PRELIMINARY BUSINESS STUDIES

1. PRELIMINARY BUSINESS STUDIES Miss Vidler 2011

2. Preliminary Business Studies • Syllabus 2011...outline....

3. NOTE FOR DIARIES • Friday period 2 computer lab #1 Meet at the lab Please put in diaries!

4. Preliminary Business Studies 2011 TERM 1: Nature of Business • 20% of time • Contemporary business situations • Business case studies • Roles and types of businesses • Influences in the business environment • Business growth and decline ASSESSMENT: Type TBC (20%) week 8 TERM 1: Business Management • 40% of time • Contemporary business situations • Business case studies • Nature of management • Management approaches

5. Preliminary Business Studies 2011 TERM 2: Business Management (cont) • 40% of time continued from term 1 • Contemporary business situations • Business case studies • Roles and types of businesses • Influences in the business environment • Business growth and decline ASSESSMENT: Half-yearly Exam(25%) Week 9 TERM 2: Business Planning • 40% of time • Contemporary business situations • Business case studies TERM 3: Business Planning • 40% of time • Contemporary business situations • Business case studies • Small to medium enterprises (SME) • Influences in establishing a business • Business planning process • Critical issues in business success and failure BUSINESS RESEARCH TASK (25%)Week 5 PRELIMINARY COURSE YEARLY EXAMINATION (30%): fourth and final assessment Week 9

6. Preliminary Business Studies 2011 TERM 4: • HSC Course begins!

7. Prelim Business Studies • Syllabus Outline • Assessment Outline • Media File instructions • Business Research Task • Homework Programme "Continuous effort- not strength or intelligence is the key to unlocking our Potential.” Churchill

8. Key websites for Nature of Business • ASIC http://www.asic.gov.au • ICAC http://www.icac.nsw.gov.au • CHOICE magazine http://www.choice.org.au • ASX http:www.asx.com.au • The Body shop http://www.thebodyshop.com.au • Coca-cola Amatil • Wesfarmerswww.wesfarmers.com.au

9. FOR SUCCESS • GLOSSARY of key terms Read, read, read • Business Review Weekly • Choice Magazine • The New Internationalist • All in library Read the paper: including the SMH, The Australian, Online newspapers, The NY times, The Economist (Advanced) • Cut out and start collecting articles of interest Watch the news: Including shows Such as Q & A (Monday nights) with politicians and Insiders and Inside Business on Sunday Mornings, Insight • We will watch any good shows relevant to what we are doing in class: If you see something you believe would benefit our work in class let me know!

10. FOR SUCCESS • Business annual reports • Your connections with local entrepreneurs • Legal resources • Collect any business magazines • Get familiar with different websites: esp SMH business, The Australian Business

11. Opportunities • business woman, Director of a company, stockbroker, investment banker, political adviser, manager, sales representative, accountant, analyst, marketing manager, advertising executive, PR executive, communications manager, small business owner, investor relations manager....

12. The nature of businessThe focus of this topic is the role and nature of business in a changing business environment.Use your existing knowledge: you may know more than you think! Outcomes  The student: P1 discusses the nature of business, its role in society and types of business structure P2 explains the internal and external influences on businesses P6 analyses the responsibilities of business to internal and external stakeholders P7 plans and conducts investigations into contemporary business issues P8 evaluates information for actual and hypothetical business situations Content Students learn to: examine contemporary business issues to: • discuss the global expansion of one Australian business • discuss the expansion into Australia of one global business • explain how changes in external influences have contributed to the growth of the tertiary, quaternary and quinary industries in Australia • identify problems that arise for stakeholders when companies go into liquidation investigate aspects of business using hypothetical situations and actual business case studies to: • distinguish between the different types of businesses • identify actual businesses at different stages in the business life cycle • outline possible business strategies appropriate for different stages in the business life cycle

13. The nature of business: The Role of Business What is business? Person’s occupation, behaviour when buying and selling, trade and commerce, firms activity. English word: ‘To do things’ BUYING AND SELLING • Sellers: • How to sell and receive income • Buyers • How to get what you want All businesses offer something to the community; no matter how big or small, businesses are crucial to the successful functioning of society. Business: Producing goods and services Q: Where would Government without business?

14. Australia’s largest employers • Figures in text.p.6 • Woolworths largest employer 94 000 employees • Australia’s biggest company is BHP Billiton with over 33 000 employees. • Small business employ more Australians than big business overall (retail) • Businesses with fewer than 100 employees employ over 42% of the workforce

15. Activity: Australia’s top 10 employers • List Australia’s top 10 employers and investigate their core activities • Woolworths • Coles Myer • Queensland Health • Telstra • National Australia Bank • Commonwealth Bank Group • Australia Post • Qantas • BHP Billiton • ANZ Banking Group Which of these companies is in the ‘private sector’ and which in the ‘public sector’?

16. Nature of business • Innovation: • Competitive edge always, constant ideas • R&D • Cochlear • Choice: • 'It's choice – not chance – that determines your destiny.‘ – Jean Nidetch • Free enterprise system in Australia – production and distribution are mostly privately owned. Supply and demand determine the allocation of resources in the economy • Choice of production and purchasing encourages competition between businesses to product products and services at the lowest possible price and of the highest possible quality In what countries is/was there no competition. No free market? • Consumers have freedom of choice = ^ quality

17. Nature of business • Entrepreneurship • What defines an entrepreneur? Risk taker? Creativity? Determination? Energy? Passion? Contacts? • What entrepreneurs can you think of and what qualifications did they have? • Steve Jobs • Entrepreneurs must combine resources of land, labour and capital to produce a product • Quality of life • Products and services increase the quality of life for all Australians. Business provides us to a range of goods that we could not create ourselves

18. Class discussion: Local BusinessesWhat goods and services do they provide?Identify the similarities and difference between each • Let’s Go Surfing • Bondi Icebergs • Aquabumps • Love Lunch • Camilla • Sarah Glover Cookies • Gertrude and Alice 2nd hand books • ANY OTHERS

19. Is a school a business? An example of the Strategic Plan of a School Short paragraph on: Is school a business? short answer response

20. The role and importance of business: recap • Entrepreneurship • Innovation • Employment • Provider of goods and services • Source of government revenue • Wealth creation • Quality of life • Choice Copy table on p. 9 and give examples of each one. EG. 1. Entrepreneurship, Camilla Franks, 2. Innovation, Bionic Ear.

21. Business Goals • Financial Goals • Social Goals • Personal Goals • Corporate Social Responsibility • ‘Triple bottom line’: corporate, social and environmental responsibility. Business must make a profit, protect the planet and serve the people. CASE STUDY: read and answer all questions 1-4.

22. CASE STUDY VeuveClicquot Award (p 11-12 txt) Read together and answer questions 1-3 individually • Describe the qualities of a person who would be nominated for the VeuveClicquot Award. • Research one of the finalist for the award and explain to the class why this woman deserves to win the award • Explain the qualities Sarina Bratton has that make her a good businesswoman

23. Business Goals • Financial Goals • Social Goals • Personal Goals • Corporate Social Responsibility • ‘Triple bottom line’: corporate, social and environmental responsibility. Business must make a profit, protect the planet and serve the people. CASE STUDY: read and answer all questions 1-4.

24. Business goals

25. Stakeholders • Every business, through its range of functions or operations, serves the interest of customers, owners, employees, suppliers, creditors, governments, society and even competitors: STAKEHOLDERS as they have a stake in the continuing successful operation of the business • See figure 1.1.10 the importance of business to stakeholders

26. Wednesday 9 February • Business reports! • 1.1 review for homework tonight • Today introduce new topic: Types of business

27. Business Reports on companies: feedback • Spelling! Capitals! Punctuation! Which Grammatical person?! Be consistent • Ensure you have only listed highlights. Is the information you are including in your report really vital? Make sure it is! Be fussy. Think don’t just copy.

28. 1.1 review • Key terms for glossary pg. 16 • Complete Business Literacy • 1 and 3 • Business Teamwork: 5 • Business Thinking skills: 7 • Create a mind map outlining people affected by a particular business activity. Divide these into internal and external stakeholders "Kites rise highest against the wind - not with it"

29. Types of business • Classification of business • Which industry it belongs to • The size of the business • The industry/economic sector • Its legal structure

30. Government Business Enterprises (GBEs)The Government Businesses Advice Branch (GBAB) provides advice to the Australian Government relating to its Government Business Enterprises (GBEs) and other commercial entities. The branch´s primary tasks in relation to GBEs is to: provide sound strategic and analytical advice to the Minister for Finance and Deregulation, in particular by engaging with the GBEs, analysing their operations and their environment, and consulting with stakeholders; action the Minister's decisions including communicating objectives; and ensure that there is a robust and sound governance framework in place by initiating change and contributing to policy development. Government Business Enterprises (GBEs) are prescribed in regulations [] under the Commonwealth Authorities and Companies Act 1997. The Australian Government´s relationship to its GBEs is similar to the relationship between a holding company and its subsidiaries, features of which include: a strong interest in the performance and financial returns of the GBE; reporting and accountability arrangements that facilitate active oversight by the shareholder; action by the shareholder in relation to the strategic direction of its GBEs where it prefers a different direction from the one proposed; management autonomy balanced with regular reporting of performance to shareholders; and boards that are accountable to shareholders for GBE performance, and shareholders that are accountable to Parliament and the public. To enable greater public accountability, wholly owned GBEs are required to prepare a Statement of Corporate Intent (SCI) in consultation with Shareholder Ministers. A SCI focuses on the purpose and corporate outlook of a GBE, and expresses the expectations of its management in relation to future financial and non-financial performance. The following is a list of the Australian Government´s GBEs, with links to their websites, where available: ASC Pty Limited [] Australian Government Solicitor [] Australian Postal Corporation [] Australian Rail Track Corporation Limited [] Defence Housing Australia [] Medibank Private Limited [] NBN Co Limited [] Other entities which are not prescribed as GBEs but which GBAB also provides advice to the Government are: Airservices Australia [] Australian River Co. Limited - Statement of Intent [ 53KB] - Statement of Expectation [ 6KB] - Annual Report 2009 [ 7MB] - Annual Report 2009 [ 357 KB] • Australian Industry Development Corporation • Statement of Intent [ 24KB] Statement of Expectation [ 7KB] • Annual Report 30 June 2010 [ 381KB]Annual Report 30 June 2010 [ 1.65MB] • Albury-Wodonga Corporation [] • Snowy Hydro Limited []

31. SMEs • http://thehub.ethics.org.au/sme/n

32. Features of small, medium and large businesses • Construct a table listing the features of each – list five examples of each

33. SMEs Suggest and justify the most likely growth areas for SMEs in the next ten years in Australia or Globally.... Ageing population to change business LemaSamandar September 22, 2008 from SMH

34. Local, national, global • Examine local, national and global business reports and classify these businesses in relation to their output or service provided

35. Industry • Primary • Secondary • Tertiary • Quaternary • Quinary

36. THURSDAY 10 February • Homework from Chapter 1: 1.1 and/or questions/mindmaps! • Who did not complete their industry sector breakdown? • Why do we break down sectors? • NEW TOPIC: Business Legal Structures • News articles homework!!

37. Industry sectors

39. Industries contd ACTIVITY: Examine how government policy contributed to the development of the quaternary and quinary sectors QUATERNARY • Information-based services • Teaching, journalism, banking QUINARY • Household services • Carpet cleaning, child care, restaurants

40. What business legal structures do these successful business people use?

41. Tuesday 15th • Business Legal Structures • Homework: Share news articles • Sass n Bide finish up • Continue and finish Business Legal Structures: complete handouts from last Thursday

42. Business Legal Structures Important to think about the advantages and disadvantages of each different type of structure.. • Sole trader • Partnership • Private company • Public company • Government enterprise CREATE: MIND MAP

43. NEWS ARTICLES • Homework for weekend: • You are to go to The Australian or SMH business websites or any other legitimate news website of newspaper! (try not make it the Daily Telegraph.. The Economist, BRW, New York Times etc all good) • You are to find an article about any business small or large and find out two things • Whether the business is a SME or a Large business and; • What type of legal structure this business has. • Finally you are to create a small summary of the article to share with the class. EG: Boral This is to be handed in on Tuesday 15 February

44. Sole trader • A “sole proprietorship” is the establishment of a business by an individual; there is no legal entity that owns ands operates the business • The owner is personally responsible for all debts ands contracts • Profits are disclosed on the owner’s personal income tax return and he or she can deduct business losses

45. Partnership • A “general partnership” is an agreement by two or more persons or entities to establish and operate a business • A written agreement should be prepared between the partners • Each partner discloses business profits in his or her personal tax returnand deducts proportionate losses • A “joint venture” is a general partnership set up to make a profit on a one-time basis • A good example: Sass and Bide

46. Positive Partnership:Sass and Bide – 12 mins • Why do you believe this partnership is successful? • What were the partners former careers? • What obstacles did they have to overcome? • What press “could you not buy” that Sass and Bide landed? What is this called? • Why do they believe they were successful?

47. Hancock and Wright Court told agreement gave Wright family half of ore deposit Posted Tue Mar 6, 2007 9:41pm AEDT A multi-million dollar court dispute over the ownership of Australia's biggest iron ore tenement has heard the late mining magnates Lang Hancock and Peter Wright had a unique relationship and were intensely loyal. The Supreme Court in Perth has been told both men agreed to split their assets in 1983, with the Wright family taking ownership of the iron ore business, including a 50 per cent stake in the $3 billion Rhodes Ridge deposit. The counsel for Wright Prospecting, Rod Smith, told the court Mr Hancock wanted a binding agreement drawn up to split company assets because he foreshadowed their families would be locked in legal battles. Mr Smith told the court this agreement gives the Wright family half the Rhodes Ridge deposit, with Rio Tinto owning the undisputed half. However Hancock Prospecting claim it also owns a 25 per cent stake in the deposit. The hearing has been set down for six weeks.

48. Activity:Business structures (legal) • Construct a profile of the ‘ideal business partner’ then devise a possible partnership agreement. • Debate the topic:’ Never go into business with a relative.’

49. Billion-dollar war An enduring partnership based on trust between two of the west's richest mining magnates has not passed on to their heirs. Victoria Laurie and Paige Taylor report on two dynasties fighting over a vast mineral deposit • THE biblical wisdom that the sins of the father are visited on his offspring could well apply to iron ore magnate Lang Hancock and his business partner Peter Wright, if one views their collective sin as being too rich for their own children's good. • This week in the West Australian Supreme Court, Wright's son and daughter, Michael Wright and Angela Bennett, began legal action against Hancock's only daughter, Gina Rinehart, over a vast unmined pile of iron ore - possibly worth $4 billion - that each side claims it owns. • Like other legal fights that have emanated from WA's two dynastic iron ore families, it carries an unedifying air. For these are two sets of offspring who have already inherited vast fortunes from their respective fathers. Rinehart is Australia's first female billionaire, reputedly worth $1.8 billion from the accumulated, and ongoing, royalty payments her father negotiated with mining companies. Australia's second richest woman, Angela Bennett, shares a $900 million fortune with her brother Michael Wright, inherited from their father.

50. Companies: private • Private company is limited to 50 shareholders. A board of directors is elected to run the company. If there are only a small number of shareholders they usually take on the role of directors • A private company has Pty Ltd short for Proprietary Limited: this means that liability is limited to the company, and does not extend to its owners. • Shares NOT sold to public. • A “limited liability company” (LLC) combines liability protection with the tax status of a general partnership • Owners of an interest in the LLC are called members • Members have no personal liability for the debts and obligations of the LLC • Members disclose profits and deduct losses on their individual tax returns