PRELIMINARY BUSINESS STUDIES

PRELIMINARY BUSINESS STUDIES
Miss Vidler 2011

Preliminary Business Studies
Syllabus outline....

NOTE FOR DIARIES Friday period 2 computer lab #1 Meet at the lab
Please put in diaries!

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 Nature of management Management approaches

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 TERM 3: Business Planning 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

TERM 4: HSC Course begins!

Prelim Business Studies
Syllabus Outline Assessment Outline Media File instructions Business Research Task Homework Programme "Continuous effort- not strength or intelligence is the key to unlocking our Potential.” Churchill

Key websites for Nature of Business
ASIC ICAC CHOICE magazine ASX The Body shop Coca-cola Amatil Wesfarmerswww.wesfarmers.com.au

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, Insight 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!

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

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....

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: P1 discusses the nature of business, its role in society and types of business structure P2 explains the internal and external influences on businesses P6 analyses the responsibilities of business to internal and external stakeholders P7 plans and conducts investigations into contemporary business issues P8 evaluates 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

The nature of business: The Role of Business
What is business? Person’s 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?

Australia’s largest employers
Figures in text.p.6 Woolworths largest employer employees Australia’s biggest company is BHP Billiton with over employees. Small business employ more Australians than big business overall (retail) Businesses with fewer than 100 employees employ over 42% of the workforce

Activity: Australia’s top 10 employers
List Australia’s top 10 employers and investigate their core activities Woolworths Coles Myer Queensland Health Telstra National Australia Bank Commonwealth Bank Group Australia Post Qantas BHP Billiton ANZ Banking Group Which of these companies is in the ‘private sector’ and which in the ‘public sector’?

In what countries is/was there no competition. No free market?
Nature of business Innovation: Competitive edge always, constant ideas R&D 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

Nature of business Entrepreneurship Quality of life
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 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

Class discussion: Local Businesses What goods and services do they provide? Identify the similarities and difference between each Let’s Go Surfing Bondi Icebergs Aquabumps Love Lunch Camilla Sarah Glover Cookies Gertrude and Alice 2nd hand books ANY OTHERS

Is a school a business? An example of the Strategic Plan of a School Short paragraph on: Is school a business? short answer response

The role and importance of business: recap
Entrepreneurship Innovation Employment Provider of goods and services Source of government revenue Wealth creation Quality of life Choice Copy table on p. 9 and give examples of each one. EG. 1. Entrepreneurship, Camilla Franks, 2. Innovation, Bionic Ear.

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.

CASE STUDY Veuve Clicquot Award (p 11-12 txt)
Read together and answer questions individually Describe the qualities of a person who would be nominated for the Veuve Clicquot Award. Research one of the finalist for the award and explain to the class why this woman deserves to win the award Explain the qualities Sarina Bratton has that make her a good businesswoman

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.

What is the right balance?
Business goals Common business goals What is the right balance? Financial Goals Social Goals Personal 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

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 the importance of business to stakeholders

Wednesday 9 February Business reports! 1.1 review for homework tonight
Today introduce new topic: Types of business

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 don’t just copy.

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"

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 Size Industry Legal 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 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 branch´s 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. The Australian Government´s 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 Government´s GBEs, with links to their websites, where available: ASC Pty Limited [] Australian Government Solicitor [] Australian Postal Corporation [] Australian Rail Track Corporation Limited [] Defence Housing Australia [] Medibank Private Limited [] NBN Co Limited [] Other entities which are not prescribed as GBEs but which GBAB also provides advice to the Government are: Airservices Australia [] Australian River Co. Limited - Statement of Intent [ 53KB] - Statement of Expectation [ 6KB] - Annual Report 2009 [ 7MB] - Annual Report 2009 [ 357 KB] Australian Industry Development Corporation Statement of Intent [ 24KB] Statement of Expectation [ 7KB] Annual Report 30 June 2010 [ 381KB] Annual Report 30 June 2010 [ 1.65MB] Albury-Wodonga Corporation [] Snowy Hydro Limited []

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

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

Local, national, global Examine local, national and global business reports and classify these businesses in relation to their output or service provided

Industry Primary Secondary Tertiary Quaternary Quinary

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!!

Industry sectors INDUSTRY DEFINE Examples PRIMARY SECONDARY QUATERNARY
QUINARY TERTIARY

INDUSTRY DEFINE Examples PRIMARY SECONDARY QUATERNARY QUINARY TERTIARY
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 services Carpet cleaning, child care, restaurants TERTIARY Distribute goods and provide services Supermarkets, hairdressing, travel agents

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

What business legal structures do these successful business people use?

Tuesday 15th Business Legal Structures Homework: Share news articles
Sass n Bide finish up Continue and finish Business Legal Structures: complete handouts from last Thursday

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

NEWS ARTICLES Homework for weekend:
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) You are to find an article about any business small or large and find out two things Whether the business is a SME or a Large business and; What type of legal structure this business has. Finally you are to create a small summary of the article to share with the class. EG: Boral This is to be handed in on Tuesday 15 February

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 owner’s personal income tax return and he or she can deduct business losses

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 Bide

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?

Hancock and Wright Court told agreement gave Wright family half of ore deposit Posted Tue Mar 6, :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.

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.’

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.

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

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

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 ed to me.

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 Limited [] Australian Government Solicitor [] Australian Postal Corporation [] Australian Rail Track Corporation Limited [] Defence Housing Australia [] Medibank Private Limited [] NBN Co Limited []

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 branch´s 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. The Australian Government´s 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 Government´s GBEs, with links to their websites, where available: ASC Pty Limited [] Australian Government Solicitor [] Australian Postal Corporation [] Australian Rail Track Corporation Limited [] Defence Housing Australia [] Medibank Private Limited [] NBN Co Limited [] Other entities which are not prescribed as GBEs but which GBAB also provides advice to the Government are: Airservices Australia [] Australian River Co. Limited - Statement of Intent [ 53KB] - Statement of Expectation [ 6KB] - Annual Report 2009 [ 7MB] - Annual Report 2009 [ 357 KB] Australian Industry Development Corporation Statement of Intent [ 24KB] Statement of Expectation [ 7KB] Annual Report 30 June 2010 [ 381KB]

Privatisation of government companies
Debate the issue of privatisation of government companies in Australia. (Telstra, Cth Bank etc) Watch video on Privatisation under Thatcher qXk&feature=related

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? HOMEWORK DUE LOOK AT SYLLABUS HOW TO CHOOSE LEGAL STRUCTURE INTERNAL AND EXTERNAL FACTORS QUIZ OVER WEND OR TOMORROW ON SYLLABUS THUS FAR

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 Australia’s most successful public companies IMAGES SHOULD BE INCLUDED WHERE POSSIBLE

Factors influencing choice of legal structure
Size Ownership Finance

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

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] 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.

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."

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.

Influences in the business environment
Select a small business and outline factors that impact upon its operation, distinguish between internal and external factors

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

Business growth and decline
Stages of the business life cycle Establishment Growth Maturity Post-maturity

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

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

The establishment of a company
Create a flowchart of the steps that must be taken to establish a company

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

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?

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

DIAGRAM FROM OTHER TEXT
handouts

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!

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

Business life cycle Study a business such as Rip Curl. Identify the stages it has gone through and discuss issues relevant to each stage

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

CASE STUDY: business failure
What factors led to the failure of this business...

Reasons for voluntary and involuntary cessation
Baskin Robbins

DEBATE ‘Liquidation is an easy way out for businesses’ FOR AND AGAINST

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: P2 explains the internal and external influences on businesses P4 assesses the processes and interdependence of key business functions P5 examines the application of management theories and strategies P6 analyses the responsibilities of business to internal and external stakeholders P7 plans and conducts investigations into contemporary business issues P8 evaluates information for actual and hypothetical business situations P9 communicates business information and issues in appropriate formats P10 applies 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

Nature of Management Features of effective management

Nature of Management Discussion: What is effective management? What are the skills that an effective manager needs?

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

Skills of management mind map
Vision

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 it’s 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 didn’t 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 Government’s 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 here

DEBATE “Businesses are only interested in maximising profit”

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. Google What sort of incentives have management allowed staff to enjoy...? Innovation Motivation Mentoring Training

Google: a case study Management team
What common skills are there between the directors? Staff involvement e.g. Google 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?

PRELIMINARY BUSINESS STUDIES

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