SAC 1- unit 3 Busman

1A) Sole trader

A sole trader is a business structure that is owned and operated by one individual.

+Owner has full control of the business

+ Fewer reporting required

-Knowledge and skills are limited to the owner

-Business ends when owner dies

1A) Partnership

A partnership is a business structure that is owned by 2 to 20 owners

+Financial/legal risks are shared

+Greater access to finances

-Conflict due to split decision making

-If one owner leaves it can be time consuming to replace them

1A) Private Limited company

A PLC is an incorporated business structure that has at least one director and a max of 50 shareholders.

+Existence isn’t threated by the removal of one director

+Greater variety in expertise

-Difficult to change structure

-Complex set up process

1A) Public listed company

A public listed company is an incorprated business that has an unlimited number of shareholders and lists/sells its shares on the ASX

+No permission needed to trade/sell shares

+Greater access to expertise

-Producing annual financial reports can be time consuing

-Expensive to set up and operate

1A) Government Business Enterprise (GBE)

A GBE is a type of business that is government owned and operates to enact a government policy.

+Delivers goods/services that help the community

+can rely on government for initial investment

-Gov can interfere and change strategies

-Extensive rules and formailites

1A) Social enterprise

A social enterprise is a type of business that aims to fulfill a community or environmental need by selling goods or services

+Community benefits from business activities

+Business can develop

-Difficult to balance financial and social objectives

-Difficult to obtain a loan as business dosen’t focus much on financial objectives

1B) Profit

Is the total revenue earned minus total expenses incurred

1B) Market share

Is a businesses percentage of total sales within an industry

1B) Fulfill a market need

Fulfilling a market need is when a business fills a gap in the market which addresses customer needs that are currently unmet by other business in the same industry

1B) Fulfill a social need

Is improving society and the environment through business activities

1B) To improve efficiency

Is how productively a business uses its resources when producing a good/service

1B) to improve effectivness

Is the extent to which a business achieves its stated objectives

1B) Shareholder expectations

Shareholders expect a return on their initial investment. This financial return is through the payment of dividents.

• Expect

• Initial

• return

• dividents

1C) Stakeholders

Stakeholders are individuals, groups or organisations who have a vested interest in the performance and activities of a business.

1C) Owner vested intrests

• Establishing And fostering positive relationships with other stakeholders

1C) Manager vested interests

• Being recognised for achievements

• Receive bonus from owner

1C) Employee vested interests

• long term job security

• Receive fair pay

1C) Customer vested interests

• Receive customer service

• Receive high quality or cheap products

1C) Suppliers vested interests

• Increase revenue

• Earn profit from selling raw materials

1C) General community vested interests

• Increase local employment

• Observe business activities that improve the community

1D) Autocratic

Involves a manager making decisions and directing employees without any input from them.

1D) Persuasive

Involves a manager making decisions and communicating the reasons for those decision to employees without their input.

1D) Consultative

Involves a manager seeking input from employees on business decisions but making the final decision themselves.

• seeking

• Business

• Final

1D) Participative

Involves a manager sharing information so employees can participate in decision making.

• sharing

• Participate

1D) Laissez faire

Involves a manager communicating business objectives to employees and giving them freedom to make decisions independently.

1E) Time

The length of time in which a manager must complete a task or make a business decision

that can change and thus influence the management style

1E) Experience of the employees

The managers approach to their management style can be influenced by their level of experience

1E) Nature of the task

The nature of tasks to be completed can influence the apporiateness of the management style. Busiesses can range tasks from simple in nature to highly complex.

1E) Manager preference

A Managers preference can be highly individual and may determind which managemnt style is most appropriate.

1F) Planning

Is the process of determining a businesses objectives and establishing strategies to achieve these aims.

• Process

• objectives

• strategies

1F) Decision making

Decision making is the skill of selecting a suitable course of action from a range of plausible options.

1F) Communication

Communication is the skill of effectively transferring information from one party to another.

1F) Delegation

Delegation is a manager transferring authority and responsibility to employees for business tasks.

1F) Interpersonal Skills

Interpersonal skills refers to the managements ability to deal, interact or liase with people.

1F) Leadership

Is the skill of guiding or motivating other in order to achieve a business objective

1H) Corporate Culture

Is the shared values and beliefs of a business and its employees

• Shared

• beliefs

• employees

1H) Official corporate culture

Involves the shared views and values that a business aims to achieve often outlined in a written format

-v & v

-achieve

-outlined

• Establishing policy and procedure documents

• Business names logos and slogans

1H) Real corporate culture

Involves the shared values and beliefs that develop organically within a business and are practiced on a daily basis by its employees.

-Shared

-Organically

-Daily

• Hiring criteria

• Celebration rituals