About the authors viii

About This Resource ix

Acknowledgements xvi

Unit 1 Planning a Business 1

Area of Study 1 The Business Idea

1 The business idea 3

1.1 Overview 4

1.2 Entrepreneurship 7

1.3 The personal motivation behind starting a business 11

1.4 Characteristics of successful business managers and business entrepreneurs 15

1.5 Identifying business opportunities 19

1.6 Goal setting and decision-making in business 24

1.7 Business concept development 29

1.8 APPLY YOUR SKILLS Creating a business idea 33

1.9 Market research and initial feasibility studies 35

1.10 APPLY YOUR SKILLS Developing the business idea 38

1.11 The contribution of businesses to the nation 40

1.12 EXTEND YOUR KNOWLEDGE Business contribution to the economy — taxation revenue 45

1.13 Methods for fostering a culture of business innovation and entrepreneurship in a nation 48

1.14 EXTEND YOUR KNOWLEDGE Research and development 54

1.15 Review 57

Area of Study 2 Internal Business Environment and Planning

2 Internal business environment and planning 63

2.1 Overview 64

2.2 The relationship between the internal and the external environment of a business 66

2.3 Types of legal business structure 73

2.4 EXTEND YOUR KNOWLEDGE The right legal structure for the business 81

2.5 Types of business models 86

2.6 Purchasing an existing business or establishing a new business 93

2.7 Business resource needs 96

2.8 Business locations 100

2.9 Sources of finance 105

2.10 Business support services 113

2.11 EXTEND YOUR KNOWLEDGE Planning decisions and the internal environment 117

2.12 Planning tools and business plans 120

2.13 APPLY YOUR SKILLS Business plans and planning tools 125

2.14 Corporate social responsibility management issues regarding business planning 128

2.15 APPLY YOUR SKILLS Planning decisions in response to internal factors 133

2.16 Review 136

Area of Study 3 External Business Environment and Planning

3 External business environment and planning 145

3.1 Overview 146

3.2 Overview of the external (macro and operating) environment 149

3.3 Key legal and government regulations 153

3.4 Societal attitudes and behaviours 159

3.5 EXTEND YOUR KNOWLEDGE Societal attitudes and behaviours 162

3.6 Economic conditions 165

3.7 Technological considerations 170

3.8 Global considerations 174

3.9 Corporate social responsibility considerations 179

3.10 EXTEND YOUR KNOWLEDGE Corporate social responsibility and the triple bottom line 184

3.11 APPLY YOUR SKILLS Corporate social responsibility management practices 186

3.12 Customers and competitors 189

3.13 Suppliers and special interest groups 193

3.14 APPLY YOUR SKILLS Effect of factors from the external environment 196

3.15 Review 199

Unit 2 Establishing a Business 207

Area of Study 1 Legal Requirements and Financial Considerations

4 Legal requirements and financial considerations 209

4.1 Overview 210

4.2 Key legal requirements — registration, taxation and government regulations 213

4.3 Key legal requirements — trade practices legislation 218

4.4 EXTEND YOUR KNOWLEDGE Legal requirements created by the three levels of government 225

4.5 The role of external professionals when establishing a business 230

4.6 Establishing bank accounts 233

4.7 Establishing financial control systems 236

4.8 Establishing record-keeping strategies 241

4.9 EXTEND YOUR KNOWLEDGE A basic record-keeping strategy — establishing a cash book 247

4.10 Choosing appropriate suppliers 251

4.11 Policies and procedures 257

4.12 APPLY YOUR SKILLS The need for policies and procedures 262

4.13 Technological and global issues 265

4.14 APPLY YOUR SKILLS Evaluate and justify decisions when establishing a business 271

4.15 Review 276

Area of Study 2 Marketing a Business

5 Marketing a business 283

5.1 Overview 284

5.2 Marketing, establishing a customer base and achieving business objectives 288

5.3 Internal and external environment factors affecting customer base and brand identity 296

5.4 Market research practices 300

5.5 Target market attributes — market dimensions and segments 305

5.6 Target market attributes — consumer trends and behaviour 309

5.7 The 7Ps of marketing — product and price 314

5.8 The 7Ps of marketing — place and promotion 321

5.9 The 7Ps of marketing — people, physical evidence and process 327

5.10 APPLY YOUR SKILLS Proposing and justifying marketing strategies 331

5.11 EXTEND YOUR KNOWLEDGE The target market and the marketing mix 333

5.12 The product life cycle 335

5.13 Customer relations strategies 341

5.14 Technological developments in marketing 346

5.15 APPLY YOUR SKILLS Evaluating marketing strategies 350

5.16 An overview of public relations and its relationship to business objectives 352

5.17 Public relations strategies 357

5.18 APPLY YOUR SKILLS Achieving success in public relations 364

5.19 EXTEND YOUR KNOWLEDGE When things don’t go according to plan 368

5.20 Corporate social responsibility issues in establishing a customer base 370

5.21 APPLY YOUR SKILLS Establishing a customer base, marketing and establishing positive public relations 375

5.22 Review 378

Area of Study 3 Staffing a Business

6 Staffing a business 387

6.1 Overview 388

6.2 BACKGROUND KNOWLEDGE Overview of the employment cycle 391

6.3 Staff performance and achieving business objectives 394

6.4 Identifying staffing needs of the business 397

6.5 The effect of technological development on staffing needs 402

6.6 Job analysis, job design, job descriptions and job specifications 405

6.7 Recruitment methods 410

6.8 Selection methods 415

6.9 APPLY YOUR SKILLS Recruitment and selection 419

6.10 Employment arrangements and the National Employment Standards 421

6.11 Employer expectations — contracts of employment, business loyalty and terms of notice 425

6.12 Employee expectations — conditions of employment, remuneration, job security and work–life balance 429

6.13 Legal obligations for staffing 434

6.14 EXTEND YOUR KNOWLEDGE Maintaining a healthy workplace 440

6.15 Employee induction 442

6.16 Corporate social responsibility management in relation to staffing and overseas recruitment 447

6.17 EXTEND YOUR KNOWLEDGE Researching issues in staff management 453

6.18 APPLY YOUR SKILLS Gender equality in the workplace 456

6.19 Review 459

Appendix 467

Glossary 469

Index 477