VCE Buieness Management warmup questions Flashcards
(16 cards)
Define Corporate Social Responsibility? (2 marks)
Corporate social responsibility (CSR) is where a business goes above and beyond their legal obligations to demonstrate an ongoing commitment to the economy, environment and community. Here, Furney-Chur demonstrates CSR through using locally sourced inputs and materials, hence displaying an ongoing commitment to the local Australian economy above their legal obligations.
Distinguish between the internal and external environments of a business? (2 marks)
The difference between them is the level of control the business has over them. A
business has total control over the factors in its internal environment, however, it has limited (operating)
to no (macro) control over the factors in the external environments
Describe one corporate social responsibility consideration a restaurant business may incorporate into
its planning. (2 marks)
: One consideration is whether the business sources its food supplies from Australian
producers, especially local ones. It considered by many to be socially responsible to purchase from local
suppliers rather than foreign suppliers because it supports both the local and Australian economy,
generating more jobs and income than if supplies were sourced offshore.
Outline two factors for Dexter to consider when choosing his business location ( 2 marks)
Games ‘n’ Stuff should firstly consider availability to online infrastructure. As their business is online, they need to ensure that the local internet is strong enough to allow for thousands of simultaneous uploads to consumers of their products. They may also want to consider costs. Games ‘n’ Stuff do not require local foot traffic and can therefore set up away from busy commercial areas and instead base their business in a cheaper location. This may even include a cheaper industrial area.
Describe two characteristics of a sole trader? ( 2 marks)
A sole trader has one owner who makes all the decisions, and limited liability which
means the one owner is responsible for paying all debts of the business.
Describe two characteristics of a private limited company (2 marks)
A private limited company has one to twenty shareholders who are all part owners and receive dividends
from the profits. Also, it has limited liability so the shareholders aren’t responsible for paying back the
debts of the company from their personal assets
Describe one corporate social responsibility management issues regarding business planning. (2 marks)
One corporate social responsibility management issue regarding business planning relates to the impact of the business on the environment. A business owner should consider issues such as energy use, recycling, waste reduction measures and the use of sustainable resources when making planning decisions. For example, the owner may decide to better manage the business’s energy use, which will benefit the environment, as well as reduce the business’s energy costs.
Describe another Corporate Social Responsibility management issues regarding planning. (2 marks)
Another corporate social responsibility management issue regarding business planning relates to staffing issues. When planning, the business owner should consider fair pay for employees, safe and healthy working conditions, employing disadvantaged groups, and creating socially responsible policies. For example, the owner might develop policies in the areas of workplace bullying, equal opportunity for all employees, employee leave and flexible work arrangements.
Define Lean Management (2 marks)
When employing new staff, Furny-Chur chooses to use agreements rather than awards. Explain one
disadvantage of using agreements when determining wages.? (3 marks)
Agreements are decided and negotiated on at the workplace level between groups of employees and/or their unions and employers. They outline the conditions and pay for this workplace. A disadvantage of using agreements when determining wages is that it can take Furny Chur a very long time to negotiate the terms and conditions. This means less time is spent on other parts of the business, such as producing the seating.
distinguish between labour resources and capital resources? (2 marks)
Labour resources refer to the people who provide their skills, effort and knowledge to the business, whereas capital resources are the goods made by people that are used to produce goods or perform services. Labour resources include employees and managers, as well as the owner or owners. On the other hand, capital resources include buildings, tools, equipment and machinery.
Apply a swot analysis?
Games ‘n’ Stuff will want to review the strengths of their beginning staff so they know what skills they already possess and how they can be utilised. This would include the journalism skills of some staff and the financial skills of Harry Moriarty. But this will also highlight potential weaknesses in their skills such as not having a staff member who is well versed in ICT which will allow Games ‘n’ Stuff to plan for hiring or contracting someone to maintain their ICT services.
Describe five factors that affect the choice of a business location.
The five factors that affect the choice of a business location include proximity to customers, which affects the likelihood of attracting customers; proximity to suppliers, which affects transport costs of raw materials; proximity to competitors, which affects the likelihood of losing/attracting customers to competitors; visibility, which affects the likelihood of customers finding out about the business and consuming its products; and cost, which affects the financial viability of the business.
what is a swot analysis?
SWOT analysis is a planning tool that allows a business to assess the Strengths, Weaknesses, Opportunities and Threats to a business. This can be especially helpful when establishing a Business Plan as you can better prepare your specific business model to utilise Strengths and Opportunities while minimising the effects of Weaknesses and Threats.
Apply a swot analysis for another buieness?
A swot analysis helps a buieness evaluate its internal and external stregths within a buieness enviroment. Here a swot analysis for sweet crumbs bakery may involve its stregths in using organic ingridients which stands out in an competetetive enrioment. However their weakness would be that a limited space restricts their customur numbers. However their oppotunity would be to expand their vegan menu to expand their consumer markert. However, rent would serve as a threat due to inflation. Through analysing these factors a buieness can be built strong.
Explain the concept of limited liability and why it is beneficial to the owners of a business.
Limited liability is where the shareholders in a company cannot be held personally responsible for the debts of that business. This offers shareholders added personal financial security from the failures of the business.
