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Key Concepts in VCE Business Management Units 1&2 3E & eBookPLUS

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Table of Contents

about the authors vii how to use this book viii about eBookplus x ICT activities xi projectsplus xii acknowledgements xiv UnIt 1 Small business management 1 Could you be a successful entrepreneur? 1 Chapter 1 Introducing business 2 1.1 For-profit and not-for-profit organisations and their features 4 1.2 Distinctions between small, medium-sized and large businesses 8 1.3 Objectives of different types of organisations 11 Extend your knowledge: Business helping the community 14 1.4 The contribution of small business to the economy 16 1.5 The internal environment of a business 18 1.6 The external operating environment of a business 20 1.7 The external macro environment of a business 22 1.8 Business ethics and socially responsible management 25 Apply your skills: Socially responsible management 29 Chapter 1 review 31 Chapter 2 Small business -- decision making 34 2.1 The motivation behind starting a small business 36 2.2 Business concept development and initial market research 38 2.3 Innovation and entrepreneurship as a source of business opportunity 40 2.4 Forms of business ownership and business structure -- unincorporated businesses 43 2.5 Incorporated businesses and other business entities 46 2.6 Purchasing an established business or commencing a new business, including franchise operations 49 Apply your skills: Establishing a business 52 2.7 Location options and the factors that affect that choice 54 2.8 Business support services 57 2.9 Practices which contribute to ethical and socially responsible management with respect to decision making 60 Extend your knowledge: Decision making 62 Chapter 2 review 64 Chapter 3 Small business -- planning 68 3.1 Major business planning throughout the life of a small business 70 Apply your skills: Business plans 72 3.2 Human and physical resource needs 74 3.3 Financial planning 76 3.4 Sources of fi nance 78 Apply your skills: Financing the small business 82 3.5 Marketing strategy 84 Extend your knowledge: Modern marketing plans 88 3.6 Ethical and socially responsible management in terms of planning 90 Chapter 3 review 92 Chapter 4 Small business -- evaluation 96 4.1 Evaluation of performance -- an introduction 98 4.2 Financial indicators 1: The Income Statement 101 4.3 Financial indicators 2: The Balance Sheet 103 Extend your knowledge: Ratios 106 4.4 Non-fi nancial indicators 109 Apply your skills: Evaluating small businesses 112 4.5 Legal and government regulations 114 Apply your skills: The importance of complying with legal and government regulations 118 4.6 Ethical and socially responsible management with respect to evaluation 120 Extend your knowledge: Ethical and socially responsible management 122 Chapter 4 review 125 optIons 131 Chapter 5 Introductory accounting for small business 132 5.1 The accounting system 134 5.2 Types of source documents 136 5.3 Elements of a cash book 139 5.4 Taxation obligations and business structure 142 5.5 Goods and services tax (GST) 145 5.6 Financial reports 147 5.7 Price-setting strategies 150 Apply your skills: Break-even analysis 152 5.8 Ethical and socially responsible management of accounting practices 155 Extend your knowledge: Ethical pricing 157 Chapter 5 review 160 Chapter 6 Management of staff in small business 168 6.1 The management of staff -- an introduction 170 6.2 Recruitment and selection 173 6.3 Interviewing applicants 176 Apply your skills: Recruitment and selection 178 6.4 Employment arrangements 180 6.5 Occupational health and safety 183 6.6 Equal employment opportunity 185 6.7 Ethical and socially responsible management of employment practices 188 Extend your knowledge: Researching issues in staff management 191 Chapter 6 review 193 Chapter 7 Information and communications technology (ICT) in small business 196 7.1 Introduction to information and communications technology in small business 198 7.2 Strategies to select appropriate hardware and software to meet small business needs 201 7.3 Possible uses of available computer software 204 7.4 Possible uses of Internet and communications technologies 207 7.5 Uses of e-commerce 210 7.6 The benefi ts and costs for small businesses that use technology and e-commerce 212 7.7 Ensuring the security of technology and information 214 7.8 Ethical and socially responsible management of ICT in small business 217 Apply your skills: Business systems and system security 220 Extend your knowledge: e-commerce and e-business 222 Chapter 7 review 224 Chapter 8 Legal requirements of small businesses offering goods and services 228 8.1 Legal responsibilities of small business -- an introduction 230 8.2 Federal, state and local government 232 8.3 The Competition and Consumer Act and consumer protection 234 8.4 The Competition and Consumer Act and business competition 237 8.5 State government legislation -- the Australian Consumer Law and Fair Trading Act 240 8.6 Small business and local government 242 Apply your skills: Responsibilities created by the three levels of government 244 8.7 Common law responsibilities -- law of contract 247 8.8 Common law responsibilities -- the tort of negligence 250 8.9 Ethical and socially responsible management of legal responsibilities 252 Chapter 8 review 255 UnIt 2 Communication and management 259 Spinning a successful communication web 259 Chapter 9 Communication in business 260 9.1 Communication and its relationship to business objectives and strategy 262 Extend your knowledge: Miscommunication 264 9.2 Participants in the business communication process 266 9.3 Type, purpose and audiences of information to be communicated 269 9.4 Types of communication methods 271 9.5 Appropriate methods of communication for different management situations 275 9.6 The effectiveness of methods of communication 278 FMPrelims vi 9 October 2014 1:16 PM 9.7 Communication behaviours that are unethical or illegal 282 Apply your skills: A question of law and ethics 284 Chapter 9 review 286 Chapter 10 Managing the marketing function 290 10.1 The marketing function and its relationship to business objectives and strategy 292 10.2 Market research processes 295 10.3 Market attributes -- market dimensions and segments 299 10.4 Market attributes -- consumer trends and behaviour 302 10.5 Key elements of a marketing plan: Establishing objectives and market description 305 10.6 Key elements of a marketing plan: The marketing mix (product and price) 307 10.7 Key elements of a marketing plan: The marketing mix (place and promotion and related strategies) 310 Apply your skills: You've got the product but no one knows about it yet! 313 Extend your knowledge: The target market and the marketing mix 314 10.8 The product life cycle: Innovation, introduction, growth, maturity and decline 316 10.9 The product life cycle: Extension strategies -- export and diversification 319 10.10 Relevant performance indicators to evaluate the performance of marketing strategies 321 10.11 Issues in marketing -- technology and globalisation 323 10.12 Ethical and socially responsible management and legal requirements 326 Chapter 10 review 329 Chapter 11 Managing the public relations function 332 11.1 The meaning of public relations and its relationship to business objectives and strategy 334 11.2 The significance of image 336 11.3 The concept of 'publics' and their respective characteristics 338 11.4 Public relations objectives and strategies used in a range of planned business situations 340 11.5 Public relations objectives and strategies used in a range of unplanned business situations 343 Extend your knowledge: When things don't go according to plan 346 11.6 Relevant performance indicators to evaluate the performance of public relations strategies 348 Apply your skills: Real public relations success stories 350 11.7 Issues in public relations 352 11.8 Issues in public relations -- ethical and socially responsible management and legal requirements 354 Chapter 11 review 358 Appendix 361 Glossary 362 Index 370

About the Author

Matt Richardson is the Humanities Leader and a senior Business Management teacherat Ballarat High School. He has taught VCE Business Management for 17 years. Matt was a member of the VCAA Business Management Review Panel and is an experienced Business Management examination assessor. He has presented professional development sessions for Business Management teachers at Comview, the annual VCTA conference, and has contributed articles to the VCTA journal Compak. Graeme Smithies has over 40 years' experience in secondary education in Victoria. During that time he has taught Legal Studies, Business Management, Economics, English, History and a variety of other Humanities and Commerce subjects. He spent over nineteen years in assistant principal and principal positions in government secondary schools. He has created a range of educational resources for VCE Commerce subjects, as well as the Years 7-10 National Curriculum learning areas of Civics and Citizenship, Economics and Business, and History. Stephen Chapman is an active teacher, author, external examination marker and consultant, with over 28 years' experience in high schools as a classroom teacher and coordinator. He has authored/co-authored 27 textbooks in the areas of Commerce, VELS Economics, Business Management and Economics. He has won awards for teaching excellence and pedagogical writings as well as a Commonwealth Parliamentary Teaching Fellowship. As a consultant, he works with schools in developing teaching programs and educational resources.

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