BUSINESS STUDIES

Yr11 Preliminary

CREDITS

Presentation Magazine – PPT Template www.presentationmagazine.com

New Topic:

BUSINESS PLANNING

…pg 322

Topic: Business Planning

HUMAN RESOURCES

…pg 381

L3

EXTENSION TASK

“….Hey! I had to call to tell you about an awesome idea I have!

So, imagine not needing to queue at the canteen but instead you get on your phone and use my app to order your food, before you even get their. Awesome right!!! I am calling it “Beat the Q”.

Now I just need to work out how to make it successful.

Can you describe three influences for me and justify how they can help lead my business to success?”

Human Resources

Sources for employees:•Advertisements

•Internal recruitment

•Recruitment Agencies

•Temporary/Casual services

Employee skills

• Recruit people with the most suitable skills.

• Are skills available internally?

1. Training

2. Recruit externally

Employee costs

• Employee value should Cost(Return on investment)

• Wages + ‘On-Costs’ = total employee expense

COMPLETE SNAPSHOT pg383 (or 372 new textbook)

Employee costs

• Superannuation• 9%

• Annual leave loading• 17.5% extra

Topic: Business Planning

TAXATION

…pg 385

L3

Federal and State Taxes

• PAYG• FBT• GST• Company Tax• Land Tax

GST

• 10% of all Goods and Services produced

• ABN = input tax credits

• BAS

• All GST from customer sale goes to government

Local Government

• Rates: Property/land value taxation

• Water and sewerage (Fee)

• Waste management services (Fee)

• Development and building approval (Fee)

• Reinvested into community

ACTIVITY• Complete the following table

INFLUENCE DESCRIPTION INFLUENCE (+/-)

Personal Qualities The education and skills of a business owner/entrepreneur

Entrepreneur has the industry knowledge and skills to perform tasks efficiently and effectively. Also has the personal qualities to manage the risk of a business, motivate others and be creative

Sources of information

Taxation

ACTIVITY• Complete the following table

INFLUENCE DESCRIPTION INFLUENCE (+/-)

Personal Qualities

Sources of information

The business idea

Establishment Options

Market Considerations

Finance

Legal Considerations

Human Resources

Taxation

Topic: Business Planning

>>Chapter 12

THE BUSINESS PLANNING PROCESS

…pg 392L6

Topic: Business Planning

BUSINESS PLAN

…pg 392

L3

A Business Plan contains…

A Business Plan contains…

Role of a Business Plan

• To provide direction for the business

• A source of information for stakeholders, particularly investors/banks

• A ‘road map’ for you and your business

• A management tool

Sections of a business plan

• Complete the worksheet – identify the key purpose of each heading in the business plan

Benefits of a business plan

• Provide direction for the business

• Identifies strengths to capitalise on and weaknesses to improve

• Provides information and security for investors, particularly banks and shareholders.

Sources of planning ideas

• Internal and External

• SWOT – Situational Analysis

Vision Statement

Vision statement broadly states what the business aspires to become; its purpose and its function

Goals and Objectives

Goals are…

An example is…

Objectives are…

An example is…

Goals and Objectives

QUESTION

Which long-term goal do you believe to be the most important for a cafe. JUSTIFY your answer.

Topic: Business Planning

BUSINESS PLAN

…pg 404

L3

Re:CAP

1. Identify the first three parts of a Business Plan

2. Define SWOT?

3. Contrast the three levels of Goals and Objectives

1. Strategic GOALS2. Tactical OBJECTIVES3. Operational OBJECTIVES

Key Terms

Define Objectives:

Goals

FINANCIAL Goals:

• Profit

• Market Share

• Growth

• Share Price

SOCIAL Goals:

• Community service

• Environmental Sustainability

Achieving Long-term Growth

GOAL: Profit Maximisation

What could be happening at each stage of this growth?

Achieving Long-term Growth

GOAL: Profit Maximisation

What could be happening at each stage of this growth?

Lean manufacturing introduced (Costs & Workplace changes slows production)

Cost and efficiency benefits of lean

manufacturing

Change in management

New or innovative product

Strategies for long-term growth

• Customer feedback

• Supplier and customer partnerships

• Innovation

• Lean manufacturing

• Sigma Six

Topic: Business Planning

Organising Resources

…pg 412

L3

Organising ResourcesDetermining:

•What is to be done

•Who is to do it

•How it is to be done.

Each key business function must do something and someone must determine what it is:•Operations: What stock do we need to order?•Finance: Which Financial Reports do we prepare?•Human Resources: What skills do staff need?•Marketing: What promotions will we be running?

That’s where managers and the Organisational Structure come in

Organising Resources

&

THE BENEFITS OF THIS ARE??

Organising Resources• Define/Outline what each Key Business functions

focus is. • Identify three questions the manager should ask

for each function.

QUESTIONImagine you have been asked to make fifty family-size pizzas for

a celebration lunch.

• You have five people to help with the task.

– Identify the resources you would need to make the pizzas (Including your five staff).

– Classify the resources as either (i) raw materials, (ii) equipment (iii) knowledge or (iv) Human or (v) Finance.

– Demonstrate how you would allocate the resources. (Use Figure 12.13 on pg 410 to help)

Organising ResourcesOPERATIONS: Transforming Inputs into Outputs

- (CAD & CAM)

HR: Managing the Employee and Employer relationship.

MARKETING: Selling and promoting the products and business.

FINANCE: Organising and reporting on the financial resources

Example hierarchy structure

Topic: Business Planning

Forecasting

Chapter 12.7…pg 414

L3

ForecastingForecasts (or projections) are the business’s predictions about the future.

FORECAST #1

Forecast revenue for a period of time.

Total Revenue = TR

Price = P

Quantity = Q

TR = P x Q

Forecasting

FORECAST #2

Forecast Total Costs for a period of time.

Total Cost = TC

Fixed Costs = FC

Variable Costs = VC

TC = FC + VC

Forecasting

FIXED VS VARIABLE COSTS

Pre-Paid Sim card Vs Petrol

Rent Vs Electricity Bill

School Fees Vs Bus Fare

COME UP WITH THREE OF YOUR OWN EXAMPLES

DAYTUESDAYTUESDAY

Topic: Business Planning

Forecasting

Chapter 12.7…pg 414

L3

ForecastingFORECAST #3

Break-Even Analysis – how many products do we have to sell to cover our costs (and start making a profit)?

Total Fixed Costs

Quantity = Q

Unit Price

Variable Costs (per unit) = VC (per unit)

TOTAL FC

Unit Price - VC per unitQ =

Forecasting

Q =

Forecasting

FORECAST #4

Cash Flow Projections – The estimated/expected inflows and outflows of finances due to the:•Operating activities•Financing activities•Investing Activities

Can predict cash shortfalls

Good evidence for investors and loans

Identifies positive ‘working capital’

Forecasting ActivityForecast the revenue, costs and break-even for the canteen.

Imagine they sell only Custard Tarts and Ice Tea.

Lets estimate the important information:

P = $

Q =

FC = $

VC per unit = $

Forecasting Activity #2Forecast the revenue, costs and break-even for selling coffee at a school event.

Lets estimate the important information:

P = $

Q =

FC = $

VC per unit = $

Topic: Business Planning

Monitoring and EvaluatingChapter 12.7…pg 414

L3

Monitoring and Evaluation• Monitoring is the process of measuring actual

performance against planned performance.

• Evaluation is the process of assessing whether or not the business has achieved its stated goals

We can monitor and evaluate:• Sales• Budgets• Profit

Note: Define unfamiliar terms

> IMPLEMENT> MONITOR

> CONTROL

ESTABLISH GOALS AND MARKETING

OBJECTIVES

ESTABLISH GOALS AND MARKETING

OBJECTIVES

MONITOR PERFORMANCE

MONITOR PERFORMANCE

TAKE CORRECTIVE ACTION

TAKE CORRECTIVE ACTION

EVALUATE PERFORMANCE

EVALUATE PERFORMANCE

Monitoring and Evaluation

> IMPLEMENT> MONITOR

> CONTROL

Monitoring and Evaluation

Monitoring and evaluating sales• Sales Analysis

Monitoring and evaluating budgetsA BUDGET is the business’s financial plan for the future.

A budget must account for various factors, such as:

•Past figures, trends, and future estimates

•Market share and seasonal fluctuations

•Proposed expansions or termination of projects

•Changes in price or quality of products

•Current orders and purchases

•Influences from the external environment (E.g Economic fluctuations, available materials & labour)

Monitoring and evaluating profitWe already know profit is at the centre of a business’s activities.

There are five reasons to monitor and evaluate profit:

1.Profit as reward

2.Profit maximisation.

3.Profit as a source of finance.

4.Profit as a performance indicator

5.Profit as a dividend payment.

Taking corrective action• Modifying is the process of changing existing

plans, using updated information to shape future plans.

QUESTIONS

Complete questions 7 and 14

Ext: Q13, 15 and 18

(pg 423-424)

Topic: Business Planning

>>Chapter 13

CRITICAL ISSUES IN BUSINESS

SUCCESS & FAILURE

…pg 426L6

Topic: Business Planning

INTRODUCTION & IMPORTANCE OF

A BUSINESS PLAN

…pg 426

L6

Critical issues in business success and failure

When starting an SME there are critical business issues to be aware of. These include:

• having a business plan• managing employees• analysing trends• identifying and sustaining competitive

advantage• avoiding overextension of financing and other

resources• using technology• considering economic conditions.

Business owners must take time to develop a business plan.

Importance of a Business Plan

The business plan should contain:

a clear, concise statement of the goals of the business what the business wants to achievewell-developed plans for achieving these goals — how the business is going to achieve the goalsreliable control standards for measuring performance — has the business achievedthe goals; if not, what needs to be changed?

Lack of planning can be as disastrous as can a lack of capital. In all businesses, the best results come from effective management.

Importance of a Business Plan

Business Plan presentation and preparation

Create a mindmap outlining the components of a business plan:

BUSINESS PLAN

BUSINESS PLAN

Topic: Business Planning

MANAGEMENT – Staffing and

Teams…pg 428

L7

MANAGEMENT – Staffing &Teams

MANAGEMENT – Staffing &TeamsOverall, the most important accomplishments a skilful manager will achieve for a business include the ability to:•solve difficult problems•set and help attain important goals•develop attitudes of commitment and ownership•create a positive business culture through their words and actions•monitor the business's external and internal environments•plan and allocate resources

MANAGEMENT – Staffing &Teams• coordinate teams and departments• monitor the performance of teams and

individuals• successfully put workplace and business

changes into action• develop and implement schedules and operating

plans.

Two important areas of business that a manager must pay special attention to are staffing and teamwork.

Staffing and External Recruitment

1. Complete SNAPSHOT pg429

QUESTIONS

2. Watch The Apprentice episode and using the listed abilities of a skilful manager (Previously listed in these slides) select 5 of them and outline how the manager(s) in The Apprentice achieve or fail at using these abilities.

Start at pt3:https://www.youtube.com/watch?v=4lBV9MA1eGI&list=PL5DB3D3D9DF05B65B

Topic: Business Planning

INTRODUCTION & IMPORTANCE OF

A BUSINESS PLAN

…pg 426

L8-9

TODAYLesson 81. Complete Summary of textbook topic 13.52. “Creating and sustaining competitive advantage”

article3. Summary of textbook topic 13.6

Lesson 91. Finance revision – complete financial

worksheets2. “Nature of Business” (Topic 1) – Create Flash

cards 3. “Nature of Business” (Topic 1) - Mindmap of key

points

Topic: Business Studies skills

WRITING A BUSIENSS

REPORT

Handout

L10

TODAY

1. What is a “Business Report”

2. Dissect an example of a Business Report Question and Answer

3. How to prepare a Business Report

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