Lesson Plan for Year 11 Business Studies
Grant SmithBusiness Entities and Corporate Structures |
Frank ScognamiglioConsumer Rights |
Anne VogelnestInflation |
Jane CaponBusiness Management and Change |
Georgi Smith |
Stephen Fenn |
Michael O'Neill |
Vanessa ColesMarketing |
Kaylene Thomaslabour Markets |
Grant CollieBusiness Studies Websites |
Pinad El Ahmed |
Amber Lytham |
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Lesson Plan for Year 11 Business Studies |
Business Entities Question Sheet
Please answer the following questions and complete the table.
0. What are the two main groups of business types in Australia? (2 lines)
If you require more in depth business information you could enter these sites:
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Sole Trader |
Partnership |
Private Co. |
Public Co. |
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Management |
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No. managers |
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Structure Life |
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Type of Taxation |
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Liability
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Costs of Setting the Structure Up |
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Legal Status |
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Advantages |
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Disadvantages |
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Examples |
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Frank Scognamiglio |
in Commerce. Legislative frameworks, contact details and further links.
Australian Competition and Consumer Commision
Australian Consumers Association: Choice
Australian Federal Bureau of Consumer Affairs
http://www.dist.gov.au/consumers/policy
Better,Bad,Best Business Bulletin
Consumer Affairs
http://www.dist.gov.au/consumer/policy
NSW Department of Fair Trading
http://www.fairtrading.nsw.gov.au
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ANNOTATED WEB SITE RESOURCES Grant Collie |
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Preliminary Topic 4
15% of preliminary course time = approximately 18 lessons
To cover:
Labour: a distinctive market
Distinctive aspects of labour markets. 2 lessons
Differences in incomes from work. 3 lessons
Market Forces and Labour resources
Types of labour markets. 2 lesson
The demand for labour by individual firms. 2 lessons
The supply of labour. 2 lessons
Institutions of the labour market
Labour market institutions and the reasons for their establishment. 2 lessons
Current industrial relations framework. 3 lessons
Labour market trends. 2 lessons
Students learn about:
Wage outcomes for all persons, occupational groups, age, gender, and cultural background
Read over the article titled: Nine to Five, taken from The Economist, 20/02/99.
- What is the writer saying about the role of women in the workforce?
- How has the role of women in the workforce changed over the last 30 years? What has made such changes possible?
- What is the wider social impact of greater participation in the paid workforce of women, according to the article?
- In your own words describe the "Catch-22 situation" experienced by some women, as explained in the article.
Students learn about:
Unemployment - incidence and duration
Read over the article titled "Indigenous and Invisible" from the Australian Financial Review, 29/03/99.
- From the article, list the reasons as to why Aboriginal unemployment is so high. What is the relationship between unemployment and demographic variables?
- Explain the impact of changes to legislation and Government policy on unemployment rates.
- What is the role of location in unemployment?
Students learn about:
The demand for labour by individual firms
Read over the article " Resources crisis: mines close" from the Australian Financial Review, 16/03/99
- What is the situation at WMC Ltd. in terms of labour supply?
- Why has the company been forced to cut labour numbers?
- What is the role of international markets in the decisions made at WMC Ltd. in recent times?
Students learn about:
The supply of labour
Read over the article "Equity and Youth Wages" from the Australian Financial Review, 16/03/99.
- Why, do you think, awards rates were set for different age groups? Do you personally agree or disagree with the concept?
- Do you think the writer of the article agrees or disagrees with the concept of award rates?
- What does the statement "the youth wage issue is also an example of how it is possible to kill the equity objective with myopic kindness" mean?
- What does the writer see as the solution to people being "trapped …as the working poor"?
Students learn about:
Unions
Read over the article "Sale rumour leads to worker walkout' from the Australian Financial Review, 12/03/99
- What is the main concern of members of the CFMEU if John Holland is sold to Henry Walker Ltd?.
- Why does the spokesperson from CFMEU, Mr. Sutton, refer to the unionism `culture' which has 'always existed within John Holland'?
- Are you personally in favour of the existence of unions, or are you opposed to them? What positive and negative attributes do unions hold?
- In "Our Economic Environment" by Gallagher, R.E & Burkhardt, G. A (1988), five objectives of trade unions are outlined. They are as follows:
1/ Socialisation of the industry
2/ The utilisation of the resources of Australia for the benefit of the people
3/ Full employment
4/ Rising living standards
5/ Economic security for all workers
How many of these objectives are discussed or referred to in the article, and in what context?
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Inflation is a process in which the price level is rising and money is losing value.
How is it measured ?
We measure the inflation rate by calculating the annual percentage change in the price level.
Eg: If 1999's price level = 126, 1998 price level = 120
Inflation rate = 126 -120
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120 x 100
= 5% a year
CONSUMER PRICE INDEX
The price level is measured by the Consumer Price Index (CPI) which is based on the consumption expenditure of a 'typical metropolitan family', commonly referred to as a 'basket of goods'. For more information in what this basket of goods consists of see the Australian Bureau of Statistics website.
The CPI is always measured from a base period where the CPI is 100. For example, if the cost of the basket of goods in the base period was $210 and the cost of the same basket of goods this year is $231, the CPI is as follows
231 (current year)
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210 (base year) x 100 = 110
Headline Inflation
This is the traditional measure of inflation using the CPI as mentioned above
Underlying Inflation
This rate excludes the effect of seasonal factors, interest rates and relevant government policies and is intended to measure the underlying relationship between aggregate demand and supply in the economy.
CAUSES OF INFLATION
1/ Demand Pull Inflation
As the name suggests, comes from an increase in demand which can be caused by
- An increase in the money supply
- Increase in Govt expenditure
- Increase in the domestic price of foreign goods
This occurs when aggregate demand is greater than aggregate supply
2/ Cost Push Inflation
This results from an increase in costs of productions usually caused by
- An increase in wages
- An increase in the price of raw materials used for production.
INFLATION: SOME USEFUL INTERNET RESOURCES
Measuring Inflation
http://www.ingrimayne.sainjoe.edu/econ/Measuring/overview6ma.html
This site is sort of an on-line text book and has a good basic explanation of inflation and the CPI with examples and calculations
Inflation Calculator
http://www.westegg.com/inflation
http://www.jsc.nasa.gov/bu2/inflateCPI.html
Here you can punch in any price from any year and it will tell you the inflation rate. Great to use with students but is measured using American Consumer Price Index
Treasury Department
Contains press releases on current and previous CPI rates with explanations on its effect on our economy.
Information Paper &emdash; ABS
http://www.statistics.gov.au/websitedbs
Has exact information on how the CPI is calculated and what is included its basket of goods.
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Case Study Business Profile: This is a small-medium size business known as a Japanese Inbound Tour Operator. Essentially, this business provides the service of organising tour arrangements for Japanese tourists coming to any part of Australia. Arrangements include hotel bookings, sightseeing tours, meals, transfers to and from the airport, company groups wanting to inspect the facilities and/or systems of their Australian counterparts. It is in the Inbound Tour Operator's best interest to negotiate low prices with these suppliers to maximise their profit. In the early to mid 1990's, this business arranged tours for approximately 25,000 tourists per year. Throughout Australia, the company had offices in Perth, Melbourne, Sydney, Gold Coast and Cairns, employing a total of 50 staff.
Toward the latter part of the '90's, Asia fell into a recession, which eventually reached Japan. (Japan does not generally consider themselves part of Asia) This meant that the number of tourists coming to Australia decreased dramatically. Cities in Australia that were particularly affected were Perth, Melbourne and Cairns, due to airline changes.
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BUSINESS STUDIES (PRELIM.) COURSE OUTLINE:
2 WEEKS = 4 PERIODS
SYLLABUS:
- Product, including brand name, packaging, positioning, warranties
- Price, including list price, discounts, credit terms, payment period
- Promotion, including advertising, sales promotion, publicity
- Place, including location of markets, warehousing, distribution, transport, inventory management.
STUDENTS SHOULD BE ABLE TO:
1st Period:
2nd Period:
Nb: you may like to contact companies in order to help you design your campaign.
3rd Period:
4th Period:
Nb: Be prepared! You may be asked to briefly present yours to class.
It Involves:
- product concept and development
- pricing
- distribution
- position in the market
- sales promotions
- advertising
- research & development
- merchandising & displays
- storing
- grading
- risk taking
- customer relations
Marketing is about finding out about what customers need, then providing goods or services that satisfy these desires - at the right price, place & time..
Marketing is Important because:
It aims to increase sales and therefore profits.
How does it do this?
Through connecting the production process (or product) with the consumer.
The Benefits of successful marketing are:
- increase in sales to existing customers
- attract new customers
- repeat sales
- improve the image of the company
-> increased goodwill
-> improved morale within the company
-> greater and improved production
-> strategic goals achieved
ACTIVITY 2 - WRITE DOWN 5 POINTS AS TO WHY EACH PRODUCT IS SUCCESSFUL OR UNSUCCESSFUL.
- WHO IS THE TARGET MARKET?
- MAKE COMPARISONS
The Goals of marketing are:
- to increase consumption
- to satisfy customers
- to increase choice
* Nb: Marketing is done by organisations other than companies:
- political parties
- charity groups
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The purpose of market research is to inform a company of:
- changing economic, social and political conditions
- the changing needs or wants of the consumer
- and the activities of competitors
It involves gathering data about the market which while allow a business to make decisions about:
- the type and quantity of the product
- product promotion
- & selling price
Once this knowledge is obtained it can be divided into different sections or ìnichesî to better target the marketing strategy.
- What is marketing?
- Why is important?
- What is market research?
The Marketing Mix
The Marketing Mix is at the core of a marketing plan. There are four fundamental marketing elements which a company combines to reach its target market. These elements are:
PRODUCT
The Four Pís PRICE
PROMOTION
PLACE
Together, the Four Pís form the marketing mix. The marketing mix can be varied by changing the combination of the Four Pís. A business will do this when it wants to reach different target markets. The marketing mix is the centerpiece of the marketing plan.
ACTIVITY I. WRITE DOWN THE PRODUCTS THAT YOU ASSOCIATE WITH EACH BRAND NAME:
LEVI UNCLE TOBYS HOLDEN
KELLOGG ARNOTTS SORBENT
Mc DONALDS MARS TELSTRA
REEBOK KFC MAMBO
SPEEDO SONY COLGATE
- Qantas - the flying kangaroo
- Holden - the lion & ball
- Mercedes-Benz - 3-pointed star
- Mc Donalds - golden arches
- Nike - swoosh
- Commonweaith Bank - square on its side
The price refers to the amount of money a customer is prepared to offer in exchange for a product. The price must give a balance of profitability to the business on one hand, and value for money for the customer on the other. Pricing can act to distance products from the competition (e.g luxury items) or it can be competitive.
Pricing should adapt to change.
Pricing policies are dependent on the target market
Promotion: involves advertising, personal selling, sales promotion and publicity. Promotion might inform, persuade or remind a target market about a businessís products.
(EXAMPLES)
1. attract new customers
2. increase brand loyalty
3. encourage more sales
4. encourage the sales of new products
5. provide information
PRODUCT:
A good or service, or idea (or a combination of the three) which can be offered in an exchange.
PRODUCT POSITIONING:
The development of a product image compared to the competitionís product image.
PRICE:
The amount of money a customer is prepared to offer in exchange for a product.
PROMOTION:
The methods used by a business to inform, persuade and remind a target audience about its products.
PROMOTION MIX:
The various promotion methods a business uses in its promotional campaign.
BRAND:
A name, term, symbol, design or any combination of these that identifies a specific product and distinguishes it form its competition.
BRAND NAME:
That part of the brand that can be spoken.
BRAND, SYMBOL OR LOGO:
A graphic representation that identifies a business or product.
MANUFACTURERíS/NATIONAL BRAND:
A brand owned by a manufacturer, e.g. Sunbeam Appliances, Mambo.
PRIVATE/HOUSE BRAND:
A brand owned by a retailer or wholesaler, e.g. Miss Shop.
GENERIC BRAND:
Products without a brand name, e.g. No Frills, Home Brand
TRADEMARK:
Exclusive right of a company to a brand, symbol or logo
WARRANTY:
A promise by the business to repair or replace faulty products.
PACKAGING:
The development of a container and graphic design for a product.
ADVERTISING:
A paid, non-personal meesage communicated through a mass medium.
PERSONAL SELLING:
The activities of a sales representative, attempting to make a sale to a customer.
SALES PROMOTION:
An activity that offers a direct inducement to customers.
PUBLICITY:
Any free news story about a businessís products.
WHOLESALER:
The intermediary between manufacturer and retailer.
RETAILER:
A business person who purchases goods and sells them to the customer.
AGENT:
Someone acting on behalf of another.
WAREHOUSING:
Receiving, storing and dispatching goods
MARKETING:
A total system of interacting activities designed to plan, price, promote and distribute products to present and potential customers.
MARKET SEGMENTATION:
Subdividing a market into groups who share one or more common characteristics
MARKETING CONCEPT:
A business philosophy which states that all sections of the business are involved in satisfying a customerís needs and wants while achieving the businessís goals.
MARKETING MANAGEMENT:
The process of monitoring and modifying the marketing plan through planning, organising, leading and controlling the marketing strategies.
MARKETING MIX:
A combination of the four elements of marketing: product, price, promotion and place, that make up the marketing strategy.
MARKETING OBJECTIVE:
A statement of what is to be achieved through the marketing activities.
MARKETING STRATEGY:
A plan which outlines how a business will use its resources to achieve its objectives.
NICHE MARKET:
A narrowly selected target market segment.
SITUATIONAL ANALYSIS:
Investigates marketing opportunities and potential problems.
STRATEGIC MARKETING PLANNING:
A process of developing and implementing marketing strategies to achieve marketing objectives, which in turn helps to realise the businessís goals.
TARGET MARKET:
A group of customers to whom the business intends to sell its products.
MARKET RESEARCH:
The gathering and analysis of information relating to a specific marketing strategy.
The Board of Managers of
DUNLOP
acknowleges the sucessful advertising capaign presented by
LOUISE MURRAY
Her campaign has fulfilled the requirements of our
strategic marketing plan CONGRATULATIONS!
1st September, 1998
Date Signature
Introduction:
This assignment will examine a plumbing and draining business known as M Thacker and Co Pty Ltd. Description of the different aspects of this business shall be covered under the following headings:
1) functions
2) location
3) size
4) customers, suppliers & competitors
5) history
6) organisational structure
7) regulatory issues
Through an analysis of these factors the business operation of M Thacker and Co becomes more apparent.
The Prime Function:
M Thacker and Co Pty Ltd is a contract plumbing and drainage business. The prime function of the company is to provide prompt, quality plumbing work to its customers so as to make a profit. The company carries out a variety of plumbing services for different sections within the community. Ostensibly, it contracts plumbing and drainage for builders who construct town houses, units, cottages, schools and shops. Its services are also engaged by individuals for domestic and business plumbing , maintenance and repairs. The plumbing services provided by M Thacker and Co range from small to a medium density workload. Rarely will the company be involved in a large scale business contract without the assistance of another plumbing company.
Location:
M Thacker and Co primarily operates in the Northern Beaches of Sydney. Most of the clientele base is from this area. Its main office and workshop is in Belrose. However, the business will accept jobs anywhere from Gosford to Sutherland, Bondi to Penrith.
Size:
M Thacker and Co is a small business. It currently employs three tradesmen as well as a part-time secretary. In the post war years (1950 -1960ís) there was a building boom and the company had six employees. Since the 1970ís however, there has been a steady reduction in employees with a concentration on contract work for several builders. Another contributing factor in the diminishing size of the company has been the loss of incentive to employ workers due to increased paper work and costs. Examples of these added stresses for the employer include; employee insurance, long service leave, holiday pay, holiday leave, workers compensation. The relatively new unfair dismissal laws also act as a disincentive to employ extra staff as once employed it has become increasingly difficult to fire problematic employees.
Increased competition is another reason for the shrinking size of the company.
Customers, Suppliers and Competitors:
M Thacker and Co have a range of customers, most of whom are builders. The builders are involved in the construction of houses, additions to houses, alterations, and commercial jobs. Their customers are also people requiring ìone-offî repairs (e.g burst water pipe). The vast majority of customers come from the Northern Beaches of Sydney.
Suppliers to M Thacker and Co are Plumbersí Supplies, Hardware and General, and Tradelink.
Any business or person registered under ìplumbingî in the Yellow Pages is a competitor of M Thacker and Co. The largest direct competitor to the company is Cornish Plumbing. Cornish Plumbing has a well established reputation and are also located on the North Shore of Sydney. Ray Morgan Plumbing is also considered a serious competitor due to its larger size. Reputation, location and size therefore, are the overriding factors to take into account when assessing the competition.
History:
M Thacker and Co was established in 1950 as a partnership between Morris and Letitia Thacker. The business they established deals primarily with domestic repairs and maintenance. With the post-war building boom, the company diversified and began to enter into construction.
By the late 1980ís the tax laws had changed. M Thacker and Co switched to a proprietary company. They also formed a family trust for income splitting. The original name of the company was Brenton Pty Ltd, which was a shelf company structure and incorporated in May 1982. The shelf company structure was then purchased by M Thacker and Co. M Thacker and Co changed their business operation to the company in June 1982. M. and L. Thacker became the directors and shareholders and the official company change of name was registered to M Thacker and Co Pty Ltd in December 1982.
Organisational Structure:
The plumbing contracting business is conducted through this trust. The trust also owns all the plant, equipment, motor vehicles and cash of the business.
2. The Employee under the M Thacker And Co
This fund commenced in June 1982. It provides benefits for employees on their retirement. The members are M. Thacker, L. Thacker, and A. Thacker. Due to changes in superannuation regulations, the fund has had to change its original trust deed.
Regulatory Issues:
The most important regulatory constraint put upon M Thacker and Co is that it adhere to building and plumbing requirements. Adequate training and accreditation must be achieved. Inspection of the companyís operations is rewarded by a license. Licensing requirements must be maintained and trade standards upheld.
Economic issues such as superannuation laws directly affect this company. Workersí compensation and work cover also have a direct bearing.
Other regulatory requirements include: Income tax (PAYE monthly returns and payments); Long Service Leave Payments; and Company annual returns.
Each government department (for M
Thacker and Co it is mainly Sydney Water), has standard
regulations which they company must follow. The companyís work
must be inspected by Sydney Water, AGL, and council inspectors.
Sydney Water for example, will make sure that all plumbing and waste
drainage work is connected to the sewer; that plumbers are properly
licensed; and that roof drains are connected to storm water lines.
There are serious penalties and fines if these regulations are not
followed.
Anne
Vogelnest