Y11 Business end of year exam

Macro factors vs Operating factors

(Both are part of the external environment, making them factors outside the business that can impact it.) Macro factors are the legal, social, global, technological, and economic conditions that a business operates in and has no control over. Operating factors, however, are the primary external factors impacting a business that it has some control over.

The external environment

Involves the surrounding factors that can impact a business, which it has minimal control over

Technological Developments

Are the invention and innovation of tools that solve problems and enhance processes.

Customer needs

Are the essential requirements that customers intend to fulfil with the purchase of a good or service from a business.

Internal environment

Factors inside the business that have an impact on its day-to-day planning, activities and success

Government business enterprise

A private sector of business which is owned and controlled by the government and exists to fulfil commercial purpose of making a profit.

Public listed company

A company which openly trades its shares on the ASX

Private Limited company

A company with up to 50 private shareholders

Sole trader

A business with one owner

Partnership

A business between 2 to 20 owners

Personal Independence

Involves a person being in control of their own decisions and actions

Financial Independence

The ability to fund a desired lifestyle without relying on the income from another individual

Making a Profit

Involves a business generating more revenue than expenses it incurred

Fulfilling a Market Need

When a business fills a gap in the market by addressing customer needs that are currently unmet or underrepresented by competitors in the same industry

Fulfilling a Social Need

Improving society and environment through business activities

Social Enterprise 

A type of business that aims to fulfil a community or environmental need by selling goods and services

Innovation 

A new idea or more effective process that makes a product better than it was before

Market opportunity

A need or want that is not currently being met by any businesses

Changing customer needs

The transitions in the desires of consumers

Research and Development 

Involves directing resources, such as money, towards discovering, creating, and introducing new products and processes

Technological developments

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

Global Market

The area in which businesses trade goods and services, compromised of both businesses and customers from countries all across the world

External professionals 

highly-skilled individuals that businesses hire to provide expertise in a particular area of operation

Accountant

a professional who manages, updates, analyses and reports a business’s financial information

Financial advisor

a professional who provides expert advice to individuals and businesses in relation to monetary matters, personal finances, and potential investments

ICT specialist

a professional who develops and maintains the technological systems that are used by businesses to store and retrieve data

Legal advisor

a professional who provides expert advice to businesses regarding their legal responsibilities

Marketing advisor

a professional who provides expert advice to businesses in relation to promoting and selling their products

Business name

the title that a business operates under and what customers use to identify the business

Website domain

a website address that identifies a business’s online site

Trade practices legislation

the law that governs how a business interacts with customers and competitors

Tax compliance

the extent to which an individual or business meets tax obligations

Work safe insurance

compulsory insurance that assists employers to meet their obligation of financially compensating and supporting employees who become injured or ill because of their work

Bank Account

an arrangement made with a bank where a business or individual can deposit and withdraw money

Financial control systems

are processes and procedures used to direct and monitor a business’s finances

Policies

the written statements that outline the expected performance and behaviour of employees

Procedures

a series of actions that employees must follow in order to abide by the business’s policies

Overseas suppliers

individuals or businesses that sell raw materials or resources in a country overseas

Overseas retailers

individuals or businesses that sell goods and services directly to customers overseas

Product

a good or service that is offered to consumers to satisfy a need or want

Price

is the amount that a customer pays for a good or service

Place

is an element of the marketing mix relating to how a business distributes its product to customers

Promotion

is the marketing communications used by a business to inform, promote, and remind its target market about its product

People

are the individuals that influence a customer’s perception of a business and its products

Physical evidence

is the environment in which the business and customers interact

Process

is the procedure set in place throughout the entire customer purchasing experience at a business

Product life cycle

is a series of stages that a product will pass through from the moment it is introduced to the market until it becomes obsolete or replaced

Customer relations

is the way a business creates, builds, and maintains customer relationships

Quality customer service

is a business consistently going above and beyond expected performance to ensure customers are satisfied with their experience

Customer loyalty programs

are marketing initiatives that enable customers to gain benefits for frequently purchasing from a business

Social Media

the online platform that can be used to connect with others and share content

Planned public relations

is a business proactively communicating intended messages to various publics

Crisis Public Relations

is a business reactively communicating to various publics in response to an issue that can negatively affect its reputation

CSR

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

Job analysis

The process of identifying the essential duties, tasks and responsibilities of a specific role.

Job description

Summary of the duties, tasks and responsibilities of a specific role

Job specifications

Necessary skills, knowledge and qualifications for a specific role.

Job design

Process of organising several duties, tasks and responsibilities of a specific role.

Internal recruitment

Process of filling job vacancies with existing staff at the business.

Intranet

Private computer network used to share information within a business

Word of mouth

the verbal communication of information between individuals

External recruitment

The process of filling job vacancies with individuals outside of a business

Websites

Are a collection of web pages and content, published on at least one web server, that is identifiable by a common domain name

Online recruitment agency

Is a business that works on behalf of an employer to find suitable job candidates

Interview

Is a meeting that occurs between an employer and a job candidate to determine whether they have the necessary knowledge, skills, and ideas to fulfil the position

Psychological testing

Is a scientific method of examining a job applicant’s behavioural style and reasoning skills

Work testing

Is the process of administering practical or written assessments to determine the sustainability of a job candidate for a position

Online selection

The process of choosing an employee based on online forms completed by a job applicant

National Employment Standards (NES)

Are the minimum entitlements an employer owes its employees, which are set out in the Fair Work Act 2009

Conditions of employment

What an employer has agreed to offer the employee in return for the work they complete

Remuneration

The money an employee receives from an employer in exchange for the work they complete

Job security

The likelihood of an employee keeping their job

Work life balance

The division of a person’s time between the demand of their job and their personal life

Employee induction

The process of inducing a new employee to the business