CHAPTER 10
ESTABLISHING A BUSINESS – LEGAL
REQUIREMENTS
10.1 COMPLAINCE WITH KEY LEGAL AND GOVERNMENT REGULATIONS
LEGAL COMPLIANCE – Process where a business ensures that they comply with external laws and
regulations
LOCAL GOVERNMENT BY LAWS – Affects the operation of businesses in a given local area.
OCCUPATIONAL HEALTH AND SAFETY LAWS – All Australian employees have legal right to a safe
workplace.
BUSINESS LICENCES, PERMITS AND APPROVALS – a business must obtain licenses, permits and
approvals in order to operate while complying with laws.
10.2 EMPLOYMENT LAWS
WORKPLACE RELATIONS LAWS – laws regulating the relationship between employees and
employers
EQUAL OPPORTUNITY, ANTI-DISCRIMINATION AND SEXUAL HARASSMENT LAWS – laws that
protect people from certain kinds of discrimination
ENVIRONMENT PROTECTION LAWS – laws that ensure environment standards are being met by
business
10.3 RIGHTS OF AUSTRALIAN CONSUMER
CONSUMER GURANTEES – Australian consumer Law covers goods and services up to $40,000
RETURNING PRODUCT – a consumer is entitled to a refund or exchange when the product does not
work the way it is supposed to
HARASSMENT AND COERCION – Australian Consumer Law protects against unethical and high
pressure sales
CHAPTER 11
ESTABLISHING A BUSINESS
11.1 POLICIES AND PROCEDURES RELATING TO LEGAL REQUIREMENTS
OCCUPATIONAL HEALTH AND SAFETY LAWS – A business needs to comply with OH&S laws to
remove hazards and prevent accidents in the workplace
ANTI-DISCRIMINATION, EQUAL OPPORTUNITY AND ANTI BULLYING POLICIES – a business must
ensure they have clear policies that ensure employees behave appropriately
11.2 FINACIAL CONTROL SYSTEM
CASH BOOK – simple form of financial record keeping
MYOB – an advance financial record keeping that is automatic. Recommended for larger businesses.
11.3 IMPORTANCE OF SUPPLER
Having a strong relationship with a suppler is crucial to business success. Without finding the right
supplier a business loses their competitive advantage
Reliable suppliers brings;
- quality
- timeliness
- lower cost
Establish relationships by;
- paying on time
- allowing time for delivery
- frequent communication
Choosing suppliers;
Quality, timeliness, price and social responsibility
11.4 TECHNOLOGICAL AND GLOBAL ISSUES
PLANNING CONSIDERATIONS
In order for a business to succeed, information technology is a key resource that should be used to
fullest potential. Planning and decision making should ensure ;
- system user friendly, easy to navigate
- ability to track data
- security features to protect data
- to keep competitive advantage
CUSTOMER DATA BASES
Involves a collection of information of customers that assists with product placement and is key in
attracting new customers
ESTABLISHING CONTACTS WITH OVERSEAS SUPPLIERS AND RETAILERS
Overseas suppliers
ADVANTAGES
Larger pool of supplies
Cheaper cost
Higher quality of goods
DISADVANTAGES
Requires time to ship
Tax variation
Ethical issues involved
AOS2
CHAPTER 12
MARKETING THE BUSINESS
12.1 MARKETING – WHAT IS IT?
MARKETING – The process that provides a connection to producers and consumers through goods
and services
BRAND – A powerful business asset that brings power and awareness
MARKET ORIENTATED APPROACH – a strategy that focuses on the needs and wants of the
consumer and develop products to meet them
CUSTOMER BASE – groups of customers that repeatedly purchase goods and services of a business.
Are main source of income for the business
PARETO PRINCIPLE – A 80/20 rule. 80 per cent of the business revenue is generated by 20 per cent
of the customer base
12.2 RELATIONSHIP BETWEEN MARKETING, ESTABLISHING A CUSTOMER BASE AND
BUSINESS OBJECTIVES
MARKETING CONCEPT – Focus satisfying needs of customers rather than just selling product
12.3 FACTORS AFFECTING ESTABLISHM ENT OF CUSTOMER BASE AND BRAND IDENTITY
There are many factors that can affect a business on how they can establish a customer base and
brand identity.
TECHNOLOGY – Has large impacts in regards to customer base and brand identity
LEGISLATIONS AND REGULATORS – Legislations that protect customers from being misled by
business
CUSTOMERS – There are four generations of people therefore a business should not adopt a “one
size fit all”.
12.4 MARKET RESEARCH PRACTICES
MARKET RESEARCH – Is a procedure used to develop and analyses new and existing information.
This helps a business make decisions regarding the marketplace and satisfying the needs of existing
and potential customers.
MARKETING CONSULTANT – A professional that provides advice on marketing related issues
Market research can help find things about
- market size
- consumer likes and dislikes
- product positives and negatives
- degree of threat from competitors
Assist a business to
- reduce risk of introducing new product
- assess product and determine if change is needed
- predict future changes in a product
12.5 MARKET ATTRIBUTES
A market is a group of potential customers with similar needs who are willing to exchange
something of value with seller offering goods or services.
MARKETING DIMENSIONS
A business needs to identify the strategy required for the size of the market
MASS MARKETING – When a business markets their product or services to an entire market. This
strategy is costly and does not work well as not all consumers will have the same needs
NICHE MARKETING – Concentrating market efforts on a specific segment of the population
MARKET SEGMENTATION
It is rare for a business to be able to satisfy the need and wants of everyone. Therefore market
segmentation must be carried out in effort to improve a business’s precision marketing/
MARKET SEGMENTATION – Similar group of groups who are likely to respond in similar ways
MARKETING MIX – Refers to the 7 P’s when undertaking marketing strategies
TARGET MARGET
Once the business have created segmentations they then must select which market segment they
want to pursue. Identifying a specific target market requires narrowing it down and generic market
to focus on the specific type of customer.
GENERIC MARKET – A market where similar needs of customer are being sold a range of products
PRODUCT MARKET – When a consumer is looking for a particular item
CONSUMER BEHAVIOUR
Businesses need to know consumer behavior when trying to anticipate how their customer will
respond to their marketing strategy, it is important to recognize 5 factors.
CONSUMER TRENDS
Keeping up with currently customer trend is important to the financial success of a business. It is
important that marketing strategy supports the business’s understanding of current and changing
customer trend.
CHAPTER 13
MARKETING MIX, MARKETING
STRATEGIES AND CSR ISSUES
13.1 THE 7P’S OF MARKETING
A product is anything that is offered to the market to satisfy a need or what. Consumer and
business , goods and services and be classified based on their purchasing habits. The consumer
profile will take an effect and will show which type of marketing is best suited for that category of
product.
PRODUCT – End result of the production process
CONSUMER PROFILE – Statistics that show the typical consumer of a product
13.2 THE PRODUCT LIFE CYCLE
All products go through a life cycle. Awareness of this can help businesses gain an advantage.
PRODUCT LIFE CYCLE – The stages that all product pass.
1.
2.
3.
4.
Introduction
Growth
Maturity - Peak
Decline
WHAT IS PRODUCT MIX?
Many business offers more than one product for sale. The product mix is the full set of all product
being sold by the business
A product line is a broad group of products that are intended for similar uses and have similar
appearances.
THE ROLE OF BRANDING
Branding is used to identify a business and differentiate from others. Is very influential in marketing
either positive or negative.
THE CHOICE OF THE RIGHT PACKAGING
Packaging is important as it provides
- attracting attention
- building image
- protect the product
- provide consumer info
7P’S
PRODUCT – End result of production process
PRICE – The amount for which something is sold
PLACE – important that the business place their product correctly so that its accessible to consumers
whenever they want it
PROMOTION – involves the use of advertising and public relations to communicate with potential
customers
PROMOTIONAL TECHNIQUE : ADVERTISING
ADVANTAGES
Reaches broad market
Create power brand image
DISADVANTAGES
Expensive
Consumers can tune out
PEOPLE – an approach that value it’s customers. A staff must be trained to provide customer
satisfaction and create a powerful advocate for it’s brand
PHYSICAL EVIDENCE - can take a variety of forms such as
- evidence that shows a service was performed
- environment where consumer experiences service
- signs and symbols that support image of brand
PROCESS – customer satisfaction is more important than marketing success. The process involved
with product and services are crucial to the customer satisfaction.
CHAPTER 14
PUBLIC RELATIONS
14.1 PUBLIC RELATIONS AND ITS RELATIONSHIP TO BUSINESS OBJECTIVES
PUBLIC RELATION – The way businesses communicate with the public and media with an aim to
create and maintain a positive image and create a strong relationship with it’s audience
IMPORTANCE OF PR – PR has become a fundamental part of every business organization
1. Helps attracts more customers
2. Gives edge against competition
3. Leads to higher profit
14.2 PUBLIC RELATION STRATEGIES
It is crucial that all businesses have policies and strategies to maintain positive relationship with their
customers. It is important that a business knows who its public is in order to use the correct
strategies to develop relationship with existing and potential customers.
DEVELOP RELATIONSHIPS WITH COMMUNITY
PUBLIC INFORMATION
CRISIS MANANGEMENT
Sometimes an incident will happen which can have a negative impact on the reputation of a
company. Organizations should have a crisis management plan when this occurs. This is often
referred as ‘reactive PR’. Strategies for this are complicated and may depend of the incident.
CRISIS MANAGEMENT - A technique used to manage an unplanned situation
Includes :
- Denial
- Accept and apology
- Deflect and blame others
- Down play
- Product recall
CHAPTER 15
STAFFING A BUSINESS
15.1 RELATIONSHIP BETWEEN THE PERFORMANCE OF STAFF AND ACHIEVING BUSINESS
OBJECTIVES
When establishing business goals it is important to use these principles;
SMART – objectives or goals which are realistic and obtainable
MANAGEMENT BY OBJECTIVES – process of setting goals using SMART
15.2 IDENTIFICATION OF STAFFING NEEDS OF THE BUSINESS
HUMAN RESOURCE MANAGEMENT – effective management of employees in order to gain
competitive advantage
CHAPTER 16
RECRUITMENT AND SELECTION OF STAFF
Focus on following areas :
-
Job analysis
Job description
Job specification
Employment arrangements
Recruitment
Selection
-
Staff are probably the most important component for any business. They are often the first
contact that a customer has with your business and thus can impact on ‘first impression’s. As
staffing is so important it is critical that we choose the ‘right’ staff. Irrespective of how big or
small your business is, as manager/owner, you will have to take on the responsibility of
Human Resource Manager.
The role of HRM :
- job analysis (what staff do we need)
- job descriptions (what tasks will staff do)
- recruitment
- termination (retired, redundant, sacked)
- training of staff
- welfare of staff
- application of correct wages and working conditions
-
Job analysis
As a business owner/manager, you need to determine how many staff you need and what skill sets
they have. This is meeting your staffing needs.
Job description
Once you determine your staffing needs, you then need to follow draft a document that sets out the
responsibilities and tactics associated with each job. This has very important ramifications.
16.1 JOB ANALYSIS
JOB ANALYSIS – A process to identify and determine a job’s requirement such as skill and experience
JOB DESCRIPTION – a written statement of job’s title and on how tasks are done and why they are
done.
JOB SPECIFICATION – Detailed requirements of personal skills and characteristics required for a
particular job
JOB DESIGN – Incorporating various tasks and challenges for job holder
JOB ENLARGEMENT – making a job bigger or more challenging by combining various operations.
JOB ENRICHMENT – making a job more challenging so workers are required to work to fullest
potential and gain growth
16.2 RECRUITMENT
RECRUITMENT – The process of finding the best qualified candidate
EQUAL EMPLOYMENT OPPORTUNITY – Providing people with fair opportunity without any form of
discrimination
METHODS
INTERNAL RECRUITMENT – recruiting existing staff from workforce that have skills and qualifications
ADVANTAGES
Quicker adjustment
Encourages employees progression
Business knows individual, individual knows
business
DISADVANTAGES
May be promoted beyond capabilities
No new ideas
Poor work habits remain
EXTERNAL RECRUITMENT – recruiting staff from outside the workforce. Staff may be insufficiently
skilled or qualified
ADVANTAGES
Larger pool of candidates
New skills brought to business
Cost can be lower
DISADVANTAGES
Attracting new employee can be time
consuming
Greater risk as individual is unknown
Inducting takes longer
16.3 SELECTION OF APPLICANTS
SELECTION – Process undertaken by a business to decide whether to make a job offer to a candidate
APPLICATION FORM – source of employment information that covers qualifications, experience and
other related data
INTERVIEW – conversation between individuals in order to assess whether candidate should be
hired
16.4 EMPLOYMENT ARANGEMENTS
EMPLOYMENT CONTRACT – a written agreement between employee and employer about legal
obligations
PERNAMENT FULL TIME – Employee enters into a continuing contract of employment
PERNAMENT PART TIME – Enters continuing contract but will work less hours than full time
CASUAL – employed by oral contract for short term work
FIXED TERM CONTRACT – Engages either full time or part time for project work or to replace
absence employees.
CHAPTER 17
EXPECTATIONS AND LEGAL OBLIGATIONS
17.1 EMPLOYER EXPECTATIONS
CONTACTS OF EMPLOYMENT
ENTERPRISE AGREEMENT – a written agreement made between and employer and employee that
sets out terms and conditions
AWARD – agreement that sets out terms and conditions of employment relating to industry.
17.2 EMPLOYEE EXPECTATIONS
CONDITION OF EMPLOYMENT – refers to what an employer has agreed to give the employee in
return for the employee’s services.
REMUNERATION – the amount a person is paid for performing work tasks
WAGES – money that is rewarded for labor
SALARY – agreed amount of money paid to employees.
BENEFITS – financial rewards that are not paid directly in cash to employee
WORKLIFE BALANCE
WORKLIFE BALANCE - the relationship between a person’s work life and life
FLEXIBLE WORK HOURS – conditions that allow employees to balance work and family
17.3 LEGAL OBLIGATIONS FOR STAFF
OCCUPATIONAL HEALTH AND SAFETY
EQUAL EMPLOYMENT OPPORTUNITY
ANTI DISCRIMINATION
WORKPLACE GENDER EQUALITY
17.4 EMPLOYEE INDUCTION
INDUCTION – the process of introducing new workers to their workplace, job role, management, coworkers, supervisors.
CHAPTER 18 GLOBAL AND CORPORATE
SOCIAL RESPONSIBILITY ISSUES
When running a business, one potential issue you may confront is the issue of employing staff from
overseas.
-
Visa problems
Cultural problems
Perception problems
Off shore image
You also need to consider diversity in the workplace.
-
Multi-cultural workplaces
Older workers
Physically challenged workers (workers with a disability)
Family friendly business
18.1 GLOBAL ISSUES
RECRUITING FROM OVERSEAS
Employing people from overseas can bring fresh ideas and new approaches on how to successfully
operate a business.
Reasons for recruiting overseas :
-
Skilled overseas workers can fill labour gaps
Can bring fresh ideas and new approaches to business
More diversity
VISA - a passport indicating that the holder is allowed to stay in a country
SKILLED WORKERS FROM OVERSEAS WHO ARE CURRENTLY IN AUSTRALIA
-
18.2 CORPORATE SOCIAL RESPONSIBILITY MANGEMENT ISSUES WHEN ESTABLISHING
STAFFING OF A BUSINESS
Strategies that businesses may implement to be seen as corporate social responsible are
-
Creating diverse workforce
Establishing policies to support their employees
Establishing policies that link employees to their community
This can contribute to the business being recognised as Employer of Choice.
EMPLOYER OF CHOICE – a business that is regarded as a great place to work
METHODS
DIVERSITY IN THE WORKFORCE
EMPLOYING ALL AGES
EMPLOYING MATURE AGE WORKERS
EMPLOYING PEOPLE WITH A DISABILITY
18.3 ESTABLISHING POLICIES TO SUPPORT EMPLOYEES
CREATING FLEXIBLE AND FAMILY FRIENDLY WORKPLACE POLICIES
EMPLOYEE ASSITANCE PROGRAMS
COMMUNITY VOLUNTEERING AND ENGAGEMENT