Commerce Yearlies

What are the goals of a business?

Profit, Growth, Market Share, Satisficing

What is the calculation for market share and what does it tell you?

Business sales / Total industry sales * 100

Outline the range of employees for each type of business

Micro < 5

Small 6-19

Medium 20-199

Large 200+

What is the opportunity to start a new business

Identifying a gap in the market

Advantages and Disadvantages of a Sole Trader

A: all profits kept, compelte control | D: liability for debts, difficult to operate if sick

Partnerships Adv and Disadv

A: Shared responsibility, low startup | D: Liability for debts, possible conflict, divided authorities

What are the adv and disadv of an incorp business

Adv: Can transfer ownership easily, growth potential

Disadv: Can be sured, must publish annual reports of accounts

What are the features of a priv business

Often SME, Up to 50 sh, information can be kept priv, nto widely available for public purchase

Features of a public business

Must publish financial accounts annually, make announcements about any changes and be listed on the share market.

Adv of operating a franchise

1. Business is alr reputable and well-exposed

2. Advertising is handled

3. People with little experience can oeprate as training is provided

4. A business plan already exists

Disadv of operating a franchise

1. Stock has to be bought directly from franchise

2. Bad decisions from franchisor can affect all branches —> you are liable for your branch

3. Less autonomy

Adv and Disadv of starting a new business

A: Freedom and Control (style, products/services, pricing), Flexibility (TM, location)

D: High risk and uncertainity, Time neede to acquire relationships, Slow start-up period

Adv and Disadv of buying a company

A: Immediate income, exisitng rep

D: Employee resistance, Succes may’ve depended on prior environement and people

How to calculate Good will?

Goodwill = Price Paid − Value of Physical Assets

Adv of starting a company

Freedom & Control of business style, pricing, target market, location.

Disadv of starting a company

High risk of failure, slow start-up period, time needed to build relationships

Adv of buying a company

Immediate income, exisitng rep

Disadv of buying a company

Business success may’ve been dependent on employee resistance.

What do Entrepreneurs contribute to economy

• Econ growth —> employment

• Innovation

• Investment

Operational Strats and Management

1. Quality Control

2. Quality Assurance

Why Market Research?

To minimise guessing what are people willing to buy and for what price.

To make good decisions - info abt trends

Strats of Marketing

1. Product

2. Promotion

3. Price

4. Place

Product? (Marketing)

• brand

• Packaging

Promotion? (Marketing)

Advertising, personal selling, sales promotions, public relations

Price? (Marketing)

1. Cost-based

2. Market-based

3. Competition-based

Responsibiiltes of HR

• Keep business consistent in performance

• Employees rights and respected

• Employess should not be overworked

Importance of recruiting the right staff?

1. Operational Efficiency

2. Customer Satisfaction

3. Operational Costs

HR strats?

1. Training

2. Devleopment

3. Incentives and Rewards

a) In/direct monetary benefits

b) non monetary rewards

Financial Management Strats?

1. Profitability Management

2. Cash-flow Management

Profitability Management? (fm)

a) Cost control - cost-quality trade off

b) Revenue Control - 4ps

Cashflow Management? (fm)

1. Distribution of payments

2. Discounts for early payment

Profit & Loss Statements (CFM)

• COGS - direct cost to g/s

• Revenue - costs for business to run

• Expenses

• Net/gross profit

• Summary of income earned and expenses incurrec over time

Cashflow Statement? (CFM)

• Inflows (sales & owner invest)

• Outflows (paying suppliers and wages)

• Surplus & Deficit

• Liquidity

• Movement of cash..enough money to pay short-term bills?

Balance Sheet Statement

Overall financial position

• AE : A = L + OE

• Assets - what business owns (accounts recievable, stock, cash)

• Liabilities - what business owes (accounts paybale, overdraft)

• Owner’s Equity - owners share of revenue after debts considered

Factors affecting a business

1. Location (Main street, shopping centre)

2. Competition

3. Ethical decision making

What work provides?

Econ benefits

• Income, Consumption and Savings, Healthcare, Contribution to econ

Non-econ benefits

• sense of purpose, skill and social devleopment

workplace stakeholders?

employees, employers, trade unions, employer associations, government

Types of trade unions?

• occupational - range of skills

• industry-based - particular industry

• enterprise-based - single firm

• general unions - all workers

Types of work? 7

full-time, part-time, casual, contracotrs, self-employed, voluntary, apprenticeships