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Internal Environment
Factors within a business that a business has full control over
External Environment
Factors that can impact a business, which it has minimal/no control over
Operating factors
Primary external factors impacting a business that it has some control over
Macro factors
Social, legal, technological, global, and economic conditions that a business operates in and has no control over
Sole trader
A business structure that is owned and operated by one individual
Partnership
A business structure that is owned by 2-20 owners.
Incorporation
Process where business become a separate legal entitled to it’s owner
Private limited company
An incorporated business structure that has at least 1 director and a maximum of 50 shareholders
Public listed company
An incorporated business that has an unlimited number of shareholders and lists and sells its shares on the Australian Securities Exchange (ASX)
Australian Securities Exchange (ASX)
Electronic market where Australian public company shares are bought and sold
Social enterprise
A business that aims to fulfil community or environmental through selling goods or services
Government business enterprise (GBE)
A business that is owned and operated by the government
Business model
A plan that identifies how the business will operate to make a profit
Online business
A business model where goods and services are traded via the internet
Pros:
Customers can order 24/7
Wider customers
Web quick to set up
Avoid rent
Cons:
Customers can’t see products
Strong customer relationships are hard
Online security issues
Direct-to-consumer business
A business model where the business’s products are sold directly to consumers with no intermediaries involved.
Pros:
Direct control over brand presence and advertising
More reliable sales data and customer information
Saves time
Higher profit
Cons:
Difficult to grow business
Not reach as many customers
Bricks-and-mortar business
A business model that has a physical store presence
Pros:
Customers can see products in person
Products can be promoted in stores
Stronger customer relationships
Brand recognition through logos
Increases employment opportunities
Cons:
Customers need to be physically present
Potentially crowded stores
Times and money establishing physical locations
Franchise
A business model that grants another person the right to operate under its name, use its business systems, and sell its goods and services
Pros:
Support and advice provided
Business starts with a good reputation
Operation system and reputation established
Sales likely to be higher
Cons:
Limited decision-making power
Reputation can be negatively impacted by other stores
Percentage of profit goes to the company
Importer
Purchases goods and services from overseas and sells them in its home country
Pros:
Provide access to goods/services that the home country doesn’t have
Potential cheaper prices
Cons:
Different systems and regulations affect deals
Increase delivering cost
Reduce local employment opportunities
Unreliable supply chain
Potentially long wait times
Exporter
Produces goods and services in its home country and sells them to overseas buyers
Pros:
Increase skills
Overseas customers may be willing to pay for more
Cons:
Accommodate different laws
Higher team costs
Internal environment
Resources
Locations
Finance Source
Purchase/Establishing Business
Types of Businesses/Models
CSR
Support services
SWOT Analysis
Operational environment
Customer needs/Expectations
Special interest groups
Competitors behaviours
Suppliers/Supply chain
Macro environment
CSR considerations
Legal /Government regulations
Global considerations
Societal attitudes/Behaviours
Technological considerations
Economic conditions
Natural resources
Raw materials from the environment that are used in the production of goods and services
Labour resources
The people who provide the business with their skills and qualifications to conduct business activities
Capital resources
Man-made goods used in the production of goods and services
Resources
Items required by a business to produce its goods and services
Corporate social responsibility (CSR)
The ethical conduct of a business beyond legal obligations, and the consideration of social, economic, and environmental impacts when making decisions
