Business Studies Notes

University of Technology Sydney **We aren't endorsed by this school
Oct 14, 2023
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Business Studies Notes TOPIC 1- NATURE OF BUSINESS Importance of Business to the economy Assist development and use of technology Provides employment Income for employees Pays taxes to government Undertakes investment (economic growth) Provides wide range of products (consumer greater choice) Improves quality of life Creates value Provides income for business growth The role of a business 1) WEATH CREATION The more that is produced the more wealth is generated in the Australia economy. Redistributing to employees, government, lenders, owners, shareholders and the business itself. 2) EMPLOYMENT The number of employees hired by a business at any time will largely depend on the nature of the products and the number of customers who wish to purchase the products. The more sold the more employees a business will hire. 3) INNOVATION Innovation occurs when something already established is improved upon. Finding new and better way of doing things has resulted in improved efficiency, and increased production. 4) QUALITY OF LIFE Most people want more than the bare necessities they want the highest standard of living possible. Quality of life refers to the overall wellbeing of an individual and is a combination of both material and non-material benefits, Businesses have a responsibility to help provide what consumers want and to minimise what they do not want. 5) CHOICE Choice is the act of selecting among alternatives. Today consumers t=have freedom of choice and the opportunity to purchase a variety of products at competitive prices. The more competition there is, the greater the choice available to consumers. 6) ENTRENEURSHIP An entrepreneur's drive and motivation to establish and operate a business lies at the heart of our private enterprise economic system.
Identification of relevant stakeholders A stakeholder is any group or individual who has an interest in or affected by the activities of a business. Stakeholders in business Shareholders Provide information about the business's performance Provide an annual report Manage the funds so a reasonable return is paid Employees Fair pay and conditions Provide safe working environment Access to training and development Customers Quality products Fair prices Service during and after sales Safety Society/general public Fair and honest business practices Ethically responsible decisions Environment Consider impact on environment Care and preservation of the environment Sound and responsible environment management Government Pay taxes Abide by the laws Suppliers/creditors Pay debts Act ethically and honestly Business Goals 1. Financial goals Profit and return on investment, sales by product and market share, growth and diversification 2. Social goals Community service, condition of employment, social justice, ethical conduct, and ecological sustainability 3. Personal goals Goals of manager and owners e.g. job security, self-esteem and status, professional recognition, power and influence Importance of small-medium enterprises (SME) Play a crucial role in the Australian economy. They are a major source of employment, and their total output adds significantly to the economic growth and wellbeing of Australia.
Coordinating the business Planning - Establish objectives - Develop plans to achieve these objectives Organising - Coordinate resources - Delegate tasks - Manage information - Manage flow of funds Leading - Motivate employees - Direct and guide employees to achieve excellence - Inspire others to achieve the objectives Controlling - Evaluate performance - Monitor progress - Implement corrective action so as to achieve objectives Interdependence of the business and its environment Interdependence - Relying on other people or businesses to help produce something - Businesses rely on other businesses to help in the production of their products - Interdependence makes cooperation with outside businesses and coordination of specific tasks within the business essential Business environment - No business operates in isolation - Surrounding conditions in which the business operates (divided in to two broad categories 1. Micro environment- Things over which the business has some degree of control e.g. employees, and managers 2. Macro environment Things over which the business has very little control, such as economic conditions, government policy, and competitors
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