Occurs when an independent and suitably qualified person - is appointed to take control of the business with the intention of selling all the company's assets in an orderly and fair way in order to pay the creditors.

External Growth

- Merger - Acquisition

What are business goals?

A desired outcome (target) that an individual or business intends to achieve with a certain time frame.

Share price

Is a part ownership of a public company

The importance of goals

- Serving as target - Measuring stick (bench mark) - Motivation - Commitment

What makes up SMART goals?

- Specific - Measurable - Attainable - Realistic - Timely

Reasons why shareholders would purchase shares

- Hope of selling for a higher price - Entitles an investor to a part of the company's profits

Staff involvement advantages

- Increased employee motivation - Solutions to organisational problems

Staff involvement importance

- Innovating - Mentoring - Motivation - Training

What are the 4 Key business functions?

- Operations - Marketing - Finance - Human Resources

Operations

Refers to the business process that involve transformations/production

Operation management

Consists of all the activities in which managers engage to produce goods or services

Production process

- Inputs - Processes - Outputs

Quality control

Involves the use of inspections at various points in the production to check for problems and defects

Quality assurance

Involves the use of a system so that a business achieves set standards in production

Total quality management

Is an ongoing, business - wide commitment to excellence that is applied to every aspect of the business operation

What are the 4 P's?

- Price - Product - Promotion - Place

What are Human Resources?

Effective management of the formal relationships between the employer and the employees

What is HR training?

Aimed at improving employees' skills and abilities - they are necessary for both personal and business growth

What are the Skills of management?

- Decision-making - Interpersonal - Communication - Strategic thinking - Vision - Problem-solving - Flexibility and adaptability to change - Reconciling the conflicting interests of stakeholders.

Finance

Business managers must have a thorough understanding of accounting and finance

What are 4 features of effective management?

- Planning - Organising - Leading - Controlling

Cash flow statement

A financial statement that indicates the movement of cash receipts and cash payments resulting from transactions over a period of time.

What are the stages of a business?

Seed, Start-up, Growth, Maturity, Post-maturity

Income statement

A summary of income earned and the expenses incurred over a period of trading

What is the evaluating criteria of a business?

Effectiveness, Efficiency, Stakeholder Satisfaction, Competitiveness

Balance sheet

It is a report that shows the overall financial stability of the business

Internal Business Environment features include:

Owners, Employees, Structure, Culture

External Business Environment features include:

Customers, Suppliers, competitors, Interest groups

Recruitment

Involves finding and attracting the right people to apply for a job vacancy using advertisements, employment agencies and word of mouth.

External Macro Environment features include:

STEEPLE: Socio-Cultural, Technological, Economic, Environment, Political, Legal, Ethical

Internal recruitment

Occurs when a business decides to appoint someone already within the business to a vacancy

What are the fundamentals of a Business?

Business structure, Business goals, Strategic planning, key Business functions

External recruitment

To find suitable applicants from outside the business, because staff planning has identified the need for a new position

What are the types of Businesses?

Profit Based, Not-for-profit, Government owned corporations, Government business enterprise.

What are the 4 sizes of a business?

Micro (1-4 employees), Small (1-19), Medium (20-199), Large (200+)

Types of HR training -

- Simulations - Coaching - Computer based training

Employment contracts

A legally binding, formal agreement between an employer and an employee.

What are the 5 business categories?

Home based, digital, local, national, international

Define a business objective.

A statement of intention that provides direction for achieving a goal

Ethical business behaviour

Is the application of moral standards to business behaviour

Features of effective management

- Communication - Organisation - Respect - Problem solving - Decision making - Low staff turnover - Adaption to constant occurring changes - Overview over all departments

Define a mission statement.

A plan of action for a business: its actionable statement

Ethical issues

- Fairness and honesty - Respect for people - Conflict of interest - Financial management - Truthful communication

Define a vision statement.

A vision: a framework for a businesses strategic planning: an aspirational statement of the business.

Responding to internal and external influences

Businesses must keep responding to the never ending pressure for change

What is the difference between an objective and the mission statement?

Mission statement is an objective for the overall business while an objectives are much smaller and are small steps along the way.

Managing change effectively

Identifying a need for change - An effective manager should always be scanning the environment, attempting to understand factors that will have an impact on the business.

What are the 2 basic organisational structures?

Tall organisational (centralised) and Short organisational (decentralised)

Effective managers

- Those that posses a range of specific management to achieve the business goals. - All managers use their skills to achieve the business goals. To do this they require: wide range of technical, conceptual, thinking and people skills.

What are the 3 main types of organisational structures?

Simple structure, Functional structure, Divisional structure A functional organization is a common type of organizational structure in which the organization is divided into smaller groups based on specialized functional areas, such as IT, finance, or marketing The divisional structure is a type of organizational structure that groups each organizational function into a division. A simple structure is defined as a design with low departmentalization, wide spans of control, centralized authority, and little formalization

What is a simple business structure?

A basic system that has limited specialisation. There is a centralised authority and no formalisation.

What is a functional business structure?

The most common structure. Employees grouped into departments. Very structured and hierarchical.

What is a divisional structure?

Groups employees by divisions that exist within the business. Divisions have individual goals and targets. Very structured and hierarchical.

How customers can influence the operating environment of a business?

The amount of revenue gained, reviews of your business from customers, their health and safety within the business.

Define evaluate

Make an appraisal by weighing up or assessing strengths, implications and limitations; make judgments about ideas, works, solutions or methods in relation to selected criteria.

Define synthesise

Combine different parts or elements (e.g. information, ideas, components) into a whole, in order to create new understanding

Define justify

Give reasons or evidence to support an answer, response or conclusion; show or prove how an argument, statement or conclusion is right or reasonable

Define explain

Make an idea or situation plain or clear by describing it in more detail or revealing relevant facts; give an account; provide additional information

Define contrast

Display recognition of differences by deliberate juxtaposition of contrary elements; show how things are different or opposite

Define describe

Give an account (written or spoken) of a situation, event, pattern or process, or of the characteristics or features of something

Define differentiate

Dentify the difference/s in or between two or more things; distinguish, discriminate; recognise or ascertain what makes something distinct from similar things;

Explain the post-maturity stage of a business

The business faces stable sales (subject to decline) and market share after experiencing growth. Focus shifts to optimising operations and adapting to changes to ensure sustained profits.

List 5 characteristics of a post-mature business

Stable market position, slowed growth, market saturation, strong cash flow, efficient operations.

Explain the 'renewal' outcome of a post-mature business

Refers to revitalising strategies, such as innovation, product diversification, or entering new markets, aimed at reigniting growth and maintaining competitiveness.

Explain the 'steady state' outcome of a post-mature business

Phase where the business maintains consistent performance, market share, and profitability, focusing on optimising operations and sustaining its current position without significant growth or decline.

Explain the 'decline' outcome of a post-mature business

A gradual decrease in sales, profits, and market relevance due to factors such as saturation, changing customer preferences, leading to decreased competitiveness or business closure.

What are 4 internal factors that influence repositioning?

Shift in managment vision, resource allocation, change of organisational structure and innovation.