Business Management Revision PDF

Why is it important for For the purposes of security, money deposited in a bank is a lot safer than money a business to establish stored elsewhere. its own bank account? You have the ability to earn interest on savings. Paying bills, transferring mo...

Why is it important for For the purposes of security, money deposited in a bank is a lot safer than money a business to establish stored elsewhere. its own bank account? You have the ability to earn interest on savings. Paying bills, transferring money, and receiving payments are all much more straightforward with a business bank account. The separate entity accounting principle which ensures that the personal finances of the business owners are kept separate from the finances of the business. Policies and Policies are written guidelines to be followed by all employees that help guide their procedures decision making. Clearly defined policies promote good practices and help ensure employees are working within the requirements of the law. This helps in establishing a positive culture within the business. - Policies are important for helping to achieve compliance with legal requirements. A procedure is the actions that a business will put in place to implement a particular policy. Procedures are also used to provide a structure for resolving disputes brought about by policy breaches. These help establish the routines that allow a business to achieve its objectives. - Specific procedures can establish how complaints are handled. A procedure for resolving an equal opportunity complaint might include: How to record the complaint Process used to investigate allegations How to arrange counselling for victims Process used to counsel, warn or terminate employees responsible for Incidents Steps to be taken when an allegation is found to be untrue Importance of a Record-keeping strategies are the systems or methods that allow a business to business developing monitor and manage its financial performance. It is important to establish effective effective record-keeping strategies because without accurate records, a business will have a record-keeping restricted understanding of how the business is performing and where improvements strategies need to be made. Benefits of financial A benefit of financial control systems ensure that the business does not suffer control system and financial problems and/or losses because of mismanagement, theft or fraud. An example An example of financial control is auditing. Auditing means reviewing and examining financial records and statements to make sure everything is accurate and follows the rules. It helps ensure that a company's finances are in good shape and that they’re reporting their earnings honestly. One external SALES PROFESSIONAL: Businesses that struggle to find customers might engage with professional experienced people who can persuade people to purchase a product. External sales professionals will often seek a commission on sales as part of their payment. FREELANCERS: Freelancers are people are independent of a particular business that do work on a per job basis. The term freelancer refers to the relationship between the  person offering the work and the business. Generally, businesses hire freelancers for tasks that don’t require an ongoing position, such as photography, design and copywriting. Businesses will engage with freelancers because they overall may be cheaper than employing someone to do a particular role. Local suppliers All businesses will have to make decisions about where they source the supplies that they need in order for their business to run. Some businesses are heavily reliant on suppliers – failing to find the right supplier can impact how successful the business is. Suppliers that fail to act in a socially responsible manner can impact businesses that make use of them. The process of finding and purchasing resources from suppliers is known as Procurement Considerations: Quality:The Quality of supplies will help determine the quality of the goods the business Produces. In particular, goods sources from overseas will need to have stricter scrutiny to ensure they meet Australian standards. Corporate Social Responsibility: Many businesses expect that their suppliers will practise Corporate Social Responsibility, particularly when it comes to sustainability. Sustainability can improve environmental and social impacts, but this can also lead to cost savings as less materials are wasted. Businesses and Suppliers will often work together to help ensure sustainability. Corporate social One Corporate Social Responsibility concern when a business is choosing their suppliers is responsibility environmental sustainability factors. As consumers are constantly on the lookout for better products for the environment, sustainability is a prioritised factor for the business to concern about. This concern leads to better cost savings, a better environment as well as better chance of customer loyalty to the business. work safe insurance Business owners are responsible for ensuring their workplaces are safe places to be. Worksafe Victoria exists to ensure the management of Workplace safety and ensure that workplace injuries are minimised. This can be done through regular site checks and the power to prosecute employers for breaches. Employers must also take out WorkCover insurance. This provides insurance cover if a worker becomes injured or ill as a result of their work. Legal Requirements Registering a Business Name: Registering a Business name doesn’t necessarily provide protection for that name. In order to ensure no one else can use a business name, then a Trademark is required. Companies are also assigned an Australian Company number. It also must be made clear in the Company name whether it is a private or public company (e.g. via Pty. Ltd. or Ltd) Domain Name: Most businesses will require an online presence. In order to have this, they will need to register a domain name – the website Address. Unique names that are easy to spell helps customers find their Websites. Some businesses will register multiple similar domain names to prevent other businesses from registering names that might confuse customers. A business will need to pay an annual fee for a domain name, generally between $10 - $100 a year. Global Issues Improvements in communications and technology have made it much easier to work with businesses around the globe. Globalisation and the removal of trade barriers have also opened more markets for companies to get supplies and sell their goods and services. Overseas suppliers and resources: - Global supply networks allow for businesses to access a wider range of raw materials and finished products - Materials sourced from overseas are often less expensive, however businesses need to consider the cost of transport when making decisions about whether to purchase from these sources Customers and overseas retailers: - Businesses can look to establish customer bases in different countries that may be more lucrative or allow them to diversify who purchases goods from them. - Business owners need to be aware of local laws and customs before engaging overseas markets to ensure they comply with expectations.