Preliminary Business Studies Syllabus 2011...outline....
Slide 3
NOTE FOR DIARIES Friday period 2 computer lab #1 Meet at the
lab Please put in diaries!
Slide 4
Preliminary Business Studies 2011 TERM 1: Nature of Business
20% of time Contemporary business situations Business case studies
Roles and types of businesses Influences in the business
environment Business growth and decline ASSESSMENT: Type TBC (20%)
week 8 TERM 1: Business Management 40% of time Contemporary
business situations Business case studies Nature of management
Management approaches
Slide 5
Preliminary Business Studies 2011 TERM 2: Business Management
(cont) 40% of time continued from term 1 Contemporary business
situations Business case studies Roles and types of businesses
Influences in the business environment Business growth and decline
ASSESSMENT: Half-yearly Exam(25%) Week 9 TERM 2: Business Planning
40% of time Contemporary business situations Business case studies
TERM 3: Business Planning 40% of time Contemporary business
situations Business case studies Small to medium enterprises (SME)
Influences in establishing a business Business planning process
Critical issues in business success and failure BUSINESS RESEARCH
TASK (25%)Week 5 PRELIMINARY COURSE YEARLY EXAMINATION (30%):
fourth and final assessment Week 9
Slide 6
TERM 4: HSC Course begins! Preliminary Business Studies
2011
Slide 7
Prelim Business Studies 1. Syllabus Outline 2. Assessment
Outline 3. Media File instructions 4. Business Research Task 5.
Homework Programme "Continuous effort- not strength or intelligence
is the key to unlocking our Potential. Churchill
Slide 8
Key websites for Nature of Business ASIC
http://www.asic.gov.auhttp://www.asic.gov.au ICAC
http://www.icac.nsw.gov.auhttp://www.icac.nsw.gov.au CHOICE
magazine http://www.choice.org.au http://www.choice.org.au ASX
http:www.asx.com.au The Body shop http://www.thebodyshop.com.au
http://www.thebodyshop.com.au Coca-cola Amatil
Wesfarmerswww.wesfarmers.com.au
Slide 9
FOR SUCCESS GLOSSARY of key terms Read, read, read Business
Review Weekly Choice Magazine The New Internationalist All in
library Read the paper: including the SMH, The Australian, Online
newspapers, The NY times, The Economist (Advanced) Cut out and
start collecting articles of interest Watch the news: Including
shows Such as Q & A (Monday nights) with politicians and
Insiders and Inside Business on Sunday Mornings,
InsightInsidersInsight We will watch any good shows relevant to
what we are doing in class: If you see something you believe would
benefit our work in class let me know!
Slide 10
FOR SUCCESS Business annual reports Your connections with local
entrepreneurs Legal resources Collect any business magazines Get
familiar with different websites: esp SMH business, The Australian
Business
Slide 11
Opportunities business woman, Director of a company,
stockbroker, investment banker, political adviser, manager, sales
representative, accountant, analyst, marketing manager, advertising
executive, PR executive, communications manager, small business
owner, investor relations manager.... business womanDirector of a
company
Slide 12
The nature of business The focus of this topic is the role and
nature of business in a changing business environment. Use your
existing knowledge: you may know more than you think! Outcomes The
student: P1discusses the nature of business, its role in society
and types of business structure P2explains the internal and
external influences on businesses P6analyses the responsibilities
of business to internal and external stakeholders P7plans and
conducts investigations into contemporary business issues
P8evaluates information for actual and hypothetical business
situations Content Students learn to: examine contemporary business
issues to: discuss the global expansion of one Australian business
discuss the expansion into Australia of one global business explain
how changes in external influences have contributed to the growth
of the tertiary, quaternary and quinary industries in Australia
identify problems that arise for stakeholders when companies go
into liquidation investigate aspects of business using hypothetical
situations and actual business case studies to: distinguish between
the different types of businesses identify actual businesses at
different stages in the business life cycle outline possible
business strategies appropriate for different stages in the
business life cycle
Slide 13
The nature of business: The Role of Business What is business?
Persons occupation, behaviour when buying and selling, trade and
commerce, firms activity. English word: To do things BUYING AND
SELLING Sellers: How to sell and receive income Buyers How to get
what you want All businesses offer something to the community; no
matter how big or small, businesses are crucial to the successful
functioning of society. Business: Producing goods and services Q:
Where would Government without business?
Slide 14
Australias largest employers Figures in text.p.6 Woolworths
largest employer 94 000 employees Woolworths Australias biggest
company is BHP Billiton with over 33 000 employees.BHP Billiton
Small business employ more Australians than big business overall
(retail) Small business retail Businesses with fewer than 100
employees employ over 42% of the workforce
Slide 15
Activity: Australias top 10 employers List Australias top 10
employers and investigate their core activities 1. Woolworths 2.
Coles Myer 3. Queensland Health 4. Telstra 5. National Australia
Bank 6. Commonwealth Bank Group 7. Australia Post 8. Qantas 9. BHP
Billiton 10. ANZ Banking Group Which of these companies is in the
private sector and which in the public sector?
Slide 16
Nature of business Innovation: Competitive edge always,
constant ideas R&D Cochlear Cochlear Choice: 'It's choice not
chance that determines your destiny. Jean Nidetch Free enterprise
system in Australia production and distribution are mostly
privately owned. Supply and demand determine the allocation of
resources in the economy Choice of production and purchasing
encourages competition between businesses to product products and
services at the lowest possible price and of the highest possible
quality In what countries is/was there no competition. No free
market? Consumers have freedom of choice = ^ quality
Slide 17
Nature of business Entrepreneurship What defines an
entrepreneur? Risk taker? Creativity? Determination? Energy?
Passion? Contacts? What entrepreneurs can you think of and what
qualifications did they have? Steve Jobs Steve Jobs Entrepreneurs
must combine resources of land, labour and capital to produce a
product Quality of life Products and services increase the quality
of life for all Australians. Business provides us to a range of
goods that we could not create ourselves
Slide 18
Class discussion: Local Businesses What goods and services do
they provide? Identify the similarities and difference between each
Lets Go Surfing Bondi Icebergs Aquabumps Love Lunch Camilla Sarah
Glover Cookies Gertrude and Alice 2 nd hand books Gertrude and
Alice ANY OTHERS
Slide 19
Is a school a business? An example of the Strategic Plan of a
SchoolStrategic Plan Short paragraph on: Is school a business?
short answer response
Slide 20
The role and importance of business: recap 1. Entrepreneurship
2. Innovation 3. Employment 4. Provider of goods and services 5.
Source of government revenue 6. Wealth creation 7. Quality of life
8. Choice Copy table on p. 9 and give examples of each one. EG. 1.
Entrepreneurship, Camilla Franks, 2. Innovation, Bionic Ear.
Slide 21
Business Goals Financial Goals Social Goals Personal Goals
Corporate Social Responsibility Triple bottom line: corporate,
social and environmental responsibility. Business must make a
profit, protect the planet and serve the people. CASE STUDY: read
and answer all questions 1-4.
Slide 22
CASE STUDY Veuve Clicquot Award (p 11-12 txt) Read together and
answer questions 1-3 individually 1. Describe the qualities of a
person who would be nominated for the Veuve Clicquot Award. 2.
Research one of the finalist for the award and explain to the class
why this woman deserves to win the award 3. Explain the qualities
Sarina Bratton has that make her a good businesswoman
Slide 23
Business Goals Financial Goals Social Goals Personal Goals
Corporate Social Responsibility Triple bottom line: corporate,
social and environmental responsibility. Business must make a
profit, protect the planet and serve the people. CASE STUDY: read
and answer all questions 1-4.
Slide 24
Business goals Common business goals What is the right balance?
Financial GoalsSocial GoalsPersonal Goals Profit maximisation
Return on investment Increased market share Increased sales revenue
Community service Environmental protection Employee satisfaction
Continued employment Prestige Power and influence Job satisfaction
Financial reward
Slide 25
Stakeholders Every business, through its range of functions or
operations, serves the interest of customers, owners, employees,
suppliers, creditors, governments, society and even competitors:
STAKEHOLDERS as they have a stake in the continuing successful
operation of the business See figure 1.1.10 the importance of
business to stakeholders
Slide 26
Wednesday 9 February Business reports! 1.1 review for homework
tonight Today introduce new topic: Types of business
Slide 27
Business Reports on companies: feedback Spelling! Capitals!
Punctuation! Which Grammatical person?! Be consistent Ensure you
have only listed highlights. Is the information you are including
in your report really vital? Make sure it is! Be fussy. Think dont
just copy.
Slide 28
1.1 review Key terms for glossary pg. 16 Complete Business
Literacy 1 and 3 Business Teamwork: 5 Business Thinking skills: 7
Create a mind map outlining people affected by a particular
business activity. Divide these into internal and external
stakeholders "Kites rise highest against the wind - not with
it"
Slide 29
Types of business Classification of business Which industry it
belongs to The size of the business The industry/economic sector
Its legal structure Industry/ economic sector SizeIndustryLegal
structure Primary Secondary Tertiary Quaternary Quinary Large
Medium Small Micro Agriculture Construction Financial Management
Mining Sole trader Partnership Private company Public company
Cooperative Trust Statutory body Government business enterprise
(GBE) Government business enterprise (GBE)
Slide 30
Government Business Enterprises (GBEs) The Government
Businesses Advice Branch (GBAB) provides advice to the Australian
Government relating to its Government Business Enterprises (GBEs)
and other commercial entities. The branchs primary tasks in
relation to GBEs is to: provide sound strategic and analytical
advice to the Minister for Finance and Deregulation, in particular
by engaging with the GBEs, analysing their operations and their
environment, and consulting with stakeholders; action the
Minister's decisions including communicating objectives; and ensure
that there is a robust and sound governance framework in place by
initiating change and contributing to policy development.
Government Business Enterprises (GBEs) are prescribed in
regulations [] under the Commonwealth Authorities and Companies Act
1997.regulationsCommonwealth Authorities and Companies Act 1997 The
Australian Governments relationship to its GBEs is similar to the
relationship between a holding company and its subsidiaries,
features of which include: a strong interest in the performance and
financial returns of the GBE; reporting and accountability
arrangements that facilitate active oversight by the shareholder;
action by the shareholder in relation to the strategic direction of
its GBEs where it prefers a different direction from the one
proposed; management autonomy balanced with regular reporting of
performance to shareholders; and boards that are accountable to
shareholders for GBE performance, and shareholders that are
accountable to Parliament and the public. To enable greater public
accountability, wholly owned GBEs are required to prepare a
Statement of Corporate Intent (SCI) in consultation with
Shareholder Ministers. A SCI focuses on the purpose and corporate
outlook of a GBE, and expresses the expectations of its management
in relation to future financial and non-financial performance. The
following is a list of the Australian Governments GBEs, with links
to their websites, where available: ASC Pty LimitedASC Pty Limited
[] Australian Government SolicitorAustralian Government Solicitor
[] Australian Postal CorporationAustralian Postal Corporation []
Australian Rail Track Corporation LimitedAustralian Rail Track
Corporation Limited [] Defence Housing AustraliaDefence Housing
Australia [] Medibank Private LimitedMedibank Private Limited []
NBN Co LimitedNBN Co Limited [] Other entities which are not
prescribed as GBEs but which GBAB also provides advice to the
Government are: Airservices AustraliaAirservices Australia []
Australian River Co. Limited - Statement of Intent [ 53KB] -
Statement of Expectation [ 6KB] - Annual Report 2009 [ 7MB] -
Annual Report 2009 [ 357 KB]Statement of IntentStatement of
ExpectationAnnual Report 2009 Australian Industry Development
Corporation Statement of Intent [ 24KB] Statement of Expectation [
7KB] Statement of Intent Statement of Expectation Annual Report 30
June 2010 [ 381KB] Annual Report 30 June 2010 [ 1.65MB] Annual
Report 30 June 2010 Albury-Wodonga Corporation [] Albury-Wodonga
Corporation Snowy Hydro Limited [] Snowy Hydro Limited
Slide 31
SMEs http://thehub.ethics.org.au/sme/n
Slide 32
Features of small, medium and large businesses Construct a
table listing the features of each list five examples of each Small
Medium enterprises (SMEs) Large Surfculture retail, wholesale,
Australian business, 20 staff, low turnover of staff, products made
in china, external accountant OneAgency service business,
Australian business with international clients, 10 staff, 10
contractors Woodside mining services business, Majority Australian
Business,ggg 50, 000 staff, export business, international
staff
Slide 33
SMEs Suggest and justify the most likely growth areas for SMEs
in the next ten years in Australia or Globally.... Ageing
population to change business Lema Samandar September 22, 2008 from
SMH
Slide 34
Local, national, global Examine local, national and global
business reports and classify these businesses in relation to their
output or service provided
Slide 35
Industry Primary Secondary Tertiary Quaternary Quinary
Slide 36
THURSDAY 10 February Homework from Chapter 1: 1.1 and/or
questions/mindmaps! Who did not complete their industry sector
breakdown? Why do we break down sectors? NEW TOPIC: Business Legal
Structures News articles homework!!
Slide 37
Industry sectors INDUSTRYDEFINEExamples PRIMARY SECONDARY
QUATERNARY QUINARY TERTIARY
Slide 38
INDUSTRYDEFINEExamples PRIMARY Exploit natural resources and
produce raw materials Mining, farming SECONDARY Process raw
materials and manufacture finished goods; production of cars, food
and clothes QUATERNARY Information-based services Teaching,
journalism, banking QUINARY Household servicesCarpet cleaning,
child care, restaurants TERTIARY Distribute goods and provide
services Supermarkets, hairdressing, travel agents
Slide 39
Industries contd ACTIVITY: Examine how government policy
contributed to the development of the quaternary and quinary
sectors QUATERNARY Information-based services Teaching, journalism,
banking QUINARY Household services Carpet cleaning, child care,
restaurants
Slide 40
What business legal structures do these successful business
people use?
Slide 41
Tuesday 15 th Business Legal Structures Homework: Share news
articles Sass n Bide finish up Continue and finish Business Legal
Structures: complete handouts from last Thursday
Slide 42
Business Legal Structures Important to think about the
advantages and disadvantages of each different type of structure..
Sole trader Partnership Private company Public company Government
enterprise CREATE: MIND MAP
Slide 43
NEWS ARTICLES Homework for weekend: 1. You are to go to The
Australian or SMH business websites or any other legitimate news
website of newspaper! (try not make it the Daily Telegraph.. The
Economist, BRW, New York Times etc all good) 2. You are to find an
article about any business small or large and find out two things
1.Whether the business is a SME or a Large business and; 2.What
type of legal structure this business has. 3. Finally you are to
create a small summary of the article to share with the class. EG:
BoralBoral This is to be handed in on Tuesday 15 February
Slide 44
Sole trader A sole proprietorship is the establishment of a
business by an individual; there is no legal entity that owns ands
operates the business The owner is personally responsible for all
debts ands contracts Profits are disclosed on the owners personal
income tax return and he or she can deduct business losses
Slide 45
Partnership A general partnership is an agreement by two or
more persons or entities to establish and operate a business A
written agreement should be prepared between the partners Each
partner discloses business profits in his or her personal tax
return and deducts proportionate losses A joint venture is a
general partnership set up to make a profit on a one-time basis A
good example: Sass and BideSass and Bide
Slide 46
Positive Partnership: Sass and Bide 12 mins Why do you believe
this partnership is successful? What were the partners former
careers? What obstacles did they have to overcome? What press could
you not buy that Sass and Bide landed? What is this called? Why do
they believe they were successful?
Slide 47
Hancock and Wright Court told agreement gave Wright family half
of ore deposit Posted Tue Mar 6, 2007 9:41pm AEDT A multi-million
dollar court dispute over the ownership of Australia's biggest iron
ore tenement has heard the late mining magnates Lang Hancock and
Peter Wright had a unique relationship and were intensely loyal.
The Supreme Court in Perth has been told both men agreed to split
their assets in 1983, with the Wright family taking ownership of
the iron ore business, including a 50 per cent stake in the $3
billion Rhodes Ridge deposit. The counsel for Wright Prospecting,
Rod Smith, told the court Mr Hancock wanted a binding agreement
drawn up to split company assets because he foreshadowed their
families would be locked in legal battles. Mr Smith told the court
this agreement gives the Wright family half the Rhodes Ridge
deposit, with Rio Tinto owning the undisputed half. However Hancock
Prospecting claim it also owns a 25 per cent stake in the deposit.
The hearing has been set down for six weeks.
Slide 48
Activity: Business structures (legal) Construct a profile of
the ideal business partner then devise a possible partnership
agreement. Debate the topic: Never go into business with a
relative.
Slide 49
Billion-dollar war An enduring partnership based on trust
between two of the west's richest mining magnates has not passed on
to their heirs. Victoria Laurie and Paige Taylor report on two
dynasties fighting over a vast mineral deposit THE biblical wisdom
that the sins of the father are visited on his offspring could well
apply to iron ore magnate Lang Hancock and his business partner
Peter Wright, if one views their collective sin as being too rich
for their own children's good. This week in the West Australian
Supreme Court, Wright's son and daughter, Michael Wright and Angela
Bennett, began legal action against Hancock's only daughter, Gina
Rinehart, over a vast unmined pile of iron ore - possibly worth $4
billion - that each side claims it owns. Like other legal fights
that have emanated from WA's two dynastic iron ore families, it
carries an unedifying air. For these are two sets of offspring who
have already inherited vast fortunes from their respective fathers.
Rinehart is Australia's first female billionaire, reputedly worth
$1.8 billion from the accumulated, and ongoing, royalty payments
her father negotiated with mining companies. Australia's second
richest woman, Angela Bennett, shares a $900 million fortune with
her brother Michael Wright, inherited from their father.
Slide 50
Companies: private Private company is limited to 50
shareholders. A board of directors is elected to run the company.
If there are only a small number of shareholders they usually take
on the role of directors A private company has Pty Ltd short for
Proprietary Limited: this means that liability is limited to the
company, and does not extend to its owners. Shares NOT sold to
public. A limited liability company (LLC) combines liability
protection with the tax status of a general partnership Owners of
an interest in the LLC are called members Members have no personal
liability for the debts and obligations of the LLC Members disclose
profits and deduct losses on their individual tax returns
Slide 51
Public company There is no limit to the number of people who
can own shares in a public company. Such companies must be listed
on the ASX (Australian Stock Exchange) and are run by a board of
directors elected by the shareholders. The board then appoints
executives to manage the daily affairs of the company. A public
company usually has Ltd after its name, meaning that the
shareholders have limited liability. Follow the process of floating
a public company
Slide 52
WEDNESDAY 16 February FRIDAY: in Turnbull Centre: homework for
tomorrow to come up with two good questions relating to the
Business Studies syllabus that you can ask a small business owner.
These are to be emailed to me.
Slide 53
Government Enterprise A government sponsored/supported business
activity Government Business Enterprises (GBEs) The Government
Businesses Advice Branch (GBAB) provides advice to the Australian
Government relating to its Government Business Enterprises (GBEs)
and other commercial entities. Eg ASC Pty LimitedASC Pty Limited []
Australian Government SolicitorAustralian Government Solicitor []
Australian Postal CorporationAustralian Postal Corporation []
Australian Rail Track Corporation LimitedAustralian Rail Track
Corporation Limited [] Defence Housing AustraliaDefence Housing
Australia [] Medibank Private LimitedMedibank Private Limited []
NBN Co LimitedNBN Co Limited []
Slide 54
Government Business Enterprises (GBEs) The Government
Businesses Advice Branch (GBAB) provides advice to the Australian
Government relating to its Government Business Enterprises (GBEs)
and other commercial entities. The branchs primary tasks in
relation to GBEs is to: provide sound strategic and analytical
advice to the Minister for Finance and Deregulation, in particular
by engaging with the GBEs, analysing their operations and their
environment, and consulting with stakeholders; action the
Minister's decisions including communicating objectives; and ensure
that there is a robust and sound governance framework in place by
initiating change and contributing to policy development.
Government Business Enterprises (GBEs) are prescribed in
regulations [] under the Commonwealth Authorities and Companies Act
1997.regulationsCommonwealth Authorities and Companies Act 1997 The
Australian Governments relationship to its GBEs is similar to the
relationship between a holding company and its subsidiaries,
features of which include: a strong interest in the performance and
financial returns of the GBE; reporting and accountability
arrangements that facilitate active oversight by the shareholder;
action by the shareholder in relation to the strategic direction of
its GBEs where it prefers a different direction from the one
proposed; management autonomy balanced with regular reporting of
performance to shareholders; and boards that are accountable to
shareholders for GBE performance, and shareholders that are
accountable to Parliament and the public. To enable greater public
accountability, wholly owned GBEs are required to prepare a
Statement of Corporate Intent (SCI) in consultation with
Shareholder Ministers. A SCI focuses on the purpose and corporate
outlook of a GBE, and expresses the expectations of its management
in relation to future financial and non-financial performance. The
following is a list of the Australian Governments GBEs, with links
to their websites, where available: ASC Pty LimitedASC Pty Limited
[] Australian Government SolicitorAustralian Government Solicitor
[] Australian Postal CorporationAustralian Postal Corporation []
Australian Rail Track Corporation LimitedAustralian Rail Track
Corporation Limited [] Defence Housing AustraliaDefence Housing
Australia [] Medibank Private LimitedMedibank Private Limited []
NBN Co LimitedNBN Co Limited [] Other entities which are not
prescribed as GBEs but which GBAB also provides advice to the
Government are: Airservices AustraliaAirservices Australia []
Australian River Co. Limited - Statement of Intent [ 53KB] -
Statement of Expectation [ 6KB] - Annual Report 2009 [ 7MB] -
Annual Report 2009 [ 357 KB]Statement of IntentStatement of
ExpectationAnnual Report 2009 Australian Industry Development
Corporation Statement of Intent [ 24KB] Statement of Expectation [
7KB] Statement of Intent Statement of Expectation Annual Report 30
June 2010 [ 381KB] Annual Report 30 June 2010
Slide 55
Privatisation of government companies Debate the issue of
privatisation of government companies in Australia. (Telstra, Cth
Bank etc)privatisation Watch video on Privatisation under Thatcher
http://www.youtube.com/watch?v=nEIR0aOL qXk&feature=related
http://www.youtube.com/watch?v=nEIR0aOL
qXk&feature=related
Slide 56
THURSDAY 17 February Business structures short answers.. Each
question a short paragraph.. 1.Write a short paragraph outlining
the advantages and disadvantages of being a sole trader. 2. List
three disadvantages of a partnership. 3. What are the benefits of
being a private company? 4. Define: public company? 1. HOMEWORK DUE
2. LOOK AT SYLLABUS 3. HOW TO CHOOSE LEGAL STRUCTURE 4. INTERNAL
AND EXTERNAL FACTORS 5. QUIZ OVER WEND OR TOMORROW ON SYLLABUS THUS
FAR
Slide 57
YOUR TASK:IN PAIRS: You are to prepare arguments for or against
a different business structure and then we are to have a class
debate about the different types of business structures. Group 1:
arguments for sole traders and an example of a successful sole
trader Group 2: arguments against sole traders and give an example
of when a sole trader failed if possible Group 3: arguments for
partnerships and an example of a successful partnership Group 4:
arguments against partnerships and an example of a partnership that
went wrong Group 5: arguments for a private company and give an
example of a successful private company Group 6: arguments in
favour of Public companies and give an example of one of Australias
most successful public companies IMAGES SHOULD BE INCLUDED WHERE
POSSIBLE
Slide 58
Factors influencing choice of legal structure Size Ownership
Finance
Slide 59
INFLUENCES IN THE BUSINESS ENVIRONMENT External influences
Geographic Social Legal Political Institutional Technological
Competitive situation markets Internal influences Products Location
Resources Management and business culture Stakeholders
Stakeholders
Slide 60
INSTITUTIONAL FACTORS Institutions Institutions are according
to North(1991) the game rules, in other words, the man-designed
limits that determine the forms of social relationships. The
importance of these institutional elements in the regional level
could be found in the contribution they have had in the
reorganization of the production forms, through the reduction of
transaction and production costs, the definition of the incentives
structure and the changes of social participation. a)the soft
institutional factors that refers to individual habits, routines,
customs, traditions, social norms and values, which show some of
the characteristics of the networks of interpersonal relations;
b)the hard institutional factors are the long-lasting collective
forces that shape the economy, such as rules, laws, constitutions,
property rights, etc. However institutional factor can not explain
by itself high growth rate, but added to economic and social
variables, it might contribute to create a dynamic processes with
higher levels of growth. An institution is any structure or
mechanism of social order and cooperation governing the behavior of
a set of individuals within a given human community. Institutions
are identified with a social purpose and permanence, transcending
individual human lives and intentions, and with the making and
enforcing of rules governing cooperative human behavior.
[1]structuremechanismsocial ordercooperationbehavior
individualssocial purposehuman [1] The term "institution" is
commonly applied to customs and behavior patterns important to a
society, as well as to particular formal organizations of
government and public service. As structures and mechanisms of
social order among humans, institutions are one of the principal
objects of study in the social sciences, such as political science,
anthropology, economics, and sociology (the latter being described
by Durkheim as the "science of institutions, their genesis and
their functioning"). [2] Institutions are also a central concern
for law, the formal mechanism for political rule-making and
enforcement.societygovernmentpublic servicesocial sciencespolitical
scienceanthropology economicssociologyDurkheim [2]law
Slide 61
Foreign takeovers? Argue the case for or against foreign
takeovers National interest The WA Premier Colin Barnett says it is
in the nation's best interest for Woodside to remain in Australian
hands. Mr Barnett was the WA Resources Minister in 2000 when Shell
unsuccessfully tried to take over Woodside. He says he is still
opposed to any foreign takeover of the company. "I would still have
the view that it's important and in our national interest,
certainly in our state's interest, for Woodside to remain an
independent, national company," he said. "Now, if some other
company, whether it's a BHP or someone else, buys a share of
Woodside, I don't have an objection to that so long as Woodside
remains as an independent company."
Slide 62
Influences in the business environment Writing task: 10mins Are
internal or external factors more influential? Provide reasons for
your answer and use business examples where you can.
Slide 63
Influences in the business environment Select a small business
and outline factors that impact upon its operation, distinguish
between internal and external factors
Slide 64
Business life cycle A business evolves through four major
phases of development. The four phases are establishment, growth,
maturity and post-maturity Each phase characterised by a number of
features that are common to most businesses and need to be
carefully managed
Slide 65
Business growth and decline Stages of the business life cycle
Establishment Growth Maturity Post-maturity
Slide 66
1. Establishment phase Business is launched In pairs find out
how much you already know about the difficulties associated with
launching a business: Financial costs, employing people Unknown
competition (direct competition) Management team need realistic and
sustainable ideas..needs to be original Many key decisions about
business need to be made e.g. Location, staffing, management
structure etc
Slide 67
Establishment phase Retailers are reluctant to put a product
without a track record on their shelves Typically expenses are
higher than sales revenue during the establishment phase
Establishment phase is often characterised by negative profits
Slide 68
The establishment of a company
http://www.theaustralian.com.au/business/small-business Create a
flowchart of the steps that must be taken to establish a
company
Slide 69
2. Growth Phase Rapid increase in sales during growth phase put
pressure on resources Cash problems may develop because of rapid
expansion Competitors will react to the rapid increase in sales and
try to counter it
Slide 70
3. Maturity stage The growth in sales levels off as the
business is selling the same value of products year after year The
market for the product is saturated E.g. Everyone who wants a
plasma TV has one after a certain time In this phase it is usual to
employ professional managers as they have the skills to grow the
value of the business by making it more competitive Cost cutting is
the way to success in the maturity phase..how else?
Slide 71
4. Post-maturity Final stage of the business life cycle Often
business has failed to respond to increased competition and is
haemorrhaging market share Characterised by falling sales and loss
of market share Business unprofitable and cash flow problems
emerge/difficulty in paying bills on time Cost cutting will ensure
it maintains postition in marketplace Renewal also possible where
managers develop new products or more competitive ways of providing
customer benefits
Slide 72
DIAGRAM FROM OTHER TEXT handouts
Slide 73
Business growth and decline ACTIVITY: Using your laptops
construct and annotate a graph showing the business life cycle.
**Try and also highlight and identify challenges at each stage in
the business life cycle, plot where actually businesses may be on
the graph!
Slide 74
Responding to challenges at each stage of business life cycle
Using hypothetical scenarios of the business life cycle, evaluate
strategies to respond to challenged Select a range of local
businesses and allocate a particular life cycle stage to each one.
List the main problems facing owners/managers of each
Slide 75
Business life cycle Study a business such as Rip Curl. Identify
the stages it has gone through and discuss issues relevant to each
stage
Slide 76
Factors that can contribute to business decline BRAINSTORM:
What are some of the factors which contribute to business decline,
find examples from the media ABC Learning Babcock and Brown
Slide 77
CASE STUDY: business failure What factors led to the failure of
this business...
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Reasons for voluntary and involuntary cessation Baskin
Robbins
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DEBATE Liquidation is an easy way out for businesses FOR AND
AGAINST
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New topic: Business Management 40% of indicative time : The
focus of this topic is the nature and responsibilities of
management in the business environment. Outcomes The student:
P2explains the internal and external influences on businesses
P4assesses the processes and interdependence of key business
functions P5examines the application of management theories and
strategies P6analyses the responsibilities of business to internal
and external stakeholders P7plans and conducts investigations into
contemporary business issues P8evaluates information for actual and
hypothetical business situations P9communicates business
information and issues in appropriate formats P10applies
mathematical concepts appropriately in business situations Content
Students learn to: examine contemporary business issues to: discuss
strategies that could reconcile the conflicting interests of
stakeholders compare and contrast approaches to management explain
the benefits of quality management practices investigate aspects of
business using hypothetical situations and actual business case
studies to: identify the qualities of managers who have exhibited
high personal and ethical standards analyse different ways of
coordinating key business functions for an SME examine effective
cash flow management assess the role of the income statement and
the balance sheet when describing the financial performance of a
business explain how SMEs manage change effectively
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Nature of Management Features of effective managementeffective
management
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Nature of Management Discussion: What is effective management?
What are the skills that an effective manager needs?
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Skills of management Interpersonal Communication Strategic
thinking Vision Problem solving Decision-making Flexibility
Adaptability to change Reconciling the conflicting interests of
stakeholders Which of the above skills is most important? Put the
list in order of importance
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Skills of management mind map Skills of management Vision
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Case study: An effective manager... Australian of the Year 2011
Simon McKeon Social Entrepreneur Simon McKeon is a prominent
investment banker and world record breaking yachtsman, but its his
efforts to support multiple Australian and international charities
which has earned him great admiration. While enjoying a successful
corporate career, Simon decided that he didnt want to put off the
idea of serious engagement with the community sector until his most
productive years were behind him. So he joined the board of World
Vision Australia in 1994 and subsequently transitioned into a part
time role with Macquarie Group as Executive Chairman of its
Melbourne office. Simon is Chairman of CSIRO as well as Business
for Millennium Development, which encourages business to engage
with the developing world. He recently retired as Founding Chairman
of MS Research Australia and the Founding President of the Federal
Governments Takeover Panel. His association with World Vision
International continues and he is also involved with the Global
Poverty Project and Red Dust Role Models, which works with remote
Indigenous communities. Together with crewman Tim Daddo, Simon has
held the World Speed Sailing Record for most of the last two
decades. As a leading social entrepreneur, Simon demonstrates how
business and philanthropy go hand in hand, giving tremendously of
his time and energy to many organisations. A Related article
hereRelated article here
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DEBATE Businesses are only interested in maximising profit
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Achieving business goals Managers must seek to... Maximise
profits Market share Growth Share price Social Environmental
Achieve a mix of the above goals Staff involvement e.g.
GoogleGoogle What sort of incentives have management allowed staff
to enjoy...? Innovation Motivation Mentoring Training
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Google: a case study Management team What common skills are
there between the directors? Staff involvement e.g. GoogleGoogle
What sort of incentives have management allowed staff to enjoy...?
What are the benefits of fostering staff involvement? To what
extent can staff contribute to the achievement of business goals at
Google?