To the student vi About the authors vii How to use this book viii About eBookPLUS x ICT activities xi Acknowledgements xii TOPIC 1: NATURE OF BUSINESS 2 Chapter 1 Role of business 4 1.1 Introduction 4 1.2 The nature of a business 6 1.3 Other functions of business 8 Chapter 2 Types of businesses 22 2.1 Introduction 22 2.2 Classification by size 22 2.3 Classification by geographical spread 25 2.4 Classification by industry sector 30 2.5 Classification by legal structure 35 2.6 Types of companies 39 2.7 Factors influencing choice of legal structure 46 Chapter 3 Influences in the business environment 50 3.1 Introduction 50 3.2 Business environment 50 3.3 External influences 51 3.4 Internal influences on business 70 3.5 Stakeholders 80 Chapter 4 Business growth and decline 86 4.1 Introduction 86 4.2 Business life cycle ? stages and responding to challenges 90 4.3 Factors that can contribute to business decline 104 4.4 Voluntary and involuntary cessation 105 TOPIc 1 S uggested assessment tasks 111 TOPIC 2: Business mana gement?116 Chapter 5 Nature of management 118 5.1 Introduction 118 5.2 The features of effective management 121 5.3 Skills of management 123 Chapter 6 Achieving business goals 144 6.1 Introduction: What are goals? 144 6.2 Business goals 147 6.3 Achieving a mix of business goals 153 6.4 Staff involvement 156 Chapter 7 Management approaches 164 7.1 Introduction 164 7.2 Classical approach to management 165 7.3 Behavioural approach to management 178 7.4 Contingency approach to management 190 7.5 Comparing management approaches 192 Chapter 8 Management process 194 8.1 Introduction 194 8.2 Different ways of coordinating key business functions and resources 196 8.3 Operations 198 8.4 Marketing 212 8.5 Finance 228 8.6 Human resources 247 8.7 Ethical business behaviour 272 Chapter 9 Management and change 282 9.1 Introduction 282 9.2 What is organisational change? 282 9.3 Responding to internal and external influences 285 9.4 Managing change effectively 290 TOPIc 2 S uggested assessment tasks 306 TOPIC 3: Business plannin g 310 Chapter 10 Small to medium enterprises (SMEs) 312 10.1 Introduction 312 10.2 Definition of SMEs 312 10.3 The role of SMEs 315 10.4 Economic contribution of SMEs 317 10.5 Success and/or failure of SMEs 322 Chapter 11 Influences in establishing a small to medium enterprise 328 11.1 Introduction 328 11.2 Personal qualities 328 11.3 Sources of information 340 11.4 The business idea 343 11.5 Establishment options 347 11.6 Market considerations 354 11.7 Finance 360 11.8 Legal considerations and influence of government on SMEs 365 11.9 Human resources 370 11.10 Taxation 374 Chapter 12 The business planning process 380 12.1 Introduction 380 12.2 Business planning process 385 12.3 Sources of planning ideas 389 12.4 Vision, goals and/or objectives 391 12.5 Organising resources 396 12.6 Forecasting 401 12.7 Monitoring and evaluating 404 12.8 Taking corrective action ? modification 410 Chapter 13 Critical issues in business success and failure 414 13.1 Introduction 414 13.2 Importance of a business plan 414 13.3 Management ? staffing and teams 416 13.4 Trend analysis 420 13.5 Identifying and sustaining competitive advantage 422 13.6 Avoiding overextension of financing and other resources 426 13.7 Using technology 427 13.8 Economic conditions 430 TOPIC 3 S uggested assessment tasks 434 ICT activities 438 Appendix 441 Glossary 444 Index 452