Business Management - Unit 1 AOS2

Internal business environment (2A)

refers to factors that a business has control over and influences the business’ day to day success.

e.g. employees, resources and the business model.

External business environment (2A)

involves the surrounding factors that can impact a business, which it has minimal control over.

split into 2 factors, macro and operating factors.

Sole trader (2B)

Business structure owned and operated by one individual

Partnership (2B)

Business structure that’s owned by 2 to 20 owners

Private Limited Company (2B)

• Incorporated business structure

• at least one director

• max of 50 shareholders.

• Limited liability

• Pty Ltd

Public Listed Company (2B)

• Incorporated business structure

• limited liability

• unlimited # of shareholders

• listed on the ASX

• Needs at least 3 directors and 1 shareholder

• Ltd

Social Enterprise (2B)

type of business that aims to fulfil a community or environmental need by selling goods or services

Government Business Enterprise (2B)

Business owned and operated by the government

Online Business (2C)

Business model where goods and services are traded via the internet

Direct to consumer business (2C)

Business model where business’ products are sold directly to consumers with no intermediaries involved

Bricks and mortar business (2C)

Business model with a physical store presence (often have online platform also)

Franchise (2C)

Business model that grants another person the right to operate under its name, use its business systems, and sell its goods and services.

Importer (2C)

Business that purchases goods and services from overseas and sells them in their home country.

Exporter (2C)

Business that manufacturers products and services in its country of origin and market them to customers abroad.

Purchasing an existing business (2D)

Buying a business that is already set up and operating

Pros - hard work is already done and existing customer base may have already been established.

Establishing a new business (2D)

Making a business with a new innovative business idea that is not yet presented in the market

Natural Resources (2E)

Raw materials from the environment that are used in the production of goods and services

Labour Resources (2E)

People who provide the business with their skills and qualifications to conduct business activities

Capital Resources (2E)

Man-Made resources that help provide the goods and services of a business

Shopping centre location (2F)

• acts as a central point for individuals

• close proximity to competitors

• high visibility

• expensive

• Open hours

Shopping strip location (2F)

• usually near public transport and busy areas

• less competitors

• may have high costs

• laws can affect renovations and signage

• complementary businesses

Home Business location (2F)

• operates out of a business owner or client’s home

• pros = no extra rent

• con = low visibility

Online Business Location (2F)

pros = open 24/7, customer convenience

cons = customers can’t test out products, hard to offer customer service

Equity Capital (2G)

funds given to a company by an investor in return for a share of ownership

Debt Capital (2G)

funds from an external source loaned to a business that must be paid back with interest

Grants (2G)

Money given by a business by the government that must be used for a specific thing

Overdraft facilities (2G)

Agreement between a bank and business allowing a bank account to be drawn from below 0. Must be paid back with interest.

Business support services (2H)

specialised individuals, resources, or amenities meant to support enterprises in operating effectively

Legal support services (2H)

• Ensure a business meets all of its legal requirements

• also assists in creating contracts and provide legal representation

Financial Support services

• experts such as bank managers and accountants that can aid businesses in creating budgeting plans, setting up and maintaining financial records and setting up realistic goals

Technological support services (2H)

• helping businesses use tech

• Building and refining systems for them

• ensuring business is up to date with tech developments and can compete with other companies

Community-based support services (2H)

Services that assist in engaging businesses with the community

e.g. nursing homes, counsellors, house services

Formal Networks (2H)

Interconnected people and official organisations that assist in offering professional assistance to business owners

Informal networks (2H)

Unofficial interconnected groups of people that offer advice to business owners

e.g. friendships in a workplace offering advice to the business owner,

Business Plan (2I)

A document that outlines a business’ goals and objectives, as well as strategies to achieve them

Business Mentors (2H)

An experienced and knowledgeable business person who provides guidance and advice

Key features of a business plan (2I)

Most business plans include… (ABCPOMF)

• an executive summary

• budget

• company description

• products and services

• operating plan

• market analysis

• financials

Benefits of a business plan (2I)

• help businesses set up goals & strategies

• gives the owner, employees, & potential investors an overview of the business

• provides clear path for the business to follow to be successful

CSR - Corporate Social Responsibility (2J)

The ethical conduct of a business beyond legal obligations, and the consideration of social, economic, and environmental impacts when making business decisions.