Podcast
Questions and Answers
Which of the following scenarios best illustrates the concept of unlimited liability?
Which of the following scenarios best illustrates the concept of unlimited liability?
- A private limited company distributes dividends to its shareholders based on company profits.
- A sole trader uses personal savings to start a business and keeps all the profits.
- A sole trader's personal assets are at risk to cover business debts. (correct)
- A shareholder in a public company loses the value of their shares when the company goes bankrupt.
What is a key distinction between businesses operating in the private sector versus the public sector?
What is a key distinction between businesses operating in the private sector versus the public sector?
- Private sector businesses are owned by individuals or institutions, while public sector businesses are owned by the government. (correct)
- Private sector businesses always have limited liability, while public sector businesses have unlimited liability.
- Public sector businesses aim to maximize profits, while private sector businesses focus on providing essential services.
- Public sector businesses are funded by private investors, while private sector businesses are funded by taxpayer money.
Which of the following is a disadvantage most likely faced by a sole trader compared to other forms of business ownership?
Which of the following is a disadvantage most likely faced by a sole trader compared to other forms of business ownership?
- Complex legal requirements for establishment.
- Shared decision-making with partners.
- Unlimited liability for business debts. (correct)
- Greater access to funding and investment.
How does limited liability primarily benefit shareholders in a company?
How does limited liability primarily benefit shareholders in a company?
A sole trader is considering expanding their business. Which of the following factors would likely be a disadvantage of remaining a sole trader during this expansion phase?
A sole trader is considering expanding their business. Which of the following factors would likely be a disadvantage of remaining a sole trader during this expansion phase?
Which of the following scenarios would represent an advantage of the 'simple to wind up' characteristic of a sole trader business structure?
Which of the following scenarios would represent an advantage of the 'simple to wind up' characteristic of a sole trader business structure?
What is the primary difference in legal structure that distinguishes a private limited company from a public listed company?
What is the primary difference in legal structure that distinguishes a private limited company from a public listed company?
How might full responsibility impact a sole trader's decision-making process, compared to a partnership?
How might full responsibility impact a sole trader's decision-making process, compared to a partnership?
Which of the following scenarios would necessitate the formation of a new partnership agreement?
Which of the following scenarios would necessitate the formation of a new partnership agreement?
What is a primary disadvantage sole traders face regarding business expansion and workload?
What is a primary disadvantage sole traders face regarding business expansion and workload?
Why might a potential business owner choose a partnership over a sole proprietorship?
Why might a potential business owner choose a partnership over a sole proprietorship?
What is a key difference in liability between a sole tradership/partnership and a private limited company?
What is a key difference in liability between a sole tradership/partnership and a private limited company?
Which of the following best describes 'perpetuity' in the context of business ownership?
Which of the following best describes 'perpetuity' in the context of business ownership?
What is the significance of a private limited company having 'PTY LTD' after its name?
What is the significance of a private limited company having 'PTY LTD' after its name?
A public listed company is distinguished from a private limited company primarily by its:
A public listed company is distinguished from a private limited company primarily by its:
Which of the following factors would likely increase the operating costs for a sole trader?
Which of the following factors would likely increase the operating costs for a sole trader?
Why does a partnership sometimes lack perpetuity?
Why does a partnership sometimes lack perpetuity?
What is a significant advantage of forming a private limited company over a sole tradership regarding financial risk?
What is a significant advantage of forming a private limited company over a sole tradership regarding financial risk?
A business owner is considering incorporating their business. What is the first step they must take in this process?
A business owner is considering incorporating their business. What is the first step they must take in this process?
What is the primary reason a business owner might choose to incorporate their business as a private limited company rather than remain a sole trader?
What is the primary reason a business owner might choose to incorporate their business as a private limited company rather than remain a sole trader?
A business owner is seeking to expand operations and requires a significant capital injection. Which business structure would best facilitate raising capital through the public market?
A business owner is seeking to expand operations and requires a significant capital injection. Which business structure would best facilitate raising capital through the public market?
What action must a business take to comply with regulations after receiving an Australian Company Number (ACN)?
What action must a business take to comply with regulations after receiving an Australian Company Number (ACN)?
In a partnership, what is the implication of 'unlimited liability' for the partners?
In a partnership, what is the implication of 'unlimited liability' for the partners?
Which of the following best describes the relationship between a company's mission and its strategic objectives?
Which of the following best describes the relationship between a company's mission and its strategic objectives?
A local bakery wants to increase its market share in the neighborhood. Which of the following strategies would directly address this objective?
A local bakery wants to increase its market share in the neighborhood. Which of the following strategies would directly address this objective?
A manufacturing company implements new technology on the factory floor. How would this initiative likely impact the company's efficiency and productivity?
A manufacturing company implements new technology on the factory floor. How would this initiative likely impact the company's efficiency and productivity?
Shareholders are primarily interested in:
Shareholders are primarily interested in:
What differentiates tactical objectives from operational objectives in a business setting?
What differentiates tactical objectives from operational objectives in a business setting?
A clothing retailer decides to partner with a fair trade supplier for its cotton T-shirts. Which business objective does this primarily address?
A clothing retailer decides to partner with a fair trade supplier for its cotton T-shirts. Which business objective does this primarily address?
Which of the following is the most direct way for a business to increase its profitability?
Which of the following is the most direct way for a business to increase its profitability?
Which of the following scenarios best illustrates a business fulfilling a market need?
Which of the following scenarios best illustrates a business fulfilling a market need?
Which of the following is an example of a business actively working to improve its effectiveness?
Which of the following is an example of a business actively working to improve its effectiveness?
If a business aims to increase productivity, which action would be most effective?
If a business aims to increase productivity, which action would be most effective?
Which statement accurately compares vision statements and mission statements?
Which statement accurately compares vision statements and mission statements?
A company decides to switch to renewable energy sources to power its operations. Besides potentially fulfilling a social need, what other objective could this action support?
A company decides to switch to renewable energy sources to power its operations. Besides potentially fulfilling a social need, what other objective could this action support?
A business is said to be effective if:
A business is said to be effective if:
Aldi has gained market share, and competitors such as Woolworths and Coles have lost market share because:
Aldi has gained market share, and competitors such as Woolworths and Coles have lost market share because:
Revenue minus expenses relates to:
Revenue minus expenses relates to:
Which of the following is the MOST significant disadvantage for a public company compared to a private company?
Which of the following is the MOST significant disadvantage for a public company compared to a private company?
A company is seeking to expand rapidly and requires a significant influx of capital. Which characteristic of a public company would be MOST beneficial in this scenario?
A company is seeking to expand rapidly and requires a significant influx of capital. Which characteristic of a public company would be MOST beneficial in this scenario?
What distinguishes a social enterprise from a traditional for-profit company?
What distinguishes a social enterprise from a traditional for-profit company?
Thankyou, a social enterprise, expanded its product line from water to include food and body products. What was the PRIMARY purpose of this expansion?
Thankyou, a social enterprise, expanded its product line from water to include food and body products. What was the PRIMARY purpose of this expansion?
A social enterprise aims to provide vocational training to unemployed individuals in a local community. Which of the following BEST describes the potential advantage of this approach?
A social enterprise aims to provide vocational training to unemployed individuals in a local community. Which of the following BEST describes the potential advantage of this approach?
Which of the following BEST describes a Government Business Enterprise (GBE)?
Which of the following BEST describes a Government Business Enterprise (GBE)?
Australia Post is considered a GBE. What PRIMARY objective distinguishes it from a privately-owned postal service?
Australia Post is considered a GBE. What PRIMARY objective distinguishes it from a privately-owned postal service?
What does it mean when GBEs have been 'corporatized'?
What does it mean when GBEs have been 'corporatized'?
A GBE is considering expanding its services into a new market. Which of the following factors would it MOST likely prioritize?
A GBE is considering expanding its services into a new market. Which of the following factors would it MOST likely prioritize?
Which statement accurately describes the financial objective of a GBE?
Which statement accurately describes the financial objective of a GBE?
Which stakeholder group's primary interest typically aligns with receiving dividends and increased share value from a business?
Which stakeholder group's primary interest typically aligns with receiving dividends and increased share value from a business?
A local community is MOST likely to be negatively impacted if a business prioritizes which of the following?
A local community is MOST likely to be negatively impacted if a business prioritizes which of the following?
A business aims to increase its market share in a competitive industry. Which of the following strategies would DIRECTLY contribute to achieving this objective?
A business aims to increase its market share in a competitive industry. Which of the following strategies would DIRECTLY contribute to achieving this objective?
How can a business objective to 'improve efficiency' BEST contribute to increased profitability?
How can a business objective to 'improve efficiency' BEST contribute to increased profitability?
In a situation where a company is facing significant financial losses, which stakeholder interest is MOST likely to conflict with employee interests?
In a situation where a company is facing significant financial losses, which stakeholder interest is MOST likely to conflict with employee interests?
Which of the following scenarios BEST exemplifies a conflict of interest between management and employees?
Which of the following scenarios BEST exemplifies a conflict of interest between management and employees?
A company sets an objective to 'fulfil a social need' in its community. Which action would MOST directly align with this objective?
A company sets an objective to 'fulfil a social need' in its community. Which action would MOST directly align with this objective?
Which of the following BEST illustrates a conflict that may arise from trying to meet both shareholder expectations and fulfil a social need?
Which of the following BEST illustrates a conflict that may arise from trying to meet both shareholder expectations and fulfil a social need?
Which management style is MOST suitable for a situation demanding quick decisions and clear instructions, such as during a company crisis?
Which management style is MOST suitable for a situation demanding quick decisions and clear instructions, such as during a company crisis?
Which of the following features is MOST characteristic of an autocratic management style?
Which of the following features is MOST characteristic of an autocratic management style?
A business finds that its objectives are not being met. What is the MOST important FIRST step to take?
A business finds that its objectives are not being met. What is the MOST important FIRST step to take?
What is a PRIMARY disadvantage of using a laissez-faire management style in a team setting?
What is a PRIMARY disadvantage of using a laissez-faire management style in a team setting?
If a manager adopts a consultative management style, how are employee opinions typically utilized?
If a manager adopts a consultative management style, how are employee opinions typically utilized?
Which management style would be MOST effective in fostering a highly collaborative environment where employees are encouraged to contribute ideas and take ownership of projects?
Which management style would be MOST effective in fostering a highly collaborative environment where employees are encouraged to contribute ideas and take ownership of projects?
How does a task-oriented management style PRIMARILY differ from a people-oriented management style?
How does a task-oriented management style PRIMARILY differ from a people-oriented management style?
What communication pattern is MOST typical in an organization using an autocratic management style?
What communication pattern is MOST typical in an organization using an autocratic management style?
A company is implementing a new enterprise resource planning (ERP) system. Employees are resistant to the change due to a lack of understanding and fear of job displacement. Which management style would be MOST effective in this situation to gain employee buy-in and address their concerns?
A company is implementing a new enterprise resource planning (ERP) system. Employees are resistant to the change due to a lack of understanding and fear of job displacement. Which management style would be MOST effective in this situation to gain employee buy-in and address their concerns?
During which situation is participative management MORE likely to be LESS successful?
During which situation is participative management MORE likely to be LESS successful?
Company X needs to enhance employee morale whilst still meeting targets. Which would be the LEAST effective approach?
Company X needs to enhance employee morale whilst still meeting targets. Which would be the LEAST effective approach?
The Board in Company Y are considering a more ethical approach to manufacturing and waste disposal. The decision will likely impact upon short-term profitability, and therefore shareholder returns. Which would be the most appropriate course of action for the Company Directors?
The Board in Company Y are considering a more ethical approach to manufacturing and waste disposal. The decision will likely impact upon short-term profitability, and therefore shareholder returns. Which would be the most appropriate course of action for the Company Directors?
In which of the following scenarios would an autocratic management style be most effective?
In which of the following scenarios would an autocratic management style be most effective?
A manager makes a decision and then explains the reasons behind it to the employees. Which management style is being used?
A manager makes a decision and then explains the reasons behind it to the employees. Which management style is being used?
Which management style is characterized by centralized decision-making but includes seeking input from staff before a decision is made?
Which management style is characterized by centralized decision-making but includes seeking input from staff before a decision is made?
What is a primary disadvantage of the consultative management style?
What is a primary disadvantage of the consultative management style?
In which of the following scenarios would a participative management style be most appropriate?
In which of the following scenarios would a participative management style be most appropriate?
Which management style is most likely to increase employee morale and productivity by utilizing their knowledge and expertise?
Which management style is most likely to increase employee morale and productivity by utilizing their knowledge and expertise?
What is a potential drawback of the participative management style?
What is a potential drawback of the participative management style?
Which of the following best describes the laissez-faire management style?
Which of the following best describes the laissez-faire management style?
In what type of organizational setting would a laissez-faire management style be most appropriate?
In what type of organizational setting would a laissez-faire management style be most appropriate?
What is a significant risk associated with the laissez-faire management style?
What is a significant risk associated with the laissez-faire management style?
Which management style focuses on maintaining good personal relationships and involves employees in discussions before decisions are made?
Which management style focuses on maintaining good personal relationships and involves employees in discussions before decisions are made?
A manager who provides job security, social activities, and fringe benefits to enhance personal relationships with employees is most likely using which management style?
A manager who provides job security, social activities, and fringe benefits to enhance personal relationships with employees is most likely using which management style?
Consider a scenario where a team needs to quickly implement a critical system update to address a security threat. Which management style would be LEAST appropriate in this situation?
Consider a scenario where a team needs to quickly implement a critical system update to address a security threat. Which management style would be LEAST appropriate in this situation?
A company is undergoing a major restructuring, and some employees are resistant to the changes. Which management style might be most effective in gaining employee buy-in and support for the new initiatives?
A company is undergoing a major restructuring, and some employees are resistant to the changes. Which management style might be most effective in gaining employee buy-in and support for the new initiatives?
A team of highly skilled software engineers is given a project with ambitious goals, and innovation is crucial for success. Which management style would likely be most effective in maximizing their creativity and productivity?
A team of highly skilled software engineers is given a project with ambitious goals, and innovation is crucial for success. Which management style would likely be most effective in maximizing their creativity and productivity?
Which management style is MOST suitable for tasks requiring specialized knowledge and independent work, especially in fields like creative work or research?
Which management style is MOST suitable for tasks requiring specialized knowledge and independent work, especially in fields like creative work or research?
A manager who adapts their style based on the current internal and external circumstances is using which management style?
A manager who adapts their style based on the current internal and external circumstances is using which management style?
Which variable is LEAST relevant when determining the most appropriate management style in a given situation?
Which variable is LEAST relevant when determining the most appropriate management style in a given situation?
In a fast-paced crisis situation with inexperienced employees, which management style is generally MOST effective?
In a fast-paced crisis situation with inexperienced employees, which management style is generally MOST effective?
A manager who prioritizes employee involvement and values their input, especially on complex tasks, is MOST likely to favor which management style?
A manager who prioritizes employee involvement and values their input, especially on complex tasks, is MOST likely to favor which management style?
Which of the following scenarios would make a participative management style the LEAST suitable choice?
Which of the following scenarios would make a participative management style the LEAST suitable choice?
When tasks are simple and time is limited, but a manager wants employees to accept the decisions, which management style is MOST appropriate?
When tasks are simple and time is limited, but a manager wants employees to accept the decisions, which management style is MOST appropriate?
A company is undergoing a major crisis. Which TWO variables are MOST crucial for a manager to consider when selecting a management style?
A company is undergoing a major crisis. Which TWO variables are MOST crucial for a manager to consider when selecting a management style?
A manager who prefers to relinquish control and empower experienced employees working on complex projects would likely favor which TWO management styles?
A manager who prefers to relinquish control and empower experienced employees working on complex projects would likely favor which TWO management styles?
A manager is introducing a new, complex software system. To ensure effective implementation, what is the MOST suitable communication approach?
A manager is introducing a new, complex software system. To ensure effective implementation, what is the MOST suitable communication approach?
Which of the following BEST describes effective two-way communication in management?
Which of the following BEST describes effective two-way communication in management?
Which type of communication is PRIMARILY used for informing external stakeholders, such as customers and suppliers?
Which type of communication is PRIMARILY used for informing external stakeholders, such as customers and suppliers?
A manager needs to share sensitive information with an employee. Which communication method is MOST appropriate?
A manager needs to share sensitive information with an employee. Which communication method is MOST appropriate?
What is the PRIMARY purpose of internal business communication?
What is the PRIMARY purpose of internal business communication?
How does effective communication contribute to achieving business objectives?
How does effective communication contribute to achieving business objectives?
A manager is deciding whether to send a company-wide announcement via email or hold a series of team meetings. Which factor should primarily influence this decision?
A manager is deciding whether to send a company-wide announcement via email or hold a series of team meetings. Which factor should primarily influence this decision?
What is the most significant risk when a manager communicates a complex new strategy primarily through written reports?
What is the most significant risk when a manager communicates a complex new strategy primarily through written reports?
Which scenario exemplifies a disadvantage of effective communication in a workplace?
Which scenario exemplifies a disadvantage of effective communication in a workplace?
A manager delegates a complex project to a team known for its collaborative skills. What is the most likely primary benefit the manager expects?
A manager delegates a complex project to a team known for its collaborative skills. What is the most likely primary benefit the manager expects?
A senior employee consistently produces high-quality work but struggles with new software. How should the manager best approach delegating tasks that require using this new software?
A senior employee consistently produces high-quality work but struggles with new software. How should the manager best approach delegating tasks that require using this new software?
What is the most significant potential downside of delegating tasks to an employee without providing adequate training or support?
What is the most significant potential downside of delegating tasks to an employee without providing adequate training or support?
When should a manager least likely delegate a task?
When should a manager least likely delegate a task?
How does tactical planning primarily support strategic planning in an organization?
How does tactical planning primarily support strategic planning in an organization?
Which of the following best describes the primary focus of operational planning?
Which of the following best describes the primary focus of operational planning?
A company is considering launching a new product line. During the 'Analysis' stage of the planning model (SADIM), what would be the most relevant action?
A company is considering launching a new product line. During the 'Analysis' stage of the planning model (SADIM), what would be the most relevant action?
A business is deciding whether to merge with another company. Which level of planning would primarily address this decision?
A business is deciding whether to merge with another company. Which level of planning would primarily address this decision?
In the SADIM planning model, what is the primary purpose of monitoring and reviewing the results after implementing a plan?
In the SADIM planning model, what is the primary purpose of monitoring and reviewing the results after implementing a plan?
Which of the following company actions best demonstrates strategic planning?
Which of the following company actions best demonstrates strategic planning?
How does SWOT analysis primarily benefit a business during the planning process?
How does SWOT analysis primarily benefit a business during the planning process?
What is the most likely outcome of a business failing to adequately analyze its weaknesses during the planning process?
What is the most likely outcome of a business failing to adequately analyze its weaknesses during the planning process?
How can a SWOT analysis be most effectively used by an organization?
How can a SWOT analysis be most effectively used by an organization?
What is a key difference between 'opportunities' and 'strengths' in a SWOT analysis?
What is a key difference between 'opportunities' and 'strengths' in a SWOT analysis?
Which of the following is a potential disadvantage of extensive planning in a business?
Which of the following is a potential disadvantage of extensive planning in a business?
How does effective leadership contribute to the attainment of business objectives?
How does effective leadership contribute to the attainment of business objectives?
What distinguishes a leader from a manager, according to the information?
What distinguishes a leader from a manager, according to the information?
What is a potential disadvantage of leadership within a business environment?
What is a potential disadvantage of leadership within a business environment?
How does emotional intelligence primarily benefit a manager in the workplace?
How does emotional intelligence primarily benefit a manager in the workplace?
Which characteristic is least likely to be associated with strong interpersonal skills in a manager?
Which characteristic is least likely to be associated with strong interpersonal skills in a manager?
What is a potential disadvantage of a manager lacking strong interpersonal skills?
What is a potential disadvantage of a manager lacking strong interpersonal skills?
In the SODIM decision-making process, what is the primary purpose of the 'Outline' step?
In the SODIM decision-making process, what is the primary purpose of the 'Outline' step?
What is the primary benefit of involving a team in the decision-making process?
What is the primary benefit of involving a team in the decision-making process?
What is a potential disadvantage of group decision-making?
What is a potential disadvantage of group decision-making?
Which management skill is most crucial for a task-centered management style?
Which management skill is most crucial for a task-centered management style?
In which management style are communication skills most important for gathering employee feedback and input?
In which management style are communication skills most important for gathering employee feedback and input?
How do decision-making skills differ between consultative and participative management styles?
How do decision-making skills differ between consultative and participative management styles?
Which element of corporate culture is most directly exemplified by a company that regularly hosts 'innovation challenges' where employees compete to develop new ideas?
Which element of corporate culture is most directly exemplified by a company that regularly hosts 'innovation challenges' where employees compete to develop new ideas?
A company known for its frequent town hall meetings and employee feedback sessions likely prioritizes which aspect of corporate culture?
A company known for its frequent town hall meetings and employee feedback sessions likely prioritizes which aspect of corporate culture?
A company with a clearly defined mentorship program, pairing senior employees with junior staff, is primarily fostering which element of corporate culture?
A company with a clearly defined mentorship program, pairing senior employees with junior staff, is primarily fostering which element of corporate culture?
What is the most likely outcome for a business that cultivates a strong corporate culture?
What is the most likely outcome for a business that cultivates a strong corporate culture?
Which factor most clearly differentiates the 'official' corporate culture from the 'real' corporate culture?
Which factor most clearly differentiates the 'official' corporate culture from the 'real' corporate culture?
How can a company best leverage its 'heroes' within its corporate culture to improve overall performance?
How can a company best leverage its 'heroes' within its corporate culture to improve overall performance?
A business is experiencing high rates of absenteeism and low productivity. Which aspect of corporate culture is most likely lacking?
A business is experiencing high rates of absenteeism and low productivity. Which aspect of corporate culture is most likely lacking?
What is the potential impact of a disconnect between a company's stated values (official culture) and its actual practices (real culture)?
What is the potential impact of a disconnect between a company's stated values (official culture) and its actual practices (real culture)?
Which of the following scenarios best demonstrates a company leveraging its physical environment to reinforce teamwork?
Which of the following scenarios best demonstrates a company leveraging its physical environment to reinforce teamwork?
What is the primary role of 'rituals, rites, and celebrations' in shaping corporate culture?
What is the primary role of 'rituals, rites, and celebrations' in shaping corporate culture?
Flashcards
Private Sector
Private Sector
Businesses owned by private individuals, groups, or institutions.
Public Sector
Public Sector
Businesses owned and operated by the government.
Unlimited Liability
Unlimited Liability
The owner's personal assets are at risk if the business incurs debt.
Limited Liability
Limited Liability
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Sole Trader
Sole Trader
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Sole Trader Characteristics
Sole Trader Characteristics
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Sole Trader Advantages
Sole Trader Advantages
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Sole Trader Disadvantages
Sole Trader Disadvantages
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Sole Trader Limitations
Sole Trader Limitations
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Sole Trader Profit Incentive
Sole Trader Profit Incentive
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Sole Trader Overload
Sole Trader Overload
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Partnership
Partnership
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Partnership Limited Life
Partnership Limited Life
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Partnership Profit/Loss Division
Partnership Profit/Loss Division
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Partnership Unlimited Liability
Partnership Unlimited Liability
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Partnership: Shared Control
Partnership: Shared Control
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Partnership: Potential Disputes
Partnership: Potential Disputes
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Incorporation
Incorporation
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Private Limited Company identifier.
Private Limited Company identifier.
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Limited Liability (Company)
Limited Liability (Company)
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Company Perpetuity
Company Perpetuity
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Public Listed Company
Public Listed Company
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Access to Capital (Public Company)
Access to Capital (Public Company)
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Perpetuity
Perpetuity
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Social Enterprise
Social Enterprise
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Profit Allocation (Social Enterprise)
Profit Allocation (Social Enterprise)
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Dual Aim (Social Enterprise)
Dual Aim (Social Enterprise)
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Capital Challenges (Social Enterprise)
Capital Challenges (Social Enterprise)
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Attracting Customers
Attracting Customers
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GBE (Government Business Enterprise)
GBE (Government Business Enterprise)
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Community Service Provision (GBE)
Community Service Provision (GBE)
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Political Interference (GBE)
Political Interference (GBE)
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Government Red Tape
Government Red Tape
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Business Objectives
Business Objectives
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Market Share
Market Share
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Fulfilling a Market Need
Fulfilling a Market Need
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Mission Statement
Mission Statement
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Vision Statement
Vision Statement
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Strategic Objectives
Strategic Objectives
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Tactical Objectives
Tactical Objectives
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Operational Objectives
Operational Objectives
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Profit
Profit
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Efficiency
Efficiency
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Productivity
Productivity
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Effectiveness
Effectiveness
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Shareholders Expectations
Shareholders Expectations
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Fulfilling a Social Need
Fulfilling a Social Need
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Business Strategies
Business Strategies
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Profit Calculation
Profit Calculation
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Stakeholder
Stakeholder
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Manager's Interest
Manager's Interest
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Employee's Interest
Employee's Interest
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Owner/Shareholder Interest
Owner/Shareholder Interest
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Director's Interest
Director's Interest
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Customer's Interest
Customer's Interest
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Supplier's Interest
Supplier's Interest
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Trade Union's Interest
Trade Union's Interest
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Competitor's Interest
Competitor's Interest
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Government's Interest
Government's Interest
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Community/Society's Interest
Community/Society's Interest
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Management Style
Management Style
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Task-Oriented Style
Task-Oriented Style
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People-Oriented Style
People-Oriented Style
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Decision Making
Decision Making
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Autocratic Style
Autocratic Style
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Strength of Autocratic Style
Strength of Autocratic Style
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Weakness of Autocratic Style
Weakness of Autocratic Style
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Persuasive Style
Persuasive Style
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Strength of Persuasive Style
Strength of Persuasive Style
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Weakness of Persuasive Style
Weakness of Persuasive Style
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Consultative Style
Consultative Style
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Strength of Consultative Style
Strength of Consultative Style
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Weakness of Consultative Style
Weakness of Consultative Style
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Participative Style
Participative Style
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Strength of Participative Style
Strength of Participative Style
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Weakness of Participative Style
Weakness of Participative Style
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Laissez-Faire Style
Laissez-Faire Style
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Strength of Laissez-Faire Style
Strength of Laissez-Faire Style
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Weakness of Laissez-Faire Style
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Laissez-faire Management
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Contingency Management
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Manager Preference
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Employee Experience
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Nature of Task
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Time Constraints
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Autocratic Style Suitability
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Persuasive Style Suitability
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Consultative Style Suitability
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Participative Style Suitability
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Laissez-faire Suitability
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Communication Definition
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Effective Communication Benefits
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Personal Communication
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Internal Business Communication
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Planning (Employee Involvement)
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Leading Skills
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Interpersonal Skills
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Corporate Culture
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Corporate Culture: Values & Practices
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Corporate Culture: Symbols
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Corporate Culture: Rituals
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Corporate Culture: Heroes
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Corporate Culture: Communication
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Corporate Culture: Physical Environment
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Reading (Managerial)
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Written Communication (Managerial)
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Oral Communication (Managerial)
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Effective Communication (Advantage)
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Communication (Disadvantage)
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Delegation
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Delegation (Benefit)
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Delegation (Risk)
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Planning Skills
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Strategic Planning
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Tactical Planning
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Operational Planning
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5-Step Planning Model (SADIM)
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SWOT Analysis
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SWOT Benefits
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Leadership Definition
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Benefits of Good Leadership
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Key Components of Interpersonal Skills
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Advantages of Interpersonal Skills
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Decision-Making Skills
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5-Step Decision-Making Process
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Advantages of Decision-Making Skills
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Advantages of a manager using the decision-making skill
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Task-Centered Management Skills
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People-Centered Management Skills
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Emotional intelligence
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Study Notes
Business Foundations: Types of Businesses
- Businesses operate in either the private or public sector.
- Private sector businesses are owned by individuals, groups, or institutions.
- Public sector businesses are government-owned.
Six Main Types of Business Ownership
- Sole Trader
- Partnership
- Private Limited Company
- Public Listed Company
- Social Enterprise
- Government Business Enterprise
Liability: Limited vs. Unlimited
- Unlimited liability means an owner's personal assets are not legally separate from the business assets, thus personal assets can be seized to pay business debts.
- Limited liability means the business assets are legally separated from the personal assets of the shareholders, limiting shareholder liability to their investment in the business.
Sole Trader
- Definition: A sole trader is a business owned and operated by one person who assumes total responsibility.
- Characteristics:
- Entitled to all profits and capital
- Responsible for all planning and organizing
- Full responsibility for the business
- Unlimited liability
- Advantages:
- Simple and inexpensive to establish
- Total control over the business
- Simple to wind up
- All profits go to the owner
- Disadvantages:
- Unlimited liability
- Harder to get finance
- Reliant on owner’s knowledge and skills
- Heavy workload
Partnership
- A business owned by 2-20 people
- Characteristics:
- Limited life; requires a new partnership if a partner leaves
- Division of profits and losses
- 2-20 owners
- Unlimited liability
- Advantages:
- Inexpensive and simple to set up
- Shared risk
- Shared workload
- Broader access to capital, knowledge, skills, and experience
- Disadvantages:
- Unlimited liability
- Shared control
- Potential for disputes
- Profits must be shared
Incorporation
- Incorporation is the process of establishing a business as a separate legal entity, a company. Governed by the Corporations Act 2001. Registered with the Australian Securities and Investments Commission (ASIC). Requires an Australian Company Number (ACN).
Private Limited Company
- Business with 1-50 shareholders
- Characteristics:
- Has perpetuity
- Shares traded only with permission
- 1-50 shareholders
- "PTY LTD" after its name
- Advantages:
- Limited liability
- Can obtain capital by issuing shares
- Lower company tax rate
- Existence not threatened by changes in directors/shareholders
- Disadvantages:
- Complex and costly to establish
- Must produce annual audited report
- Higher government control and reporting requirements
Public Listed Company
- A business that is listed on the ASX (Australian securities exchange)
- Characteristics:
- Unlimited number of shareholders (typically at least 50)
- Shares traded publicly
- CEO and board of directors representing shareholders
- Limited liability
- "Ltd" in its name
- Listed on the ASX (Australian securities exchange).
- Advantages:
- Limited liability
- Able to gain capital through selling shares
- Existence not threatened by changes in directors/shareholders
- Disadvantages:
- Complex and costly to establish
- Must produce annual audited report
- High accountability and compliance paperwork
Social Enterprise
- Businesses that produce/sell goods or services and make a profit, but direct a percentage of the profit in pursuit of social or environmental goal.
- Characteristics:
- Commercially viable with a vision for positive social impact
- Directs a percentage of profits to a social or environmental goal
- May receive donations
- Similarities to other companies:
- Produce/sell goods and services to make a profit
- Differences from other companies:
- Direct profits to achieve social or environmental goals
- Advantages:
- Can open new markets
- Meeting a social need can positively effect the markets
- Disadvantages:
- Difficulty in obtaining capital
- High operating costs
- Example:
- Thankyou channels profits from sales of water, food, and body products to fund safe water, hygiene, sanitation, and malnutrition projects globally. Raised $3.7 million by 2016 and Partners with Coles supermarkets, Woolworths Ltd and Australia Post.
Government Business Enterprise (GBE)
- A business that is owned by the government but managed separately
- Characteristics:
- Provides essential community services
- Government-owned
- Engaged in commercial activities
- Legal personality separate from the government
- Objectives:
- Profit Seeking
- Implement government policy
- Provide a high level of service
- Examples:
- VicRoads
- Australia Post
- National Broadband Network (NBN)
- Advantages
- Able to carry out government policies
- Can operate somewhat independently from the government
- Disadvantages
- Political interference
- Inefficiencies due to government regulations
Business Objectives
- Overall/specific goals that an organisation sets to achieve its mission and vision statements within a given time period.
- Strategies outline how the business will attempt to achieve its objectives.
Hierarchy of Objectives
- Begins with mission and vision statements
- Mission statement: Reflects an organisation's reason for being or purpose and the way in which it will be managed.
- Vision statement: Outlines the broad direction the organisation hopes to take in the future.
- Then includes strategic, tactical, and operational objectives:
- Strategic objectives: Long-term (2-5 years) strategies required by the organisation as a whole, set by senior management.
- Tactical objectives: Medium-term (1-2 years) targets for a department or division, set by middle management.
- Operational objectives: Short-term (daily, weekly, annually) strategies that are precise and measurable, set by frontline management.
Types of Objectives
- To Make a Profit Increasing revenue and minimizing expenses result in consistent profit that allows for business growth and gives employees job security.
- Increase Market Share Taking sales from rivals.
- Improve Efficiency Measured by productivity. Achieved strategies include using up to date technology, having well trained highly skilled employees, and high quality outputs.
- Improve Effectiveness Implementing actions to achieve the objectives, and using KPIs to see if effective.
- Meet Shareholder Expectations Make a profit and have the shares increase in value. Shareholders also expect the business to make a profit and for any shares purchased to increase in value and dividends (interest) to be paid.
- Fulfil a Market Need Providing a good or service that is not being provided or is not being provided to an appropriate standard.
- Fulfil a Social Need Businesses aiming to generate a profit but contributing positively to society. Examples; production and supply of quality goods and services, adoption of fair trade practices and contribution to the general welfare of society and provision of welfare amenities.
Stakeholders
- Stakeholders are those with a vested interest in a business.
- Examples of stakeholders include:
- Managers
- Employees
- Owners/Shareholders
- Directors
- Customers
- Suppliers
- Trade Unions
- Competitors
- Government
- Community/Society
Stakeholder Interests
- Managers: Want to perform roles well, meet shareholder expectations, and potentially receive bonuses.
- Employees: Want job security, fair pay and conditions, and career paths.
- Owners/Shareholders: Want a return on investment via profit and/or increased share value.
- Directors: Want long-term business success and fair remuneration.
- Customers: Want to continue purchasing products/services at expected price and quality.
- Suppliers: Want the organisation to increase its sales, demanding more products, to earn greater profit for the supplier.
- Trade Unions: Want fair wages and conditions for workers.
- Competitors: Want a greater proportion of sales than their rivals in the same industry.
- Government: Wants taxation revenue and a legislative framework to control business operations.
- Community/Society: Wants employment opportunities, community participation, ethical operations, and environmental responsibility.
Potential Stakeholder Conflicts
- Managers vs. Employees:
- Example: Conflict occurred between these two stakeholders in 2014 when Qantas CEO Alan Joyce implemented a 3 year cost cutting strategy and in 2020/2021when Qantas CEO Alan Joyce one of the cost-cutting decisions was to make 10,000 staff redundant and standdown another 20,000 employees until the airline is fully operational again which conflicted employee interest of job security.
Management Styles
- Management style is the manner and approach of providing direction, implementing plans, and motivating people.
- The 5 main management styles:
- Autocratic
- Persuasive
- Consultative
- Participative
- Laissez-faire
- Task-oriented style focuses on achieving the end result. A people-oriented style is where managers consider the need for employee involvement when providing direction and implementing plans.
Management Styles: Key Features
- Decision making (centralized or decentralized)
- Communication (one-way or two-way)
- Control (centralized or decentralized)
Autocratic Style
- Task centred
- Features:
- Centralized decision making
- One-way communication
- Centralized control/authority
- Strengths:
- Fast decision making
- Clearly defined policies and procedures
- Consistency in decision making
- Weaknesses:
- No employee input
- Demotivating for employees
- Poor manager-employee relationships
- Best Used:
- In a time of crisis, when immediate compliance with rules or procedures is needed, or in meeting an unexpected deadline, when speed is important.
Persuasive Style
- Task centred
- Features:
- Centralized decision making (manager explains decisions)
- One-way communication
- Centralized control
- Strengths:
- Fast
- Appropriate for decisions not requiring discussion
- Employees feel more included
- Weaknesses:
- No employee input
- Can be demotivating
- Best Used:
- When a manager attempts to convince employees that management's way is the right way
Consultative Style
- People centred
- Features:
- Centralized with the manager makes decisions alone after seeking input from staff.
- Two-way communication
- Centralized
- Strengths:
- Better decisions due to employee input
- Motivated employees
- Weaknesses:
- Time-consuming
- Employees may be unhappy if opinions are not implemented
- Best Used:
- Recognises the importance of good personal relationships among employees and consults with staff on certain issues before making a decision.
Participative Style
- People centred
- Features:
- Decentralized decision making
- Two-way communication
- Decentralized control
- Strengths:
- Boosts employee morale
- Increases productivity
- Utilizes employee knowledge and expertise
- Weaknesses:
- Time-consuming
- Potential for conflict
- Loss of control for management
- Best Used:
- When employees are actively involved in all the stages of the decision-making process
Laissez-faire Style
- People centred
- Features:
- Decentralized decision making
- Two-way communication
- Decentralized control
- Strengths:
- Increases morale and productivity
- Works well in creative businesses
- Weaknesses:
- Lack of monitoring
- Lack of consistency
- Unproductive employees
- Best Used:
- For creative work or research, with employees who are highly talented or qualified in the tasks to be performed and where minimal supervision and direction is required
Contingency Style
- A skilled manager will change their management style depending on the situation at hand.
- Manager takes into account all aspects of the current external and internal situation and then determines which style is the most appropriate to attain the organizations goals.
Factors Influencing Management Style
- Manager Preference based on manager’s personality, characteristics or qualities, their values, skills and how they communicate with staff.
- Employee experience/knowledge/skills
- Nature of the task (complex or simple)
- Time constraints
Management Skills
- Communication
- Delegation
- Planning
- Leadership
- Interpersonal
- Decision-making
Communication
- Transfer of information from a sender to a receiver and the ability to listen to feedback.
Types of Communication
- Personal communication – which involves sharing information and understanding between two people; the manager and a subordinate or a small group or work team.
- Internal business communication – where systems are used to inform and share information with employees (internal stakeholders) of the business
- External operational communication – occurs when managers need to communicate with stakeholders external to the business.
Advantages and Disadvantages of Communication
- Advantages:
- Effective communication helps maintain good relationships
- Assists in explaining the vision
- Gives employees an opportunity to ask questions
- Disadvantages:
- Can lead to conflict
- Time consuming at times can result in information overload.
- Although creating positive relationships can result in timewasting and loss of productivity.
Delegation
- Process where formal authority is passed down the hierarchy of a business
- There are a range of benefits for a business if delegation of tasks occurs:
- Smooth flow of production and work processes
- Time-saver, freeing management to be involved in longer-term planning and more important task
- Provides an opportunity for skill training, personal development and job satisfaction for employees while also showing trust and faith in employees’ abilities.
Advantages and Disadvantages of Delegation
- Advantages:
- Effective time management
- Staff learn new skills
- Can lead to fresh ideas
- Disadvantages:
- Can be time consuming to provide support
- Subordinate employee may misuse their new power
Planning
- A formalised decision-making process that is future oriented, Ability to define business objectives and determine methods or strategies that will be used to achieve those objectives.
- Levels of Planning
- Strategic (long term) - Senior Management
- Tactical (medium term) - Middle Management
- Operational (short term) - Frontline Management
Steps of Planning
- Set the objective that needs to be planned/achieved.
- Analyse the current situation, SWOT analysis .
- Develop and evaluate alternative plans
- Implement the developed plan .
- Monitor and review the results
SWOT Analysis
- Helps to develop strategies for the organisation and to decide on major priorities in the future, helps the organisation to plan and meet the organisations objectives.
Advantages and Disadvantages of Planning
- Advantages:
- Gives the business purpose and direction.
- Creates unity and encourages motivation
- Reduces risk and uncertainty
- Disadvantages:
- planning can be expensive and time-consuming
- Opportunities can be lost while managers are planning
- innovation or creativity can be hindered because everything needs to be planned.
Leadership
- The ability to inspire and influence employees to share the vision of the organisation.
- Three Characteristics:
- Good communicator
- Role model
- Loyalty + dedication
- Benefits To Business:
- Motivated employees and high staff morale. Leading to high productivity and the attainment of business objectives
Advantages and Disadvantages of Leadership
- Advantages:
- Motivated Employees
- High Productivity
- Disadvantages:
- Managers can be so busy leading that they have no time for contributing to productive activities
- Clashes can occur between leaders and employees
Interpersonal Skills
- Involve the ability to deal or liaise with people and build positive relationships with staff.
Key Components
- Emotional Intelligence
- A team player
- Ethical, honest
- Empathetic and Assertive
Advantages and Disadvantages of Interpersonal Skills
- Advantages:
- Create a workplace where people respect each other and work well together.
- Disadvantages:
- Employees may work much more productively because they are free from fear, intimidation and threat
Decision-Making Skills
- The process of identifying the options available then choosing a specific course of action.
- The 5-step decision -making process. (SODIM)
- S Set out the decision that needs to be made
- O Outline the facts of the situation at hand
- D Develop and evaluate alternative decisions (rank them in order)
- I Implement the selected decision (take action)
- M Monitor and review the results using KPIs and benchmarking
Advantages and Disadvantages of Decision-Making Skills
- Advantages:
- Able to make decisions quickly
- Group decision-making may lead to better decisions
- Disadvantages: Make decisions in groups tend to take longer
- Group decision-making may not suit all situations
Relationship between Management Styles and Management Skills
- Task Centered Styles:
- Need strong decision-making, communication, delegation, and leadership skills.
- People Centered Styles:
- Need communication, decision-making, planning, leadership, and interpersonal skills.
Corporate Culture
- The shared values or beliefs of the people within a business
Elements of Corporate Culture
- Values and practices
- Symbols
- Rituals, rites and celebrations
- Heroes
- Communication
- Physical Environment
Importance of Corporate Culture
- Better staff retention rates
- The business can become attractive to new employees
- A positive corporate culture can result in greater productivity
- Summary of corporate culture
- Strong culture
- Motivated staff with high levels of job satisfaction -A sense of community, where loyalty exists amongst staff -High levels of productivity -Individual effort -Strong relationships and work place morale -Achievement of set goals
- Weak culture
- Poor social interaction in the workplace, affecting work relationships
- Low job satisfaction and sense of loyalty amongst staff
- High absentee rates and high staff turnover
- Lower productivity
- Workplace conflict
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Explore the characteristics, advantages, and disadvantages of different business ownership structures. Differentiate between sole proprietorships, private limited companies and public listed companies. Focus on liability and decision-making impacts.
