Business Q&A by dot point

External business environments and the PESTEL framework - political, economic, social, technological, environmental and legal factors - and their influence on business creation in Australia

Business planning for a new venture - the purpose and components of a business plan (executive summary, business description, market analysis, marketing plan, operations plan, financial plan), feasibility analysis, and the role of planning in reducing the risk of business failure

Business structures - sole trader, partnership, company (Pty Ltd, Ltd), trust - and the implications of each for liability, taxation, capital raising, regulatory compliance and ownership transfer

Ethical and socially responsible business practice - the distinction between legal compliance and ethical responsibility, corporate social responsibility (CSR), the triple bottom line, stakeholder management, and the implications of ethical or unethical practice for the business

Sources of finance for a new business - internal and external, debt and equity (owner equity, retained profits, loans, overdraft, trade credit, leasing, venture capital, government grants) - and the matching of finance source to purpose, cost, risk and control

Cash flow management for a growing business - the cash flow statement and the distinction between profit and cash, working capital management (current assets and current liabilities, the cash conversion cycle), and strategies to manage cash flow gaps during growth (overgrowth/overtrading risk)

Human resource management for business growth - recruitment and selection strategies, induction and training, employee retention strategies (rewards, career development, workplace culture, flexibility), and the role of HRM in supporting business growth

Marketing mix strategies for a growing business - the 7Ps (product, price, promotion, place, people, process, physical evidence) - and the integration of the elements to support growth objectives

Operations processes for a growing business - the transformation of inputs into outputs, the role of operations in adding value, productivity and efficiency, quality management (quality control, quality assurance, total quality management), and the influence of technology and economies of scale on operations during growth

Target market segmentation - demographic, geographic, psychographic and behavioural variables - the selection of target markets, and positioning the business in the chosen segments

Competitive markets - the structure of markets (perfect competition, monopolistic competition, oligopoly, monopoly); Porter's five forces (industry rivalry, bargaining power of suppliers, bargaining power of buyers, threat of new entrants, threat of substitutes); and the implications of competitive intensity for diversification

Financial ratio analysis to inform diversification decisions - profitability ratios (gross profit, net profit, return on equity), liquidity ratios (current, quick), efficiency ratios (asset turnover, accounts receivable turnover) and gearing ratios (debt to equity); interpretation of ratios in context

Growth and diversification strategies - the Ansoff matrix (market penetration, market development, product development, diversification), related and unrelated diversification, organic v inorganic growth (mergers, acquisitions, takeovers), and horizontal, vertical and conglomerate integration - and the risk-return profile of each

Market entry strategies for global diversification - exporting (direct and indirect), licensing, franchising, joint venture, foreign direct investment (greenfield and acquisition) - and the risk-return profile of each

Globalisation as a driver of business evolution - global supply chains, offshoring and outsourcing, the influence of trade agreements and exchange rates, the opportunities and threats of globalisation, and the implications for how an Australian business evolves and competes

Leadership styles during change (transformational, transactional, servant); stakeholder management during transformation including employee consultation, customer communication, supplier relationships and community engagement; the role of corporate communication

Drivers of repositioning - changing consumer trends, technological disruption, sustainability expectations, competitive pressure, regulatory change - and strategies for repositioning (rebranding, product portfolio change, market re-segmentation, channel shift)

Business transformation strategies, innovation (incremental and disruptive, product and process innovation), risk management during transformation (identification, assessment, treatment, monitoring) and the role of corporate social responsibility in transformation decisions