U2 Exam - Business Management

- A business that wants to use a name that isn't a personal name must register it. New businesses require ABN to register a business name.

- Registering a website domain: must be done through a domain register accredited by the Australian Domain Name Authority (auDA)

- Regulates the relationship between employees and employers. It is overseen by the Fair Work Commission (FWC)

- The right of employees to be safe at work is protected by (OH&S) laws. Businesses required to train staff on OH&S policies and procedures, and maintain a safe working environment. WorkCover insurance covers employers if an employee is injured at work

- independent workers who charge businesses or individuals for work on a per job basis.

- used and payed by businesses to find the right staff, often charging a fee based on the salary of the person employed.

- Sales professionals are trained and experienced in finding and persuading people to consume a product.

• Price
• - must be low

• High Quality
• - quality of goods and materials provided by suppliers will generally determine the quality of the final product
• - good quality products = good quality from suppliers

• Reliability
• - businesses with fast turnover in stock often rely on quick and timely deliveries from suppliers
• - may lose sales and reputation if suppliers do not give on time

• Proximity
• - close proximity to suppliers can save time and money
• - short distance = less travel time; reduce cost of transportation

CSR

• - A policy refers to a written set of broad guidelines to be followed by all employees.
• - Procedures refer to a series of actions that enable a policy to be put into practice.

• - OH&S policies
• - Privacy policies
• - Recruitment policies

• - help employees know what is expected of them
• - can prevent legal issues such as compliance issues.

• - researching and writing policies and procedures may require legal expertise; can be costly
• - may be difficult to communicate policies throughout the business. They require to be properly implemented, enforced, and monitored.

• - Policies should be reviewed regularly. Regardless of where the pressure to change occurs, the business will need to use a process to develop policies that ensure compliance with legal requirements and establish routines.
• A process for developing policies that ensure compliance with legal requirements and establish routines:
• - identify an issue or problem
• - research and analyse business environments
• - consult stakeholders
• - develop a draft policy for review by stakeholders
• - revise the policy
• - approve and distribute the new policy
• - monitor and evaluate the policy.

- Marketing is the process that provides the link between producers or providers of goods and services, and the consumers of these.

- Establishing a customer base is identifying the group of customers who might be expected to purchase a business’s goods and services.

- Business objectives are measurable targets to reach a goal.

• - Brand identity is the message that customers receive about the business and its product.
•     - Name, slogan, symbol, design, colour,
• - Being able to establish a brand is key to achieving a positive relationship with customer base
• - Should protect IP

• Economic
• - Businesses will try to expand their customer base during times of economic growth

• Legislation
• - Competition and Consumer Act 2010 provides strict requirements for businesses
• - Australian Securities and Investment Commission (ASIC) protect consumers from misleading statements and advertising of goods and services.

• Technology
• - Technology makes it easier and cheaper for businesses to reach customers

• Social Forces
• - Trends and fashions can be a powerful tool in marketing
• - Social issues must also be considered
• - Demographics of the customer base will play a role

• The amount of money a customer pays to use the product
• - It is important as a price set too high = result in lost sales, whilst prices that are too low may convey to the customer that it is a cheap or inferior product.

• Penetration Pricing
• - Low price offered to attract new customers

• Bundle Pricing
• - Selling a package of goods or services for a lower total price than the individual prices of each component

• Psychological pricing
• - Making the price seem less than it is (e.g., $19.98 instead of $20)

• - A product is anything offered to a market to satisfy a need or want
• - Tangible or intangible

• Product development
• - Idea
• - Design
• - Create prototype
• - Market testing
• - Plan for technical needs
• - Launch

After the product has been developed, it enters the market, where they go through a 4-step cycle:

• Introduction Stage
• - New product is launched into the market
• - Business tries to increase customer awareness and build a market share for the new product

• Growth stage
• - Product begins to increase sales to customers
• - Brand acceptance and market share are actively pursued by the producers of the product

• Maturity stage
• - The product is fully accepted into the market, and sales reach their peak.
• - Sales plateau as the market becomes saturated

• Decline stage
• - Product no longer appeals to the customer (possibly due to replaced by newer or more technologically advanced products, competitors, or change in customer tastes)
• - Sales begin to decline

• (Extension stage)
• - Instead of going into decline, the product is revived, and begins a new cycle of growth and eventual maturity.
• - Can occur when a product is marketed into new locations, such as through export to other countries. Can also occur through product diversification and enhancement.
•    - Diversification is when businesses vary their range of products or their field of operations.

Promotion informs customers about the business’s products or services

• Personal Selling:
• - Involves the activities of a sales representative directed to a customer in an attempt to make a sale.

• Opinion Leaders:
• - A person who influences others.
• - Marketing managers will use opinion leaders as informative outlets for new products or to endorse existing ones.
• Publicity and public relations:
• - Publicity is any free news story about a business’s products. It is free and its timing is not controlled by the business.
• - The main aim of publicity is to enhance the image of the product
• - Public relations (PR) are activities aimed at maintaining a favourable relationship between a business and its publics.
• - It exposes a business or idea to an audience by using often unpaid third parties as outlets.

• Advertising:
• - Advertising is a paid, non-personal message communicated through a mass medium.
• - It provides businesses with the flexibility to reach an extremely large audience or focus on a small, distinct target market.

• Customer service refers to how well a business responds to the needs and problems of a customer.
• - Quality customer service improves customer satisfaction and enhances reaction of customer once a product is purchased.
• - Established sound customer base with possibility of repeat purchases

• A customer loyalty program is a rewards-based program offered by businesses to customers who frequently make purchases
• - Designed to keep customers coming back to the same store
• - Provides businesses with a competitive advantage

• Technology and Marketing
• - It is important to develop a social media advertising strategy when establishing a businesse

• Social Media
• - allows businesses to connect with customers, suppliers, and the world.
• - advertising is relatively inexpensive compared to traditional marketing methods, and is easy to use and monitor

- A business does not always have control over what consumers write about the business's product online. 

• Artificial Intelligence
• - AI is intelligence demonstrated through machines, as opposed to natural intelligence displayed by humans
• - in marketing, AI is used to collect data, customer insights, anticipate customers' next moves, and make automated decisions that affect marketing efforts.
• - allows businesses to understand customers, to target the right strategy to the right customers in a timely manner.

TR[A]PFM

CSR in relation to employees means treating employees in an ethical manner and placing their wellbeing at the forefront of decisions.

• - Avoiding any form of discrimination in the recruitment and selection process
• - avoiding nepotism or favouritism towards any group
• - taking affirmative action

• - pay fair wages
• - provide safe and pleasant working conditions
• - recognising and rewarding effort.

- workplace diversity refers to the differences within between employees in a workplace. Employees in a diverse workplace have a wide range of skills, talents, ideas, and experiences to allow the business to improve.

- Staffing is the process of finding, acquiring, preparing, and retaining the right employee for a position in the business.

• - Staff performance is how well the job activities of employees are carried out. They are measured by;
• - Employee efficiency
• ‎ ‎‎ ‎ - How well an employee uses resources
• - Teamwork ability
• - Ability to adjust to change

• - A business objective is a desired outcome or specific result that a business intends to achieve.
• ‎ ‎‎ ‎ - e.g., making a profit, expanding the business, increasing market share.

Where staff performance is below expectations, the objectives of the business are likely to be jeopardised. If they are inefficient, it will result in higher business costs, negatively impacting the objective to maximise profit.

A business may need to develop strategies to improve staff performance so that its objectives will be met. When staff are working productively, the business will be lowering costs, increasing sales, and assisting the business in achieving its objectives.

- Most employers would expect their employees to show loyalty to the business that employs them. General expectations set include not resigning in the short term to pursue work with a rival business, and avoid making negative comments about the business, its products, or customer service.

- Situations arise when an employee decides to leave the business, and the employer would expect that the departing employee gives a reasonable amount of notice of their intention to leave, with 'reasonable' time varying depending on the employment circumstances.

• - Conditions of employment refers to what an employer has agreed to give the employee in return for the employee's work. Basic conditions include;
• ‎ ‎ ‎‎ ‎ - no. of hours an employee is expected to work
• ‎ ‎ ‎‎ ‎ - annual leave entitlements and other entitlements
• ‎ ‎ ‎‎ ‎ - public holidays‎

• - Remuneration refers to the financial payment an employee receives in return for working for an employer. These payments can be made in the form of wages or salaries. Businesses can provide additional incentives including;
• ‎ ‎ ‎‎ ‎ - financial incentives, such as bonuses, commissions and allowances
• ‎ ‎ ‎‎ ‎ - other rewards such as a company car, laptop/computers, holidays, etc.

• - Flexible working conditions are patterns of work that allow businesses to work more efficiently or allow employees to balance work and family responsibilities
•    - Variable working days/weeks
•    - the lengthening of shifts to ten hours

• - Job security refers to whether an employee believes they are likely to lose their job either through being made redundant or being dismissed.
• - Job security is the belief that the employee will not lose their job.

- Work-life balance means achieving the right combination of time devoted to work and time devoted to personal or family life.

- Recruitment is the process of attracting qualified job applicants to apply for a job vacancy.

• Internal:
• - Internal recruitment occurs when a business decides to recruit someone already employed in the business to a vacancy.
• Advantages:
• ‎ ‎ ‎‎ ‎ ‎- Employees are already known to the employer, which reduces risk
• ‎ ‎ ‎‎ ‎ ‎- Applicants already familiar with the business and its objectives, culture, processes, etc
• Disadvantages:
• ‎ ‎ ‎‎ ‎ ‎- May be nobody suitable from the business
• ‎ ‎ ‎‎ ‎ ‎- Can lead to conflict or rivalry between employees if more than one applicant

• - Internal job postings advertise job vacancies to existing employees, by announcing on internal job boards or company social media groups.
• ‎ ‎ ‎‎ ‎ - Can help retain top talent by providing career advancement opportunities. This increases job satisfaction, and reduces the risk of losing valuable employees.
• ‎ ‎ ‎‎ ‎ - Can be cost effective, as expenses to advertise job vacancies or use external recruitment agencies are not required.

• - ​Talent management involves identifying and developing top talent within an organisation.
• ‎ ‎ ‎‎ ‎ - Can help develop a skilled workforce by providing employees with training and development opportunities aligned with the business's goals. This can increase productivity and performance.
• ‎ ‎ ‎‎ ‎ - Can help ensure the business has the right people with the right skills in the right roles.

- External recruitment is used to find suitable applicants from outside the business, due to a job vacancy.

• - Referrals/Recommendations
• - Online Recruitment Agencies
• - Social Media
• - Company Websites

• Advantages:
• ‎ ‎ ‎‎ ‎ ‎- Wider range of applicants to choose from
• ‎ ‎ ‎‎ ‎ ‎- Outside applicants may bring new ideas and fresh approaches to tasks.

• Disadvantages:
• ‎ ‎ ‎‎ ‎ ‎- All applicants are unknown, so the choice may be more difficult
• ‎ ‎ ‎‎ ‎ ‎- Holds costs associated with advertising the position.