HSC Business Studies cheat sheet

Operations management transforms inputs (materials, labour, capital, information) into outputs (goods/services) to add value.

Key performance objectives: quality, speed, dependability, flexibility, customisation, cost.

Economies of scale: cost per unit falls as output rises; diseconomies occur when inefficiencies emerge at large scale.

Break-even point = fixed costs / (selling price per unit – variable cost per unit).

Sequencing and scheduling: Gantt charts show tasks over time; critical path analysis identifies the longest path of dependent tasks.

Technology in operations: CAD (design), CAM (manufacturing), and ERP (integrated resource planning) improve efficiency and quality.

Quality management: quality control (inspection), quality assurance (process), and quality improvement (continuous, e.g., TQM).

Inventory management: LIFO, FIFO, JIT (minimise stock, reduce waste, requires reliable suppliers).

Global factors: global sourcing, economies of scale, outsourcing, and scanning for opportunities/threats influence operations strategy.

Marketing process: situational analysis, market research, segmentation, targeting, positioning, and marketing mix (4Ps).

Market segmentation: demographic, geographic, psychographic, behavioural. Targeting: undifferentiated, differentiated, concentrated, micromarketing.

Product: branding, packaging, product life cycle (introduction, growth, maturity, decline).

Price strategies: skimming, penetration, loss leader, price discrimination, psychological, premium.

Place: distribution channels (direct, retailer, wholesaler, agent), channel choice, and logistics.

Promotion: advertising, personal selling, sales promotion, publicity, public relations; push vs pull strategies.

People, process, physical evidence (extended 7Ps) for services marketing.

Market research: primary (surveys, interviews, observation) vs secondary (internal, external) data; qualitative vs quantitative.

Marketing objectives: increase market share, expand product range, improve customer satisfaction, increase sales.

Accounting equation: Assets = Liabilities + Owner’s Equity.

Balance sheet reports financial position at a point in time; income statement reports performance over a period.

Current ratio = current assets / current liabilities (liquidity); ideal ~2:1.

Debt-to-equity ratio = total liabilities / total equity (gearing); higher ratio indicates higher risk.

Gross profit ratio = gross profit / sales × 100; net profit ratio = net profit / sales × 100.

Return on equity = net profit / total equity × 100; measures return to owners.

Cash flow statement: operating, investing, financing activities; reconciles opening and closing cash.

Working capital management: control of current assets (cash, receivables, inventories) and current liabilities (payables, overdraft).

Sources of finance: internal (retained profits), external (debt: bank loans, debentures; equity: shares); short-term vs long-term.

HR cycle: acquisition, development, maintenance, separation.

Acquisition: recruitment (internal/external), selection (interviews, testing, references).

Development: training (on-the-job, off-the-job), performance appraisal, career planning.

Maintenance: employee relations, workplace health and safety, awards and agreements, fringe benefits.

Separation: voluntary (resignation, retirement) and involuntary (retrenchment, dismissal).

Key influences: economic, technological, social, legal (Fair Work Act 2009), ethical, political.

Employment contracts: common law rights and obligations; awards, enterprise agreements, national employment standards.

Performance appraisal methods: 360-degree feedback, management by objectives, critical incident.

Indicators of effectiveness: labour turnover, absenteeism, accidents, disputes, benchmarking.