Cambridge Business Studies Stage 6 Fifth Edition Brochure

Page 1

CAMBRIDGE

BUSINESS STUDIES

NEW EDITION

STAGE 6 FIFTH EDITION Brighter thinking, better learning for the Stage 6 Business Studies classroom

Marianne Hickey Dorian Kipriotis Tony Nader Tim Williams

cambridge.edu.au/busstudies


Cambridge Business Studies Stage 6 Fifth Edition combines comprehensive curriculum coverage with a powerful digital learning experience that brings the study of Business to life.

ALL THE TOOLS FOR HSC SUCCESS

STUDENTS:

70

Cambridge Business Studies Year 11 Stage 6 Fifth Edition

4.5 Voluntary and involuntary cessation

Involuntary cessation Occurs when the closure of a business is forced on its owner.

Brighter thinking, better learning The fifth edition of Cambridge Business Studies Stage 6 engages students with: new contemporary case studies and the most up-to-date statistics, legislation and business Maturity stage information available, enabling students to apply theory to real-world examples that reflect current business practices. New ‘Business Bites’ case studies include AfterPay, Elon Musk, HelloFresh, Growth stage Thankyou (Year 11) Google, Israel Folau, Kogan and YouFoodz (Year 12). 138

If a new product can begin to attract a core group of customers who display their loyalty to and satisfaction with the product by making

repeated purchases,313 then the business will enter Chapter 14 Key influences

Business Bite

the growth stage of the product life cycle. The business’s profitability will grow as sales expand. Attracted by opportunities for profit, competitors will enter the market. The marketing strategies of the business will also change. Businesses may choose to lower their price to deal with the In May 2019, professional increased threat of competitors in the market rugby player Israel Folau or consider the possibility of expanding their was found to be in breach distribution channels to allow greater access by of Rugby Australia’s code ofcustomers in areas where other competitors are conduct, following a social media post showing signs of success. It is also expected that in which he stated that gay people promotional costs will increase during this stage should repent or they wouldingo to hell. life cycle. a product’s

The maturity stage is the period of the product life cycle when sales will begin to plateau. The business is faced with a steady income stream with limited prospects for growth. Both the business’s product and competing products are readily available. Consumers now have considerable choice as to where to purchase the product. At this stage, the business must modify its marketing strategies to ensure continued success. During this stage, it is important that the business establishes a competitive advantage by differentiating its product from its competitors’ products. This could include strategies of price differentiation, after-sales service, unique forms of promotion or making it easier for consumers to access the product. Many car companies sell vehicles in the maturity stage of the product’s life cycle, and must use a range of strategies such as after-sales service to entice customers away from their competitors.

Post-maturity stage The post-maturity stage is the final phase of the product life cycle. During this stage, key decisions will be made that will ultimately affect the longterm survival of the business and its product. By now, the product is established within the market. Increased competition and changing consumer preferences may create a need for change.

He had previously been warned that his social media postings regarding homosexuality were incompatible with Rugby Australia’s ‘inclusiveness’ commitment. Rugby AustraliaThe concept of e-commerce has changed significantly over the terminated Folau’s contract, and pasthe20also years. Australia is currently ranked 10th in the world for its lost a sponsorship deal with Asics. use of online platforms to purchase goods. Kogan is a business that has

Business Bite

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experienced exponential growth as an online retailer providing customers

Source 14.9 In 2019, at a Rugby Australia with products ranging from electronics to groceries, insurance and finance. media update on the future of Israel Folau, a The use of a digital marketplace has helped Kogan to make everyday goods photographer noticed this ARU history timeline and services more affordable and which, ironically, positioned a photo of a triumphant Folau after the Wallabies’ 2015 accessible for consumers. According victory alongside a reference to the ARU’s 2014 to the Australian Financial Review, the signing of an anti-homophobia and inclusion number of active Kogan customers framework statement.

Activity 14.1 Create a mind map

Create a mind map that highlights the key stakeholders in the employment relationship and the role of each stakeholder in this relationship.

Change is an inevitable feature of any business. It is brought about by factors within the business’s internal and external environments. The changing nature of social, political and economic forces in Australia has had a considerable impact on the employment relationship. Employers and employees now coexist in an environment where the most successful businesses are those that are able to respond effectively to these changes and ensure that all those in their workforce are willing to accept and embrace the changes.

1

The employment contract is between an employer and their employee. Many of the conditions outlined in this contract are controlled by various state and federal laws, and apply to all workplaces. The growth of outsourcing and the increase in self-employment has meant that the traditional definition of an employee has changed. As discussed in Chapter 13, an employee can no longer be defined simply as an individual who offers his or her labour to a business in return for payment, but could also be an individual who acts as a consultant to business in developing effective marketing

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or a partnership, the owners of the business hold

to meet their financial

of the business will take action in the Supreme Court, requesting a court order for the assets of the business to be sold. A business goes into receivership when an independent party (receiver) is appointed by the court to examine possible ways for the business to trade itself out of trouble. This could be selling the business to new owners, restructuring the organisation with a lower cost base or hiring a new management team. If no realistic and workable solutions are found, a business could face liquidation. Liquidation occurs when the assets of the business are sold in order to recover outstanding debt. The receiver takes responsibility for the sale of assets and the recovery of debt. The proceeds raised from the sale will fund any debt the business owners have been unable to repay previously. If debts remain, the personal savings and assets of the owners may be used to repay this debt. The owners of the business are considered bankrupt as they are unable to repay the debt

and then, if necessary, Bankruptcy A legal declaration that a liquidation. If liquidation person or business has more liabilities than assets. occurs (that is, the assets are sold), once the creditors have been paid, shareholders in the company will receive the remaining funds. Unlike sole traders and partnerships, in the case of a public or private company the receiver is legally unable to request that the court order the sale of the personal assets of the owners (shareholders).

Ethical Spotlight

4.1

In 2020, Virgin Australia collapsed and the investments of its shareholders became worthless. To what extent should the managers of a business be responsible for the losses that investors incur? 10/05/21 7:58 PM

Surplusethical funds (if available) opportunities to analyse and discuss the retained by business owner/s issues and challenges of a rapidly changing global trader or business environment, and toSole explore the social partnership If outstanding debts, responsibility of the business world. business owner/s declared

carefully chosen language, accessible to all Public or Surplus funds private company available) paid students without compromising depth (iftoof content. shareholders

even more interactive digital resources to bring Company wound up Business Studies to life with content-specific videos, drag-and-drop rich video material, roll-over Source 4.12 The processactivities, of winding up a business definitions and ongoing updates.

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Digital features

Liquidation Occurs when all the assets of a business are sold to generate cash to pay liabilities and creditors.

grew by 36 per cent during 2020 as many consumers transitioned to online shopping with the e-tailer during the COVID-19 lockdowns.

a new integrated whole-book case study for employment contract HSC on theThetransformative Australian business, Cochlear.

14.2 Legal – the current legal framework

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Source 7.5 Digital marketplaces have become

The employment relationship ispopular subjectamong to a many Australians. considerable number of regulations and laws, as well as the involvement of various government organisations. Governments have established the legal framework by which employers Digital quiz see the and employees are encouraged to coexist Please Interactive cooperatively. The legal framework is a key area Textbook to access digital activities. of the business’s external environment. 9781009031578c07_p135-153.indd 138

investigations into the disruptive impact of COVID-19, including the effects of the pandemic on marketing plans and global supply chains, sensitively woven throughout the series where relevant.

Source 4.11 A business may close when its owner decides to end operations. In April 2020, cashalso face the responsibility for allitits If the obligations strapped Virgin Australia announced hadfinancial gone into obligations. voluntary administration, the largest airline to buckle under the strain of is theunable COVID-19tooutbreak. business repay its debt, creditors prospect of receivership

Cambridge Business Studies Stage 6 Year 12 Fifth Edition

However, limited expenditure on promotion could hinder the business as it attempts to gain market share. On the other hand, a business may launch a product with a low price to establish quick entry into the market and make considerable expenditure on promotion. This pricing strategy is known as penetration pricing (discussed in Chapter 8 in detail). Kmart has been successful in the use of this pricing strategy. Its ‘Low Prices for Life’ campaign has been effective in highlighting the brand’s commitment to affordably priced homeware and essential products.

Involuntary cessation

Involuntary cessation occurs when the closure of the business is forced on the owner. Reasons for involuntary cessation include: • the death of the owner • lack of demand for the product that is offered by the business Insolvency When a business cannot • unfavourable economic conditions, which pay all its liabilities, both current and discourage consumer spending non-current. A business that is insolvent Voluntary cessation • increased competition within the will most likely fail because creditors When the owner of a marketplace, meaning that the business is will demand repayment and the business business decides to cease cannot afford to pay loans without unable to continue operating in competition its operations, it is known selling assets. with low-cost competitors Chapter 4 Business growth and decline 71 as voluntary cessation. • the Supreme Court of New South Wales It is a decision taken by the owner and is not ordering that the assets of the business forced on the owner by other parties involved in be sold to cover the unpaid debt of the the business. Reasons for voluntary cessation business. The proceeds The cessation process include: The most commonthemselves. cause of involuntary Receivership A situation whereby • a loss of enthusiasm and ideas the saleto repay of these cessation is the inabilityfrom of the business an independent manager (receiver) The nature of the cessation process will often • the decision to retire given debt.business – Often creditors assets will take will courtbe action afterto the has been appointed by the court to depend on the legal structure ofitsthe • a party offering to purchase the business repeated failed attempts to maketo thecover business administer a business that has become creditors the debt that is, whether the business is registered as a • declining profits repay the debt. A business that insolvent. A receiver can either trade owed tocannot them.repay its sole trader, partnership, or private • the desire to seek new challenges andpublic move company debt is insolvent. the business out of financial trouble Public and private into a new company. business venture or liquidate its assets and close the If the business is registered as a sole trader companies that are unable business to recover outstanding debt. Voluntary cessation Occurs when the owner of a business decides to cease its operations. The decision is not forced on the owner.

The cessation of the business may be a voluntary decision made by the owner. Alternatively, the closure may be forced on the business by external interests. This is known as involuntary cessation.

• the need to rest from the often gruelling hours of work in the business.

Insolvency

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Receivership

Liquidation

bankrupt

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A wide variety of theoretical and practical activities help students to develop key comprehension, analysis, research and discussion skills. Chapter 10 Influences on financial management 24

A focus on skills development and meeting the syllabus outcomes

Cambridge Business Studies Stage 6 Year 12 Fifth Edition

Emergence of global consumers Globalisation enables higher incomes, and many parts of the world have a rapidly growing middle class who wish to buy goods and services that improve their quality of life. For example, by 2025 India’s middle class will have grown from about 5 per cent of the population to more than 40 per cent, which will create the world’s fifth-largest consumer market. The demand for consumer goods such as televisions and other household goods will be enormous. Globalisation opens up new markets, and operations may need to change the features, design, quality or information for a good or service to suit these new markets. Products may need some changes to suit particular aspects of the target market in different countries. In other countries, the business may not need to alter its core product at all to suit the same target market. It may be possible to supply a standardised product that needs only a small change to suit the culture of the local market. Owing to differences in language, religion, tastes and ethics, it is very important that a business planning to sell in a new market adequately researches that market to reduce the chances of the product failing. It is also important for operations to have the flexibility to modify products as required.

Source 10.3 An owner may decide to reinvest profits back into the business.

Double-page concept maps introduce each unit, illustrating the various aspects of how topics interlink.

Ethical Spotlight

2.1

Consider the implications of preventing some nations from trading with each other. Is this fair? Why?

Activity 2.1 Discussion

1 What is Brexit? 2 Analyse the impact of Brexit on businesses that operate in both the United Kingdom and Europe.

Business Bite 102

Cambridge Business Studies Stage 6 Year 12 Fifth Edition

Topic 2 Marketing

The benefits of free trade agreements are obvious, and the Australian Government is a keen supporter of open markets. Agreements provide new export opportunities for farmers, businesses and investors as well as less expensive imported inputs and finished products. Australia has a number of new agreements with its trading partners. In 2020, agreements with Indonesia, Peru and Hong Kong came into force. This is in contrast to many nations that have become more internally focused in the face of global ‘shocks’ and have raised the level of protection for their domestic industries. The use of tariffs and other methods of protection has increased in the G20 (highly developed) countries since the Global Financial Crisis and has been reinforced with Brexit, slow economic growth in Europe, and the US-China trade war. Donald Trump, who until 2021 was the leader of the largest economy in the world, believed that protection was key to building prosperity and strength for America. In parts of Europe, politicians who support protectionism have gained more political power, while France and Germany have been shifting in recent years to more nationalistic economic strategies. The world is increasingly becoming more regional, and it may lose many of the benefits gained from free trade. The Source 2.6 Australia has trade agreements with a range of countries around the globe. uncertainty created may impact Australian businesses in the global market.

103

Marketing 6.1 Factors influencing customer choice 5.1 Strategic role of marketing goods and services

5.4 Types of markets

5.2 Interdependence with other key business functions

5. Role of marketing

• Resource • Industrial • Intermediate • Consumer • Mass • Niche

5.3 Production, selling and marketing approaches

6.2 Consumer laws

• Psychological • Sociocultural • Economic • Government

6.3 Ethical aspects of marketing

• Truth, accuracy and good taste in advertising • Products that may damage health • Engaging in fair competition • Sugging

8.1 Market segmentation

• Advertising • Personal selling and relationship marketing • Sales promotions • Publicity and public relations

7.1 Executive summary

Communication process

2.2 Technology

7.4 Establishing market objectives

• Swot • Product life cycle

8.7 People, processes and physical evidence

7.2 Situational analysis

7. Marketing process

• Skimming • Penetration • Loss leaders • Price points

Pricing strategies

Price and quality interaction

8.8 E-marketing 8.6 Place/distribution

7.5 Identifying the target market

8.9 Global marketing

Channel choice

• Intensive • Selective • Exclusive

Physical distribution issues

• Transport • Warehousing • Inventory

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monitoring and controlling

• Developing a financial forecast • Comparing actual and planned results • Revising the marketing strategy

2.7 Environmental sustainability

Every aspect of business is influenced by its dynamic external environment, and the operations function is no exception. Influences on business operations include globalisation, technology, customers’ quality expectations, costbased competition, government policies, legal regulation and environmental sustainability. In addition, business operations are shaped by the requirements of corporate social responsibility. These influences can provide opportunities for improvements to the operations process and strategies. However, they can also threaten the ability of a business to achieve its objectives for operations.

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Topic introductions, aligned with the syllabus, outline the focus and indicate the expected outcomes. A list of key terms to be covered in the chapter is also provided. 2

Topic 1 Operations

Cambridge Business Studies Stage 6 Year 12 Fifth Edition

3

TOPIC 1

Operations Content Students will learn about the role, influences, processes and strategies of business operations, through examination of current business issues and investigation of real and potential business situations.

This topic focuses on the strategies used by large businesses to manage their operations effectively.

Introduction Business operations is concerned with the creation of goods and the provision of services by a business. It is integrated with the other key business functions, in particular marketing, because operations produces products that satisfy the wants of the target market. Operations involves planning, purchasing inputs, inventory management, manufacturing techniques and processes used to convert inputs into outputs. Operations managers must consider the influences from the business environment. Globalisation has provided opportunities to expand and outsource operations overseas, while technological developments have

By the end of this topic

improved the efficiency and quality of operations. Some businesses invest heavily in research and development to gain a competitive advantage with new products, while others will change and improve existing products. Operations managers are increasing their emphasis on quality management and achieving world’s best practice. Corporate social responsibility is a necessary part of operations. Pressure from stakeholders and new legislation have meant that a business’s impacts on society and the environment must be considered and possibly included in the costs of the operations function.

Students will have learned to: • discuss how operations strategies balance quality and cost • examine how operations strategies are impacted by globalisation • identify the impact of government policies on operations management • explain why operations management needs to be concerned with corporate social responsibility • describe the operations management features of tertiary industry businesses

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Source 2.2 Business is influenced by many factors, including environmental sustainability.

• evaluate how a business’s performance is impacted by effective management • investigate current issues affecting businesses • organise and evaluate information about real and potential situations affecting businesses • communicate, using effective formats, details of business information, issues and concepts.

• Difference between legal compliance and ethical responsibility • Environmental sustainability and social responsibility

this type of finance are a tax deduction for the business. Debt finance is generally categorised according to the term of the loan (that is, its repayment period). Generally, a short-term debt 2.1 Globalisation or current liability would be repayable within 12 Globalisation givesmonths. consumers opportunity to By the contrast, a long-term loan or nonDigital quiz a period purchase products from the business that provides current liability would be repaidPlease over see the the most value for longer money.than It is12 highly likelyThere that are Interactive months. also sources Textbook to students doing theirofBusiness Studies finance that are homework external to the business but access digital activities. will be using a penwhich made are by anot French company a loan. These include venture and checking theircapital socialand grants. Globalisation Different national status on a Chinese laptop economies integrated into one market for while having some twoShort-term borrowing easy trade of goods and services, and the minute noodles made by A business should use short-term borrowing development of a world economy owing one of the world’stolargest solve short-term problems, such as a cash to the increasing flow of goods, services, c o n s u m e r p a cflow k a g shortage, ed to finance help maintain thearound liquidity of a people, and information goods companies, based the world. in Switzerland. Businesses operate in a dynamic and highly competitive global environment, which has a marked effect 9781009031578c10_p198-219.indd 201 on business operations. Globalisation has significantly influenced location decisions by making it possible to reduce costs, because businesses can locate closer to their sources of raw materials and where labour is less expensive. Governments of developing nations where these resources are in abundance may offer incentives, such as low tax rates, to attract businesses. Globalisation has created many opportunities for Australian businesses to expand into overseas markets. This may be as simple as importing materials or establishing operations in a country where it is cheaper to produce goods. Therefore, the impacts of globalisation are twofold. First, there is the opportunity to reduce costs and improve quality through establishing a global supply chain. Second, there is access to a global market to sell the outputs of operations.

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Cambridge Business Studies Stage 6 Year 12 Fifth Edition

The Green Gardener: Situational analysis SWOT analysis

STRENGTHS

– Easy to contact – Very low start-up costs – Known market – No transport required – Capable, hard worker – Use of father’s equipment – Reliable, trustworthy – No need to borrow finance – Established relationship with neighbours

O

T

OPPORTUNITIES

– Ageing local community – No real competition established in the area – New residential development with smaller yards nearby

Additional exam-style questions enabling students to apply their skills. 196

Geographic segmentation is the process of dividing a market or customer group into smaller markets based on different geographic locations, such as nations, states or local government areas. A business may choose to operate in specific geographic areas so it can focus on exclusively meeting the needs and wants of people in those areas. This presents the business with an opportunity to adjust its marketing plan to suit the buying behaviours of consumers in specific geographic locations. McDonald’s India, for example, does

Cambridge Business Studies Stage 6 Year 12 Fifth Edition

End-of-chapter tasks Chapter 9 Role of financial management

Chapter revision task 1

Solvency

Growth

Current liabilities

Efficiency

Profits

Liquidity

Funds

Goals

Liquidity

Objectives

Owners

5

6

Term

Explanation To provide a return on the owner’s initial investment

Growth

To be able to pay all debts as they fall due

Profitability

To achieve a larger level of profit from a smaller amount of funds

Solvency

To increase the size of the business compared to its competitors

1

– A newly built retirement village that has been advertising its features to the neighbourhood – Existing large mowing service business operating in the business district nearby – Heavy school workload – Bad weather – Local council is allowing residents with large blocks of land to subdivide their properties for duplex, villa home or battleaxe block development

Efficiency

To be able to pay short-term debts as they fall due

9

A Profitability B Liquidity 2

3

4

Business goals

Business objectives

C Efficiency D Growth

A pay all of its short-term liabilities as they fall due. B pay all of its short-term and long-term liabilities as they fall due.

C The ability of a business to repay its total debts D The cost of goods sold

C Solvency D Liquidity C not pay all of its current liabilities as they fall due. D not pay its short-term and long-term liabilities as they fall due.

Short-answer questions

C To increase solvency D To increase liquidity

Net working capital is: A current assets ÷ current liabilities. B current assets + non-current liabilities.

Roberto is the financial manager of Hetaphone Pty Ltd. His main role is to ensure that short-term creditors are paid on time. Which financial objective is Roberto mainly concerned with? A Profitability B Growth

The financial manager of Alexandria’s Coffee House has decided to monitor and control all areas of spending in the business. What is the purpose of this? A To increase spending B To decrease expenses

C It is through the use of financial resources that a business is able to obtain the best inputs. D It allows a business to acquire highly skilled and motivated employees.

10 A business is insolvent if it can:

What is solvency used to determine? A The profitability of a business B The ability of a business to repay its short-term debts

C Reducing expenses to increase profit D Keeping cost of goods sold low and gross profits high

Why is the effective management of a business’s financial resources important in the long term? A It encourages a business to develop expensive marketing strategies. B It is through the effective use of financial resources that a business is able to achieve its financial objectives.

Which objective of financial management is concerned with the ability of a business to efficiently manage its revenue and expenses?

C Net profit D Gross profit

What does ‘efficiency’ refer to in the financial management of a business? A Increasing the sales of a business B Ensuring there are enough liquid assets in the business

8

C Property D Cash

Of the following measures of profitability, which will provide the most precise measure of the profitability from the operations of the business? A Earnings before interest and tax B Earnings after interest and tax

7

Match the following terms with their explanations.

Liquidity

Which of the following is generally the most liquid asset of a business? A Accounts receivable B Inventory

Multiple-choice questions THREATS

197

Complete the following passage using the terms provided in the list below. Profitability

The strategic role of financial management is to ensure that the business has enough ________ to meet its needs and provide a return to its ________. The finance function establishes the financial ________ that it will need to achieve to enable the business to achieve its strategic ________. The business pays tax on its ________ for each financial year. Financial managers will determine their ________ which include ________, ________, ________, ________ and ________. Some assets will need to be more liquid in the short term in order for the business to pay ________ as they fall due. This will ensure that the business can maintain its ________. 2

To generate enough revenue to allow Josh to pay for his university fees and living expenses while studying.

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Geographic

Source 13.6 The Green Gardener’s SWOT analysis

1

Outline the five objectives of financial management.

2

Distinguish between goals and objectives, using examples.

3

Explain the relevance of short-term and long-term time periods in the financial management of a business.

Extended-response question

C current assets – current liabilities. D current liabilities – non-current liabilities.

Investigate why it would be important for a business to understand the potential conflict between the main objectives of financial management.

Source 8.2 The 7Ps of the marketing mix

For the first year of operation, Josh’s objectives are to: • •

Overdraft A bank overdraft gives a business flexibility to borrow money from a bank at short notice through the business’s Debt finance Any type of loan that a transaction account. A business obtains that is issued by a bank may allow a business promise of repayment on a certain date at a specific rate of interest. to overdraw its transaction account up to a specified Overdraft A loan arrangement with the bank to draw more money than is in an maximum limit as agreed account, up to a maximum limit. Interest is between the bank and the charged daily on the overdrawn balance. business.

Exam preparation questions at the end of each chapter.

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strategies to generate awareness of and sustain interest in the product, and the most suitable pricing policies and distribution channels. There are a number of methods of market segmentation.

– Affected by the weather – Quite young – Social pressures – HSC examinations – Demands of school assessment and co-curricular activities – Lack of practical business experience

W

Factoring

WEAKNESSES

S

Commercial bills

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Visual aids introduce and reinforce business concepts and include coloured tabs on each page to direct students to the topic with ease. mass market – they cater for the needs of the whole market, and for all types of consumers. Factors such as age, gender and income are not important. Examples include electricity, gas, rail services and postal services. Market segmentation is the process of dividing customers into smaller groups based on characteristics. It allows businesses to focus their efforts and resources on a section of Chapter 13 The business plan using business report format 309 the market. By focusing on a particular target group, a business is able to identify the specific needs Market segmentation The process of of this group and tailor its dividing customers into smaller groups marketing plan accordingly. based on characteristics. It would consider the Geographic segmentation The features that consumers process of dividing a market or customer group into smaller markets based on of this target group would different geographic locations, such as be looking for in a product, nations, states or local government areas. the appropriate promotional

Overdraft

Source 10.4 Short-term borrowing

Superior HSC exam preparation support in the Print and Interactive Textbook includes comprehensive end-ofchapter material and revision tasks for every topic.

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Short-term

Topic-specific words are highlightedborrowing throughout Debt Debt finance is any money has margins been the text borrowed. and These defined inthat the to aid immediate borrowed funds will need to be repaid within a specified period and incur interest comprehension. charges and administration fees. The costs of

The best exam preparation available

• assess businesses to find out the relationship operations management has with other key functions of the business • explain how a business can maintain its competitive advantage through use of its operations strategy • recommend feasible operations strategies for a business.

Outcomes Students will: • analyse critically the role played by business within Australia and internationally • evaluate how internal and external changes can influence management strategies • discuss management’s responsibilities regarding social and ethical matters • analyse how large and global organisations use processes and functions • explain the impact management strategies have on businesses

Answer these questions on paper or in the Interactive Textbook. 1 Outline two advantages of globalisation for the operations function of a business. 2 Outline the impact of an increasing value of the Australian dollar on an Australian business that imports parts to assemble into finished goods. 3 Explain why multinational businesses have a global web of operations. 4 Analyse the impact of free trade for Australian businesses. 5 Use the Austrade website to research a case study of an Australian business that sells in an overseas market. Many case studies are available at FTA Case Studies and Videos (https://www .austrade.gov.au/australian/export/freetrade-agreements/fta-case-studies). Outline and explain the business’s achievement in the overseas market.

Glossary definitions are also listed at the back of the book for revision and easy reference.

25% of indicative time

Principal focus

Comprehension

2.8 Corporate social responsibility

2. Influences

Source 2.1 Influences

• Global branding • Standardisation • Customisation • Global pricing • Competitive positioning

Review 2.1

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2.6 Legal regulation

7.3 Market research Distribution channels

25

efficiency and quality control. This compares with the 2016 Brazil Olympics, which appeared so disorganised during the construction phase that no amount of money was able to ensure that venues were ready for competition. The Indian Government’s preparation for the 2010 Commonwealth Games equally frustrated the Commonwealth Games Organising Committee, owing to the last-minute approach to organising this mega-event. The Indian way of doing Jugaad Making use of what resources things is termed Jugaadare available to complete a project in-time. In the Jugaad imminently before it is due; a quick fix to a problem using whatever is available. approach, planning, operations strategy and strict project management are considered wasteful. Scheduling problems are overcome by adding more resources. Despite criticism, this approach can also be considered highly flexible, innovative and frugal.

business. The most common forms of short-term borrowing include an overdraft, commercial bills and factoring.

finance available to a business. These usually involve some type of loan (borrowed funds) and are therefore called debt finance.

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2.5 Government policies 7.7 Implementation,

8. Marketing strategies

Cost, market, competition-based

21

2.3 Quality There are a2.4 Cost-based number of external sources of expectations competition

7.6 Developing marketing strategies

• Opinion leaders • Word of mouth

Different cultures When relocating or expanding operations, a business will encounter differences in the way the business operations need to be organised and managed. It is advisable for global businesses to use local experts who can help prevent issues caused by cultural clashes and communication problems. For example, the international organising committee for megaevents must work with local government, which in turn must work with local contractors and builders to deliver a well-resourced, organised event such as the Olympic Games or the Commonwealth Games. The 2020 Japan Olympics were well planned using the kaizen ‘continuous improvement’ management approach to project scheduling, emphasising

10.2 External sources of finance

2.0 Introduction 2.1 Globalisation

Elements of the promotion mix

8.3 Products

• Goods and/or services • Branding • Packaging

Chapter 2 Influences

z

8.5 Promotion

8.2 Product/service differentiation and positioning

8.4 Price

• Deceptive and misleading advertising • Price discrimination • Implied conditions • Warranties

6. Influences on marketing

201

Chapter 2 Influences

creating a highly competitive global market. By using a large-scale operations model, businesses can share costs and reduce the expense of developing, producing and distributing products to the global market.

the European Union and the United States– Mexico–Canada Agreement (USMCA). There are important implications for Australian businesses if they are excluded from these economic ‘clubs’. For example, Australian businesses will have to source inputs and components from other countries and will find it very difficult to export to countries where Australia is not a member of the trade agreement. With the growth of the World Trade Organization (WTO) there has been a similar growth in global business, joint ventures, strategic alliances, foreign subsidiaries and multinational corporations, all

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create a lawnmowing business that exceeds his customers’ expectations gain a minimum of 15 clients 9781009031578c08_p154-177.indd 156

Continued →

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NEW HSC CASE STUDY:

COCHLEAR NEW integrated whole-book case study of a transformative Australian business.

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A NEW LEVEL OF DIGITAL SUPPORT FOR STUDENTS

THE INTERACTIVE TEXTBOOK POWERED BY CAMBRIDGE EDJIN The online version of the student text delivers a host of interactive features to enhance the teaching and learning experience, and when connected to a class teacher account offers a powerful Learning Management System.

I n t e r a c t i ve f e a t u r e s Rich video material, including additional explanatory videos to extend student knowledge, are indicated by a QR code (for instant access) or an icon within the Print Textbook. Auto-marked quizzes in the end-of-chapter sections allow students to quickly check their recall of the content. Answers feed into the Learning Management System for reporting. Workspaces for Review questions allow students to enter their answers directly into the Interactive Textbook. Students can then self-assess using a fourpoint scale, and use a red flag to alert their teacher if they had trouble with a question. The answers, self-assessment and red flags feed into the Learning Management System for reporting. Scorcher, our timed, online competition, allows students to check their recall of key concepts and other content, while competing against each other and other schools.

Interactive Textbook

Directed Tasks

Teacher feedback

Scorcher

Links to external websites Roll-over glossary definitions immediately define important terms.

Bookmarks

Bookmark folders can be created by students with direct links to content they have marked. Access to the Offline Textbook, a downloadable version of the student text with note-taking and bookmarking enabled.

More Resources

The Interactive Textbook is available as a calendaryear subscription and is accessed online through Cambridge GO using a unique 16-character code supplied on purchase. It may be activated up to three times in non-concurrent years at no additional cost. The Interactive Textbook is provided with the printed text, or is available for purchase separately as a digital-only option. cambridge.edu.au/go

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TEACHERS:

SUPPORTING YOUR DELIVERY OF THE STAGE 6 COURSE

A powerful digital learning experience Schools that adopt Cambridge Business Studies Stage 6 Fifth Edition will receive complimentary access to the Online Teaching Suite which offers: •

engaging digital resources to provide today’s students with carefully chosen digital content for independent learning and flipped classroom environments.

the tried and tested Cambridge Edjin Learning Management System (LMS), which combines taskmanagement tools with a suite of individual student and whole-class reports. Teachers can also choose to view student responses and provide feedback.

See over page for more details.

Additional guidance for teachers Teachers are also provided with: •

lesson preparation and classroom management support during remote learning sessions

guidance on preparing Year 12 students for their HSC exams

Digital • feature

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a task manager that allows teachers to set different tasks for individuals based on their abilities.

Free updated content for all users every two years Updated content will help students keep in step with a constantly changing and increasingly global business environment. Updated statistics, legislation and business information will be added to the Interactive Textbook and will be available to current users at no additional cost. A complete list of updates will be available as a downloadable document on Cambridge GO.

Guided onboarding for teachers Clear instructions and immediate access to How-to support resources allow teachers and students to take advantage of the full interactive and online experience from Day 1, Term 1.


A NEW LEVEL OF DIGITAL SUPPORT FOR TEACHERS

THE ONLINE TEACHING SUITE POWERED BY CAMBRIDGE EDJIN The Online Teaching Suite combines the Interactive Textbook powered by Cambridge Edjin and its rich digital content with a suite of supplementary resources and a powerful Learning Management System when linked to students using the Interactive Textbook in a class.

NEW Teacher support The Task Manager can be used to direct students on a custom activity sequence based on their ability. The Online Teaching Suite records student scores on quizzes, self-assessment scores and red flags raised by students in all sections, and end-of-chapter review questions. Reports on individual and class progress are available for download. Data from student Interactive Textbooks will directly feed to the Online Teaching Suite. Access to student Workspace entries allows for efficient and time-saving monitoring of work and provides students with the opportunity to alert teachers to problems with specific questions. Teachers can choose to give students access to the suggested responses for the exercises online and also provide feedback to individuals on specific questions.

Task Manager

Reports

My classes

Annotated model responses to end-of-chapter exam preparation questions.

Features you know and love •

Teaching plans

Sample HSC exam questions and solutions

Additional downloadable and customisable activities

Additional multiple-choice, short-answer and extended-response questions with solutions and marking criteria

Suggested solutions and marking criteria to textbook activities

PowerPoint presentations for every chapter

Financial statement examples

Teacher resources

The Online Teaching Suite is accessed online through Cambridge GO. Your Cambridge Education Resource Consultant will provide access to the Online Teaching Suite if your school has purchased or booklisted Cambridge Business Studies Stage 6 Fifth Edition as a whole-class resource. The Online Teaching Suite is also available for purchase separately and can be activated using the unique 16-character code supplied on purchase. cambridge.edu.au/go

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CONTENTS

YEAR 11

YEAR 12

Topic 1: Nature of business

Topic 1: Operations

1. Role of business

1. Role of operations management

2. Types of businesses

2. Influences

3. Influences in the business environment

3. Operations processes

4. Business growth and decline

4. Operations strategies

Topic 2: Business management

Topic 2: Marketing

5. Nature of management

5. Role of marketing

6. Management approaches

6. Influences on marketing

7. Management process

7. Marketing process

8. Management and change

8. Marketing strategies

Topic 3: Business planning

Topic 3: Finance

9. Small to medium enterprises

9. Role of financial management

10. Influences in establishing a small to medium enterprise

10. Influences on financial management

11. The business planning process

12. Financial management strategies

12. Critical issues in business success and failure 13. The business plan using business report format

11. Processes of financial management

Topic 4: Human resources 13. Role of human resource management 14. Key influences 15. Processes of human resource management 16. Strategies in human resource management 17. Effectiveness of human resource management Case study – Cochlear Limited 18. Cochlear Limited: Introduction 19. Operations at Cochlear Limited 20. Marketing at Cochlear Limited 21. Finance at Cochlear Limited 22. Human resources at Cochlear Limited

Contents are subject to change prior to publication.

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AUTHORS

Marianne Hickey

Tony Nader

Marianne Hickey, BA Dip Ed, obtained her degree from Macquarie University, majoring in Economics. She is a highly experienced teacher of Social Sciences in New South Wales schools. Currently teaching at Epping Boys High School, she has taught Business Studies since its inception at Epping. Marianne has also taught senior Geography and Economics as well as junior Social Science subjects such as Commerce. Marianne has experience as a year coordinator and for many years took part in marking the HSC Economics papers.

Tony Nader is a highly experienced teacher of Business Studies in New South Wales schools. He has been an HSC exam marker and has written exam material and books for Commerce, Economics and Business Studies. Tony also lectures HSC Business Studies students in preparation for their final exam. Tony has served as a Chief Examiner, Head Judge, Senior Marker and Assessor for the NESA HSC Economics examinations and has also served as Chief Examiner of the Catholic Schools Secondary Association Economics Trial Committee. Tony also writes a number of independent Business Studies exams. He is currently Head of Human Society and its Environment (HSIE) at Marist Catholic College Penshurst.

Dorian Kipriotis Dorian Kipriotis completed his Business Degree at UTS, majoring in Marketing. After several years working in the corporate sector he transitioned into secondary teaching where he has served as an HSC Business Studies Marker and Judge Marker. Dorian has been fortunate to guide numerous state-ranked students in HSC Business Studies and Economics. He has led many Trial HSC Business Studies Pilot Marking committees and lectures students in preparation for their HSC exams. Dorian has held various senior leadership positions in NSW Catholic schools and is currently the Leader of Teaching at Bethany College in Hurstville.

Tim Williams Tim Williams began a career as an accountant before moving into the hospitality industry. However, an unexpected shift into teaching proved immensely satisfying for Tim who then spent five years as a casual teacher in the NSW Department of Education honing his skills. Following this, he entered the private system and spent over 10 years at Redlands, culminating as head of Social Sciences before a move to Abbotsleigh, also as head of faculty. Tim is an experienced social sciences teacher in both Board of Studies and International Baccalaureate courses. Tim is currently the head of Accounting, Business Innovation and Economics as well as Head of Year 11 at Eynesbury Senior College.

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BUSINESS STUDIES Online & Downloadable Teacher Resources

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Year 11 - available September 2021 Textbook: print & digital

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n

978-1-009-03152-3

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978-1-009-01350-5

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978-1-009-01355-0

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Year 12 - available August 2021 Textbook: print & digital

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978-1-009-03157-8

$84.95

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978-1-009-01357-4

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978-1-009-01359-8

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P: 1800 005 210 F: 1800 110 521 enquiries@cambridge.edu.au Private Bag 31 Port Melbourne VIC 3207

ABN 28 508 204 178

ARBN 007 507 584