G.C.E. (A.L.
)
Support Seminar- 2019
Business Studies
Revision Notes
Imperial College of Business Studies Ruwani Perera, B.Sc. Accounting (Sp.), CIMA (UK)
Syllabus
01. Business Environment
02. CSR and Ethics
03. Government
04. Types of Business Organizations
05. Entrepreneurship
06. SME’s
07. Money and financial institutions
08. Insurance
09. Communication
10. Logistics
11. Trade
12. Management
13. Operational management
14. Marketing management
15. Financial management
16. Human resource Management
17. Information Systems
18. Business Plan
Imperial College of Business Studies Ruwani Perera, B.Sc. Accounting (Sp.), CIMA (UK)
01. Business Environment
Needs &
Wants
Business Goods &
Activities Services
Evolution
Business
of
Aims
Business
Business
Environment
Industrial Evolution
Revolution of money
Functions
Business
of a
Trends
business
Factors of Stakeholders
production
Imperial College of Business Studies Ruwani Perera, B.Sc. Accounting (Sp.), CIMA (UK)
Classification of Business
Criteria
Nature of
Ownership Objectives Scale Production Sector
Production
Primary Private Profit Small and Medium Agriculture
Secondary Public Not for profit Large Industry
Tertiary Services
Business Environment
Business Environment
Internal External
Owners
Task Macro
Managers
Employees
Culture, Structure
Resource
Customers
PESTEL
Suppliers
Competitors
Imperial College of Business Studies Ruwani Perera, B.Sc. Accounting (Sp.), CIMA (UK)
SWOT Analysis
Imperial College of Business Studies Ruwani Perera, B.Sc. Accounting (Sp.), CIMA (UK)
02. CSR and Ethics
Social Responsibility
Definition
Costs Vs. Benefits
4 R's
Recucle Business Ethics
Reuse Definition
Reduce Costs Vs. Benefits
Replace
Involved Parties
Owners
Sustainable
Employees
Development
Customers
Society
Imperial College of Business Studies Ruwani Perera, B.Sc. Accounting (Sp.), CIMA (UK)
03. Government
The government
Central government
Provincial councils
Local authorities / institutions
Ways of government influence on businesses
Providing infrastructure facilities
Being a competitor
Being a customer
Making policies
Enacting rules and regulations (legislation)
Providing incentives
Being a tax collector
How businesses contribute to achieve the social economic aims of the government
Paying taxes
Use of local resources
Conformity to policies implemented by the government
Conformity to rules and regulations
Contribution to employment
Minimizing the damages to the environment
Imperial College of Business Studies Ruwani Perera, B.Sc. Accounting (Sp.), CIMA (UK)
Government Policies
Fiscal Policies Monetary Policies Supply Side Policies
Tax Income: Interest Rates
Direct Taxes, Indirect Taxes Reserve Ratio
Non Tax Income Open Market Operations
Government Expenditure Credit Limits
Consumer Protection
Definition
Necessity
Importance • To consumers • To businessmen
Consumer rights
Consumer responsibilities
Consumer affairs authority
Aims
Functions
Importance of consumer affairs authority for businesses
Sri Lanka Standards Institute (SLSI)
Aims
Functions
Importance of SLSI for businesses
Imperial College of Business Studies Ruwani Perera, B.Sc. Accounting (Sp.), CIMA (UK)
04. Types of Business Organizations
Business organizations according to ownership
Private sector business organizations
Sole proprietorship
Partnerships
Incorporated companies.
Co-operatives
Business organizations of the public sector departments
State corporations
Businesses under local authorities
State companies
Special businesses
Franchise businesses
Business combinations
Business
Organizations
What to
remember
Sub Way of Forming, Advantages Vs.
Definition Characteristics
Categories Specific Acts Disadvantages
Imperial College of Business Studies Ruwani Perera, B.Sc. Accounting (Sp.), CIMA (UK)
05. Entrepreneurship
Definition
Developing
entrepreneurial
characteristics and
skills
• Self assessments Importance
• Training
• Education
• Experiences
Entrepreneurial
characteristics Benefits:
• Willingness to take Personal
risk • Creativity
Institutional
• Commitment
Social and
• Self confidence Economic
• Self reliant
Process of
Entrepreneurial Entrepreneurship
skills • Innovation and
• Leadership skills discovery
• Interpersonal skills • Concept
• Communication development
skills • Resourcing
• Basic • Actualization
management skills • Harvesting
Imperial College of Business Studies Ruwani Perera, B.Sc. Accounting (Sp.), CIMA (UK)
06. SME’s
Small and medium enterprises
Definition
Characteristics
Importance
Relationship between entrepreneurship with small and medium businesses
Factors to be considered by small and medium businessmen
When starting the business
When conducting the business
Reasons for failures of small and medium businesses
Steps taken by the government to promote the small and medium
businesses
• Financial
• Non-financial
• Government and other Institutions granting incentives
Types of incentives provided
• Consultancy services
• Research and technological services
• Financial facilities
• Marketing facilities
• Infrastructure facilities
Imperial College of Business Studies Ruwani Perera, B.Sc. Accounting (Sp.), CIMA (UK)
07. Money and Financial Institutions
Money
• Definition
• Functions – Medium of exchange, Store of value, Unit of account,
Method of deferred payment
• Characteristics of money – Durability, Divisibility, Uniformity,
Portability, Acceptability, Limited in Supply
• Types
Currency
Bank money
Near money
Electronic money
Central Bank of Sri Lanka
• Aims
• Functions
• Importance of functions of Central Bank on the success of business
Commercial Banks – Services
• Agency services
• Leasing services
• E-Banking
• Home banking
• Tele banking
• Pawning services
• Safety lockers
• Buying and selling of foreign exchange
• Credit card services
• Cash remittance services
• Issuing travelers cheques
• Automated banking facilities
• Issuing letters of credit
• Other services
Imperial College of Business Studies Ruwani Perera, B.Sc. Accounting (Sp.), CIMA (UK)
Cheques
Parties involved in cheques
• Drawer
• Drawee
• Payee
Type of cheques
• Bearer cheques
• Order cheques
Factors to be considered when drawing a cheque
• Crossing of cheques
• General crossing
• Special crossing
• Endorsing of cheques
• Dishonoring of cheques
Electronic money
• Types of e-money
• Parties involved in e-money
• Characteristics of an e-money card
• Advantages and disadvantages of doing transactions in e-money
Imperial College of Business Studies Ruwani Perera, B.Sc. Accounting (Sp.), CIMA (UK)
08. Insurance
Definition
Life Insurance Insurable Risk
General Insurance Non Insurable Risk
Insurance
Principles
• Insurable interest
• Utmost good faith
• Indemnity Insurance
Agreement
• Subrogation
• Contribution
• Proximate cause
Imperial College of Business Studies Ruwani Perera, B.Sc. Accounting (Sp.), CIMA (UK)
09. Communication
Communication Process
Characteristics of effective communication
Correctness / Accuracy
Conciseness
Completeness
Clarity
Courtesy
Concreteness
Consideration
Cost effectiveness
Speed
Barriers to effective communication
Language differences, cultural diversity, gender differences, status
differences and physical separation
Imperial College of Business Studies Ruwani Perera, B.Sc. Accounting (Sp.), CIMA (UK)
10. Transportation
Elements of transportation
Way
Mode
Power
Terminal
Various methods of transportation
Highway transport
Railway transport
Waterway transport
Airway transport
Advantages and disadvantages of various methods of
transportation
Factors to be considered when selecting a mode of
transportation
Nature of the goods
Cost
Speed
Distance
Capacity
Safety
Imperial College of Business Studies Ruwani Perera, B.Sc. Accounting (Sp.), CIMA (UK)
11. Trade
Types of trade
Home trade
Whole sale trade
Retail trade
Foreign trade
Import
Export
Trade intermediaries
Whole sellers
Retailers
Agents
Advantages and disadvantages of using intermediaries in trade
International Trade
Free trade
Barriers to free trade
Tariffs
Non – Tariffs
Imperial College of Business Studies Ruwani Perera, B.Sc. Accounting (Sp.), CIMA (UK)
Trade blocs
European union
ASEAN (Association of South East Asian Nations )
Group of G 8 counties (G 08)
Trade agreements
NAFTA (North American Free Trade Agreement)
SAFTA (South Asian Free Trade Agreement)
APTA (Asia Pasific Trade Agreement)
International organizations
WTO (World Trade Organization)
SAARC (South Asian Association for Reginal Corporation)
ADB (Asian Development Bank)
IBRD (International Bank for Rehabilitation and Development - World Bank)
IMF (International Monitary Fund)
Electronic business
Electronic commerce
Electronic trade
Definition
Advantages and limitations
The ways of electronic trade
Business to Business (B 2 B)
Business to Consumer (B 2 C)
Consumer to Consumer (C 2 C)
Government to Citizen (G 2 C)
Business to Government (B 2 G )
Government to Business (G 2 B)
Imperial College of Business Studies Ruwani Perera, B.Sc. Accounting (Sp.), CIMA (UK)
12. Management
Functions:
Planning
Organizing
Leading
Controlling
Management
Management Roles:
Levels: Interpersonal
Top Informational
Middle Decisional
Operational
- Principles of organizing
Unity of command
Chain of command
Span of control
Power and authority
Centralization
Decentralization
- Leadership styles
- Motivation: Financial, Non-financial
Imperial College of Business Studies Ruwani Perera, B.Sc. Accounting (Sp.), CIMA (UK)
13. Operational Management
Production
Methods
Job/Batch/Flow
Breakeven
Quality Control
Analysis
OM
Stock
Stock Levels Controlling:
and Stock Costs ABC
EOQ Two bin
JIT
Imperial College of Business Studies Ruwani Perera, B.Sc. Accounting (Sp.), CIMA (UK)
14. Marketing Management
Evolution of marketing concepts
- Production concept
- Product concept
- Selling concept
- Marketing concept
- Customer concept
- Social marketing concept
- Holistic marketing concept
STP
Segmentation
Targeting
Positioning
Distribution 4 P's
Channels 7 P's
MM 4 C's
Consumer Needs
& wants
Promotion
Strategies Cost
Convenience
Communication
Labelling and
Branding
Packaging
Imperial College of Business Studies Ruwani Perera, B.Sc. Accounting (Sp.), CIMA (UK)
15. Financial Management
Sources of Finance
Internal/External
Direct/Indirect
Long/Short term
Stock market
Indices
• All Share Price
Index (ASPI)
Budgeting
• S & P Sri Lanka 20
Index
• Total Return
Index
FM
Colombo Stock
Financial Ratios
Exchange
Imperial College of Business Studies Ruwani Perera, B.Sc. Accounting (Sp.), CIMA (UK)
16. Human Resource Management
Human resource planning
o Importance of human resource planning
o Facts to be considered when planning human resource
o Steps of human resource planning
o Forecasting human resource demand
o Analyzing existing human resource
o Planning internal supply of employees
o Planning external supply of employees
Job designing
Job analysis
o Job description
o Job specification
Employee attraction
- Ways of attraction
Internal
External
- Advantages and disadvantages of each attraction way
Selection
Facts to be considered when selecting
- Knowledge
- Attitudes
- Skills
- Physical and mental suitability
- Methods of selecting
- Evaluation of application
- Interviews
- IQ tests
Imperial College of Business Studies Ruwani Perera, B.Sc. Accounting (Sp.), CIMA (UK)
- Personality tests
- Practical tests
- Medical tests
- Background tests
Methods of hiring employees
- Permanent
- Casual
Probation period
Induction
Performance appraisal
Training and development
Employee movement
Promotion • Transfer • Layout • Termination of service
Evaluation criteria of human resource management functions
Labour turnover • Absenteeism • Labour productivity • Industrial relations
Imperial College of Business Studies Ruwani Perera, B.Sc. Accounting (Sp.), CIMA (UK)
17. Information Systems
Deference between data and Information
Classification of information systems
o According to the level of usage
o According to the usage
o According to the management function
Information systems according to the level of usage
o Strategic level
o Management level
o Knowledge level
o Operational level
Information systems according to the usage
o Transactions Processing Systems (TPS)
o Knowledge Work Systems (KWS)
o Office Automation Systems (OAS)
o Business Intelligence Systems (BIS)
o Management Information System (MIS)
o Decision Support Systems (DSS)
o Executive Support Systems (ESS)
Imperial College of Business Studies Ruwani Perera, B.Sc. Accounting (Sp.), CIMA (UK)
18. Business Plan
Contents of a business plan
o Front page
o Executive summary
o Description of the business
o Marketing plan
o Operational plan
o Human resource plan
o Financial plan
o Appendix
Marketing Plan
Target Market
Proposed
Marketing
Strategies
Financial Plan Operational Plan
Project cost Business Production
capacity
Estimated
Financial Plan Resource
Statements requirement
Human Resource
Plan
Management
Skills
Organizational
Chart
Imperial College of Business Studies Ruwani Perera, B.Sc. Accounting (Sp.), CIMA (UK)
