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• A stakeholder is any individual or group with a direct vested interest in an organization's activities.
• Stakeholders include owners/shareholders, directors, partners, employees, investors, leaders, customers, suppliers, government, local and international communities, and trade unions.

Different Levels of Stakeholders:

• Macro environment includes broad operating conditions outside the business's control, such as government, economic, social, political, legal, and technological factors.
• Operating environment includes conditions immediately external to the business where the business has some control, such as competition, customers, and unions.
• Internal environment includes activities, functions, and pressures within the business where it has full control, such as employees, shareholders, owners, management, structure, and culture.

Corporate Culture:

• Official corporate culture is the set of values and beliefs desired by the business's management.
• Real/unofficial corporate culture is the culture that actually exists in the business.
• Businesses influence culture through organizational mission, vision, values statements, management structure, people, shared stories/rituals, and policies.

Management Styles:

• A management style is the method used to provide direction, implement plans, lead, and motivate.
• Main management styles are Autocratic, Persuasive, Consultative, Participative, and Laissez-Faire.

Autocratic Style:

• Manager-oriented, relies on the manager telling employees what to do with little to no delegation.
• Managers focus on completing tasks using established processes, motivated primarily by money.
• Quick decision-making and efficient, often using the most experienced person for decisions.
• Lacks multiple suggestions or solutions, potentially making employees feel undervalued.

Persuasive Style:

• The manager makes a decision and informs employees why it was made to persuade them, improving motivation.
• Quick decision-making, employees likely to support decisions they understand.
• Lacks multiple suggestions and can make employees feel undervalued.
• Does not allow for employee feedback.

Consultative Style:

• The manager takes feedback and opinions from employees when making decisions, with the manager ultimately deciding.
• Gains valuable insight, motivating employees through involvement.
• Employees may not understand the issue's complexity.
• Takes time to consult with staff and can lead to conflicting ideas.

Participative Style:

• Decentralizes decision-making, involving staff.
• Management and subordinates collaborate to discuss problems and solutions, with management accountable.
• Empowers employees, encouraging development and knowledge sharing.
• Many suitable ideas may be suggested.
• Time-consuming, may lead to conflict, and not all employees want decision-making responsibility.

Laissez-Faire Style:

• Employees make decisions with minimal management input, a decentralized approach where employees are responsible and accountable.
• Creates a sense of ownership, encourages communication, creativity, and innovation.
• Lack of guidance can lead to loss of direction, potential conflict, and requires highly motivated employees.

Contingency Management Theory:

• Management adapts based on various factors, allowing managers to change styles depending on the situation.
• A crisis requires a quick, autocratic style utilizing the most knowledgeable people.

Management Skills:

• Skills necessary for a manager to perform their job effectively.
• Include communication, delegation, planning, leading, decision-making, interpersonal, time and stress management, analytical, and technical skills specific to the organization.

Classifying a Business:

• Most businesses in Australia are privately owned, classified within the private sector.
• Government-owned businesses are classified in the public sector as Government Enterprises (GBEs).
• Industry sectors include primary (farming, mining, forestry), secondary (manufacturing/construction), and tertiary (services like retail and transport).

Sole Trader:

• An individual owns the business, keeps profits after tax, and is liable for all costs.
• Business name must be registered with ASIC if different from the owner's name.
• Requires registered business names (RBN).
• The business and owner are not separate legal entities.
• Owners have unlimited liability and may need to sell personal assets to cover debts.
• Simple and inexpensive to establish with personal bank account and TFN; RBN required.
• The advantage is that the owner has total control and has simple removal procedures.
• Minimal government regulation, including on employee rights.
• Reliant on the owner's knowledge/skills and faces difficulty in securing business finance.

Partnership:

• 2-20 people work together under a partnership agreement, outlining duties and responsibilities.
• If, one partner leaves it terminates, requiring a new partnership.
• A general partnership means all partners equally responsible with unlimited liability.
• A limited partnership means partners are not involved in daily operations and are liable only for their investment proportion.
• In the absence of a formal agreement, all partners have equal legal liability.
• Inexpensive and simple to set up, partners share risk and workload.
• Offers broader access to capital, knowledge, and skills.
• Can feature unlimited liability, debts incurred by other partners and disputes.

Private Companies:

• Pty Ltd (Private Limited Company).
• It has between 2-50 shareholders.
• Shares can only be traded with the permission of other shareholders.
• Suitable for sole traders or family businesses expanding.
• Shareholders have limited liability and extra capital can be obtained by new shares.
• Separate legal entity not threatened by the removal of directors/shareholders.
• More complexity in establishing, higher costs, increased government control/reporting, and additional compliance costs.

Public Companies:

• Grow in size to access more capital.
• Public share of purchase requires a prospectus.
• Listed on the Australian Securities Exchange (ASX).
• Unlimited shareholders.
• Openly traded, value of share determined by the market.
• Recognized by Limited (LTD) post-name.
• Limited liability and extra capital is gained by selling shares.
• More complex structure, higher establishment costs, increased accountability/paperwork, plus additional compliance costs.

Social Enterprise:

• Focuses on maximizing improvements in human wellbeing or the environment rather than maximizing profit.
• Can be both profit and non-profit, generally run in the same manner as regular business.

Government Business Enterprise (GBE):

• A business that is owned by the government and is operated.
• Aims to run profitably by controlling costs and selling goods/services with reasonable pricing.
• While autonomous, must meet reporting requirements for their shareholders.
• The government controls the business, is incorporated and is principally engaged in commercial activities.

Business Objectives:

• Statements of desired achievement that provide direction for businesses.
• Strategies are the actions taken to achieve the objectives.
• e.g. increasing market share requires targeting new customers, promotional campaigns or improving quality of product.

S.M.A.R.T Goals

• Specific
• Measurable
• Achievable
• Realistic
• Time Bound

Types of Business Objectives:

• Make a profit, grow sales, improve market share, and increase productivity.
• Demand/need is vital, businesses maximize appeal/increase market share.
• Relate to in community eg. provision of support, anti-bullying work policies.