External Business Environment and Planning

A vocabulary-style set of flashcards covering the key terms and concepts from the lecture on external business environments and planning.

Business Environment

The surrounding conditions in which a business operates, including internal and external factors.

Internal Environment

Elements within the business such as employees, management and culture (studied in Chapter 2).

External Environment

Factors outside the business that it has little or no control over; split into operating and macro environments.

Operating Environment

External stakeholders that have a direct impact on the business and over whom the business has some influence.

Macro Environment

Broad external conditions and trends (economic, legal, technological, etc.) over which a business has no control.

Stakeholder

Any individual or group that has a vested interest in, or is affected by, a business’s activities.

Customer

People or organisations that purchase goods or services, expecting high quality at competitive prices.

Competitor

Other businesses that produce and sell rival or substitute goods or services.

Supplier

Businesses or individuals that provide the resources a business needs to conduct its operations.

Special Interest Group

A group that seeks to influence a business to adopt particular policies or procedures.

Legal and Government Regulations

Laws and rules made by parliaments, councils and courts that affect how businesses operate.

Societal Attitudes and Behaviour

Changing values, beliefs, tastes and lifestyles of communities that influence business planning.

Economic Conditions

Influences related to economic activity such as interest rates, wages, unemployment and inflation.

Technological Considerations

Issues related to the growing use of tools, techniques and systems that affect business operations.

Global Considerations

Pressures arising from operating and competing in worldwide markets.

Corporate Social Responsibility (CSR)

Managing a business so that the broader social welfare of the community and environment is considered.

Business Planning

The process of setting goals, objectives and strategies for a business’s future operations.

Legislation

Laws passed by parliaments at federal, state and local levels that businesses must obey.

Federal Government Obligations

Requirements such as company tax, GST, superannuation and customs regulations.

State Government Obligations

Rules covering workers compensation, WHS, payroll tax, pollution controls and award wages.

Local Government Obligations

Council rules on zoning, building permits, signage, fire and parking regulations.

Australian Securities and Investments Commission (ASIC)

Federal body that regulates business name registration, companies and financial services.

Australian Business Number (ABN)

Unique 11-digit identifier required for business name registration and tax purposes.

Australian Company Number (ACN)

Nine-digit number issued by ASIC to each registered company in Australia.

Business Name Registration

Legal requirement to register a trading name with ASIC unless using the owner’s personal name.

Zoning

Local government regulation controlling land use and the location of business premises.

Occupational Health and Safety Act 2004 (Vic)

Victorian legislation outlining duties to ensure workplace health and safety.

Equal Opportunity Act 2010 (Vic)

Law making workplace discrimination, harassment and victimisation unlawful.

Business Activity Statement (BAS)

Form used by registered businesses to report and pay GST and other taxes.

Goods and Services Tax (GST)

A 10 % tax on most goods and services consumed in Australia.

Australian Consumer Law

National law that protects consumers with guarantees on quality, safety and refunds.

Environment Protection and Biodiversity Conservation Act 1999

Federal law for protecting nationally significant environmental assets.

Environment Protection Act 1970 (Vic)

Victorian legislation dealing with noise, pollution control and environmental damage.

Societal Values

Core principles and standards that guide behaviour in a community.

Beliefs

Shared convictions or accepted truths held by individuals or groups.

Trend

A general direction of changing attitudes or behaviours over time.

Family-Friendly Workplace

Business environment offering flexible hours, childcare support and remote-work options.

Business Cycle

Regular fluctuations in economic activity shown by expansion, peak, contraction and trough phases.

Expansion Phase

Period of rising consumer spending, investment, sales and falling unemployment.

Contraction Phase

Period of decreasing spending, investment, sales and rising unemployment.

Peak Phase

Point where economic activity, wages and profits are at their highest and unemployment is low.

Trough Phase

Lowest point in economic activity, with low sales, profits and high unemployment.

Interest Rate

Cost of borrowing or reward for saving money, expressed as a percentage per annum.

Tax Rate

Percentage of income or value of goods/services paid as tax.

Business Confidence

Level of optimism businesses feel about the future economic environment.

Consumer Confidence

Degree to which consumers feel optimistic about their financial situation and employment.

Technology

Application of scientific knowledge for practical purposes in business operations.

Robotics

Use of programmable machines to perform tasks, improving productivity and reducing costs.

Offshoring

Moving business processes to an overseas location to reduce costs or access skills.

Globalisation

Integration of economies into a single worldwide market for goods and services.

Overseas Competitors

Foreign businesses that produce rival products or services.

Overseas Markets

International customer bases that businesses may target for sales.

Exchange Rate

Price of one country’s currency expressed in terms of another country’s currency.

Patent

Exclusive legal right granted for a new, useful and inventive device, substance or process.

Trademark

Legally protected sign, logo, word or shape that distinguishes a business’s goods or services.

Copyright

Automatic legal protection of original creative works such as music, writing and software.

Online Sales

Selling goods or services via the internet through e-commerce platforms.

Triple Bottom Line

Measuring business performance in terms of profit, social impact and environmental impact.

Environmental Considerations

Assessing and minimising negative effects of production on air, water, land and biodiversity.

Supply Chain

Network of suppliers and processes involved in producing and delivering a product to customers.

Sustainability in Supply Chain

Ensuring resources are sourced and transported in ways that minimise environmental and social harm.

Specific Issue Group

Lobby group focusing on a single area such as environmental protection or youth unemployment.

Business Association

Organisation that provides advice, training and advocacy for member businesses.

Union

Employee association that seeks to improve wages and working conditions.

Consumer Group

Organisation that monitors business practices and campaigns for consumer rights.

Health Regulations

Local council rules (e.g., Food Act 1984 Vic) on hygiene, food storage and premises standards.

Anti-Discrimination Regulations

Laws prohibiting unfair treatment based on attributes like age, race, sex or disability.

Work Health and Safety Regulations

Statutory requirements to ensure workers’ health and safety at the workplace.

PAYG Tax

‘Pay As You Go’ withholding tax that employers deduct from employees’ wages.

Payroll Tax

State tax on wages paid by employers when the total payroll exceeds a threshold.

Product Safety and Labelling

Legal standards ensuring goods are safe and correctly labelled for consumer information.

Unfair Market Practices

Prohibited behaviours like misleading advertising, price fixing or unconscionable conduct.

Free Trade

International trade left to its natural course without tariffs, quotas or other restrictions.

Lobby Group

Organisation that seeks to influence government or business decisions on specific issues.

Customer Needs and Expectations

Desired product features, quality levels, prices and service standards that customers demand.