unit 3 area of study 1 Flashcards
1
Q
unincorporated businesses
A
small and medium
sole trader
partnerships
2
Q
sole trader
A
- one person owns and runs business
- same legal entity as owner
- less requirements if not a company
3
Q
sole trader advantages
A
- keeps profit
- complete control
- inexpensive to set up
4
Q
sole trader disadvantages
A
- unlimited liability
- hard to raise capital
- hard to manage
5
Q
Partnership
A
- owned by 2-20 people
- same legal entity as owners
- possible conflicts
- partnership agreements
6
Q
partnership disadvantages
A
- shared profits
- personal assets at risk
- possible conflicts
7
Q
Incorporated
A
- independant legal entity
- private limited company
- public listed company
8
Q
private listed company
A
- an incorporated business
- PTY LTD
- owned by 1-50 shareholders
- privately sold shares
- limited liability
- more expensive to setup
- easier to gain capital
9
Q
public listed company
A
- Ltd
- large companies
- listed on a public exchange line
- ASX - unlimited shares
- shares bought by the public
- more requirements for public
10
Q
Government enterpirze
A
- entity of the commonwealth
- strong interest in producing profit and revenue by providing services for the public
- NBN example
11
Q
social enterprise
A
- key objective is to meet a social need
- profits reinvested in business
- produce their own profit
- more costs to fulfil
12
Q
key business objectives 1-3
A
1: to make a profit (revenue - expensives)
2: Increase market share- protion of sales compared to competitors
3. fulfil a market need - existing market or something new
13
Q
Key business objectives 4 and 5
A
4: fulfil a social need - social enterprise, environmental
5: meet shareholder expectations
14
Q
what is a business objective
A
a business objective a goal set by the business to achieve within a set period of time. They guide the decision making of the business.
15
Q
Corporate social responisibility considerations
A
above and beyond legal requirements corporate social responsibility
16
Q
Stakeholder definition
A
anyone who has a vested interest in the business
17
Q
External stakeholders
A
government unions suppilers competitors venders customers
18
Q
Internal stakeholders
A
Employeers
director/managers
owners
stakeholders
19
Q
possible conflict example
A
shareholders want more profit
-employees want higher wages
customers want lower price
20
Q
Discuss task word
A
present a balanced agrument
advantages and disadvantages
21
Q
corporate social responsibility considerations are unwelcome constraints advantages
A
- businesses that take social responsibilites seriously are rewarded with better performance
- customers that believe that the business has a good reputation
- referals
- employees will stay - reduced costs to rehire
22
Q
corporate social responsibility considerations are unwelcome constraints disadvantages
A
- expensive
- time constraints to introduce socially responsible strategies
- reduce its competitive advantage
- if customers learn unethical practises they wont buy
23
Q
order of power
A
Board of directiors
- Ceo
- Various managers
24
Q
Human resources manager
A
- manages payroll
- leave (day off) entitlements
- disputes
- complaints
- working conditions
- hiring
- termination
25
Finance manager
- providing info of business performance
- profit - budgets - revenue - expensives - cash flow
- provides information to assits with decisions
26
Operations manager
- producing goods and services for sale
| - day to day manager
27
sales and marketing manager
- advertising
- promotions
- market trends determine if changes need to be made to existing products or new ones are needed
28
Technology and Support manager
- installing and maintaining technology
- assiting users of technology
- innovation
29
autocratic management style
- gives instruction and employees complete without any reason
- effective during times of crisis and deadlines
- used when employees lack experience
30
Autocratic Advantages
- Clear directions and Proceedures
| - centralised control
31
Autocratic disadvantages
- No employee input
- Job satisfaction decreases
- potential for conflict
- "us and them" mentality
32
Persuasive style
- manager makes decision but explaination is given
- manager attempts to sell decisions made
- opportunity for feedback
33
Persuasive style advantages
- Manager can gain trust and support through persuasion
- worker's believe their feelings are considered
- Instructions remain clear and constant
- some acceptance of negative situations
34
Persuasive style disadvantges
- Attitudes and trust remain negative
- communication is still poor
- One way system
- employees remain fustrated
- centralised power
35
Persuasive most appropriate use
In similar conditions of autocratic style
36
Consultative style
- manager realises the importance of good personal relationships with staff
- the consultative manager seeks the opinions of employees
- imploies two way system
37
consultative appropriate use
-most appropriate when a new operating proceedure is to be introduced or a business change
38
consultative style advantages
- asking employees suggestions
- Variety of ideas and employees have some ownership
- increased motivation
- decisions are discussed
39
consultative style disadvantages
- time taken to consult employees, can slow entire process
- some issues are not suitable for widespread consultation
- more ideas are left out therefore conflicts may arise
40
Participative style
- manager not only consults but shares decision making authority
- manager realises the strengths and abilities of employees
- outline solution with the possibility of changes being suggested
- two way communication
- employees valued
41
partcipative style appropriate use
most appropriate for when business is operating in an environment where rapid change is occurring.
42
difference between consultative and partcipative
consultative is where the manager consults before decision making. partcipative is one where the manager unites with the staff to make decisions together
43
Laissez-faire
- employees are responsible for workplace operations
- management has no control role or decisions making power
- management has no day to day role
- manager sets objectives and is still accountable for the overall performance
44
Laissez-faire most appropriate use
-most appropriate use for creative work or research, employees are highly talented or qualified in tasks, minimal supervision and direction
45
Laissez-faire advantages
- employees feel sense of ownership
- promotes outstanding results
- encouragement of creativity
- communication is open and ideas are discussed
46
Laissez-faire disadvantages
- complete loss of control by management
- no control or direction means potential misuse of business resources
- conflicts, individuals do not cooperate or wish to implement
- focus on business objectives can easily be eroded
- management may find theyselves with a failed business.
47
MENT -help explain management styles
Manager preference
Employee experience
nature of task
Time restrictions
48
what is corporate culture
Corporate Culture is the values, ideas, expectations and beliefs shared by the staff and managers of the business.
-each business has its own way of doing tasks therefore there own culture
49
official corporate culture vs real corporate culture
official is written down as solgans, policies or business objectives
-real is unwritten or informal rules that guide people
50
why is corporate culture important
- knowing the culture of a business can make it easier to implement change
- positive culture leads to postive quality performance and better employee input
- employees have higher morale
- good reputation can attract quality staff
