Accounts payable

Money owed to the suppliers

Mortgage

a large amount of money borrowed to buy major purchases

Owner’s equity

amount owed by the business to the owner

Capital

money from the owner

Net profit

final profit after expenses

Drawings

Money withdrawn from the business.

Retained profits

profits not distributed to owners.