Business Studies in Action

584 Pages·6·18.711 MB·English

by  Jacaranda

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JACARANDA
BUSINESS STUDIES
IN ACTION
PRELIMINARY COURSE | SIXTH EDITION
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JACARANDA
BUSINESS STUDIES
IN ACTION
PRELIMINARY COURSE | SIXTH EDITION
STEPHEN CHAPMAN
ROSALINDA GALLINA
NATALIE DEVENISH
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Contents
Aboutthisresource.......................................................................vii TOPIC2 BUSINESS MANAGEMENT 156
Accessingonlineresources.........................................................ix
5 Nature of management 158
Acknowledgements.......................................................................1
5.1 Overview.......................................................158
TOPIC1 NATURE OF BUSINESS 2 5.2 Featuresofeffectivemanagement ................159
5.3 Skillsofmanagement—interpersonal,
1 Role of business 4 communication,strategicthinkingand
visionskills ...................................................164
1.1 Overview...........................................................4 5.4 Skillsofmanagement—problem-solving,
1.2 Thenatureofabusiness ...................................6 decision-making,flexibility,adaptabilityto
1.3 Otherrolesofbusiness .....................................9 changeandreconcilingtheconflicting
1.4 Review ............................................................23 interestsofstakeholders ..............................175
5.5 Review ..........................................................185
2 Types of businesses 27
6 Achieving business goals 189
2.1 Overview.........................................................27
2.2 Classificationbysize ......................................28 6.1 Overview.......................................................189
2.3 Classificationbygeographicalspread ............32 6.2 Businessgoals .............................................191
2.4 Classificationbyindustrysector .....................36 6.3 Staffinvolvement ..........................................205
2.5 Classificationbylegalstructure ......................43 6.4 Review ..........................................................213
2.6 Factorsinfluencingchoiceoflegal
7 Management approaches 217
structure .........................................................58
2.7 Review ............................................................62 7.1 Overview.......................................................217
7.2 Classicalapproachtomanagement..............219
3 Influences in the business
7.3 Behaviouralapproachtomanagement .........232
environment 66 7.4 Contingencyapproachtomanagement ........246
3.1 Overview.........................................................66 7.5 Review ..........................................................253
3.2 Externalinfluences:economic,financial,
8 Management process 258
geographic,social,legal .................................68
3.3 Externalinfluences:political,institutional, 8.1 Overview.......................................................258
technological,competitivesituation, 8.2 Coordinatingkeybusinessfunctionsand
markets ..........................................................85 resources......................................................260
3.4 Internalinfluencesonbusiness .....................100 8.3 Operations ....................................................262
3.5 Stakeholders.................................................112 8.4 Marketing .....................................................279
3.6 Review ..........................................................118 8.5 Finance .........................................................297
8.6 Humanresources .........................................317
4 Business growth and decline 122
8.7 Ethicalbusinessbehaviour ...........................348
4.1 Overview.......................................................122 8.8 Review ..........................................................358
4.2 Businesslifecycle—stagesand
respondingtochallenges .............................124 9 Management and change 366
4.3 Factorsthatcancontributetobusiness
9.1 Overview.......................................................366
decline ..........................................................138
9.2 Respondingtointernalandexternal
4.4 Voluntaryandinvoluntarycessation..............140
influences .....................................................368
4.5 Review ..........................................................147
9.3 Managingchangeeffectively ........................376
9.4 Review ..........................................................387
TOPIC1NATUREOFBUSINESSREVIEW
Practiceexamination ...............................................151
TOPIC2BUSINESSMANAGEMENTREVIEW
Practiceexamination ...............................................391
CONTENTS v
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TOPIC3 BUSINESS PLANNING 396 12 The business planning process 498
12.1 Overview.......................................................498
10 Small to medium enterprises
12.2 Businessplanningprocess ...........................499
(SMEs) 398 12.3 Sourcesofplanningideas ............................506
10.1 Overview.......................................................398 12.4 Vision,goalsandobjectives .........................509
10.2 DefinitionandroleofSMEs ..........................399 12.5 Organisingresources ....................................516
10.3 EconomiccontributionofSMEs ...................404 12.6 Forecasting ...................................................520
10.4 Successand/orfailureofSMEs ....................412 12.7 Monitoringandevaluating ............................526
10.5 Review ..........................................................420 12.8 Takingcorrectiveaction—modification .......535
12.9 Review ..........................................................537
11 Influences in establishing a
small to medium enterprise 423 13 Critical issues in business
success and failure 541
11.1 Overview.......................................................423
11.2 Personalqualities .........................................424 13.1 Overview.......................................................541
11.3 Sourcesofinformation..................................437 13.2 Importanceofabusinessplan ......................542
11.4 Thebusinessidea .........................................442 13.3 Management—staffingandteams ..............544
11.5 Establishmentoptions ..................................447 13.4 Trendanalysis ...............................................551
11.6 Marketconsiderations ..................................456 13.5 Identifyingandsustainingcompetitive
11.7 Finance .........................................................465 advantage ....................................................553
13.6 Avoidingoverextensionoffinancingand
11.8 Legalconsiderationsandinfluenceof
governmentonSMEs ...................................473 otherresources ............................................558
11.9 Humanresources .........................................480 13.7 Usingtechnology ..........................................560
11.10Taxation ........................................................486 13.8 Economicconditions ....................................564
11.11Review ..........................................................493 13.9 Review ..........................................................567
TOPIC3BUSINESSPLANNINGREVIEW
Practiceexamination ...............................................571
Appendix...............................................................................575
Glossary.................................................................................579
Index......................................................................................588
vi CONTENTS
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About this resource
JacarandaBusinessStudiesinActionPreliminaryCourseSixth DIGITAL
Editionhasbeenrevisedandreimaginedtoprovidestudentsand
teacherswiththemostrelevantandcomprehensiveresourceonthe learnON Print
market.Thisengagingandpurposefulsuiteofresourcesisfully
alignedtotheStage6PreliminaryBusinessStudiesSyllabusfor
NewSouthWales.
Formats
JacarandaBusinessStudiesinActionisnowavailableindigitaland An immersive, Printed textbook
interactive and with free digital
printformats:
flexible online access code
learning course inside
Fully aligned to the Stage 6 Preliminary
Business Studies Syllabus for New South Wales
HaveconfidencethatyouarecoveringtheentireStage6PreliminaryBusinessStudiesSyllabus,with:
• keyfocusareaandoutcomesstatedatthestartofeachtopic
• syllabuslinksvisibleatthestartofeverysubtopic
• tailoredexercisesetsattheendofeverysubtopic,includingrevisionandextensionquestions
• relevantandup-to-datecasestudies,statisticsandexamples.
• comprehensivechapterreviewsincludingadetailedsummaryandkeytermsglossary,pluschapterreview
exercisesincludingexamquestions.
• exampracticequestionsattheendofeachchapterandapracticeexaminationforeachtopic.
8 8.2
Influences on marketing
8.1Overview Source:BusinessStudiesStage6Syllabus
LEARNINGSEQUENCE
topurchaseaparticularproduct—customerchoice(buyingbehaviour).Theywanttoknowwhythecustomer
8.1Overview
8.2 marketingstrategiestoappealtothecustomer’smotives.
8.3C onsumerlaws
8.4
8.5Review
thedecisionsand
8.1.1Introduction predictcustomertrendsandhowtheymayreacttoparticularmarketingstrategies. purchasegoodsandservices
Marketingisakeybusinessfunctionthatimpactsonbusinesssuccess.Tosuccessfullymanagethemarketing
board.Thesefactors,andchangesinthem,presentboththreatsandopportunitiesforbusinessesandrequire
accordingly,asthesefactorsplayabigroleinthesuccessofabusiness’smarketingplan,aswellastheoverall
everyonetorethinktheireverydayinteractions.
FIGURE8.1
marketing
customer choice Consumer laws Ethical
• Psychological • Deceptive and • Truth, accuracy and
• Sociocultural misleading good taste in
• Economic advertising advertising
• Government • Price discrimination • Products that may
• Implied conditions damage health
• Warranties • Engaging in fair
competition
• Sugging
legislation.
Resources
Resourceseses
Digitaldocument Keytermsglossary(doc-35575) health.
ExamquestionbookletChapter8Examquestionbooklet(eqb-0030)
198JacarandaBusinessStudiesinActionHSCCourseSeventhEdition 199
Each Chapter begins Diagrams and Up-to-date and Glossary boxes Syllabus links
with an introduction images break relevant case to develop and are visible at the
that grabs students’ down content, studies allow support business beginning of every
attention, providing allowing students students to apply literacy. subtopic.
a snapshot of what to understand their knowledge to
the topic is about. complex concepts. real world examples.
ABOUTTHISRESOURCE vii
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Criticalpathanalysis(CPA)forthemanufactureofanelectronicswitchgear 4.4Activities
comTpeosntents TyoouarnlsewarenrOqNuetsittleioantswownlwin.ejaacnpdlutso.croemce.iavue.iAmdmoewdnialoteadfeaebdlebascokluatinodnssampleresponsesforeveryquestion,goto
• Paint (1) 4.4Quickquiz 4.4Exercise 4.4Examquestions
components
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• • • • • •
(1) assFeinmablly 4.4Exercise
(2)
Revision
Design Assemble 1.Howdosequencingandschedulingdiffer?
circuitry circuitry 2.Construct
(2) (5) untilyoucompleteyourlastperiod.
Key 3.Whywouldyourschooltimetablebeconsideredasbothasequencingandschedulingdocument?
Critical path 4.WhatisthefunctionofaGanttchart?
Non-critical path 5.IdentifytwoadvantagesofusingGanttcharts.
(2) Time in days 6.Ca.oHnoswidelorngwillittaketodoeachofthefollowingactivities?
i.Purchasingstockandestablishingthesupplychain
ii.
iii.ContactingJemima’sClothingDistributorsregardingtheopening
b.Identifytheleasttime-consumingactivity.
c.Recommendtheactivitiesthatcanbeperformedconcurrently.
d.Clarify
7.Whatisacriticalpathanalysis?
8.Howdoesacriticalpathanalysisassistintransformationprocesses?
Resources 9.Iftherearepredictablevariationsindemandbasedonseasonalfactors,howwillthisaffectacriticalpath
analysis?
WeblinkGanttchart 10.EPxroadmuicnteionEnterprises.Usetheinformationtoanswerquestionsatoc.
a.IdentifythetoolbeingusedbyDigitalProductionEnterprises.
b.WhichtaskdetermineswhenTaskKwillbeperformed?
c.Calculatetheshortesttimeforthecompletionofthetask(showfullworking).
••••SSSeecpwqqheeiuulrldeeiotnnuadcclkiniieonngfggatrniaremednfefedewrrsshsctatohtoetohtdrhedueellieonrnrgidsgaetnhrreeiocnefeswstsismheaincerythiaatacolctaictvciiovttiiimtveiiesptiselteasitnkeientthhwoeepitoehtparinasetkrtiasoht.eniosonppsreoprcaroeticsoesnsesssp.orcoccuers.s. Commence 2T ahTsoakus rkAs H 2T ahsoku rBs 66TT aahhssookkuu rCrFss 5T haosku rIs2T ahso3kTu ahGrssoku rDsTas3Tk a hKsoku rEs Completion
7 hours 8 hours
Task J
5 hours
Extension
11.Usinginformationfromtheinternet,examinetheevolutionoftheGanttchart.AssessthevalueofaGantt
chartifyouhadtodeveloptheYear11BusinessStudiesassessmentscheduleforyourschool.
12.DeterminetheadvantagesofusingaGanttchartinsteadofacriticalpathanalysisforaproject.
74JacarandaBusinessStudiesinActionHSCCourseSeventhEdition CHAPTER4Operationsprocesses 75
OnResources A summary of Online and offline Learning HSC ‘key process
link to targeted key ideas is question sets pathways allow for verbs’ are colour-coded
digital resources provided at the contain revision, differentiation in and used in graded
including video end of each extension and every question set. questions throughout
eLessons and subtopic. HSC exam the text that appeal to
weblinks. questions. all levels of learners.
12.5
Resources
12.5.1Summary Keytermsglossary(doc-35646)
Chaptercrossword(doc-36218)
• ExamquestionbookletCChhaapptteerrc1r2oEssxwamordqu(ienst-t7io1n65b)ooklet(eqb-0034)
•
12.5Activities
• TyoouarnlsewarenrOqNuetsittleioantswownlwin.ejaacnpdlutso.croemce.iavue.iAmdmoewdnialoteadfeaebdlebascokluatinodnssampleresponsesforeveryquestion,goto
• 1.
A.Toincreasemarketshareandexpandtheproductrange
•
C.
• D.Todevelopstrategiestoretain,rewardandmotivateskilledemployeestoachievethebusiness’s
objectives
• 2.
A.
C.
• D.
3.
•
A.
• C.Liquidity
D.Solvency
12.5.2Keyterms 4.Amanufacturerrecentlyimplementedavarietyofstrategiestominimisecostsinordertomaximisetheir
ef A.Growth
achievedwiththelowestpossiblelevelofassets C.Liquidity
D.Solvency
thoseresourcesinabusinessthathaveamonetaryormoneyvalue 5.
A.
C.Liquidationandsolvency
interdependencethemutualdependencethatthekeybusinessfunctionshaveononeanother D.Solvencyandgrowth
ltihqaunid1i2tymontthhse)excessofrevenueorincomeoverexpensesorcosts 6.WA.hDicehbotfthefollowingtermsbestdescribesabusiness’sabilitytomeetitsshort-termdebtsastheyfalldue?
than12monthsa)planthatencompassesthestrategiesthatabusinesswillusetoachieveitslong-termgoals CD..LSioqluviednitcyy
7.
businessfunctioninvolvesthemanagersofeachfunctioncontributingtothestrategicdirectionorstrategicplan
ofthebusiness A.Capabilitiesofthekeybusinessfunctions
Strategicrolesofthekeybusinessfunctions
C.Interdependenceofthekeybusinessfunctions
D.Tacticalrolesofthekeybusinessfunctions
JacarandaBusinessStudiesinActionHSCCourseSeventhEdition
A summary of key Key terms are collated End of chapter resources End of chapter activities
ideas is provided at the at the end of every including a key terms glossary, including multiple choice,
end of each chapter. chapter for revision. chapter crossword, chapter test short answer and exam
and exam question booklet. practice questions.
viii ABOUTTHISRESOURCE
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Accessing online resources
The power of learnON
TheJacarandaBusinessStudiesinActionseriesisnow
availableonlearnON,animmersivedigitallearning
platformthatprovidesteacherswithvaluableinsights
intotheirstudents’learningandengagement.It’sso
muchmorethanatextbook!Itempowersstudentsto
beindependentlearnersandallowsteacherstoassign,
markandtrackstudentwork.
A new side-by- Teacher-led Immediate Immediate Online questions
side lesson view, explainer videos, insight into corrective with a 1:1
enabling access explaining how student feedback and fully correspondence
to reading to answer exam progress and worked solutions to questions in
content and questions and performence. for every question print.
question sets on bring concepts to help students
one screen. to life. get unstuck.
ACCESSINGONLINERESOURCES ix
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A wealth of teacher resources
Jacaranda Business Studies in Action empowers teachers to teach their class their way, with an extensive range
of teacher resources including:
• comprehensive support material,
including work programs and
teaching advice
• quarantined chapter tests
with answers and exemplary
responses
• an easy‐to‐navigate marking
interface that allows teachers
to see student responses, add
comments and mark their work
• the ability to create custom tests
for your class from the entire
question pool — including all
subtopic, topic review and past
exam style questions
• customisable course content,
Custom test maker
giving teachers more flexibility
to create their own course Create custom tests for your class from the entire question pool —
• the ability to separate a class including all subtopic, topic review and past HSC exam questions.
into subgroups, making
differentiation simpler
• dashboards to track progress and insight to students’ strengths and weaknesses
Access detailed reports on student
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types. With learnON, you can show
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Reports and results
Track activity and gain deep insights into student performance.
x ACCESSINGONLINERESOURCES