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.
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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.
See:
Learning objective 6-2
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Business themes
See:
Business themes - level 6
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Related Māori concepts
Māori concepts that relate to this learning objective include:
- tikanga
- pūtake
- tūranga
- kaitiakitanga
- rangatiratanga.
See also:
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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 October 5, 2022
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