Business Studies - HSC Course

Annotations:

• There are four topics in the HSC Business Studies with 25% equal indicative time allocated to each topic. Four Topics are: 1-Operations 2-Marketing 3-Finance 4-Human Resources HSC Business Studies students need to pay attention and familiarise with the course objectives /outcomes Information in this mindmap is drawn from the section titled "Students learn about" of the syllabus For effective learning, students should -obtain a copy of the syllabus for references of the content (Students learn about), and the  required skills (Students learn to) - learn to understand the case-study for each topic. -take notes and be aware of new business events that currently happen through the media (TV programs, news ) -practise writing business reports (gain useful learning experience by reviewing the past exams) ==== useful link- https://sites.google.com/site/lydialeutsbusinessstudies/
• It is assumed knowledge of the Preliminary Business Studies as the foundation and competency of understanding for the HSC Business Studies.
• Glossary for learning activities ( link to http://www.boardofstudies.nsw.edu.au/syllabus_hsc/glossary_keywords.html ) Bloom Taxonomy https://edorigami.wikispaces.com
• Verbs used in Business Studies Assessments and Exams -  Flashcards https://www.examtime.com/en-US/p/979406 +2009 HSC Multiple Choice Questions - Flashcards https://www.examtime.com/en-IN/p/381642 +2011 HSC Multiple Choice Questions-Flashcards https://www.examtime.com/p/381525-HSC-Business-Studies---2011-Multiple-Choice-Questions-flash_card_decks 
• 2012-HSC Multiple Choice Questions (flashcards) https://examtime.com/en-US/p/979741
• 2013-HSC Multiple Choice Questions (flashcards) https://www.examtime.com/en-US/p/1015255
• Links to Interdependence between four key business functions https://sites.google.com/site/lydialeutsbusinessstudies/interdependence-between-key-business-functions learning blog http://lydialeeuts.blogspot.com.au/2015/02/hsc-business-studies-independence.html
• The Structure of HSC External Examination https://sites.google.com/site/lydialeutsbusinessstudies/structure-of-hsc-written-paper

1. Operations 30 hrs

   Annotations:

   • The Focus:  -to examine the strategies of Operations for large businesses - to discuss and analyse  processses of Operations from input points ( such as raw materials, and  other overheads) to outputs of delivering finished goods or services to the markets and consumers
   • Dependence between Operations and other key business functions  https://sites.google.com/site/lydialeutsbusinessstudies/operations-interdependence-with-other-key-business-functions
   • Interdependence between key business functions https://sites.google.com/site/lydialeutsbusinessstudies/interdependence-between-key-business-functions
   1. Roles of operations management

      Annotations:

      • -Strategic roles of operations management: cost leadership, good/service differentiation -Goods and/or services in different industries -Interdependence with other key business functions
      • STRATEGIC ROLE OF OPERATIONS  - a strategic competitive advantage-The creation of goods and services holds a major key in business operations.-Operations creates tangible and intangible products that satisfy customers' WANTS.The strategic objectives of Operations include improving productivity, controlling efficiency,  and producing the quality of  products/outputs-Economic of scale and cost management, or cost advantages..Costs in the operations hold crucial positions. The strategic decisions will focus on lowering costs (such as the uses of cheap labour and/or materials costs; the implement of technology) to achieve the outputs of quality products at a lower price. -Goods/services differentiation.Products differentiation is important. This refers to distinguishing goods/services in the forms from business competitors.
      • GOODS AND/OR SERVICES IN DIFFERENT INDUSTRIES -Goods / services are an output of Operations. They may be customised to meet to needs of customers; also they may be standardised for an assembly process.       
      • INTER DEPENDENCE WITH OTHER KEY BUSINESS FUNCTIONS -OPERATIONS: the processes of producing products from the inputs of raw materials to deliver a finished good that is ready for marketing. -MARKETING: finding customers' wants, and creating a marketing mix. the role is to design new products, and or change existing products. VALUE ADDED is important, and after-sales services are required. -FINANCE: involving activities such as planning, organising, monitoring and controlling financial resources for the business. These require for setting financial controls for each part/segment of Operations, and monitoring its progress - HUMAN RESOURCES: this refers to dealing with people /workers and the issues arising from every stage of production. The requirements of identifying needs, training, organising staff during operations to achieve the business objectives.
      • ICT Activities QUIZ   https://www.examtime.com/en-US/p/975312 Flash Cards (sources fron the Cambridge GO) https://www.examtime.com/en-US/p/38744
   2. Influences

      Annotations:

      • -Globalisation, technology, quality expectations, cost-based competition, government policies, legal regulation, environmental sustainability -Corporate social responsibility: + the different between legal compliance and ethical responsibility + environmental sustainability and social responsibility
   3. Operations processes

      Annotations:

      • *Inputs:      - Transformed resources (materials, information, customers)      - Transforming resources (humance resources, facilities)*Transformation processes     - the influence of volume, variety, variation in demand and visibility (customer contact) - Gratt charts, critical path analysis      -sequencing and scheduling *Outputs:       -customer service       -warranties
   4. Operations Strategies

      Annotations:

      • *Performance objectives: quality, speed, dependability, flexibility, customisation, cost *New product or service design, and development *Supply chain management: advantages, disadvantages of holding stock, LIFO (last-in-fist-out), FIFO (first-in-first-out), JIT (just-in-time) *Quality management:         -control         -asurrance         -improvement *Overcoming resistance to change: - financial costs, purchasing new equipment, redundancy payments, retainig, reorganising plant layout, inertia *Global factors: - global sourcing, economies of scale, scanning and learning, research and development
2. Marketing 30 hrs

   Annotations:

   • This topic focuses on -examining the external influences on a business's marketing. - describing and explaining the process for developing effective marketing and appropriate marketing strategies that a business can apply such as marketing in the global environment. -evaluating the marketing and strategies used in a case study business. 
   • Students should answer the exam questions in the business report format or extended responses.
   1. role of marketing

      Annotations:

      • *strategic role of marketing goods and services *interdependence with other key business functions *production, selling, marketing approaches *types of markets - resource, industrial, intermediate, consumer, mass, niche
   2. influence on marketing

      Annotations:

      • *factors influencing customer choice - psychological, sociocultural, economic, government *consumer laws   -deceptive and misleading advertising   -price discrimination   -implied conditions   -warranties *ethical - truth, accuracy, and good taste in advertising, products that may damage health, engaging in fair competition, sugging
   3. marketing process

      Annotations:

      • *situational analysis - SWOT, product life cycle *market research *establishing market objectives *identifying target markets *developing marketing strategies *implementation, monitoring and controlling - developing a financial forecast, comparing actual and planned results, revising the marketing strategies
   4. marketing strategies

      Annotations:

      • *market segmentation, product/service differentiation and positioning*products - goods and/or services   -branding   -packaging*price including pricing methods - costs, market, competition-based   -pricing strategies - skimming, penetration, loss leaders, price points   -price and quality interaction*promotion   -elements of the promotion mix - advertising, personal selling, and relationship marketing, sales promotions, publicity and public relations   -the communication process - opinion leaders, word of mouth*place/distribution   -distribution channels   -channel choice - intensive, selective, exclisive   -physical distribution issues : transport, warehousing, inventory *people, processes, and physical evidence *e-marketing *global marketing    -global branding,    -standardisation    -customisation    -global pricing    -competitive positioning      
3. Human Resources 30 hrs

   Annotations:

   • This topic focuses on: -concerning the management of people. Effective management of the human resources of a business holds an important key to the overall success of the business.
   • -Human capital holds the secret to the business success.
   1. Role of HR management

      Annotations:

      • *strategic role of HR *interdependence with other key business functions  *outsourcing:        -HR functions        -using contractors: domestic, global
   2. key influences

      Annotations:

      • *stakeholders: employers, employees, employer associations, unions, government organisations, society *legal:     -the current legal framework     -the employment contract: common law (rights and obligations of employers and employees), minimum employment standards, minimum wage rates, awards, enterprise agreements, other employment contracts     -OHS (occupational health and safety), and workers compensation     -antidiscrimination and equal employment opportunity *economic *technological *social: changing work patterns, living standards *ethics and corporate social responsibility  
   3. processes of HR management

      Annotations:

      • *acquisition *development *maintenance *separation
   4. Strategies in HR management

      Annotations:

      • *leadership style *job design: general or specific tasks *recruitment: internal or external, general or specific skills * training and development: current or future skills *performance management - developmental or administrative *rewards: monetary or non-monetary, individual or group, performance pay *global: costs, skills, supply *workplace disputes     -resolution -negotiation, mediation, grievance procedures, involvement of courts, and tribunals      
   5. effectiveness of HR management

      Annotations:

      • *indicators:   -corporate culture   -benchmarking key variables   -changes in staff turnover   -absenteeism   -accidents   -levels of disputation   -workers satisfaction
4. Finance 30 hrs

   Annotations:

   • This topic focuses on: -The role of financial planning within a business  -The interpretation of financial information. === https://sites.google.com/site/lydialeutsbusinessstudies/finance
   • Students are assumed to have and understand financial statements from the Preliminary Business Studies course : - Income Statement (also called the Profit & Loss Statement, or Revenue Statement) - Balance Sheet. - Cash Flow Statement. ----- The above three financial statements are used to monitor a business's progress. It tells the health of the current  situation of the business,
   • Students need to be familiar with financial formulas that will be given in the exam. 
   • Dependence between Finance and other key business functions https://sites.google.com/site/lydialeutsbusinessstudies/finance-interdependence-with-other-key-functions
   1. role of financial management

      Annotations:

      • *strategic role of financial management *objectives of financial management    -profitability (focusing on maximising business's profits) , growth (focusing on increasing business's size in the future), efficiency (focusing on effectively using business's resources) , liquidity (focusing on paying debts on time), solvency (focusing on achieving business's financial obligations and commitments)    -short-term, and long-term *interdependence with other key business functions    Link to my QUIZLET at: http://quizlet.com/68958768/flashcards
      • A financial manager or finance controller  needs to make sure the business must provide a return on investment for its owner/s to reach business objectives in both short and long terms.
      • Short-term financial objectives are to: -increase profitability. -increase efficiency -improve liquidity -improve solvency
      • Understanding financial statements is crucial.  -Financial statements provide indications of how well a business is doing and achieving its financial objectives
      • The Income Statement shows profitability and efficiency
      • The Balance Sheet shows liquidity and solvency. It indicates the current financial position of the business.
      • Understanding Cash Flow Statements is an active method to analyse how well the business is managing in the short term. it indicates if the business has enough cash coming in from sales (income) to cover cash outgoing (expenses), and the business can cover current liabilities (to offset debts from it's suppliers) when they are due to be paid.
   2. influences on financial management

      Annotations:

      • *internal sources of finance - retained profits (these come from the owner/s by injecting more money into its business, or through retained profits, accessible funds can be used for payable liabilities to  suppliers. *external resources of finance (the business can get money from issuing and selling shares to public investments)    -debt - short-term borrowing (overdraft, commercial-bills, factoring), long-term borrowing (mortgage, debentures, unsecured notes, leasing)    -equity - ordinary shares (new issues, rights issues, placement, share purchase plans), private equity *financil institutions - banks, investment banks, finance companies, superannuation funds, life insurance companies, unit trusts and the Australian Securities Exchange *influence of government - Australian Securities and Investments Commision, company taxation *global market influences - economic outlook, availability of funds, interest rates Link to my QUIZLET at http://quizlet.com/60211551/flashcards      
      • Sources of funds: -External debt -Internal equity -External equity
      • External debts: These refer to any loan borrowed from out-site the business -short term: overdraft, commercial bill -long-term: leasing, mortgage
      • Internal equity: This refers to any source of funds generated by the business and belonging to the business's owner/s: -retained profits -contribution by the owner/s
      • External equity: This is about of using the owners' funds which are classified as the business's assets: -new issues of ordinary shares -private equity.
      • The business can use any combination of sources of funds. -'solvency', 'leverage', and 'gearing' are financial terms that refer to the amount of debt finance compared to the amount of equity finance.
   3. processes of financial management

      Annotations:

      • *planning and implementing - financial needs, budgets, record systems, financial risks, financial controls   -debt and equity financing - advantages, disadvantages of each   -matching the terms and source of finance to business purpose*monitoring and controlling - cash flow statement, imcome statement, balance sheet*financial ratios   - liquidity - current ratio (CAs  / CLs)   - gearing - debt to equity ratio (total liabilities / total equity)   -profitability - gross profit ratio (gross profit / sales), accounts receivable turnover ratio (sales / accounts  receivable)   -comparative ratio analysis - over different time periods, against standards, with similar businesses *limitations of financial reports - normalised earnings, capitalising expenses, valuing assets, timing issues, debt repayments, notes to the financial statements *ethical issues related to financial reports    
      • This involves steps which a manager follows the financial plans in order to reach the financial objectives of the business. -Students are advised to be familiar with the correct sequence of steps and its contents or tasks. -the financial plan for assets or purpose needs to be matched with the type of finance, such as: +Overdraft, commercial bill for stock or inventory to sell. +Debenture, secures five-year term loan for manufacturing equipment or other non-current assets +Leasing for fringe benefits like company vehicles for sale-people. +Mortgage for buidings +Issues of ordinary shares for expansion of the business.
      • Financial Ratios +the formulas of financial ratios are included in the HSC questions. +Students are asked to calculate the results and interpret the meaning for that results, and recommend the best financial strategy to solve the problem. +The rations are used to: -compare the current year's result with previous years to identify trends in financial stability interms of profits and/or expenses. The financial controller will need to determine whether the business reaches its financial objectives interms of profitability, efficiency, liquidity and solvency. -compare financial ratios with the bench marks in the same industry.
      • imitations financial reports: -the Profits and Loss statement, Balance Sheet, and the Cash Flow Statement do not always give a complete true and accurate financial view of the position of the business -normalised earnings: is 'one-off' situation that impact on profit or financial stability are removed (not a normal aspect of the operating income) -Capitalising expenses: this can be classified as assets such as Research & Development, which will increase profit and the value of the business -Valuing assets -Timing issues -Debt repayments
      • A business must accurately its financial records of revenues and expenses for the financial year that they were incurred because if the business use inappropriate cut-off financial timeline, the figures showing will be not correct for the business tax liabilities. Remember that evasion tax is illegal that stems from creating incorrect financial statements .  
      • Ethical issues: All public company must be audited by an independent accounting firm. This requires the businesses must have their financial statements and procedures checked to make sure all financial statements represent a true and fair view of the company. -Ethical issues arise if: +The figures of current assets are not valued correctly (it creates a high value of working capital, but it was not true)
   4. financial management strategies

      Annotations:

      • *cash flow management: This involves keeping cash readily available in uses in the business. The methods are to use cash flow statements, to speed up payments by debtors (customers), and to delay payment of creditors (suppliers). -Cash flow statements show the movement of cash through the business activities; and are made up for cash flow-in from cash receipts; and cash flow-out for cash payments.-cash flow managements: this can be used as a tool for planning and monitoring cash flows.-distribution of payments, discounts for early payment, factoring ===Suggested methods/ strategies which can be used to IMPROVE CASH INFLOW:-implementing discounts for early payments-limiting the days that account debtors are allowed to pay -converting debtors into cash -identifying debtors having outstanding payments, then chasing them to pay (such as Reminder Notice, Phone calls, Warning letters)-offering credit payment terms with credit conditions===Methods or strategies can be used to IMPROVE CASH OUTFLOW by:-leaving to pay accounts payables (to suppliers) until the last due day-paying the term-expense in multiple periods.
      • *Working Capital Management: -Control of Current Assets (CA) -Cash, Receivables, Inventories -Control of Current Liabilities -Payables, Loans, Overdrafts -Strategies -Leasing, Sale and Lease Back
      • *Profitability Management -Cost controls -Fixed and Variable, Cost Centre, Expense minimisation -Revenue controls -Marketing objectives
      • *Global Financial Management -Exchange Rates - Interest Rates -Methods of International Payment -Payment in advance, Letter of Credit, Clean payment, Bill of Exchange -Hedging -Derivatives
5. Source from the Board of Studies NSW-Stage 6 Syllabus - June 2010 Prepared by Lydia Le 2013