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Learning objective 6-1

Students will gain knowledge, skills, and experience to:

  • understand how, as a result of internal and external factors, small business owners make operational decisions that have consequences for the success of their business.

Indicators

What is an indicator?

  • Investigates the recruitment process in the context of a local business.
  • Applies their understanding of marketing mix to a new product.
  • Debates the importance of ethics and values in business practices.
  • Reviews a local sustainable business practice.
  • Compares different business models.
  • Interviews an entrepreneur.

Context elaborations

Level 6 learning objectives are explored within the context of a small-to-medium business with up to 20 employees, of local or community significance (or focus), and connected to students’ lives; for example, a local farm, tourist operator, retail outlet, franchise, or early childcare centre.

To read why using such contexts are good teaching practice, see the connection mechanism.

Contexts will allow students to:

  • demonstrate their understanding of the internal features of a small business and the external factors influencing their success
  • discuss an operational problem, its causes and impacts, and apply business knowledge to provide possible solutions and recommendations to address issues
  • demonstrate their understanding of the marketing mix to the development a new or existing product
  • demonstrate their understanding of aspects of the human resource process
  • develop and carry out a business plan for a product-based business, within a safe environment such as a classroom/akomanga or department/tari/faculty.

Internal factors

Business knowledge, concepts and content may include:

  • advantages and disadvantages of ownership structure (sole trader, partnership, registered company)
  • sources of finance (short term, long term, internal, external)
  • communication with stakeholders (importance of effective communication, advantages and disadvantages of different methods, barriers)
  • employer/employee relationships (features and importance of effective relationships)
  • entrepreneur (role, skills and characteristics)
  • business objectives (how objectives inform business operations)
  • business success (description, different methods of measurement, factors affecting)
  • financial documents (importance of keeping financial documents such as bank statements, Internal Revenue Department requirements)

External factors

Business knowledge, concepts, and content may include:

  • stakeholders external to the business (customers, suppliers, local government, local community)
  • legal influences (purpose and impact of the Consumer Guarantees Act 1993, the Fair Trading Act 1986, the Health and Safety in Employment Act 1992)
  • economic influences (consumer confidence, business confidence, interest rates)
  • environmental influences (factors affecting the physical environment e.g. weather patterns, natural disasters)
  • competition (impact of current and potential competition)

Operational problem(s)

The operational problem(s) will be a routine problem/issue affecting a given small business. Operational problems may arise from:

  • recruitment of employees (poor recruitment practices, skills shortages)
  • cash flow (slow payers, bad debtors, low sales, credit tightening)
  • workplace incidents (workplace accident, workplace conflict)
  • marketplace changes (new competitor, negative publicity)
  • production disruption (natural disasters, pandemic, technology breakdown)

New or existing product

Business knowledge, concepts, and content may include:

  • product – product description and the product life cycle
  • price – a range of pricing strategies
  • place – channels and methods of distribution
  • promotion – a range of promotional strategies.

Human resource processes

Aspects of the human resource process may include:

  • job analysis
  • job description
  • person specification
  • methods of advertising
  • screening and short-listing
  • interview and testing
  • offer and acceptance process (including employment contract)
  • induction and pōwhiri/whakatau.

Product-based business activity

See: Learning objective 6-2

Business themes

See: Business themes - level 6

Related Māori concepts

Māori concepts that relate to this learning objective include:

  • tikanga
  • pūtake
  • tūranga
  • kaitiakitanga
  • rangatiratanga.

See also:

Assessment for qualifications

Learning in relation to this learning objective can be assessed using the following achievement standards.

See: Achievement grades at level 1

Last updated January 25, 2015



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