Business Management U1 AOS3 Glossary Flashcards

Vocabulary flashcards based on the glossary of terms from the lecture notes.

External environment

Surrounding factors that can impact a business, which it has minimal control over.

Macro factors

• External conditions that the business has no control over.

  E.g. global considerations and laws and regulations

Business planning

The process of establishing a business’s goals and developing strategies to achieve them.

Operating factors

Surrounding factors that can impact a business, which it has some control over. e.g. suppliers

Legal and government regulations

The laws and rules made by parliaments and governments, as well as decisions made by the courts. E.g. Payment of taxes (federal), location of business signs (local), pollution controls (state).

Employment rules and regulations

Rules that govern the relationship between employers and employees.

E.g. Wages, Working conditions, Unfair dismissal, Disputes

Environmental legislation

The set of laws that aim to preserve the environment. E.g. minimise waste and energy, reducing water use.

Tax

A charge or fee that a government imposes on a citizen or business

Goods and services tax (GST)

A tax of 10% on most goods, services and other items sold or consumed in Australia

Industry regulations

Rules that are specific to businesses within a certain industry E.g. certain permits, certificates, registrations

Council regulations

Local government rules made to govern businesses operating in a specific geographic area

Taxation Requirements

Laws and rules related to tax that apply to all businesses.

Societal attitudes

The collective values, beliefs, and opinions held by a group of people.

Societal behaviour

The way people act and respond in various situations.

Values and beliefs

The principles, standards and assumptions that people live by. These influence everyday life and decision making.

Societal trends

A general development in the way a group of people in society are behaving.

Economic conditions

The conditions that exist in relation to the productive performance and financial stability of a nation or other geographical area.

Interest rates

The price paid for money that has been borrowed, expressed as a percentage.

Employment levels

• percentage of the labour force who are working in paid employment.

• Includes number of people 15+ who are willing and able to work

Tax rates

The percentage of income or spending that is required to be paid to the government by individuals or businesses.

Consumer confidence

A measure of consumers’ feelings and expectations about current and future economic conditions.

Globalisation

The connection of different parts of the world.

Technological developments

The invention and innovation of tools that solve problems and enhance processes.

Overseas competitors

Businesses that are located in other countries that operate in the same industry and o er a similar good or service.

Differentiation

Involves a business distinguishing its goods and services from competitors that are selling similar items in the market.

Overseas Markets

Any markets that are outside of a business’s own country of operation

Offshoring of labour

Involves a business moving its services or processes to another country.

Exchange rate

relative price at which the currency of one country can be exchanged for the currency of another country.

Online sales

buying and selling goods and services using the internet

aka e-commerce

Copyrights

Free and automatic protection used on original ideas such as writing, art, sound, films, a n d p h o t o g r a p h s.

Trademarks

• An exclusive right granted over a unique aspect of a business used to distinguish the business and its products.

• E.g. symbol, word, sound, or number,

Patenting

A licence that provides a business with exclusive rights to use innovative devices, substances, methods, and processes.

CSR

The ethical conduct of a business beyond legal obligations , and the consideration of social, economic, and environmental impacts when making business decisions.

Environmental considerations

A business should consider the welfare of society by protecting and preserving the environment.

Social considerations

It is important that business owners plan to reduce any negative social impacts their activities may have, and consider ways they can positively contribute to society.

Customer needs

The essential requirements that customers intend to fulfil with the purchase of a good or service

Customer expectations

The values or benefits that customers seek when purchasing a good or service from a business

Competitors’ behaviour

Businesses must consider behaviour of any competitors in the market, also the possibility of future competitors.

Customer retention

• ability of a business to keep its customers over time.

• a measure of customer loyalty.

Suppliers

Individuals or businesses that provide the resources required to produce goods and services.

Supply chain

The network of individuals or businesses that are involved in producing and distributing a good or service to customers.

Inputs

The resources used by a business to produce goods and services.

Outputs

The final goods or services produced as a result of a business’s operations system, that are delivered or provided to customers.

Wholesaler

A business that sells products in large quantities and at lower prices than retailers.

Retailer

A business that organisations sells products directly to customers.

Special interest groups

Organisations or a group of people that seek to influence laws, policies, or behaviours to benefit a specific cause.

Unions

Organisations composed of individuals who represent and speak on behalf of employees in a particular industry to protect and improve their wages and working conditions.

Business associations

Organisations that advise and support businesses in a particular industry.

Environmental lobby groups

• Advocate for the protection of the environment

• promote environmental issues to businesses, the government, and the public.

Stakeholders

An individual, group, or organisation that has an interest or concern in the activities, decisions, and outcomes of a business.