2015 VCE Year 11 Business Management Units 1 & 2 Information guide

Important information Unit outlines – Areas of study / outcomes / SACs. why study business management

Brainstorm What words come to mind when you hear the phrase ‘Business Management’?

Business Management career pathways  Small, medium and large business operations.  Travel industry  Food industry Business Management Retail operations Tourism and hospitality  Banking  Loans  Import / export trading Economics Accounting Media, journalism IT Public relations Marketing / advertising

Area of study 1 Introducing business

What is an organisation? Is a formal arrangement where two or more people work together to accomplish some specific purpose or set of goals.

Why are organisations important? Enables people to achieve things that they could not achieve as individuals. Power of Team work – TEAM ‘Together Everyone Achieves More’ Source of employment and career direction. Builds a network of connections A source of information and knowledge

Examples of organisations Organisations Work place Sporting clubs Charity groups School

Types of organisation For profit & Not-for-profit

FOR PROFIT organisation The focus of FOR PROFIT organisations is profit attainment and growth. NOT-FOR-PROFIT organisation The focus of NOT-FOR-PROFIT organisations is on providing specific service to the community.

Industry sector Industry sector is the different types businesses/ organisations producing goods and services in the same industry or business area. Examples of industry sectors: Retail Trade Accommodation, cafes and restaurants Education Health and community service Communication services

Case study

SMALL BUSINESS IN AUSTRALIA

What is a small business? An independently owned and operated business, under close control of its owner who has contributed the majority of the operating capital and is the main decision maker. The business may employ up to 20 people (non-manufacturing) and 100 people (manufacturing) Usually has one outlet (shop/location) Examples of small business Point Cook town centre Paradise seafood Dynasty gifts Flowers on Main

What is a medium business? An organisation that employs 20 – 199 employees. Will usually have a management team instead of a single owner/manager Has multiple outlets (shops/locations) Examples of medium business In Point Cook Town centre Turbo Cafe (all over Victoria) RPM real estate Vivere

What is large business? A large business employs more than 200 employees. Will usually have a management team looking after its employees Will have locations either nationally or globally Examples of large business: In Point Cook Town centre Target Harris Scarfe Hairhouse wharehouse

MICROBUSINESS A very small business which has less than 5 employees. Online businesses / phone business / ebay business

What is a franchise? A business which is based upon the purchase of a franchise license from the franchisor, which allows for the use of the business name, logo and products.

PRO’s Already established business name Franchisor takes care of all advertising and marketing Reduced risk of business failure Expert assistance and advice Staff training is provided The system has been tested and usually succeeds Less responsibility for decision making

CON’s Far less independence Owners can not implement their own ideas Excessive fees and costs Percentage of earnings are taken There are usually monthly service fees payable to franchisor Franchise is judged by the performance of other franchisees. E.g – if one ‘Gloria Jeans’ has a bad name it will affect the other ‘Gloria Jeans’

Research assignment See booklet

Business environments

Conditions which businesses operate within (things that happen to a business that affects it) Internal environment = factors within the business over which the business has some control External environment = factors outside the business. Two areas: Operating environment – external factors who have a direct impact on the business Macro environment – broad operating conditions (forces) which all businesses operate under but have no control over. Business environments

Internal External: Operating External: Macro Business environments - factors Internal: Employees Management & Management styles Corporate culture Policies Management structure Owners Operating: Customers Suppliers Competitors Regulatory bodies Interest groups and trade unions Macro: Economic Legal Environmental Social Political Technological

The business has close to 100% control of what happens in the internal environment. One of your employees is rude and provides poor customer service all the time. How can this affect your business? Your business has a strong culture – all staff follow policies and procedures, objectives are clear and sales targets are always met. How does this affect your business? Internal Environment

The business has some control over what happens in the operating environment You never pay your suppliers on time and you are rude to them when they deliver your products. How can this affect your business? You are always a step ahead of your competitor – offering better deals and customer service. How does this affect your business? External Environment - Operating

The business has NO control over what occurs in the Macro environment An earthquake destroys your business and you are left with nothing. How does this affect your business? You own a chocolate shop, the government introduces a ‘Chocolate is healthy’ campaign. How does this affect your business? External Environment - Macro

Remember Internal environment – deals with everything that goes on INSIDE the business External Environments – Operating and Macro – deal with things that affect the business from the OUTSIDE

Glossary terms Use the Unit 1 & 2 business management text to find the definition of the glossary terms

My