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BUSINESS MANAGEMENT UNITS 3 &4 AOS1 OUTCOME 1 (Types of Businesses…
BUSINESS MANAGEMENT UNITS 3 &4
AOS1 OUTCOME 1
Types of Businesses
Private Limited Company
complex business structure
higher costs
abide by Corporation Act 2001
Separate legal entity
Company owns profits
Annual company tax return
Public Listed Company
limited liability
comply with Corporations Act 2001
Separate legal entity
Company owns profits
Annual company tax return
Partnership
Easy and inexpensive
unlimited liability
Responsible for superannuation
Separate legal entity
Social Enterprise
Trade to fulfill a mission
Large social financial contribution
Incorporated
Operates for community benefits
Sole Trader
Low cost structure
Unlimited liability
Owner has full control
Simple to operate
Government Business Enterprise
Aims to make a profit
Partly / full owned by the Commonwealth
Business Objectives
Make a Profit
The amount of money leftover after off business expenses have been covered
It is important to make a profit to ensure the continuity of the business, businesses also exists to make a profit (mostly)
Fulfill a Market/Social Need
A businesses objective to fill a social need
To attract new customers and keep existing customers to continue making a profit
Increase Market Share
A businesses total proportion of sales in a particular industry
To ensure that a business can continue to make a profit
Meet Shareholder Expectations
Anyone who holds a share in a company
it is important to meet shareholder expectations, otherwise they have the ability to vote out the board
Styles of Management
Consultative
Two way
Manager makes decisions after consulting staff
Participative
Two way
Manager shares decision-making with staff
Persuasive
One way
Manager makes all decisions and invited questions and persuades staff
Autocratic
On way
manager makes all decisions and tells staff
Laissez-Faire
Two way
Manager presents a problem and staff have responsibility to make the decision
Corporate Culture
Official
The culture that a business states exists, in its mission statement, policies, procedures, website, objectives, slogans are advertisements
Real
The culture that actually exists in the business. Can be viewed in language, dress, behavior.
How to Promote Good Corporate Culture?
Setting an official set of rules
Leading by example
Training programs
communicating good values to staff
changing the style of the workplace
recruiting new staff
Management Skills
Decision Making
Involves identifying options and setting/implementing a course of action
Why is it important?
Process orders
Rostering
Distribution
Setting goals
Interpersonal
the ability to connect with others through the use of body language, verbal language. it is also forming a relationship with them
Why is it important?
To connect with costumers and employees
Assist or direct the
Leading
When an authority gives instructions to employees, an perhaps listens to input
Why is it important?
Run the business in an orderly manner
Delegate responsibility
Planning
the process of setting methods in which to attempt to achieve business objectives
Why is it important?
To know what needs to be done
When it needs to be done by
How to do it
What goals need to be set or achieved
Delegating
A manager assigning tasks to employees who may have better skills to to free management time up
Why is it important?
Gives employees responsibility and worth
Frees the managers time
Equally distributes workload
Communication
The transfer of information from one party to another
Why is it important?
To convey information to employees
Direct people and give assistance
Set goals
Areas of Management Responsibility
Human resources
An area of management concerned with managing employees and all aspects of the working relationship with the business
Recruitment
Selection training
Motivation
Employee termination
Managing terms and condition and labor laws
Sales and Marketing
An area of management concerned with connecting the customer with the goods and services
Determining product features
Pricing
Promotion
Distribution
Customer service
Sales support
Finance
An area of management concerned with the controlling activities of all financial and fiscal areas
Budgeting
Financial planning
Managing day to day payments and receipts
Auditing/checking
Business accounts
Technology Support
An area of management concerned with providing employees and customers with user-friendly assistance for technical problems with electronic devices
Troubleshooting
Office computers
office phones
website crashes
PowerPoint presentations
Operations
An area of management concerned with the controlling activities. Concerned with converting inputs into outputs of production and services
Ordering stock
Minimising waste
Meet customer expectations
Changing the sequence of production