Business Terms and Environments part 2

Owner/s & Managers

are an example of an?

Internal business environment

Employees

are an example of an?

internal business environment

Organisational structure is an example of an?

internal business environment

Organisational culture is an example of an?

Internal business environment

Customers are an example of an?

External operating environment

Competitors are an example of an?

External operating environment

Suppliers are an example of an

External operating environment

Interest groups are an example of an?

External operating environment

Socio-culture is an example of an?

External macro environment

Technological is an example of an?

External macro environment

Economic is an example of an?

External macro environment

Environment is an example of an?

External macro environment

Political is an example of an?

External macro environment

Legal is an example of an?

External macro environment

Ethical is an example of an?

External macro environment

External macro environments can be remembered as what?

STEEPLE

What does STEEPLE stand for?

Socio-cultural, Technological, Economic, Environmental, Political, Legal, Ethical

The two types of external business environments are?

External operating & External macro environments

Owner/s & Managers:

The role of leadership is an essential internal factor in a business and will have a direct influence on its operations.

Employees:

Often considered as a business's most important asset. A business's success is often dependant on the employees' performance in the work place.

Organisational Structure

An organisational structure is a formal structure that outlines the roles and responsibilities of each member of the business. e.g CEO-Directors-Managers.

Organisational Culture

Customers

Customers have a direct impact on the operations of a business. A business must establish a positive relationship with its customers as they provide revenue and certainty.

Competitors

Competition has a significant impact on how a business operates and how successful it will be. A competitor can be defined as any business that is in the same or similar industry and offers the same or similar product or service.

Suppliers

A business supplier provides the resources that a business needs to operate.

Interest Groups

An interest group is an organisation that share a common interest and a desire to work together to protect and promote a specific industry.

What is a not-for-profit business?

A Not-for-profit business is a company that aims to serve the community and doesn’t look for a profit, any profit made by the business goes back into the works and services of the businesses.

What is a profit-based business?

A profit-based business is a company with the goal to make money.

What is a Government-owned corporation?

A business that is established by a government in response to a need in the community. It is a business that operates on behalf of an owner government.

What is a Government Business Enterprise?

A GBE is a commercially focused business that makes a substantial contribution to the Australian economy through job creation and productivity and delivers a service to the community.

Explain what a sole trader is:

A sole trader is a business that is owned and operated by one person. It is usually a small scale business and is bound by unlimited liability.

What does unlimited liability mean?

It means the owner/s are personally responsible for any and all debts of the business.

Explain what a partnership is:

A partnership is a business structure that involves a number of people who operate a business together. A partnership requires a minimum of 2 partners and usually have a maximum of 20 partners.

What is the business criteria?

Competitiveness, effectiveness, efficiency, stakeholder satisfaction.

Explain the criteria of competitiveness:

To what degree has the business offered products or services that meet or exceed market standards in relation to other businesses. The criterion can be used to make judgments on two businesses and which has performed more effectively.

Explain the criteria of effectiveness:

to what degree has the business achieved goals and/or objectives and to what extend has the business solved targeted problems? This criterion evaluates to what degree has the business achieved its desired outcome/ goals and objectives.

Explain the criteria of efficiency:

To what degree has the business optimised its use of resources and application of processes in achieving goals and/or objectives.

Explain the criteria of stakeholder satisfaction:

To what degree has the business considered and managed stakeholder expectations in achieving goals and/or objectives.