Business unit 1

STUDY
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Terms in this set (...)

Economic and social roles of business
Production, employment, profit, choice, innovation, wealth, entrepreneurship quality of life
Choice
The act of selecting amongst alternatives
Employment
To have a job to generate income
Entrepreneurship
The ability and willingness to start, operate and assume the risk of a business in the hope of making a profit
Importance of goals
Targets, measuring sticks, motivation and commitment
Financial goals
Profit maximisation, increase market share, growth and maximising it, improve share price
Maximising growth goal
Internal and external growth, not all businesses want it
Social goals
Community service, provision of employment and social justicd
Efficiency
Amount of goods needed to acheive goal, compared to the achievement
Effectiveness
Degree in which a goao is achieved
Business type classifications
Size, geographical spread, legal structure, sector
Sectors
Primary, secondary, tertiary quaternary quinary
Quinary
Once provided in the home
Quaternary
Transfer of information
Factors influencing choice of legal structure
Size, ownership and finance
Business environment
The surrounding conditions in which the business operates under the categories of external and internal influences
External influences
Economic, financial, geographical, social, legal, political and institutional, technological, competitive,changing consumer demands, environmental, pressure groups, global
Internal factors
Product influences, location, resource, management, culture,
Stake holders
Any group of individual who has an interest in or is affected by business activites
Economic influences
Business cycle, 3 key economic objectives
Finance influences
Interest rates (debt finance), globalisation and deregulation
Geographical influences
Location in Asia pacific, changing demographics
Social influences
Ecological sustainability, family friendly workplaces, workplace diversity
Legal influences
Policies from govt- tax, free trade, environmental
Institutional influences
Institutions include ACCC, ATO, ACTU, ASX, ASIC
Technological influences
Reduced costs and communication delays
Competitive influences
Ease of entry, local and foreign competitors, market strategies and number of competitors
Environmental influences
Availability of resources, recycling waste, testing, disasters
Location influences
Visibility, cost, proximity to suppliers, customers and support services
Stakeholders
Competitors, consumers, govt, reg. Bodies, emplouees, shareholders, Trade unions, ATO, directors, suppliers, owners
Entrepreneur attributes
Innovation, risk, good management skills
Entrepreneur
Someone who has a business idea and is prepared to take risks, provide leadership and management to turn the idea into a business opportunity.
Entrepreneur leadership traits
Skilled communication, social awareness, skilled decision making, future thinking, self discipline, responsibility, motivated
Ethics/ business ethics
The application of moral standards to business behaviour and the expectation of how businesses conduct there affairs in context of the expectations and requirements of society
Ethical issues
Fairness/honesty, respect for people, conflict of interest, financial management, truthful communication
Other ethical considerations
Corporate code of conduct, triple bottom line
Economic and social roles of business- production
Activities undertaken by a business to combine resources to create products that satisfy business wants and needs... finished product
Goal
An intended outcome or tatget that an individuals or business intends to achieve within a certain timeframe
Options in starting a business
Buying an existing business, setting up a business from scratch, purchasing a franchise, providing a community service
Advantages of inventing a new product or service
No goodwill to pay, develop as you see fit, decision making choice in manufacturing, high level of satisfaction
Disadvantages of inventing a new product or service.
Potential for the invention to be copied, labour and time intensive to develop and market may be undefined
Reasons for providing community service
Raising funds, creating employment, protecting the environment, providing facilities
Key Australian inventions
The Black-box flight recorder, Rotary clothesline and cask wine