These Year 12 HSC Business Studies Notes is a meticulously crafted resources designed to help students navigate the complexities of the (HSC) Business Studies course in New South Wales, Australia. These notes cover all the core topics, providing a structured and detailed roadmap to excel in the fin...
HSC BUSINESS STUDIES NOTES + CASE STUDIES
INTERDEPENDENCE FOR EVERY BUSINESS FUNCTION:
From / To Operations Marketing Finance HRM
Operations Operations set Operations cut production Operations voice concerns
limits for marketing costs which free up funds regarding working condition
department for finance department
Marketing Marketing set goals for Marketing generate sales Staff need to be aware of
the quality of the product and business’ receive a customer quality
profit expectations, needs + wan
Finance Finance provides funds Finance fund Finance provides funds to
when needed allowing for marketing, research pay for staff + redundancy
more production + development payments
HRM HRM hire people in HRM hire staff with HRM manage staff and
production for maximum appropriate skills to wages
efficiency + effectiveness market the product
OPERATIONS:
1. Role of Operations management
1.1 Introduction to Operations
Operations: The business processes that involve transformation
- Operations management is about transforming inputs into outputs. [Inputs (resources) → Transformation → Outputs (g/s
- The goal is to add value so the output is worth more than all of the inputs combined.
1.2 Strategic Role of Operations Management
Strategic Role of Operations: Operations assist the business in achieving its overall goal of profit maximisation
Cost Leadership (Keeping Costs Low) + Differentiation (Increasing Revenue) = More Profit
1. Cost Leadership (CL): 2. Goods/Services Differentiation:
AIM: Distinguish products from competitors on
AIM: low costs / most CL achieved through: factors other than price.
price-competitive in - Lower production costs Good-Differentiation: Features, quality,
market - Economies of Scale (EOS) - cost Augmented features (Add-ons + additional benefits
Strategy: Lower advantages created when a business rather than standard features)
costs increases the scale of its operations Service Differentiation: Time to deliver service,
Costs include: input Businesses can: quality of materials + technology
+ labour - Spread costs across all areas of production Cross-Branding: Two businesses merge to offer
- Improve efficiency extra benefits to consumers (e.g Uber + Spotify)
1.3 Goods and/or services in different industries
Goods: Services:
Standardised Goods: mass produced, uniform in quality + meet predetermined Self-service: customers help
level of quality themselves
Customised Goods: Vary according to the needs of customers. Drip Pricing: A business advertise
Perishable and Non-Perishable Goods: one price but in the process of a
Perishables: short lead times, efficient distribution, appropriate packaging + storage customer purchasing, additional
Non-Perishables: Need quality and inventory levels managed closely costs are added
, 2. Influences of Operations Management
2.1 Globalisation
Globalisation: interactions between businesses globally, increasing imports + exports
- Widens the market, leading to opportunities and threats
Opportunities (PRO) Threats (CON)
1. New Markets:
- More customers and sales Global Business Domestic Business
- EOS and cost savings - Increases competition from - New global competitors with better
2. Production benefits: new markets → Business’ cost-cutting techniques can overtake
Outsourcing overseas: seek to stand out from the their markets → business’ reduce
- Countries with cheap labour + lenient laws competition their costs to stay competitive.
2.2 Technology
Technology: The use and application of innovative devices, systems and machinery in the operations process.
Cost Savings Competitive Advantage
- Processes run efficiently, without error - Product quality improved, less human error,
- Technology reduce / eliminate need for staff businesses develop new products
2.3 Quality Expectations
Goods Services
Quality of design Fit for purpose Durability 1. Reliability: competence + efficiency of
- How well a - How well a Durability: length a product lasts service provider
product is product does Reliability: length a product 2. Level of customisation: how the service
developed intended job functions without maintenance tailors individual customer needs
2.4 Cost-Based Competition
Cost-Based competition: competitors create cost advantages over each other
Fixed costs: Don't change regardless of production levels
Variable Costs: Changed based on production levels
AIM: achieve cost leadership by reducing fixed and variable costs
Production Output
1. EOS - better use of machinery and boosted efficiency EOS: high volume of output reduces
2. Standardised products - less inputs, simpler and faster production production costs
3. Automated production - Streamlining processes can speed up production - Spreads fixed costs across a large
4. Lean production - minimise waste and costs number of outputs
, 2.5 Government Policies
Government policies: Long-term plans of action that apply to business → policies became legally binding
Examples:
- Taxation rates
- Work health and safety standards (WHS) → enforceable by law
Government affects
- Policies create rules and regulations that businesses have to follow → lead to business opportunities
- Policies change over time to reflect a change in societal needs and wants
2.6 Legal Regulation
Legal Regulation: Legislation that is enforceable by law
Compliance: When businesses follow and abide by legal regulations
- Failing to comply with legal regulations can lead to penalties
Regulations Effect
WHS - Workers are subject to a safe working environment with minimal risks
Obeying standards: Noise, pollution and safety standards
Safety measures: Protective clothing, equipment
Training and Development - Employees need to be trained to operate machinery / technology safely + effectively
Australian Consumer Law - Operations implement quality management processes to ensure products are fit for purpos
2.7 Environmental sustainability
Environmental Sustainability: Protection of natural resources for future generations.
Effects
- People are more aware of issues like global warming and climate change
Minimisng CO2 How to implement
Minimising the use of non-renewable resources - Coal and Oil
Sustainable use of renewable resources - Wind and Solar Energy e.g: a business could install solar panels o
its factory to power its machinery, saving costs long-term
Reduce and minimise waste - Recycling glass, paper and metals
- Adopting lean production techniques. improves environmental
sustainability, and efficiency and reduces costs.
, 2.8 Corporate Social Responsibility
Corporate Social Responsibility (CSR): Business practices showing concern for social, environmental + economic issue
- Encourages businesses to make a positive impact on the world
Triple Bottom Line: The financial profitability, social impact and environmental impact of a business
1. The Difference between Legal compliance and Ethical Responsibility
1. Legal 2. Ethical Responsibility
Compliance - Businesses actively seek ways to reduce their emissions
- The government Engaging in CSR requires: extra time, effort and money (goes against cost leadership)
enforces laws + Ethical responsibility = Profitability:
ensures businesses - Being ethical improves reputation → increased market share → increased sales
obey them. - Customers will shop elsewhere if a business exploits its employees and pollutes the environmen
2. Environmental Sustainability and Social Responsibility
1. Environmental Sustainability 2. Social Responsibility
AIM: business’ don’t harm environment → conserving - Businesses’ are expected to show concern for society
natural resources for future generations Social initiatives: Business positively impacts society through
ACTIONS: economic prosperity
1. Ethically sourcing materials: Sourcing recyclable ACTIONS:
materials (reusable bags in supermarkets) 1. Ethical Production: Observe human rights with working
2. Reduce carbon footprint: Solar panels over coal conditions of employees.
reduces carbon footprint 2. Product Quality: Products meet safety requirements
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