Business Management U3 AoS1

• Sole Trader:

  • Owner has full control + less government regulation + profit taxed as personal income
  • Unlimited liability + little to no capital + No help
• Partnership (2-20):

  • Share workload + Minimal government regulation + more access to capital
  • Unlimited liability + possibility of disputes + difficulty finding suitable partner/s
• Incorporation: Changing ownership structure to a company
• Private Limited company (1-50):

  • More access to capital + limited liability + company tax rate lower than normal
  • Expensive to establish + public disclosure + higher government regulation
• Public Listed company (min 1):

  • attract extra capital from shares + limited liability + ease to transfer ownership
  • Public disclosure + Share prices + higher degree of government control
• Social enterprise:

  • can open up new markets + meeting social needs betters reputation + employees motivated by good work
  • hard to finance + significant operating costs + difficult to focus on both social and financial objectives
• Government Business Enterprise:

  • able to carry out government policies + can operate with some independence from government + lead to healthy competition
  • government 'red tape' + management can be less effective than private companies + less accountability
• Business objectives

  • To make a profit
  • To increase market share
  • To improve efficiency
  • To improve effectiveness
  • To fulfill a market need
  • To fulfill a social need
  • To meet shareholder expectations
• Stakeholders

  • Owners
  • Managers
  • Employees
  • Customers
  • Suppliers
  • The General Community
• Autocratic Management style ' do it the way I tell you'

  • centralised + one-way communication
  • no uncertainty + employee expectations known + centralised control means problems dealt quickly
  • no employee input + job satisfaction decreases + 'us and them' mindset
• Persuasive Management style 'i think its best if you do it this way'

  • centralised + one-way communication
  • managers can gain support + employees believe they are being considered + acceptance of negative situations
  • Attitudes remain negative + poor communication + employees frustrated
• Consultative Management style

  • Centralised + two-way communication
  • greater variety of ideas + employees have more ownership + tasks completed efficiently/effectively
  • timely process + not all issues suitable for wide consultation + some ideas overlooked due to wide number
• Participative Management style

  • decentralised + two-way communication
  • employer/employee relations positive + employees have more opportunity to learn new skills + high level of trust
  • time-consuming + control of manager low + internal conflicts due to ideas
• Laissez-faire Management style

  • decentralised + two-way communication
  • employees feel sense of ownership + encouragement of creativity + open communication
  • complete loss of control of manager + breed personal conflicts + waste of resources
• The appropriateness of management style

  • the nature of the task
  • time
  • the experience of employees
  • the preference of the manager
• Management Skills

  • Communication
  • Delegation
  • Planning
  • Leadership
  • Decision-making
  • Interpersonal skills
• Corporate culture

  • Values and practices
  • Symbols
  • Rituals, rites, and celebration
  • Heroes
• Autocratic

  • Communication- clear instruction needed
  • Delegation- need to give tasks
  • Planning- does the planning and set directions
  • Leading- sets direction and vision
  • Decision-making- solely makes decisions
• Persuasive

  • Communication- need to explain and sell the message
  • Delegation- need to give tasks
  • Planning- does the planning and set directions
  • Interpersonal- needs to sell/explain the message
  • Leading- sets direction and vision
  • Decision-making- solely makes decisions
• Consultative

  • Communication- need to state POV
  • Delegation- need to give out tasks
  • Planning- does the planning and set out directions
  • Interpersonal- needs to listen to employees
  • Leading- sets direction and vision
  • Decision-making- still makes decisions by themselves
• Participative

  • Communication- not important but still needs to speak and contribute
  • Delegation- need to give tasks after discussions with employees
  • Planning- not so important as done with employees
  • Leading- need to relate well with employees
  • Interpersonal- to some extent during discussions
  • Decision-making- not so important as is made with employees
• Laissez-faire

  • none are very important as focus is more on employees role