TOPIC 1: NATURE OF BUSINESS
Types of businesses
Classification of business
Factors influencing choice of legal structure
Students need to be able to:
- size: small to medium enterprises (SMEs), large
- local, national, global
- industry: primary, secondary, tertiary, quaternary, quinary
- legal structure: sole trader, partnership, private company, public company, government enterprise
Factors influencing choice of legal structure
- size, ownership, finance
Students need to be able to:
- distinguish between the different types of businesses
- discuss the global expansion of one Australian business
- discuss the global expansion of one global business into Australia
Introduction
READ: Look up on the internet or a textbook the various classifications of business you don't already understand and add them to your Glossary:
TASK: Create a table of all the purchases you have made during the last week and categorise them according to the above classifications:
- size: small to medium enterprises (SMEs), large
- local, national, global
- industry: primary, secondary, tertiary, quaternary, quinary
- legal structure: sole trader, partnership, private company, public company, government enterprise
TASK: Create a table of all the purchases you have made during the last week and categorise them according to the above classifications:
| classifyingexercise.xls |
Classifying businesses by size
READ: This article from The Conversation.
TASK: Identify the classifications of business based on size by the Australian Bureau of Statistics, the Australian Tax Office and Fair Work.
TASK: Identify the classifications of business based on size by the Australian Bureau of Statistics, the Australian Tax Office and Fair Work.
Classifying business by geographic scale
TASK: Think about your local shops and where you like to shop.
- How often do you shop at your local small businesses?
- Why are some people sad when a local business closes down?
- Discuss if it is important to try to keep money within Australia in local or national businesses.
- Discuss the advantages and disadvantages of businesses going global.
Classifying businesses by industry
READ: The Sectors of the Economy
TASK:
1. Create a diagram (A4 page size) with pictures properly referenced to represent each of the sectors.
2. Complete the quiz:
TASK:
1. Create a diagram (A4 page size) with pictures properly referenced to represent each of the sectors.
2. Complete the quiz:
| industry_classification_quiz.docx |
Classifying businesses by legal structure
READ: Investigate business legal structures
TASK: Complete the summary table:
TASK: Complete the summary table:
| business_entities_worksheet_2014.doc |
READ: Economic Glossary definition of government enterprises.
TASK: Define government enterprises in your own words.
TASK: Complete the 'Researching the ABS' worksheet:
TASK: Define government enterprises in your own words.
TASK: Complete the 'Researching the ABS' worksheet:
| researching_the_australian_bureau_of_statistics_worksheet.doc |
Factors influencing the choice of legal structure
READ:
- Starting a company or business (ASIC)
- Choosing the right business structure (FindLaw)
- Examine the diagram:
Global expansion
TASK:
1) Investigate how Smiggle, an Australian company, is expanding.
Smiggle is a stationery retailer popular with the ‘tween’ market (8-12 year olds). It started as a private company but once it had expanded to 20 stores across three states, it joined the Just Group, a public company listed on the ASX. About a year later, Premier Investments, another public company, took over the Just Group. It is now a global business with stores in the UK, Malaysia, Singapore, Hong Kong, New Zealand and Australia.
2) Investigate how Zara, the Spanish clothing store, has been expanding into Australia.
3) Prepare a 1-2 page 'Fact Sheet' to give advice to companies considering global expansion, using Smiggle and Zara as examples.
1) Investigate how Smiggle, an Australian company, is expanding.
Smiggle is a stationery retailer popular with the ‘tween’ market (8-12 year olds). It started as a private company but once it had expanded to 20 stores across three states, it joined the Just Group, a public company listed on the ASX. About a year later, Premier Investments, another public company, took over the Just Group. It is now a global business with stores in the UK, Malaysia, Singapore, Hong Kong, New Zealand and Australia.
- Stephen Meurs, Peter Pausewang and their Smiggle smarts (Dynamic Business)
- How Smiggle became a powerhouse as the healthy alternative to screen addiction (news.com.au)
- Access the latest Premier Investments Annual Report
2) Investigate how Zara, the Spanish clothing store, has been expanding into Australia.
- Zara Australia: Sales, Stores & Online Shopping (marie claire)
- Fashionably fast is the key to Zara's success (smh)
- Spanish domination (Marketing magazine)
3) Prepare a 1-2 page 'Fact Sheet' to give advice to companies considering global expansion, using Smiggle and Zara as examples.