About this resource viii
Accessing online resources x
About the authors xii
Acknowledgements xiv
Unit 1 Planning a Business 1
Area of Study 1 The Business Idea
1 The business idea 3
1.1 Overview 4
1.2 BACKGROUND KNOWLEDGE Introduction to business 6
1.3 Identifying business opportunities 12
1.4 The personal motivation behind starting a business 17
1.5 Goal setting in business 20
1.6 Characteristics of successful business managers and business entrepreneurs 25
1.7 Business concept development 29
1.8 Market research and initial feasibility studies 32
1.9 APPLY YOUR SKILLS Feasibility studies 35
1.10 APPLY YOUR SKILLS Establishing a business 37
1.11 The contribution of businesses to the nation 39
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 47
1.14 EXTEND YOUR KNOWLEDGE Research and development 53
1.15 Review 56
Area of Study 2 External Environment
2 Planning a business — external environment 63
2.1 Overview 64
2.2 Business environments 66
2.3 Key legal and government regulations 70
2.4 Societal attitudes and behaviours 75
2.5 EXTEND YOUR KNOWLEDGE Societal attitudes and behaviours 78
2.6 Economic conditions 80
2.7 Technological issues 85
2.8 Global issues 89
2.9 Corporate social responsibility issues 93
2.10 EXTEND YOUR KNOWLEDGE Corporate social responsibility and the triple bottom line 97
2.11 APPLY YOUR SKILLS Corporate social responsibility management practices 100
2.12 Customers and competitors 103
2.13 Suppliers and special interest groups 107
2.14 APPLY YOUR SKILLS Effect of factors from the external environment 110
2.15 Review 113
Area of Study 3 Internal Environment
3 Planning a business — internal environment 121
3.1 Overview 122
3.2 Internal factors affecting business planning — resource needs 123
3.3 Business locations 127
3.4 Sources of finance 132
3.5 Purchasing an existing business or establishing a new business 139
3.6 Types of legal business structure — sole traders and partnerships 141
3.7 Types of legal business structure — companies 146
3.8 EXTEND YOUR KNOWLEDGE The right legal structure for the business 149
3.9 Types of business models 154
3.10 Business support services 161
3.11 EXTEND YOUR KNOWLEDGE Planning decisions and the internal environment 166
3.12 Planning tools and business plans 169
3.13 APPLY YOUR SKILLS Business plans and planning tools 173
3.14 Corporate social responsibility management issues regarding business planning 177
3.15 APPLY YOUR SKILLS Planning decisions in response to internal factors 182
3.16 Review 185
Unit 2 Establishing a Business 193
Area of Study 1 Legal Requirements and Financial Considerations
4 Legal requirements and financial considerations 195
4.1 Overview 196
4.2 Legal requirements 198
4.3 EXTEND YOUR KNOWLEDGE Legal requirements created by the three levels of government 209
4.4 Establishing bank accounts 213
4.5 Establishing financial control systems 215
4.6 Establishing record-keeping strategies 220
4.7 EXTEND YOUR KNOWLEDGE A basic record-keeping strategy — establishing a cash book 226
4.8 Choosing suppliers 229
4.9 Policies and procedures 234
4.10 APPLY YOUR SKILLS The need for policies and procedures 238
4.11 Technological and global issues 244
4.12 APPLY YOUR SKILLS Evaluate and justify decisions when establishing a business 250
4.13 Review 254
Area of Study 2 Marketing a Business
5 Marketing a business 261
5.1 Overview 262
5.2 Marketing, establishing a customer base and achieving business objectives 264
5.3 Internal and external environment factors affecting customer base and brand identity 272
5.4 Market research practices 276
5.5 Target market attributes — market dimensions and segments 280
5.6 Target market attributes — consumer trends and behaviour 284
5.7 The 7Ps of marketing — product and price 289
5.8 The 7Ps of marketing — place and promotion 295
5.9 The 7Ps of marketing — people, physical evidence and process 301
5.10 APPLY YOUR SKILLS Proposing and justifying marketing strategies 305
5.11 EXTEND YOUR KNOWLEDGE The target market and the marketing mix 307
5.12 The product life cycle 308
5.13 Customer relations strategies 314
5.14 An overview of public relations and its relationship to business objectives 318
5.15 Public relations strategies 324
5.16 APPLY YOUR SKILLS Achieving success in public relations 331
5.17 EXTEND YOUR KNOWLEDGE When things don’t go according to plan 334
5.18 Corporate social responsibility issues in establishing a customer base 336
5.19 APPLY YOUR SKILLS Establishing a customer base, marketing and establishing positive public relations 340
5.20 Review 343
Area of Study 3 Staffing a Business
6 Staffing a business 351
6.1 Overview 352
6.2 BACKGROUND KNOWLEDGE Overview of the employment cycle 354
6.3 Staff performance and achieving business objectives 356
6.4 Identifying staffing needs 360
6.5 The effect of technological development on staffing needs 364
6.6 Job analysis and job design 367
6.7 Recruitment methods 372
6.8 Selection methods 377
6.9 APPLY YOUR SKILLS Recruitment and selection 380
6.10 Employment arrangements 382
6.11 Employer expectations — contracts of employment, business loyalty and terms of notice 385
6.12 Employee expectations — conditions of employment, remuneration, job security and work–life balance 389
6.13 Legal obligations for staffing 395
6.14 EXTEND YOUR KNOWLEDGE Maintaining a healthy workplace 401
6.15 Employee induction 403
6.16 Global issues related to establishing staffing 407
6.17 Corporate social responsibility management in relation to staffing 410
6.18 EXTEND YOUR KNOWLEDGE Researching issues in staff management 414
6.19 APPLY YOUR SKILLS Gender equality in the workplace 416
6.20 Review 419
Glossary 425
Index 433
