Mod 2 Business Studies

• Management is the process of coordinating a business resources to achives its goal
• Effective management is POLC which stands for planning, organising, leading and controlling
• What are the 9 skills of management

  Interpersonal, Communication, Strategic thinking, vision, decision making, flexibility, adaptability to change, reconciling the conflicting interests of stakeholders
• Interpersonal skills: Work,understand and communicate with others and their needs.
• Communication skills: The ability to guide, discuss and convery ideas and plans with others clearly
• Vision: Able to see beyond the present day and plan for future successes
• Strategic Thinking Skills: Ability to think ahead about what might happen and how it will affect your business
• Decision Making Skills: Ability to make decisions that benefit the company
• Reconciling Conflicting Interests Skills: Ability to balance competing demands from stakeholders within an organisation to satisfy their needs
• Adaptability to Change: Willingness to accept new challenges and opportunities
• Flexibility: Adaptable to changes within the market or industry
• Problem Solving Skills: Ability to identify problems and find solutions
• Internal Stakeholders are:

  • Owners
  • Employees
  • Shareholders
• External Stakeholders are:

  • Suppliers
  • Credits
  • Customers
  • Investors
  • Media
  • Communities
  • NGO's
  • Government agencies
  • Trade union
• S.M.A.R.T stands for:

  • Specific, Measurable, Attainable, Relevant, Time bound
• Maximise profits: Total revenue-Expenses(Total costs)

  Increase revenue by rising prices and/or increasing the amout of products
• Revenue: Price x Quantity
• Increase Market Share: The proportion of a market controlled by a particular company or product

  • Innovation and improvement of products
  • Acquiring competitors (Horizontal/Vertical Integration)
  • Convincing consumers from other business to swap their brands
• Maximise Profits: Efficient allocation of resources in order to limit production costs/expenditure and maximise profit
• Maximise Growth: Increasing the market share and the size of the firm

  Larger market share means more dominance over the market --> greater potential profit

  Increasing the size of the firm allows for greater production capacity --> greater potential profit
• Share price: Prices of shares sold on the ASX- A share is a part ownership of a public company

  • Share price determines whether the business is vulnerable for a takeover (low price)
  • People buy shares to sell them at a higher price later on
  • Represent the current market value of the business
• The three types of social goals are:

  Community service: Voluntary, unpaid work done by a person/group intended to help others

  Provision of Employement: Provide jobs for people from the society

  Social Justice: Employees and other community members are treated equally
• What are three social goals


  Community service, provision of employment and social justice
• Ease of Entry (MOM) Stands for what?

  Monopoly, Oligopoly and Monopolistic
• An example of monopoly is Aus Post
• An example of Oligopoly is Automobile industry
• Oligopoly is when a small number of firms have a greater control over the industry
• Monopoly is when no other competitors can enter the market and one firm has complete control over the industry
• Monopolistic is when its easy entry and businesses are small therefore its more affordable for business owners to gain a market share
• Internal Influences are PLMRB


  Pig Latin Makes Riley Barf
• Product, Location, Management, Resources and Business culture are examples of what?

  Internal Influences
• The internal influence Product includes:

  • Product range
  • Raw materials
• The internal influence Location includes:

  • Proximity to Suppliers
  • Proximity to Market (Customers)
  • Visibility
  • Costs
• The internal Influence Management includes:

  • Management style
  • Flat management structure -> Giving greater repsonsibility to individuals in the business
• The internal influences Business culture includes:

  • Business policy
  • Goals
• The internal influence Resources includes:

  • Hr (Employees)
  • Information resources (Market research)
  • Physical resources (Equipment,materials)
  • Financial resources (Funds,money)
• Factors that can contribute to business decline are:

  • Lack of management expertise
  • Lack of sufficient money (Undercapitalization) -> Unable to purchase stock and materials
  • Poor location
  • Poor marketing
  • Lack of planning
  • Having too little or too much of a product
• Market share: The proportion of a market controlled by a particular company or product.
• What is an environmental goal?

  An aim ensuring the lowest possible impact on the environment through sustainable industrial processes
• Environmental goals


  • Emissions
  • Energy
  • Effluent and Waste
  • Recycling
  • Sustainable Development