BUSINESS - T4 2026 Exam prep

The maturity stage

(4) Characteristics of the maturity stage

stable profits, dominant in the market, slow growth, longest stage

(2) Challenges of the maturity stage

emerging competitors, new technology

(3) Strategies to remain competitive (in the maturity stage)

cut costs, improve efficiency, introduce innovative products

Domestic markets (low risk) (2)

opening stores in cities/states, online services with nationwide delivery

Global markets - expanding overseas (high risk) (4)

consider different laws, different currencies, new suppliers, need market research

Licensing

A contractual agreement that allows a business to use the intellectual property (IP) of another business

Exclusive

Allows an Australian business to commercialise its IP and sell it to new domestic and international markets

Non-exclusive

Even though the licence has been given the right to use the IP in a market, they may not be the only licensee

Agents

Agents act on behalf of the business, earning commission for each sale

Distributor's Role

Distributors buy products and then resell them in their own market

Strategic alliance

When two or more companies work together for mutual benefit, sharing resources or expertise

(3) Benefits of a strategic alliance

access to new markets, shared costs and risks, combining strengths

Joint venture

When two or more businesses create a new, separate business entity together

Outsourcing

A company hires an external service provider to perform tasks, handle operations or provide services that would otherwise be completed in-house

(3) Benefits of outsourcing

Cost efficiency, cheaper labour, specialised skills

(3) Risks of outsourcing

reliance on third parties, communication challenges, data privacy

Offshoring

The transfer of jobs to different countries to leverage an advantage

(3) Benefits of offshoring

lower costs, skilled labour, global talent pool

(3) Risks of outsourcing

criticised for sending jobs to other countries, geopolitical risk, language barriers

Sales subsidiary

A separate company owned or controlled by a larger parent company whose primary purpose is to sell the parent company's good or services

Expansion

A mature business seeks new opportunities to increase its size, profits or influence

Horizontal growth

Expanding by acquiring or merging with competitors, or entering new markets with similar products

Vertical growth

Taking control of more steps in the supple chain

Niche market

A small, specialised segment with unique needs

Innovation

Adapting something existing, or contributing to it, to make it better

Businesses invest in research and development (R&D) to: (3)

create new products, improve existing ones, find better ways to operate

Emerging technology

can open up new markets or make businesses more efficient

Risk management

The process of identifying, evaluating, and understanding risks in business decisions

Contingency plan

a prepared course of action to help a business respond effectively to unexpected events

What is the PPRR model?

Prevention, preparedness, response, recovery

Free trade agreements (FTAs)

are treaties between two or more countries designed to reduce or eliminate certain barriers to trade and investment

Employment cycle

Acquisition, development, maintenance, separation

Staff wellbeing

the physical and mental state of employees demonstrated through work-life balance, satisfaction and engagement

Staff retention

The rate at which a business keeps its staff within a given period

employment cycle (development stage): HR is focused on… (2)

induction and training

employment cycle (maintenance stage): HR is focused on… (3)

performance management, motivation and career planning

employer of choice

A recruitment and retention strategy to offer attractive incentives, meaning people will CHOOSE to work for a business

(5) Key characteristics of an employer of choice

Working conditions, culture and leadership, growth and development, fair reward and recognition, inclusivity and safety

Diverse workforce

Having employees from a wide range of backgrounds

Inclusive workplace

A workplace that is accepting and welcome to all kinds of people regardless of their differences

Intrapreneurship

A manager within a business who promotes innovative product development and processes to create new business opportunities

Fostering intrapreneurship

To foster the skills of an intrapreneur and retain them in a business, they need to be given access and encouragement to look at all the areas of the business and suggest changes

internal business environment (4)

owners and management, employees, organisational structure, organisational culture

organisational structure

Outlines the roles and responsibilities of each member of the business

Organisational culture

The shared values, beliefs, expectations, attitudes and behaviours of the people in a business

external operating environment (4)

customers, competitors, interest groups, suppliers

interest groups

An organisation that shares a common interest and a desire to work together to protect and promote a specific industry

human resources (HR)

responsible for all aspects of managing the people in the business

(3) Characteristics of HR

management of employees, recruitment and induction of employees, training of employees

criteria: efficiency

Using resources optimally to meet our goals and objectives

criteria: stakeholder satisfaction

Considering and managing stakeholder expectations to achieve goals and objectives

criteria: competitiveness

Offering products or services to meet or exceed market standards in relation to other businesses