Podcast
Questions and Answers
Businesses offer goods and/or services in exchange for ______ or other goods and services, aiming to meet the needs or wants of those purchasing them.
Businesses offer goods and/or services in exchange for ______ or other goods and services, aiming to meet the needs or wants of those purchasing them.
money
Businesses focused on being profitable in order to support social problems and causes of meaning to the company are known as ______ enterprises.
Businesses focused on being profitable in order to support social problems and causes of meaning to the company are known as ______ enterprises.
social
To be recognized as a social enterprise, a company must contribute at least 50% of their ______ to a social or environmental cause.
To be recognized as a social enterprise, a company must contribute at least 50% of their ______ to a social or environmental cause.
profits
Businesses owned by the government that provide services supporting the daily function of society are known as ______ businesses.
Businesses owned by the government that provide services supporting the daily function of society are known as ______ businesses.
A ______ statement is a desired image of what you want your business to become in the future, providing long-term direction.
A ______ statement is a desired image of what you want your business to become in the future, providing long-term direction.
When developing a vision statement, one should consider questions such as ‘Where do you want the business to be in the ______?’.
When developing a vision statement, one should consider questions such as ‘Where do you want the business to be in the ______?’.
[Blank] is the ethical conduct of a business beyond legal obligations, considering social, economic, and environmental impacts.
[Blank] is the ethical conduct of a business beyond legal obligations, considering social, economic, and environmental impacts.
Businesses approach CSR in multiple ways, considering their ______, economic, and environmental impacts when making decisions.
Businesses approach CSR in multiple ways, considering their ______, economic, and environmental impacts when making decisions.
To maintain the economic health of society, companies engage in activities such as providing ______ opportunities and producing goods and services.
To maintain the economic health of society, companies engage in activities such as providing ______ opportunities and producing goods and services.
A company can distinguish itself by offering superior products or services, providing them more affordably, or enhancing client ______ to their offerings.
A company can distinguish itself by offering superior products or services, providing them more affordably, or enhancing client ______ to their offerings.
The external environment that a business operates within and has some control over is known as the external ______ environment.
The external environment that a business operates within and has some control over is known as the external ______ environment.
The external ______ environment encompasses conditions and trends in the economy and society that a business cannot control.
The external ______ environment encompasses conditions and trends in the economy and society that a business cannot control.
When societal ______ change, businesses must adapt their operations and strategies to stay relevant and competitive.
When societal ______ change, businesses must adapt their operations and strategies to stay relevant and competitive.
Business change is often driven by pressures from both the internal and external business ______.
Business change is often driven by pressures from both the internal and external business ______.
Adjusting operations to improve quality or reduce ______ is a common pressure that drives business change.
Adjusting operations to improve quality or reduce ______ is a common pressure that drives business change.
A shift in corporate ______ can create pressures within a business, leading to the need for significant changes.
A shift in corporate ______ can create pressures within a business, leading to the need for significant changes.
The process of setting goals for a business and creating strategies to achieve them is known as business ______.
The process of setting goals for a business and creating strategies to achieve them is known as business ______.
A simple planning tool that helps businesses evaluate internal and external factors is a ______ analysis.
A simple planning tool that helps businesses evaluate internal and external factors is a ______ analysis.
Flashcards
What are Businesses?
What are Businesses?
Offer goods/services for money, aiming to satisfy needs/wants and be profitable.
Profit-Driven Businesses
Profit-Driven Businesses
Businesses focused on financial returns to owners/investors, achieved through customer value and profitability.
Social Enterprises
Social Enterprises
Businesses aiming to solve social problems, reinvesting profits into their chosen cause (50% min).
Government Businesses
Government Businesses
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Vision Statement
Vision Statement
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Vision Statement: Driving Questions
Vision Statement: Driving Questions
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Corporate Social Responsibility
Corporate Social Responsibility
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Social Enterprise: Profit Contribution
Social Enterprise: Profit Contribution
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Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR)
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Benefits of CSR
Benefits of CSR
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Downsides of CSR
Downsides of CSR
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Business Differentiation
Business Differentiation
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Internal Environment
Internal Environment
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External Operating Environment
External Operating Environment
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External Macro Environment
External Macro Environment
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Driving Forces for Business Change
Driving Forces for Business Change
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Business Planning
Business Planning
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SWOT Analysis
SWOT Analysis
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Study Notes
- Businesses offer goods and services in exchange for money, aiming to satisfy consumer needs and wants.
- While profitability is crucial for survival, businesses may also operate with a strong sense of purpose beyond financial gains.
- Certain businesses support societal functions, while others address social issues within the community.
Types of Businesses
- Commercial Businesses: Primarily focus on providing financial returns to owners and investors through profitable operations, delivering value to customers via goods or services.
- Social Enterprises: Aim to be profitable while addressing social problems, contributing at least 50% of their profits to a social or environmental cause.
- Unlike charities that rely on donations, social enterprises focus on creating a profitable business to reinvest and support their cause.
- Government Businesses: Owned by the government, these businesses deliver services supporting daily societal functions, and are subject to detailed reporting requirements ensuring accountability.
Vision Statements
- Almost all Businesses develop a vision statement to define a desired future state, providing long-term direction and is a vital tool in strategic planning.
- Key questions to consider include:
- Where do you want the business to be in the future?
- What is the purpose of your business?
- What impacts do you want your business to have on customers, community and/or the world?
- A business vision helps motivate employees and demonstrates the company's values to customers.
Corporate Social Responsibility (CSR)
- CSR involves a business's ethical conduct beyond legal obligations, accounting for social, economic, and environmental impacts when making business decisions, and can be approached in multiple ways:
- Reducing environmental impact
- Supporting community wellbeing
- Maintaining economic health by providing employment and producing goods/services
- Benefits of CSR:
- Better reputation
- Attracting more customers and quality employees
- Increased sales and profits
- Improved business efficiency
- Potential downsides include increased costs impacting profitability through:
- Staff training
- Decreased efficiency
- Competitors ignoring CSR
Business Differentiation
- Success relies on understanding and fulfilling customer needs better than competitors.
- A business can differentiate itself by:
- Offering superior products and services
- Providing products and services more affordably
- Making their goods and services more accessible
Business Environments
- The business environment is categorised into three areas:
- Internal
- External Operating
- External Macro
- Internal Environment: Consists of factors within a business's control, including:
- Resources (natural, capital, labour)
- Business location
- Sources of finance
- Values
- Owners
- Business structure
- Policies
- Employees
- External Operating Environment: Factors outside the business with some control, including:
- Customers
- Competitors
- Suppliers
- Supply chain
- Unions
- External Macro Environment: Factors outside the business with no control, including:
- Legal and government regulations
- Economic conditions
- Societal attitudes and behaviours
- Global issues
Business Change
- Business change arises from pressures (driving forces) within internal and external environments, for example:
- Adjusting operations to improve quality or costs
- Societal attitudes changing
- Competition in the industry
- Management style changes
- Policies and legal changes
- Business goals changes
- Corporate culture shift
Business Planning
- Business planning ensures the best chance of success through:
- Establishing goals and objectives
- Developing strategies to meet these goals and ensure plans align with objectives
- A SWOT analysis assists in identifying internal and external factors impacting the business.
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Description
Businesses provide goods and services for money, aiming to meet needs. They prioritize profit while some have social purposes. Three types exist: commercial, social enterprises, and government businesses.
