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Unit 3 Area of Study 1 Business Foundations SAC

Outcome 1

Discuss the key characteristics of businesses and stakeholders,

and analyse the relationship between corporate culture,
management styles and management skills.
Relevant key knowledge and skills

This assessment task addresses the following key knowledge outlined in Area of Study 1:
 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 fulfil a
market and/or social need and to meet shareholder expectations
 characteristics of stakeholders of businesses including their interests, potential
conflicts between stakeholders, and corporate social responsibility considerations
 the areas of management responsibility including operations, finance, human
resources, sales and marketing, and technology support, and how each area
contributes to the achievement of business objectives
 management styles including autocratic, persuasive, consultative, participative and
laissez-faire
 the appropriateness of management styles in relation to the nature of task, time,
experience of employees and
 manager preference
 management skills including communicating, delegating, planning, leading, decision-
making and interpersonal
 the relationship between management styles and management skills
 corporate culture both official and real, and strategies for its development.

The key skills that this assessment task addresses include the ability to:
 define, describe and apply relevant business management concepts and terms
 analyse case studies and contemporary examples of business management
 interpret, discuss and evaluate business information and ideas
 apply business management knowledge to practical and/or simulated business
situations
 analyse and discuss management styles and management skills necessary for
successful business management

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 evaluate management styles and management skills and their appropriateness for a
range of business situations
 propose and justify management strategies for developing corporate culture.

TASK DETAILS

Assessment task
Structured questions
Unit/area of study
Unit 3: Managing a business
Area of Study 1: Business foundations

Instructions and conditions

This task is designed for Outcome 1 in VCE Business Management Unit 3. It covers the key
characteristics of businesses and their stakeholders.

Answer all questions in this answer book. The marks for each question are indicated after
each question.

Conditions: Closed book

Time allowed: 60 minutes (plus 10 minutes reading time)

Total number of questions: 5

Marks allocated: 30 marks

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Question One (3 marks)

Define the following concepts:

i. Social enterprises
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ii. Public listed companies

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iii. Business objectives

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Question Two (6 marks)

Identify two stakeholders of a business. Outline the interests, one potential conflict and two
corporate social responsibility considerations of both stakeholders.

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Question Three (11 marks)

David Dobson has set up a small business selling readymade meals which are prepacked
and picked up by customers. The business has had increased sales in the past twelve
months and has a good reputation in the local community. David is looking at renting
another store in the next suburb.

a) Discuss three management skills that are necessary for the successful management of a
business. (3 marks)

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b) How can two of the management skills identified assist a manager in the workplace? (4
marks)

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c) If David rents another store he will need to employ another five people. Propose two
strategies he could use to develop a positive corporate culture. (4 marks)

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Question Four (7 marks)

Lucy Sanders is working with a team of four new employees; none of them have had
experience in the project they have been given.

a) Lucy is considering a participative management style; outline two features of this style
and evaluate its effectiveness in the current situation. (4 marks)

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b) Explain the relationship between a management style and the management skills
associated with this style. (3 marks)

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Question Five (3 marks)

Explain how marketing and sales and operations areas of management can assist a
business achieve its objectives.

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Extra writing space

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