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Business management outcome 1

Business management outcome 1. SMALL, MEDIUM, AND LARGE BUSINESSES. LARGE Employs more than 200 or more people. Has thousands of owners. Separation of ownership and management. What makes a large business different?

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Business management outcome 1

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  1. Business management outcome 1

  2. SMALL, MEDIUM, AND LARGE BUSINESSES. LARGE Employs more than 200 or more people. Has thousands of owners. Separation of ownership and management. What makes a large business different? Appoints professional managers to help operate the business.As the other businesses just employ themselves. SMALL Fewer then 20 employees. Can be defined into 3 categories; - Non-employed: they don’t employ anyone (except owner) - Micro: employs fewer than 5 - Other: more than 5 but fewer than 20. Whats different about it towards the medium and large? Only sells products to few customers, only has a few owners. The owner is mainly involved in the day to day business. MEDIUM Employs 20 or more people but no more than 200. What makes this different? The medium businesses doesn’t really have anything unique to make it different.

  3. Internal business environment Internal environment deals with the pressures from within the organisation. Outside factors like legislation can impact the environment with issues relating to occupational health and safety. Factors that affect the internal environment can be grouped into 5 different groups. These groups are: Customers, suppliers, competition labour and unions and financial institutions.

  4. Customers • Changing to suit the vales of them.Eg. The pressure from ecologically friendly products. • Small business will have to suit the demands from customers.Eg. Brining in new products for their taste. Competition Businesses operate in a very competitive environment where the market as a whole can impact the business. Its environments can be characterised as open, fierce or stable. Financial intuitions Mainly influenced by financial institutions or creditors who provide financial resources. Suppliers Availability of materials will affect the ability to manufacture its products or provide services. Labour and union Unions deal with individual contracts and agreements and awards.

  5. External environment External environment is known as the general or macro environment. It is made up of pressures from the society and cultural, ecological, politics and law, regulations and technology. Cultural Based on society’s basic values, perceptions, preferences and behaviors. Eg. A Chinese restaurant should be located in the right area. Social Refers to the way members of society relate to each other. Eg. Issues relating to environment. SAY NO TO PLASTIC BAGS campaign. Political and Regulatory Laws that that monitor and regulate the operations of a business. Eg. Laws regarding false and misleading advertising and zoning regulations.

  6. Economic Unemployment, interest rates, taxes, inflation and standard of living. Trying to cut back for cost saving, also trying to promote at the same time. Business are suffering from this. Eg. After September 11 tourism has had a big fall as many more people have become scared to fly. Technological Big impact on the communications area. Become more efficient with mobiles and computers and faxes. Etc. Provided more opportunities for growth. Eg. Made banking easier with online, ATM,EFTPOS. Ecological Concerns about the environment. Trying to get a good name with all customers. Eg. “turning green” becoming environmentally friendly to attract more customers.

  7. Business support services and networks. Business support services provide advice such as legal, financial, community based groups and associations. Some advice that can be given to a new business owner is to talk to other small business owners to get more information. Also to look through magazines to see whats the current trends so you business can suit the needs for the attracted customers.

  8. Business performance Its good to look at all other aspects of the small business so it can be evaluated using financial and non financial factors. Most common for a small business is the level of profit. The level of profit is generated by matching revenue with expenses, resulting in either profit or loss for a period of time.

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