Download - G.C.E. (A.L.) Support Seminar- 2019

Imperial College of Business Studies Ruwani Perera, B.Sc. Accounting (Sp.), CIMA (UK)

G.C.E. (A.L.)

Support Seminar- 2019

Business Studies

Revision Notes


Syllabus

01. Business Environment

02. CSR and Ethics

03. Government

04. Types of Business Organizations

05. Entrepreneurship

06. SME’s

07. Money and financial institutions

08. Insurance

09. Communication

10. Logistics

11. Trade

12. Management

13. Operational management

14. Marketing management

15. Financial management

16. Human resource Management

17. Information Systems

18. Business Plan


01. Business Environment

Business Environment

Needs & Wants

Goods & Services

Business Aims

Evolution of money

Business Trends

StakeholdersFactors of production

Functions of a

business

Industrial Revolution

Evolution of

Business

Business Activities


Classification of Business



Internal

Owners

Managers

Employees

Culture, Structure

Resource

External

Task

Customers

Suppliers

Competitors

Macro

PESTEL

Criteria

Nature of Production

Primary

Secondary

Tertiary

Ownership

Private

Public

Objectives

Profit

Not for profit

Scale

Small and Medium

Large

Production Sector

Agriculture

Industry

Services


SWOT Analysis


02. CSR and Ethics

Social Responsibility

Definition

Costs Vs. Benefits

Business Ethics

Definition

Costs Vs. Benefits

Involved Parties

Owners

Employees

Customers

Society

Sustainable Development

4 R's

Recucle

Reuse

Reduce

Replace


03. Government

The government

Central government

Provincial councils

Local authorities / institutions

Ways of government influence on businesses

Providing infrastructure facilities

Being a competitor

Being a customer

Making policies

Enacting rules and regulations (legislation)

Providing incentives

Being a tax collector

How businesses contribute to achieve the social economic aims of the government

Paying taxes

Use of local resources

Conformity to policies implemented by the government

Conformity to rules and regulations

Contribution to employment

Minimizing the damages to the environment


Consumer Protection

Definition

Necessity

Importance • To consumers • To businessmen

Consumer rights

Consumer responsibilities

Consumer affairs authority

Aims

Functions

Importance of consumer affairs authority for businesses

Sri Lanka Standards Institute (SLSI)

Aims

Functions

Importance of SLSI for businesses

Government Policies

Fiscal Policies

Tax Income:

Direct Taxes, Indirect Taxes

Non Tax Income

Government Expenditure

Monetary Policies

Interest Rates

Reserve Ratio

Open Market Operations

Credit Limits

Supply Side Policies


04. Types of Business Organizations

Business organizations according to ownership

Private sector business organizations

Sole proprietorship

Partnerships

Incorporated companies.

Co-operatives

Business organizations of the public sector departments

State corporations

Businesses under local authorities

State companies Special businesses

Franchise businesses

Business combinations

Business Organizations

What to remember

DefinitionSub

Categories Characteristics Way of Forming, Specific Acts

Advantages Vs. Disadvantages


05. Entrepreneurship

Definition

Importance

Benefits:

Personal

Institutional

Social and Economic

Process of

Entrepreneurship

• Innovation and discovery

• Concept

development

• Resourcing

• Actualization

• Harvesting

Entrepreneurial skills

• Leadership skills

• Interpersonal skills

• Communication skills

• Basic management skills

Entrepreneurial characteristics

• Willingness to take risk • Creativity

• Commitment

• Self confidence

• Self reliant

Developing entrepreneurial

characteristics and skills

• Self assessments

• Training

• Education

• Experiences


06. SME’s

Small and medium enterprises

Definition

Characteristics

Importance

Relationship between entrepreneurship with small and medium businesses

Factors to be considered by small and medium businessmen

When starting the business

When conducting the business

Reasons for failures of small and medium businesses

Steps taken by the government to promote the small and medium

businesses

• Financial

• Non-financial

• Government and other Institutions granting incentives

Types of incentives provided

• Consultancy services

• Research and technological services

• Financial facilities

• Marketing facilities

• Infrastructure facilities


07. Money and Financial Institutions

Money • Definition

• Functions – Medium of exchange, Store of value, Unit of account,

Method of deferred payment

• Characteristics of money – Durability, Divisibility, Uniformity,

Portability, Acceptability, Limited in Supply

• Types

Currency

Bank money

Near money

Electronic money

Central Bank of Sri Lanka

• Aims

• Functions

• Importance of functions of Central Bank on the success of business

Commercial Banks – Services

• Agency services

• Leasing services

• E-Banking

• Home banking

• Tele banking

• Pawning services

• Safety lockers

• Buying and selling of foreign exchange

• Credit card services

• Cash remittance services

• Issuing travelers cheques

• Automated banking facilities

• Issuing letters of credit

• Other services


Cheques

Parties involved in cheques

• Drawer

• Drawee

• Payee

Type of cheques

• Bearer cheques

• Order cheques

Factors to be considered when drawing a cheque

• Crossing of cheques

• General crossing

• Special crossing

• Endorsing of cheques

• Dishonoring of cheques

Electronic money

• Types of e-money

• Parties involved in e-money

• Characteristics of an e-money card

• Advantages and disadvantages of doing transactions in e-money


08. Insurance

Insurance

Definition

Insurable Risk

Non Insurable Risk

Insurance Agreement

Principles

• Insurable interest • Utmost good faith

• Indemnity

• Subrogation

• Contribution

• Proximate cause

Life Insurance

General Insurance


09. Communication

Communication Process

Characteristics of effective communication Correctness / Accuracy

Conciseness

Completeness

Clarity

Courtesy

Concreteness

Consideration

Cost effectiveness

Speed

Barriers to effective communication

Language differences, cultural diversity, gender differences, status

differences and physical separation


10. Transportation

Elements of transportation

Way

Mode

Power

Terminal

Various methods of transportation

Highway transport

Railway transport

Waterway transport

Airway transport

Advantages and disadvantages of various methods of

transportation

Factors to be considered when selecting a mode of

transportation

Nature of the goods

Cost

Speed

Distance

Capacity

Safety


11. Trade

Types of trade

Home trade

Whole sale trade

Retail trade

Foreign trade

Import

Export

Trade intermediaries

Whole sellers

Retailers

Agents

Advantages and disadvantages of using intermediaries in trade

International Trade

Free trade

Barriers to free trade Tariffs

Non – Tariffs


Trade blocs

European union

ASEAN (Association of South East Asian Nations )

Group of G 8 counties (G 08)

Trade agreements

NAFTA (North American Free Trade Agreement)

SAFTA (South Asian Free Trade Agreement)

APTA (Asia Pasific Trade Agreement)

International organizations

WTO (World Trade Organization)

SAARC (South Asian Association for Reginal Corporation)

ADB (Asian Development Bank)

IBRD (International Bank for Rehabilitation and Development - World Bank)

IMF (International Monitary Fund)

Electronic business

Electronic commerce

Electronic trade

Definition

Advantages and limitations

The ways of electronic trade

Business to Business (B 2 B)

Business to Consumer (B 2 C)

Consumer to Consumer (C 2 C)

Government to Citizen (G 2 C)

Business to Government (B 2 G )

Government to Business (G 2 B)


12. Management

- Principles of organizing

Unity of command

Chain of command

Span of control

Power and authority

Centralization

Decentralization

- Leadership styles

- Motivation: Financial, Non-financial

Management

Functions:

Planning

Organizing

Leading

Controlling

Roles:

Interpersonal

Informational

Decisional

Management Levels:

Top

Middle

Operational


13. Operational Management

OM

Production Methods

Job/Batch/Flow

Breakeven Analysis

Stock Controlling:

ABC

Two bin

JIT

Stock Levels

and Stock Costs

EOQ

Quality Control


14. Marketing Management

Evolution of marketing concepts

- Production concept

- Product concept

- Selling concept

- Marketing concept

- Customer concept

- Social marketing concept

- Holistic marketing concept

MM

STP

Segmentation

Targeting

Positioning

4 P's

7 P's

4 C's

Consumer Needs & wants

Cost

Convenience

Communication

BrandingLabelling and

Packaging

Promotion Strategies

Distribution Channels


15. Financial Management

FM

Sources of Finance

Internal/External

Direct/Indirect

Long/Short term

Budgeting

Financial RatiosColombo Stock

Exchange

Stock market Indices

• All Share Price Index (ASPI)

• S & P Sri Lanka 20 Index

• Total Return Index


16. Human Resource Management

Human resource planning

o Importance of human resource planning

o Facts to be considered when planning human resource

o Steps of human resource planning

o Forecasting human resource demand

o Analyzing existing human resource

o Planning internal supply of employees

o Planning external supply of employees

Job designing

Job analysis

o Job description

o Job specification

Employee attraction

- Ways of attraction

Internal

External

- Advantages and disadvantages of each attraction way

Selection

Facts to be considered when selecting

- Knowledge

- Attitudes

- Skills

- Physical and mental suitability

- Methods of selecting

- Evaluation of application

- Interviews

- IQ tests


- Personality tests

- Practical tests

- Medical tests

- Background tests

Methods of hiring employees

- Permanent

- Casual

Probation period

Induction

Performance appraisal

Training and development

Employee movement

Promotion • Transfer • Layout • Termination of service

Evaluation criteria of human resource management functions

Labour turnover • Absenteeism • Labour productivity • Industrial relations


17. Information Systems

Deference between data and Information

Classification of information systems

o According to the level of usage

o According to the usage

o According to the management function

Information systems according to the level of usage

o Strategic level

o Management level

o Knowledge level

o Operational level

Information systems according to the usage

o Transactions Processing Systems (TPS)

o Knowledge Work Systems (KWS)

o Office Automation Systems (OAS)

o Business Intelligence Systems (BIS)

o Management Information System (MIS)

o Decision Support Systems (DSS)

o Executive Support Systems (ESS)


18. Business Plan

Contents of a business plan

o Front page

o Executive summary

o Description of the business

o Marketing plan

o Operational plan

o Human resource plan

o Financial plan

o Appendix

Business Plan

Marketing Plan

Target Market

Proposed Marketing Strategies

Operational Plan

Production capacity

Resource requirement

Human Resource Plan

Management Skills

Organizational Chart

Financial Plan

Project cost

Estimated Financial

Statements