Revision Lecture 2024

Topics to be covered Announcements
Overview Topic 1 Topic 2 Topic 3 Topic 4 Topic 5 Topic 6 Summary 1

Topics to be covered Announcements
Overview Topic 1 Topic 2 Topic 3 Topic 4 Topic 5 Topic 6 Summary 2

3&4 Business Management
September
Presented by:
Anandi
WELCOME
hello! my name’s Anandi – I hope you’re all enjoying your school
holidays!
Here’s a little about me:
Graduated in 2021 with an ATAR of 96.25.
Received a 44 in Business Management.
40+ ss in HHD, Further and English.
In my 1st year of Commerce (International) @ UNSW.
Strong Animal lover J
4
TODAY
• Unit 3 AOS 1: Business foundations

BLOCK 1 • Unit 3 AOS 2: Managing employees
• Unit 3 AOS 3: Operations management
• Unit 4 AOS 2: The need for change

BLOCK 2 • Unit 4 AOS 2: Implementing change
• Exam preparation
The lecture slides are available, so don’t stress if you don’t get everything written down. We will be
moving fast through the content J.
5
QUESTIONS
• Ask me questions using the poll section.

- I’ll go through and answer them J
6
BUSINESS MANAGEMENT
Business foundations
Business Management
Unit 3 Managing employees
Operations
management
Reviewing
performance – the
need for change
Unit 4
Implementing change
7
BLOCK 1: UNIT 3
Business Management
Operations
management
Reviewing
performance – the
need for change
Unit 4
Implementing change
8
Block 1 UNIT 3 AOS 1 – BUSINESS FOUNDATIONS
Key knowledge points:
• types of businesses including sole traders, partnerships, private limited companies, public listed companies,
social enterprises and government business enterprises
• business objectives including to make a profit, to increase market share, to improve efficiency, to improve
effectiveness, to fulfil a market need, to fulfill a social need and to meet shareholder expectations
• stakeholders of businesses including owners, managers, employees, customers, suppliers and the general
community
• characteristics of stakeholders of businesses including their interests and potential conflicts between
stakeholders
• management styles including autocratic, persuasive, consultative, participative and laissez-faire
• the appropriateness of management styles in relation to the nature of the task, time, experience of
employees and manager preference
• management skills including communication, delegation, planning, leadership, decision-making and
interpersonal
• the relationship between management styles and management skills
• corporate culture, both official and real
Overview Block 1 Block 2 Summary 9

Block 1 TYPES OF BUSINESSES
Private limited
Sole trader Partnership
company
• 1-50 (or ‘up to 50’)
• Owned by a single • Owned by 2-20 shareholders
individual people • Limited liability
• Unlimited liability • Unlimited liability • Perpetuity
• Not listed on ASX
Government business
Public listed company Social enterprise
enterprise
• Profits distributed to • Profits returned to

• 50+ shareholders
a community cause owner:
• Limited liability
• Not just ‘the government
• Perpetuity community’ – a • Main objective:
• Listed on the ASX community cause!!! provide a service

Block 1 MANAGEMENT STYLES
MANAGEMENT Definition Direction of Decision-making power?
STYLE communication?
Autocratic Communication is exclusively One-way Centralised
downwards and manager makes all Downwards Manager makes the
decisions with no feedback decision
Persuasive Management makes the decision One-way Centralised
(centralised) and then ‘sell’ or explain Downwards Manager makes the
the reasons of the decision to decision
employees
Consultative Employees’ ideas and opinions are Two-way Centralised
considered before decisions are made – Upwards and Manager makes the
but the final decision is still made by the downwards decision
manager
Participative Decision-making is shared between Two-way Decentralised
manager and employee and both Upwards and Management and
parties engage in two-way downwards employees have equal
communication decision-making power
Laissez-faire Decisions are completely left to the All ways Decentralised
group; managers give up all decision- Between Everyone makes decisions
making responsibility everyone together
Block 1 MANAGEMENT STYLES
Nature of the task Time

Classified or open? Unpopular Quick decision required, or lots
but necessary decision? of available time?
Appropriateness of
management styles
in relation to . . .
Experience of employees Manager preference

Experienced or new A good decision-maker or a
employees? good leader?

Block 1 QUESTION!
• You’re a manager of a VCE tutoring centre, and you’ve just hired 10
new tutors who have no experience working at your centre. Which
management style should you implement for the first month that
these tutors are working?
Autocratic Persuasive Participative

management management management
• Participative management involves having employees make

decisions – not a great idea if those employees are new and
inexperienced.

Block 1 QUESTION!
• You’re a manager of a VCE tutoring centre, and you’ve just hired 10
new tutors who have no experience working at your centre. Which
management style should you implement for the first month that
these tutors are working?
Autocratic Persuasive Participative
management management management
• The edge persuasive has over autocratic in this situation:

• Managers explain the reasons for their decisions
• This means that new employees can learn how the business works!
Block 1 MANAGEMENT SKILLS
the transfer of information between one person(s) to other

COMMUNICATION person(s).
the process of handing down tasks and responsibility to

DELEGATION
subordinates.
the ability to create alternative solutions to a

DECISION-MAKING problem, from which the most appropriate is
selected.
involves deciding in advance the steps an organisation will
PLANNING
take to reach an objective.
influencing and motivating staff to achieve organisational

LEADING
objectives
involve the ability to relate and emphasise with others and

INTERPERSONAL
build effective relationships

Block 1 COMMUNICATION
• Why is communication important for a business?
Employees need clear information about what is expected of

them to perform their job tasks correctly
Good communication aids in building strong relationships

with employees, which may improve corporate culture
Two-way communication allows for both managers and

employees to receive feedback on their ideas or performance

Block 1 CORPORATE CULTURE
• Corporate culture is the shared set of beliefs, values and attitudes

held by those within the business.

• Corporate culture is the shared set of beliefs, values and attitudes
held by those within the business.
Real O Official
R
The stated and

The actual and established
documented outline of the
shared set of beliefs, values
beliefs, values and attitudes
and attitudes within an
within an organisation, as
organisation, as reflected by
reflected by documentation
workplace behaviours such
such as the business’s
as celebration of rituals,
mission and vision
events, etc.
statements.

What are some ways management may influence

and develop a desired culture at an organisation?
• Management style
• Dress code
• Rituals
• Management setting the right example (role models)
• Recruiting and selecting the right staff that will support and
uphold the desired culture
• Provide training
• Reinforce desired culture through meetings

Block 1 AO1: KEY THINGS TO REMEMBER
SOLE TRADER You must include the word “owned”
You must specifically say “2 to 20 people”,

PARTNERSHIP
and you must also say “owned”
SOCIAL You must say profits go to “a community

ENTERPRISE cause”, not “the community”
CORPORATE You MUST include the word “shared”!!!!!

CULTURE SHARED set of values, beliefs, attitudes
Those with a “vested” interest in the

STAKEHOLDER
business
Define in detail – not just ‘someone who

SHAREHOLDERS
owns a share of the business’

Block 1 UNIT 3 AOS 2 – MANAGING EMPLOYEES
Key Knowledge points
• the relationship between human resource management and business objectives
• key principles of the following theories of motivation: Hierarchy of Needs (Maslow), Goal Setting
Theory (Locke and Latham) and the Four Drive Theory (Lawrence and Nohria)
• motivation strategies including performance-related pay, career advancement, investment in training,
support strategies and sanction strategies
• advantages and disadvantages of motivation strategies and their effect on short- and long-term
employee motivation
• training options including on-the-job and off-the-job training, and the advantages and disadvantages
of each
• performance management strategies to achieve both business and employee objectives, including
management by objectives, appraisals, self-evaluation and employee observation
• termination management including retirement, redundancy, resignation and dismissal, entitlement
considerations and transition considerations
• the roles of participants in the workplace including human resource managers, employees, employer
associations, unions and the Fair Work Commission
• awards and agreements as methods of determining wages and conditions of work
• an overview of the dispute resolution process including mediation and arbitration

Block 1 TASK WORDS
Review the key skills in

the study design!
When preparing for the

exam, the study design is
your guide.
Block 1 TASK WORDS
Make sure you have a contemporary example to bring in with you to the exam!
This refers to motivation strategies and

training options
Emphasis is put on examining and applying

theories, so be most prepared to do this
Could be referring to anything
Anything in this AOS could theoretically be
(last year, applied to awards and discussed or evaluated, so be prepared to do so
agreements)
Block 1 MANAGING EMPLOYEES & OBJECTIVES
Effective management of employees
Motivated employees Well-trained and effective employees
Increased Outputs are of higher quality

Decreased staff employee
turnover productivity and
efficiency Greater customer satisfaction and business
reputation
Decreased costs Increased sales (and sales revenue)
Increased market share
Increased profit

Block 1 MOTIVATION THEORIES
Maslow’s • Human needs arranged on a hierarchy

• It is the unsatisfied need above a
Hierarchy of person in the hierarchy that is the
source of motivation
Needs
Locke and • Motivation is derived from setting and

attaining goals
Latham’s Goal • Goals must be challenging, set jointly,
specific, monitored and given feedback
Setting Theory
Lawrence and • Motivation is derived from 4 basic

needs that act to drive people
Nohria’s Four • Drives to acquire, bond, learn and
defend
Drive Theory
Block 1 Hierarchy of needs
Opportunities for growth,
creativity, challenging • Self actualisation
work
Promotions,
responsibilities, • Esteem needs
exalted facilities
Positive CC, collaborative

tasks, work events
• Social needs
Job security, safe workplace • Safety needs
Appropriate wages and conditions

• Physiological
needs
Block 1 MASLOW’S HIERARCHY OF NEEDS
Principles:
• Needs are deficiencies that a person feels compelled to satisfy
• Needs must be satisfied in sequential order
• When needs are satisfied they cease to become motivators of

behaviours and the person seeks to satisfies the next need

Block 1 L&N’S FOUR DRIVE THEORY
• Lawrence and Nohria’s Four Drive theory proposes that individuals

are motivated to achieve four basic needs, known as drives.
• These drives must be met simultaneously
The drive to acquire The drive to bond

What are the four
drives?
The drive to learn The drive to defend

Block 1 L&N’S FOUR DRIVE THEORY
The drive to ACQUIRE The drive to BOND
• Reward individual employees with • Encourage teamwork
praise, recognition and interesting • Collaborative tasks
assignments • Events and rituals
• This should be done through a • Business should maintain a culture
reward system linked to of team spirit, openness and pride
performance
How could an HR
manager develop
these drives?
The drive to LEARN The drive to DEFEND

• Ensure tasks are interesting and • Participative management style (open
challenging (that they stimulate communication, decentralised
employees) decision-making)
• Offer training opportunities • Implement policies for dispute
resolution
• Supportive workplace
29
Block 1 LOCKE AND LATHAM
• Clarity- Goals should be clear and specific, they shouldn’t be vague or difficult to measure
• Challenge- Outlines that goals must be an appropriate level of difficulty to ensure employees
have something to work towards
• Commitment- This involves an employee’s attachment or determination to achieve a goal
• Feedback- providing the employee with comments on their progress towards achieving the goal
• Task complexity- task that is to be completed shouldn’t overwhelm employees and should
match their skills and abilities

Block 1 PERFORMANCE MANAGEMENT
MANAGEMENT BY
OBJECTIVES
PERFORMANCE
APPRAISALS
SELF-EVALUATION
EMPLOYEE
OBSERVATION

MANAGEMENT BY • A participative setting wherein a

OBJECTIVES
manager and an employee jointly
determine a set of employee
PERFORMANCE
objectives/goals
APPRAISALS
• At the end of the review period,

performance is measured against these
SELF-EVALUATION established objectives
• The goals must follow the same 5

EMPLOYEE principles as described by Locke and
OBSERVATION
Latham’s Goal Setting theory!

• The process used to measure an individual’s

MANAGEMENT BY
OBJECTIVES performance over a set period of time
• The manager (appraiser) and employee

(appraisee) then come together to discuss the
PERFORMANCE
APPRAISALS
employee’s performance over that period of
time
Three steps:
SELF-EVALUATION 1. Determine what aspects of performance are
to be measured
2. Evaluate the performance
3. Review the performance and provide
EMPLOYEE
OBSERVATION feedback to the employee so that strengths
can be recognised and problems rectified

MANAGEMENT BY
OBJECTIVES
• Self-evaluation is when an employee

PERFORMANCE assesses or rates their own
APPRAISALS
performance in a number of areas
• Ratings are then compared to those

SELF-EVALUATION
completed by a manager and
differences
EMPLOYEE
OBSERVATION

MANAGEMENT BY
OBJECTIVES • Employee observation involves the
collection of feedback relating to an
employee’s performance from other
PERFORMANCE
APPRAISALS employees, other managers, or
customers
SELF-EVALUATION
• Can be done through:
o 360 degree multi-source feedback from
other employees
o Secret shoppers
EMPLOYEE o Recordings of phone conversations
OBSERVATION

Block 1 TERMINATION MANAGEMENT
Resignation occurs when an employee leaves the

RESIGNATION
workplace, usually to go to another job
Retirement occurs when an employee decides to

RETIREMENT
leave the paid workforce.
Redundancy is termination of employment by an

REDUNDANCY employer because the employer no longer needs a
particular job to be done – the job no longer exists.
Dismissal is termination due to incompetence or

DISMISSAL
indiscipline.

RESIGNATION
ENTITLEMENTS
RETIREMENT
Which form(s) of
termination would
REDUNDANCY involve a redundancy
package?
DISMISSAL Just redundancy!

RESIGNATION
ENTITLEMENTS
RETIREMENT
Which form(s) of
termination would
REDUNDANCY involve a notice of
termination?
All but dismissal
DISMISSAL

RESIGNATION
ENTITLEMENTS
RETIREMENT
Which form(s) of
termination would
REDUNDANCY involve a payment of
accrued long service
leave?
DISMISSAL All of them! (so long as the employee has
worked at the business for 7+ years)

Block 1 PARTICIPANTS IN THE WORKPLACE
HUMAN • The bridge of communication between employers and
RESOURCE employees- deal with disputes
MANAGERS • Lots of other little things, e.g. being up to date with awards
• To prioritise themselves in negotiations with

EMPLOYEES management!
• Take industrial action if necessary
• Represent employers in the collective bargaining process

EMPLOYER
• Advise employers on their rights and responsibilities
ASSOCIATIONS
• Lobby to government in support of employers
• Negotiate wages for their members during the collective

UNIONS bargaining process (also organising industrial action)
• Provide support and advice to members about workers’ rights
• Creating awards
THE FAIR WORK
• Approving agreements
COMMISSION
• Providing arbitrators or mediators

Block 1 AWARDS AND AGREEMENTS
• An award is a legally binding minimum An enterprise agreement is a written
requirement for wages and conditions of a specific collective agreement made between
industry. employer and employees at a workplace,
setting out the terms and conditions of
employment.
• “legally binding”
• They are determined and reviewed by the Fair
Work Commission every 4 years – not abiding by “between an employer and employee at
them is unlawful a workplace”
• They apply only to a single workplace
• “minimum requirement”
• They must surpass the standards of wages and They . . .
conditions set by the National Employment • Are negotiated during the enterprise
Standards (NES)
bargaining period
• Must be approved by the Fair Work
• “a specific industry” Commission
• All industries have their own awards Ø BOOT, grievance procedure, meet
NESs, expiry date

41
Block 1 DISPUTE RESOLUTION
Mediation and arbitration were in a ‘distinguish between’ question in 2017.
Mediation is a formal method of dispute resolution

whereby an independent third party facilitates the
MEDIATION discussion occurring between the disputing parties so
that they come to their own resolution.
Arbitration is a method of dispute resolution whereby

both parties put their cases forward to an
ARIBITRATION independent third party, who then makes the final,
legally binding decision.

Block 1 UNIT 3 AOS 3 – OPERATIONS MANAGEMENT
Key Knowledge
• the relationship between operations management and business objectives
• key elements of an operations system: inputs, processes and outputs
• characteristics of operations management within both manufacturing and service businesses
• strategies to improve both the efficiency and effectiveness of operations related to technological
developments, including the use of automated production lines, robotics, computer-aided design,
computer-aided manufacturing techniques, artificial intelligence and online services
• strategies to improve both the efficiency and effectiveness of operations related to materials,
including forecasting, master production schedule, materials requirement planning and Just in Time
• strategies to improve both the efficiency and effectiveness of operations related to quality, including
quality control, quality assurance and Total Quality Management
• strategies to improve the efficiency and effectiveness of operations through waste minimisation in the
production process, including reduce, reuse, recycle
• the pull, one-piece flow, takt, zero defects strategy to improve the efficiency and effectiveness of
operations related to lean management
• corporate social responsibility considerations for an operations system, including the environmental
sustainability of inputs and the amount of waste generated from processes and production of outputs
• global considerations for operations management including global sourcing of inputs, overseas
manufacture and global outsourcing
Block 1 Key elements of the Operations system
Inputs
Processes
Outputs

Inputs Processes Outputs
delivering the the holiday

holiday information
information
Inputs Processes Outputs
“It seemed that some students

believed that in a service
business processes and
outputs were the same thing,
but this is incorrect.”
- VCAA 2018 exam report

Block 1 MANUFACTURING VS SERVICE
A manufacturer A service organisation

GOODS
produces goods that . . . provides services that . . .
are tangible are intangible

can be stored and difficult to store and
standardised (homogonous) customised
involve minimal final involve a high degree of
customer contact final customer contact
are generally produced and are generally performed and
capital-intensive labour-intensive
involve production + involve production + consumption
consumption that are separate that are simultaneously

Block 1 STRATEGIES
Technological
Materials
developments
The four areas where the
business can improve the
effectiveness and efficiency
of operations
Waste
Quality minimisation +
Lean Management
Block 1 TECHNOLOGICAL DEVELOPMENTS
Computer-aided design is a computer software that
Computer-aided
streamlines and aids in both the creation of product
design
designs and the testing of modified product designs.
Advantages
• Increased design accuracy (improved effectiveness!)
• Decreased time required for design (improved efficiency!
• Identification of errors before they occur in production, reducing waste and increasing efficiency
Disadvantages
• High initial set-up costs, limited short-term profit
• Employees must be trained in how to use the software
Ø Training costs money and time!

Computer-aided manufacturing involves the
Computer-aided automated control of the production process,
manufacturing including machinery, tools and equipment, by a
computer.
• Advantages
• Flexible and responsive to customised demands (improved efficiency!)
Ø As new orders come in, computer can adapt to them
• Increases speed of production (improved productivity!)
• Reduces labour requirements and associated costs (wages, breaktimes)
• Disadvantages
• High initial set-up costs, limiting short-term profitability
• An error in CAM’s functioning could result in the entire production process being
halted, severely reducing the business’s productivity

An automated production line is a process requiring
Automatic a reduced level of human input to function, whereby
production line raw materials enter a series of workstations from
which finished products leave.
Advantages
• Increased precision in production and less errors, increasing product quality and efficiency
• Reduction in human labour costs
• Increased safety (dangerous tasks allocated to robots)
• Reduction in waste
Disadvantages
• High initial set-up costs, limiting short-term profitability
• An error in one part of the sequence may cause the whole production process to stop (terrible for
productivity!)

Online Services refers to the development and
Online Services maintenance of an accessible, online business
website.
Advantages
• Lessens the need for physical retail outlets
Less rental payments etc
Less labour costs
• Enables 24/7 access - larger timeframe to sell products= potentially more sales
• Sales can be processed without the need for human labour
Disadvantages
• Expensive to set up and maintain long-term
• Potential security risks, i.e. hacking

Robotics is the form of technology which deals with
Robotics design, construction, operation, and application of robots to
create intelligent machines that can assist humans.
Advantages Disadvantages
• Increased speed • Investing in robotics can be expensive and be
• Improved safety
costly to maintain
Ø Dangerous tasks can be allocated to robots • Errors made by the robot can impact production
of goods
Ø Reduces costs associated with an injured
employee – lawsuits, lost productivity • Potential for security threats (hackers, viruses)
• Reduction in human labour costs • Removal of human employees à CSR issues
• More efficient use of time (machinery don’t
need breaks!)
• Greater precision and less errors
• Greater and more consistent quality of products
• Reduced waste

Block 1 MATERIALS
Forecasting involves predicting and correctly ordering
materials that are required inputs for a business’ operations.
Forecasting
Step 1: Predict future demand
Step 2: Order enough materials to meet that demand
Master Production Schedule involves setting out production

Master production requirements regarding: exactly what is to be produced, how
schedule much of an item is required to be produced when items are
needed to be produced by and how the items will be produced
Materials requirements planning is a planning process that

Materials supports the Master Production Schedule by setting out the
requirement planning exact material requirements of the business’ operating system,
as well as supplier lead-in times.
Just In Time is an inventory management strategy developed

in Japan that involves the reduction of inventory levels in the
Just In Time
supply chain through the use of small, frequent input orders,
thereby reducing inventory costs.

Block 1 QUALITY
The checking of products and services over the production
stages to ensure that they meet predetermined standards of
quality.
Quality
1. Establish standards of quality
control 2. Inspect the output
3. Compare inspection results to established quality
standards
4. Take corrective action if necessary (fix or throw out)
The certification awarded to a business by an independent

third party once they have achieved an established, specific
level of quality in the production of their goods/services.
Quality
assurance Certification = the business must prove it meets established
standards
Proactive process, unlike quality control, which is reactive

Block 1 QUALITY
Total Quality Management is a holistic quality management

approach that aims to achieve continuous improvement of
production processes, goods and services through the creative
participation of all people in the organisation.
TQM operates on 3 principles:
1. Continuous improvement - every stage of production can be

bettered and there is no status quo
1. Customer focus - ensure the process provides customer with what

aligns with, or exceeds, their wants, needs and expectations
1. Worker participation - workers are experts in their areas and should

be consulted for ideas on improvement

Block 1 Waste
Waste refers to unused or underutilised inputs, partially completed
products or outputs that cannot be sold.
Is a business that produces significant amounts of waste an efficient or

effective business?
No!!!!!!!!!
If a business is
If a business is making so many
wasting inputs as it production errors
creates outputs, it is that waste levels are
acting inefficiently. high, it is acting
ineffectively.

Block 1 Waste
Reduce, reuse and recycle refers to a waste minimisation strategy that

seeks to use materials within production again rather than completing
discarding them.
• Reduce means to minimise the amount waste occurring in

production
• Reuse refers to using items within production more than once
Eg Yakult chemically treats their water to be reused in production
rather than discarding it completely.
• Recycle means having a new use for an item instead of throwing it
away

Block 1 Lean Management
Lean management is a business approach that aims to maximise

customer value while reducing waste, resulting in improved efficiency
and effectiveness.
Pull production – only producing a product once it has been ordered

Takt – the rate of production required to meet customer demand
Zero defects – commitment to no errors in production
One-piece flow – reduce idle time in between production stages

Block 1 GLOBAL CONSIDERATIONS IN OM
GLOBAL SOURCING OF OVERSEAS

GLOBAL OUTSOURCING
INPUTS MANUFACTURING
when a business imports the when the entire production when a business uses other
resources they require for their process occurs overseas and out organisations from outside of
production process from an of Australia. Australia to undertake certain non-
overseas, non-Australian production-related business
organisation. • Takes advantage of functions.
comparative advantages,
• Takes advantage of cheaper labour costs and • Takes advantage of better
comparative advantages, economies of scale expertise and comparative
cheaper labour costs and • Costly, CSR risks, loss of advantages
economies of scale control and Australian jobs • CSR risks, loss of control and
• Costly, CSR risks, loss of Australian jobs and potential
control and Australian jobs loss of intellectual property

BUSINESS MANAGEMENT
Business Management
Operations
management
Reviewing
performance – the
need for change
Unit 4
Implementing change
61
BLOCK 2: UNIT 4
Business Management
Operations
management
Reviewing
performance – the
need for change
Unit 4
Implementing change
62
Block 2 UNIT 4 AOS 1 – THE NEED FOR CHANGE

Block 2 CHANGE
Change is confronting and makes

people nervous!
Change is inevitable and ongoing.

Block 2 BUSINESS CHANGE
• Change comes in two forms. These forms are…
Reactive Proactive
“creating or controlling a
“acting in response to a
situation rather than just
situation rather than
responding to it after it
creating or controlling it”
has happened”
Unplanned change that
Planned change that you
pressures force you to
undertake before
undertake.
pressures force you to.
Which form is a more effective form of change?

Proactive!
Block 2 KEY PERFORMANCE INDICATORS
Percentage of
The proportion of sales a business holds in a particular industry
market share
the difference between revenue and expenses; that is, the amount of revenue
Net profit figures remaining after all expenses have been paid over a period of time.
Rate of productivity the increase or decrease in output of the business over time compared to
growth the amount of inputs used by the business.
Number of sales the total amount of a product that has been sold over a period of time.
Rate of staff a percentage indicating the number of workdays lost due to unscheduled
absenteeism staff absence from work.
Level of staff a measure of the employees who left the organisation over a period of
turnover time and required replacement.
the amount of underutilised or unused inputs (resources such as
Level of wastage
materials, storage, labour and time) within the production process.
Number of customer The number of times customers has approached the business to express
complaints dissatisfaction of their goods/services
Number of workplace the amount of unplanned events or incidents that interrupt workflow,
accidents which may include injury or property damage.
Number of website
The amount of times customers have visited and engaged with a business’s website
hits
Block 2 SPOT THE MISTAKE
Level of wastage refers to the amount of materials that

A are underutilised or unused throughout the production
process.
Rate of staff absenteeism is the number of workdays lost

B due to unscheduled staff absence from work expressed
as a percentage of total workdays.
Percentage of market share is the proportion of sales of
C a product achieved by an organisation compared to the

total number of sales of the same product in that
industry.
One of these definitions has a mistake – is it A, B, or C?
Block 2 SPOT THE MISTAKE
Level of wastage refers to the amount of materials that

A are underutilised or unused throughout the production
process.
Any input, be it money, labour, time,

energy, storage or materials, that are
What is waste? unused or underutilised by the production
process
Level of wastage refers to the amount of

The fix: inputs, e.g. materials, labour etc, that are
unused or underutilised…

Block 2 KEY PERFORMANCE INDICATORS
• Important things to remember

Level of staff Employees who left the business . . . AND
turnover REQUIRED REPLACEMENT!!!!!!!!!!
Waste is the business’ unused or

Level of wastage underutilised inputs (time, labour, materials,
storage) – NOT just material waste
Not just ‘how many times the customer was
Number of customer
dissatisfied’ – how many times they TOLD
complaints
the business that they were dissatisfied
Number of workplace Not just injuries!!! Workplace accidents are

accidents events that cause interruptions to workflow

Block 2 LEWIN’S FORCE FIELD ANALYSIS THEORY
Factors affecting a situation Factors that resist the direction

that propel in a direction of driving forces, and act to
that cause and/or support decrease them, subsequently
the change. blocking the proposed change
from occurring.
Driving Propose Restraining

forces d change forces

Block 2 LEWIN’S FORCE FIELD ANALYSIS THEORY
• Lewin’s Force Field Analysis theory proposes that situations are

maintained by an equilibrium between driving forces that push
change to occur and restraining forces to that hinder or block
change from occurring.
• A situation is the way it is because of interactions between these

counteracting forces!
• Lewin is all about driving versus restraining forces – change

depends on which forces overpower the others.

Block 2 DRIVING AND RESTRAINING FORCES
Restraining
Driving forces
forces
1. Owners
2. Managers
3. Employees 1. Managers
4. Competitors 2. Employees
5. Legislation
6. Pursuit of profit
3. Time
7. Reduction of costs 4. Organisational inertia
8. Globalisation 5. Legislation
9. Technology 6. Financial considerations
10. Innovation
11. Societal attitudes

Block 2 LOWER COST
• The lower cost approach is where a business aims to gain a competitive advantage by becoming the
lowest cost producer in its industry.
• What’s the competitive advantage?
The business will be able to sell its offering at a The business can sell at normal
lower-than-average price while maintaining profit price, but increase its profit
levels.
margins.
• How might a business implement a lower cost approach?
Outsource non-core tasks and manufacture

Implement technology (quicker, less waste)
overseas to reduce labour costs
Buying raw materials from the lowest cost source Offer high volumes of standardised goods/services
Implement lean management (less waste, more

Reduce storage costs through Just In Time
value)

Block 2 LOWER COST
The lower cost approach is where a business aims to gain a competitive advantage by becoming the lowest
cost producer in its industry.
ADVANTAGES DISADVANTAGES
• Potentially lower customer loyalty

Ø If the business’ prices are the
key appeal, they can easily be
substituted for a competitor
• Strong competitive advantage in markets that offers lower prices
with price-conscious consumers, ultimately
leading to an increase in a lower cost
• Customers may associated lower
producer’s market share
prices with lower quality products
• Increased profit = increased business
growth • While standardised products are
easier & cheaper to produce, they
will not meet the demands of
customers who want creative,
unique or tailor-made products

Block 2 DIFFERENTIATION
The differentiation approach involves a business developing the uniqueness of its good or service using
innovation and creativity to establish a competitive advantage.
• What’s the competitive advantage?
The business will be able to sell a unique product that consumers cannot purchase from anywhere else
and can charge a premium price on that product.
Where might a business differentiate itself from competitors?
Innovation (new ideas and methods) to create new,

New and attractive product features
unheard of goods/services
Endorsement by a celebrity or expert Warranties, after-sale services or loyalty cards
The consumer’s purchasing experience (the

An effective marketing approach that
way the product is sold by the retail store
differentiates the business through branding
itself)

Block 2 DIFFERENTIATION
The differentiation approach involves a business developing the uniqueness of its good or service using
innovation and creativity to establish a competitive advantage.
ADVANTAGES DISADVANTAGES
• May not appeal to price-conscious

• The business is able to charge premium
consumers who are unwilling to pay a
prices because products cannot be
premium price
purchased elsewhere (profit!)
• Initial costs may not outweigh the
• Strong competitive advantage in markets
benefits
that appeal to brand-loyal consumers,
leading to increased market share
• risky and high investment
• Assessible for both small (unique) and
• A product’s unique features may be
large (brand image, marketing)
replicated or mimicked by competitors
businesses
Ø No more competitive advantage!

Block 2 MARK THE ANSWER (1)
Hit Big is an Australian department store that has been operating for 60 years. Its sales have been declining in
recent years, with managers blaming this decline on consumer shifts away from traditional retail department
stores to online shopping. A large overseas company with a strong online presence, Daintree, is planning to
start its operations in Australia. To prepare for Daintree’s arrival to the Australian market, Hit Big will be
investing $100 million into its online shopping platform.
Identify and describe two driving forces that may be affecting Hit Big. (4 marks)
Two driving forces acting upon Hit Big are pursuit of profit and competitors. Pursuit of profit, meaning the
revenue remaining after all expenses have been paid, is essential for businesses as it is profit that allows them
to grow, fulfil owner and shareholder expectations, and survive. Hit Big will want to improve its profits into the
future in order to survive. The second driving force is competitors. Competitors refer to business that operate
within the same market. Because Daintree is a competitor of Hit Big, in order to retain market share and
therefore make revenue and profit to survive, Hit Big must ensure that they have the capacity to compete
with Daintree’s online presence. Since there is a moving trend towards online shopping, giving Daintree an
advantage, Hit Big is investing into its online shopping platform to gain traction and survive the new
competitor’s entry into the market.
The mark is 2/4! Mark the answer out of 4!

Block 2 MARK THE ANSWER
Pursuit of profit was
Identify and describe two driving forces that may be affecting Hit not explained
Big. (4 marks) specifically in relation
Two driving forces acting upon Hit Big are pursuit of profit and to Hit Big’s change –
competitors. Pursuit of profit, meaning the revenue remaining investment in online
after all expenses have been paid, is essential for businesses as it shopping. (1/2)
is profit that allows them to grow, fulfil owner and shareholder
expectations, and survive. Hit Big will want to improve its profits
into the future in order to survive. The second driving force is “In order to retain
competitors. Competitors refer to business that operate within profits in a shifting
the same market. Because Daintree is a competitor of Hit Big, in market, Hit Big must
order to retain market share and therefore make revenue and retain sales and sales
profit to survive, Hit Big must ensure that they have the capacity revenue and adapt to
to compete with Daintree’s online presence. Since there is a changing consumer
moving trend towards online shopping, giving Daintree an preferences by
advantage, Hit Big is investing into its online shopping platform to investing in online
gain traction and survive the new competitor’s entry into the
shopping.”
market.

Explained better than

Identify and describe two driving forces that may be affecting Hit
Big. (4 marks) pursuit of profit, but
shares a problem that
Two driving forces acting upon Hit Big are pursuit of profit and pursuit of profit had
competitors. Pursuit of profit, meaning the revenue remaining
too:
after all expenses have been paid, is essential for businesses as it
is profit that allows them to grow, fulfil owner and shareholder
expectations, and survive. Hit Big will want to improve its profits Does not explain
into the future in order to survive. The second driving force is what a driving force
competitors. Competitors refer to business that operate within actually is! It’s a
the same market. Because Daintree is a competitor of Hit Big, in factor that propels
order to retain market share and therefore make revenue and and pushes a
profit to survive, Hit Big must ensure that they have the capacity business towards
to compete with Daintree’s online presence. Since there is a change!
moving trend towards online shopping, giving Daintree an
advantage, Hit Big is investing into its online shopping platform to
gain traction and survive the new competitor’s entry into the (1/2)
market. 1 + 1 = 2/4

Block 2 MARK THE ANSWER (2)
Identify and describe one of Porter’s Generic Strategies. (3 marks)

Lower cost is one of Porter’s Generic strategies. Lower cost refers to
when a business sells its products at the cheapest price relative to its
competitors – that is, at the ‘lowest cost’ – in order to gain a
competitive advantage. Selling at a cheap price can allow a business to
target price-conscious consumers who desire products/services at low
prices, gaining sales from these customers and therefore gaining
market share (proportion of sales in a market) and, therefore,
improving the business’s capacity to compete against other
competitors.
Correct mark: 2/3
Mark this answer out of 3!
Identify and describe one of Porter’s Do the maths:
Generic Strategies. (3 marks)
• Identify = 1 mark
Lower cost is one of Porter’s Generic • Describe = 2 marks
strategies. Lower cost refers to when a
business sells its products at the cheapest
price relative to its competitors – that is, at Got 1/1 for identify
the ‘lowest cost’ – in order to gain a
competitive advantage. Selling at a cheap
Defined lower cost incorrectly!
price can allow a business to target price-
conscious consumers who desire (it’s not selling at a lower cost –
products/services at low prices, gaining sales it’s producing at a lower cost)
from these customers and therefore gaining
market share (proportion of sales in a Only covered one of 2 potential
market) and, therefore, improving the competitive advantages
business’s capacity to compete against other
competitors.
Overall 1/2 for ‘describe’, close
to a 0 but linked to competitive
advantage/sales well
Block 2 UNIT 4 AOS 2 – IMPLEMENTING CHANGE

Block 2 LEADERSHIP DURING CHANGE
Help build • Leaders must develop a shared vision of
momentum successful change
towards • This vision must be communicated to all
successful stakeholders to build support for the change
change
• Change is a difficult and confronting time

Reduce • Managers require high-level interpersonal
resistance to skills to empathise with, understand and
change address concerns of stakeholders
Direct the • A leader must ensure that all stakeholders

business and its are focussed on successfully implementing
stakeholders the change
towards the • Helps increase commitment to the change
same goals

Block 2 STRATEGIES TO RESPOND TO KPIS
VCAA wants us to know these management strategies to respond to KPIs and/or to
seek business opportunities
Staff training
Staff motivation
Change of management styles or management skills
Increased investment in technology
Improving quality in production
Cost cutting
Initiating lean production techniques
Innovation
Global sourcing of inputs
Overseas manufacturing
Global outsourcing

Block 2 STRATEGIES TO RESPOND TO KPIS
KPIs Management strategies
Percentage of market share Staff training
Net profit figures Staff motivation
Rate of productivity growth Change of management styles

or management skills
Number of sales
Increased investment in
Rates of staff absenteeism technology
Improving quality in production

Level of staff turnover
Cost cutting
Level of wastage
Initiating lean production
Number of customer
techniques
complaints
Number of workplace Redeployment of resources
accidents
Block 2 THREE STEP CHANGE MODEL
Unfreeze Movement Refreeze
Lewin’s Three Step Change Model is a theory that outlines the steps a
business should take when implementing changes to its business
practices so that the change is long-lasting.

Unfreeze Movement Refreeze
Occurs Occurs Occurs

before the during the after the
change change change

• The preparation undertaken by the business prior to

implementing the change to open it up to change
Unfreeze • Establishing the need for change
• The actual implementation of the change, and the transition

from old business practices to new ones
Movement • Period of significant resistance
• The consolidation of changes into the business’ culture to ensure

that the change is implemented into the long-term future
Refreeze • Celebrate! Recognise positive employee behaviour!

Block 2 CSR IN CHANGE MANAGEMENT
• Corporate social responsibility is the commitment by an
organisation to conduct its business in an ethical manner that
exceeds legal requirements and aims to minimise negative impact
on the environment, society and the economy, as well as other
stakeholders.

Block 2 CSR DURING CHANGE
Corporate social responsibility is the commitment by an organisation
to conduct its business in an ethical manner that exceeds legal
requirements and aims to minimise negative impact on the
environment, society and the economy, as well as other stakeholders.
• CSR when implementing change comes in two main forms:
Stakeholders should be
The changes themselves
treated ethically
should be socially
throughout the change
responsible.
process.

The changes themselves should be socially responsible.
• A business should ensure that it considers changes that involve:

• Limiting its negative environmental impacts
Ø Introduction of green energy
Ø Biodegradable packaging
Ø Sourcing inputs locally to reduce transport pollution
• Employing the local community/investing in Australian jobs
Ø Not outsourcing/using overseas manufacturing
Ø Sourcing inputs locally to support Australian businesses
Stakeholders should be treated ethically throughout the

change process.
• Ensure that the change process is not overly stressful for employees and managers
• Provide access to training to ensure employees feel capable of handling change
• Provide clear communication to reduce anxiety
• Allow employees to have a reasonable work/life balance throughout and after the
period of change
• Be honest and transparent while implementing change
• Allow time for transition services if changes result in downsizing and redundancies

Block 2 SENGE’S LEARNING ORGANISATION
Senge’s Learning Organisation proposes that businesses that are flexible, adaptive and
productive during periods of change will be more successful in implementing its desired
changes.
To be flexible, adaptive and productive during change, the business must focus on
expanding the capacity and expertise of its people so that they may learn from each other,
and therefore more effectively create and innovate within the business.
Translation: businesses that harness and utilise the
talents and engagement of employees and encourage
their continuous team learning will experience greater
success.
“In the long run, the only sustainable advantage is your

organisation’s ability to learn faster than your competition.”
– Peter Senge

Block 2 SENGE’S FIVE DISCIPLINES
Mental
models
Team Systems Personal

learning thinking mastery
Building
shared
vision

Block 2 SYSTEMS THINKING
Systems thinking is the idea of viewing and evaluating the business as

a whole, complex and interrelated system, rather than breaking it
down into separate disconnected areas.
• A concept that integrates all four of the other disciplines
• The business must understand the holistic image of themselves –

only then can they attempt to develop the other four disciplines
• The absolute cornerstone of the Learning Organisation

Block 2 MENTAL MODELS
Mental models are the deeply ingrained assumptions, generalisations

and images that influence one’s understanding of the world, and
therefore how one reacts to the world.
• Based on your understanding of change and learning…
Should mental models be preserved, or

challenged?
• Challenged!!!!!
Block 2 MENTAL MODELS
• Mental models are the deeply ingrained assumptions,

generalisations and images that influence one’s understanding of
the world, and therefore how one reacts to the world.
• Employees should be encouraged to challenge old assumptions in

order to gain empowerment and the ability to generate new,
innovative ideas
Ø Done through a culture of open communication, inquiry and trust
• Senge argues that businesses need to be able to scrutinise their

actions and their current choices in order to make the best choices
in relation to change

Block 2 PERSONAL MASTERY
Personal mastery is the discipline whereby an individual is committed
to self-improvement and continuously deepening their personal vision
– that is, they are learning from constant self-reflection.
• Could be acquired through training and development and self-

evaluation
• Personal mastery is a stepping-stone towards team learning

“Organisations learn only through individuals who learn.
Individual learning does not guarantee organisational
learning. But without it no organisational learning
occurs.”

Block 2 BUILDING SHARED VISION
A business that has built a shared vision of its future is one that has
aligned all people within the business towards the same goals.
• A shared vision will motivate employees to learn and innovate by

providing a common goal that generates a clear focus and
enthusiasm for learning
• The other stepping-stone towards team learning
• Shared vision cannot be dictated

Ø Shared vision must be built from both the directional prompts of a leader,
and the conversation between all others within the business

Block 2 TEAM LEARNING
• Team learning is a process by which a team’s capacity to create
desired results is built and developed.
“The process of aligning and developing the capacities
of a team to create the results its members truly desire.”
• Creates an environment where knowledge and experience is shared

amongst members of a team, and thus problem solving and learning
are more effective
• Collaboration is a key aspect of the Learning Organisation

• People do not just learn in isolation; they learn together
10
Overview Block 1 Block 2 Summary
Block 2 APPLYING SENGE’S
• Employees should be encouraged to challenge models through

Mental models Kaizen (continuous improvement)
• Performance appraisals and self-evaluation

Personal mastery
• Training
• Feedback from employees about what goals and vision should be

Building shared vision
• Clear communication from leaders about the business’s goals
• Collaborative tasks and group projects

Team learning
• Regular team meetings
• Meetings between business departments

Systems thinking • Employees taking up positions from different departments to
broaden their views
10
Block 2 IMPORTANT EXAM KNOWLEDGE
Task words and

Time management interpreting marking
allocations
Exam
skills
10 mark question Exam preparation
10
Block 2
Approaching 10 mark questions:
1. Break the question down (especially if there are multiple parts)
Ie “[Describe how Lewin’s three step change model could be used to implement change] and
[explain why leadership during change management is important is ensure change is long lasting]”
2. Highlight you task words so you know what to include in your answer!
3. Make a plan! How will you approach your response? What will you include in you bp1,2 and 3
4. Ensure you write in paragraphs. Your response should have an intro, BPs, and conclusion
5. Reread your response to ensure you have answered the question
10
Block 2 HOW MANY PRACTICE EXAMS SHOULD I DO?
As many as you can!!!
• Recommendation is at least 10 exams, with 5 or so under timed

conditions
• Practice exams are truly your best form of study
• There’s no set number, but you should aim to do practice exams

until you are confident in your knowledge and only have a few
specific areas to improve in
10
Block 2 PRACTICE EXAMS
• The ultimate form of exam preparation is practice

questions/practice exams!
• When you do a practice exam:

1. Complete the exam (without notes is preferable)
2. Mark your answers
3. Determine which questions and areas you struggled the most in
4. Revise your notes of those areas
5. Reattempt the question
10
Block 2 EXAM PREPARATION
• Revision of notes from all areas of study, focussing
The month on your weak areas
before • Practice exams (does not have to be under timed
conditions unless you feel confident)
The weeks • Practice exams must be in timed conditions

• Identifying & developing weaker areas as identified in
before practice exam performance
The night • A GOOD NIGHT’S SLEEP – SO IMPORTANT!

• No study – just relaxation, remaining calm, getting
before rest
• No intense study – revision of notes if you’d like to

The day of • Eat and drink well
10
Block 2 STUDY TIPS
Management
Knowledge
Understanding
Time
Application
10
Block 2 STUDY TIPS
• The first and unfortunately most unhelpful tip is that absolutely everyone is
different…
• However, here are some pretty common ones:

• Flash cards
• One page summaries
• Communication with your family
• Timed practice exams
• Using the examiner’s reports
• Scheduling
• Using your teachers
10
Block 2 FINAL WORDS
• That’s it!!!! You just finished all of Year 12 Business

Management!!!!!!!!!! Congratulations
• Always refer to the study design as your guide

Ø Key knowledge
Ø Key skills
Ø ONLY STUDY WHAT’S ON THE STUDY DESIGN!!!!
• Read the examiners’ reports (THIS IS SO IMPORTANT)
• The best way to study for business management is by doing practice questions
Ø Do some practice questions
Ø See which areas you’re struggling with
Ø Study those areas
Ø Complete more questions on those areas until you don’t struggle with them anymore!
10
QUESTIONS?

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Topics to be covered Announcements

Overview Topic 1 Topic 2 Topic 3 Topic 4 Topic 5 Topic 6 Summary 1

Overview Topic 1 Topic 2 Topic 3 Topic 4 Topic 5 Topic 6 Summary 2

Graduated in 2021 with an ATAR of 96.25.

Received a 44 in Business Management.

40+ ss in HHD, Further and English.

In my 1st year of Commerce (International) @ UNSW.

Strong Animal lover J

• Unit 3 AOS 1: Business foundations

• Unit 4 AOS 2: The need for change

• Ask me questions using the poll section.

Overview Block 1 Block 2 Summary 9

• Profits distributed to • Profits returned to

Overview Block 1 Block 2 Summary 10

Nature of the task Time

Experience of employees Manager preference

Overview Block 1 Block 2 Summary 12

Autocratic Persuasive Participative

• Participative management involves having employees make

Overview Block 1 Block 2 Summary 13

• The edge persuasive has over autocratic in this situation:

the transfer of information between one person(s) to other

the process of handing down tasks and responsibility to

the ability to create alternative solutions to a

influencing and motivating staff to achieve organisational

involve the ability to relate and emphasise with others and

Overview Block 1 Block 2 Summary 15

• Why is communication important for a business?

Employees need clear information about what is expected of

Good communication aids in building strong relationships

Two-way communication allows for both managers and

Overview Block 1 Block 2 Summary 16

• Corporate culture is the shared set of beliefs, values and attitudes

Overview Block 1 Block 2 Summary 17

The stated and

Overview Block 1 Block 2 Summary 18

What are some ways management may influence

Overview Block 1 Block 2 Summary 19

SOLE TRADER You must include the word “owned”

You must specifically say “2 to 20 people”,

SOCIAL You must say profits go to “a community

CORPORATE You MUST include the word “shared”!!!!!

Those with a “vested” interest in the

Define in detail – not just ‘someone who

Overview Block 1 Block 2 Summary 20

Overview Block 1 Block 2 Summary 21

Review the key skills in

When preparing for the

This refers to motivation strategies and

Emphasis is put on examining and applying

Motivated employees Well-trained and effective employees

Increased Outputs are of higher quality

Decreased costs Increased sales (and sales revenue)

Increased market share

Overview Block 1 Block 2 Summary 24

Maslow’s • Human needs arranged on a hierarchy

Locke and • Motivation is derived from setting and

Lawrence and • Motivation is derived from 4 basic

Positive CC, collaborative

Job security, safe workplace • Safety needs