There are six (6) compulsory areas of study:
Unit 1: The Business Environment (30 hours)
Unit 2: Operations Management (20 hours)
Unit 3: Human Resource Management (20 hours)
Unit 4: Financial Management (30 hours)
Unit 5: Marketing Management (30 hours)
Unit 6: Business Inquiry: Preparing a Feasibility Study (20 hours)
UNIT 1: THE BUSINESS ENVIRONMENT (30 HOURS)
The focus of this unit is business and entrepreneurship in Australia. It involves business structures, the impact of internal and external environments on business, and the roles of business managers and entrepreneurs who plan, organise and lead businesses to fulfil key business functions.
Business knowledge |
Business reasoning |
Business decision-making |
The Functions of business |
- Economic and social roles of businesses in the economy: production, employment, careers, enterprise, investment
- Overview of the four key business functions and their relationship to one another:
- operations management
- human resources management
- marketing management
- financial management
- Business goals and objectives: profit, personal efficiency, effectiveness, social responsibility.
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Types of business |
- Classification of business by:
- Sector – primary, secondary, tertiary
- size
- geographical spread – local, national, global
- legal structure – unincorporated and incorporated
- Factors influencing choice of legal structure
- Sources of finance to fund the legal structure – debt (external) and equity (internal).
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- Implications of each type of legal structure when making business decisions.
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The business environment |
- External influences on business and how Political, Economic, Social, Technological, Legal Environmental (PESTLE) changes in these influences impact on business:
- political (including government policies and changes to policies)
- economic (including the economic cycle – boom and recession)
- social
- technological (including scientific discoveries/ inventions)
- legal
- environmental
- Internal influences on business: product; location; management; resource management; and business culture
- Stakeholders in the internal and external environments and their interests and issues: shareholders; managers; employees; consumers; community and society; and the environment.
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- Managers consider the views of stakeholders, risks, resources and the internal and external environment as they make decisions to achieve business goals and objectives.
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Entrepreneurship |
- Innovation and identification of opportunities and risk taking
- Leadership traits – skilled communication, social awareness, skilled decision-making, futures thinking, self-discipline, responsibility and to inspire and motivate.
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- Entrepreneurship requires an understanding of processes to test the viability and ethical nature of new ideas.
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- Innovative ideas come to fruition through the development of clear feasibility studies (see Unit 6).
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Ethical behaviour in business |
- Business ethics is about how businesses are expected to conduct their affairs in the context of the expectations and requirements of society. It concerns the socially accepted standards of right attitudes and conduct concerning the way a business interacts with other businesses, individuals, society, the environment, and governments.
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- Business decisions and behaviours often involve ethical considerations which may conflict with profit considerations and corporate culture.
- Businesses undertake audits to determine corporate social responsibility and develop codes of conduct.
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UNIT 2: OPERATIONS MANAGEMENT (20 HOURS)
The focus of this unit is Operations Management (OM) which involves businesses efficiently and effectively converting inputs (resources) into quality products or services desired by customers.
Business knowledge |
Business reasoning |
Business decision-making |
Key concepts in OM |
- Inputs, process and outputs
- Competitive advantage, e.g. cost leadership and product differentiation
- Production – efficiency
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- Implications for effective OM decision-making and business planning.
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Role of operations managers |
- Operational decisions – purchasing, dispatching, inventory control, planning and scheduling, maintenance and quality control involving planning, developing, and the use of established and leading edge technology
- Strategic decisions – planning, developing and controlling the activities required to create a product and supply a service. Strategic decisions and planning for the use of established and leading edge technology
- Scheduling techniques to ensure materials are in the right place at the right time (e.g. just-in-time, total quality management).
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- Implications for effective OM decision-making and business planning.
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Social, environmental, legal and ethical issues in OM |
- Conservation and environmental concerns, offshore production, outsourcing. Deskilling. Legal concepts such as breach of contract and intellectual property.
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- Implications for effective OM decision-making and business planning.
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UNIT 3: HUMAN RESOURCE MANAGEMENT (20 HOURS)
The focus of this unit is about managing the people in a business organisation. It explores ways Human Resource Management (HRM) helps achieve business and personal goals.
Business knowledge |
Business reasoning |
Business decision-making |
Purpose of HRM |
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- Attracting, motivating, developing, training and retaining the appropriate mix of human resources.
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- Implications for effective HRM decision-making and business planning.
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Factors influencing HRM |
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- Factors that drive change and reasons for resistance, such as finance and managerial inertia
- The Australian workplace, such as the need to understand:
- diversity and cross-cultural awareness
- types of employment contracts
- National Employment Standards
- Legal regulations
- Fair Work Act
- Equal Opportunity
- Work, health and safety (WHS).
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- Implications for effective HRM decision-making and business planning.
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The employment cycle |
- Stages
- acquisition – staffing requirements, job design, selection and recruitment
- development – induction and training
- maintenance – agreements, contracts and performance management
- separation – voluntary and involuntary (retirement, resignation, retrenchment and dismissal)
- The role of social media in the employment cycle.
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- Implications for effective HRM decision-making and business planning.
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Social, environmental, legal and ethical issues in HRM |
- Business closure or restructure
- The rights of employees
- Child labour.
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- Possible conflicts between personal and business goals, which at times may differ.
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- Understanding individual and cultural diversity, showing tolerance to other points of view and encouraging consensus and collaboration to assist in achieving mutually beneficial outcomes and better business decisions.
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UNIT 4: FINANCIAL MANAGEMENT (30 HOURS)
The focus of this unit is Financial Management (FM). This occurs through the analysis and interpretation of financial data and information and is necessary to achieve business goals.
Business knowledge |
Business reasoning |
Business decision-making |
The nature of financial statements used for external reporting |
- Balance Sheets
- purpose
- classified by elements (current assets, non-current assets, current liabilities, non-current liabilities, owner’s equity)
- link to financial objectives
- Income Statements
- purpose
- classified by elements (net sales, cost of goods sold, expenses)
- link to financial objectives.
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- Calculation of ratios:
- measures of profitability: Gross Profit Ratio, Net Profit Ratio and Rate of Return on Owner’s Equity
- measure of financial stability: Gearing (or Debt to Equity) Ratio
- measure of liquidity: Current (or Working Capital) Ratio
- measure of efficiency: Debtors Collection Period.
(Refer to Appendix 2 for formulae.)
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- Interpretation of an Income Statement in terms of its main elements
- Interpretation of a balance Sheet in terms of its main elements
- Interpretation of financial ratios in terms of profitability, financial stability, liquidity and efficiency
- comparison of ratios to 3 previous years and industry average
- Recommendations to improve business performance.
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The nature of a Cash Budget as a planning tool |
- Importance of cash flow to business viability
- Sources of finance
- equity
- short term debt (e.g. bank overdraft and trade creditors)
- long term debt (e.g. mortgages, leasing)
- Managing the risks of finance
- Purpose of a Cash Budget
- Components (expected cash receipts/inflows and expected cash payments/outflows)
- Link to financial objectives.
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- Interpretation of a Cash Budget
- Recommendations to improve business performance.
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Cost-volume-profit (CVP) or Break-even analysis |
- Cost behaviour: fixed and variable
- Contribution margin
- Break-even point.
(Refer to Appendix 2 for formulae.)
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- Calculation of variable cost, fixed cost, profit or sales volume
- Calculation of contribution margin per unit
- Calculation of break-even point
- Calculation of effect on profit/loss of changes in any component.
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- Analysis and interpretation of results to changing decisions about volumes, pricing and costs.
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Social, environmental, legal and ethical issues in FM |
- Fraud, non-disclosure or distortion of financial information, business closure or restructure and the rights of financial stakeholders.
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- Implications for effective FM decision-making and business planning.
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UNIT 5: MARKETING MANAGEMENT (30 HOURS)
The focus of this unit is Marketing Management (MM). This involves businesses researching consumer markets and tailoring products, ideas and services to satisfy the changing needs and wants of consumers and society.
Business knowledge |
Business reasoning |
Business decision-making |
Nature of marketing |
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- The notion and importance of marketing
- Attributes of marketing
- The marketing planning process:
- use of the tool – SWOT analysis (Strengths, Weaknesses, Opportunities and Threats)
- competitive analysis
- product life-cycle (establishment, growth, maturity, decline)
- establishing objectives (expansion, diversification, increasing market share, increasing size of existing market)
- identifying target markets (demographic, geographical, psychographic and behavioural factors).
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- Completion of a SWOT analysis.
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- Implications of the SWOT analysis for business planning.
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Market research methods |
- Primary methods
- Secondary methods.
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- Implications of market research for establishing the target market and marketing mix.
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The marketing mix |
- Competitive advantage through:
- product
- price
- promotion
- place.
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- Implications of the marketing mix for business planning.
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Business knowledge |
Business reasoning |
Business decision-making |
Marketing strategies to sustain a competitive advantage |
- Market segmentation and product differentiation
- Positioning, branding, packaging, logo, corporate slogan
- Pricing methods (break-even analysis or cost-volume-profit [CPV], cost-based, market-based, competition-based)
- Pricing strategies (price skimming, penetration pricing, loss leader pricing, price points)
- Promotion strategies (advertising, online, personal selling, sales promotions, direct marketing, public relations)
- Place and distribution strategies (e.g. online, home delivery)
- Web based marketing (e.g. internet, social media).
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- CVP calculations
(Refer to Unit 4 and Appendix 2 for formulae).
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- Implications of marketing strategies for business planning
- Interpretation of CVP calculations to make recommendations to improve business performance.
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Performance evaluation – the key performance indicators (KPIs) to be used |
- Financial – sales revenue, sales returns, cost reduction, profitability
- Non-financial – quality, customer satisfaction.
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- Implications for effective MM decision-making and business planning.
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Social, environmental, legal and ethical issues in MM |
- Marketing decisions or strategies and advertising practices are impacted by legislation, codes of behaviours and societal and ethical considerations, e.g. alcohol, tobacco and fast food, deceptive and misleading advertising, environmental sustainability and environmentally responsible products.
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- Implications for effective MM decision-making and business planning.
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UNIT 6: BUSINESS INQUIRY: PREPARING A FEASIBILITY STUDY (20 HOURS)
The focus of this unit is business development and entrepreneurship for a start-up idea for a business, either buying an existing business or planning for an innovative and enterprising opportunity. Learners may complete this inquiry independently or collaboratively in groups of up to three (3). They will apply the inquiry approach to their study of a real-world situation. The inquiry approach can be represented by the following diagram:

Business inquiry skills |
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Skills |
Questions to be considered |
1. Planning and organising |
- What time frame am I working to?
- What time, resources and equipment do I need?
- What steps do I need to undertake?
- What do I need to negotiate with my teacher?
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2. Defining and questioning |
- What opportunity have I identified?
- What does the focus and key ideas tell me?
- What do I need or want to know about it?
- What do I already know about it?
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3. Researching |
- What primary and/or secondary resources can I use?
- How do I know the information is valid and reliable?
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4. Analysing and evaluating |
- How is the information relevant to the question?
- What other information do I need?
- What parts support/do not support my task?
- What conclusions can I draw about the opportunity?
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5. Reflecting |
- What have I found out about the viability of the opportunity?
- What else is important?
- What recommendation would I make?
- What have I learnt that can inform future learning?
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6. Communicating |
- What is my main point?
- What is my audience and what format is expected?
- What is my decision/conclusion?
- What business terms, concepts and ideas do I need to use?
- Have I used these appropriately?
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THE FEASIBILITY STUDY
Focus |
Entrepreneurial ideas come to fruition through a clear business development proposal or feasibility study. |
Task |
Learners are to prepare a feasibility study for a start-up idea for a business, either buying an existing business or planning for an innovative and enterprising opportunity. They are to use the key ideas and guidelines below to assist their research and report preparation. |
Key Ideas |
Business profile – outline what the business will do
Operations analysis
Marketing analysis
Human resource analysis
Financial analysis
Evaluation to determine its viability
Recommendations. |