HSC Business Studies Syllabus

Role of Operations Management

a. strategic role of operations management

-cost leadership and good/service differentiation

b. goods and/or services in different industries

c. interdependence with other key business functions

Operations Influences

a. globalisation

b. technology

c. quality expectations

d. cost based competition

e. government policies

f. legal regulation

g. environmental sustainability

h. corporate social responsibility

-difference between legal compliance and ethical responsibility

-environmental sustainability and social responsibility

Operations Processes

a. inputs

-transformed resources (materials, information, customers)

-transforming resources (human resources, facilities)

b. transformation processes

-the influence of volume, variety, variation in demand, visibility (customer contact)

-sequencing and scheduling- gantt charts and critical path analysis

-technology, task design and process layout

-monitoring, control and improvement

c. outputs

-customer service

-warranties

Operations Strategies (part 1)

a. performance objectives

-quality, speed, dependability, flexibility, customisation, cost

b. new product or service design and development

c. supply chain management

-logistics, e-commerce, global sourcing

d. outsourcing -advantages and disadvantages

e. technology -leading edge, established

Operations Strategies (part 2)

f. inventory management

-advantages and disadvantages of holding stock, LIFO, FIFO, JIT

g. quality management

-control, assurance, improvement

h. overcoming resistance to change

-financial costs, purchasing new equipment, redundancy payments, retraining, reorganising plant layout, inertia

i. global factors

-global sourcing, economies of scale, scanning and learning, research and development

Role of Marketing

a. strategic role of marketing goods and services

b. interdependance with other key business functions

c. production, selling, marketing approaches

d. types of markets

-resource, intermediate, niche, consumer, mass, industrial

Influences on Marketing

a. factors influencing customer choice

-psychological, sociocultural, economic, government

b. consumer laws

-deceptive and misleading advertising

-price discrimination

-implied conditions

-warranties

c. ethical

-truth, accuracy and good taste in advertising

-products that may damage health

-engaging in fair competition

-sugging

Marketing Processes

a. situational analysis

-SWOT analysis, product life cycle

b. market research

c. establishing market objectives

d. identifying target markets

e. developing marketing strategies

f. implementation, monitoring, controlling

-developing a financial forecast; comparing actual and planned results, revising the marketing strategy

Marketing Strategies (part 1)

a. market segmentation, product/service differentiation and positioning

b. products - goods and/or services

-branding

-packaging

c. price including

-pricing methods; cost, market, competition based

-pricing strategies; skimming, penetration, loss leaders, price points

-price and quality interaction

d. promotion

-elements of the promotion mix; advertising, personal selling, relationship marketing, sales promotions, publicity and public relations

-the communication process; opinion leaders, word of mouth

Marketing Strategies (part 2)

e. place/distribution

-distribution channels

-channel choice; intensive, selective, exclusive

-physical distribution issues; transporting, warehousing, inventory

f. people, processes, physical evidence

g. e-marketing

h. global marketing

-global branding

-standardisation

-differentiation/customisation

-global pricing

-competitive positioning

Role of Financial Management

a. strategic role of financial management

b. objectives of financial management

-efficiency, profitability, growth, liquidity, solvency

c. interdependence with other key business functions

Influences on Financial Management (part 1)

a. internal sources of finance

-retained profits

b. external sources of finance

i. debt -short term; overdraft, factoring, commercial bills

-long term; mortgage, debentures, unsecured notes, leasing

ii. equity; new issues, rights issues, share purchase plans, placements

private equity

Influences on Financial Management (part 2)

c. financial institutions

banks, investment banks, life insurance companies, superannuation funds, unit trusts, finance companies,

Australian Securities Exchange

d. influences of government

Australian Securities and Investments Commission, company taxation

e. global market influences

economic outlook, availability of funds, interest rates

Processes of Financial Management (part 1)

a. planning and implementing

-financial needs, budgets, record systems, financial risks, financial controls

b. debt and equity financing

-advantages and disadvantages of each

c. matching the terms and source of finance to business purpose

d. monitoring and controlling

-cash flow statement, income statement, balance sheet

Processes of Financial Management (part 2)

e. financial ratios

-liquidity (current ratio; current assets/current liabilities)

-gearing (debt to equity ratio; total liabilities/total equity)

-profitability (gross profit ratio; gross profit/sales, net profit ratio; net profit/sales, return on equity ration; net profit/total equity)

-efficiency (expense ratio; total expenses/sales, accounts receivable turnover ratio (sales/accounts receivable)

-comparative ratio analysis; over different time periods, against standards, with similar businesses

f. limitations of financial reports

-normalised earnings, capitalising expenses, valuing assets, timing issues, debt repayments, notes to the financial statements

g. ethical issues related to financial reports

Financial Management Strategies

a. cash flow management

-cash flow statements

-distribution of payments, discounts for early payment, factoring

b. working capital management

-control of current assets; cash, receivables, inventories

-control of current liabilities; payables, loans, overdrafts

-strategies; leasing, sale and lease back

c. profitability management

-cost controls; fixed and variable, cost centres, expense minimisation

-revenue controls; marketing objectives

d. global financial management

-exchange rates

-interest rates

-methods of international payment; payment in advance, letter of credit, clean payment, bill of exchange

-hedging

-derivatives

Role of Human Resource Management

a. strategic role of human resources

b. interdependence with other key business functions

c. outsourcing

-human resource functions

-using contractors- domestic, global

Key Influences on HR (part 1)

a. stakeholders; employers, employees, trade unions, employer associations, government organisations, society

b. legal - the current legal framework

-the employment contract - common law (rights and obligations of employers an employees), minimum employment standards, minimum wage rates, awards, enterprise agreements, other employment contracts

-work health and safety and workers compensation

-anti discrimination and equal employment oppurtunity

Key Influences on HR (part 2)

c. economic

d. technological

e. social - changing work patterns, living standards

f. ethics and corporate social responsibility

Processes of Human Resource Management

a. acquisition

b. development

c. maintenance

d. separation/retrenchment

Strategies in Human Resource Management

a. leadership style

b. job design - general or specific tasks

c. recruitment - internal or external, general or specific skills

d. training and development -current or future skills

e. performance management - developmental or administrative

f. rewards - monetary and non monetary, individual or group, performance pay

g. global - costs, skills, supply

h. workplace disputes

-resolution; negotiation, mediation, grievance procedures, involvement of courts and tribunals

Effectiveness of HR Management

a. indicators

-corporate culture

-benchmarking key variables

-changes in staff turnover

-absenteeism

-accidents

-levels of disputation

-worker satisfaction