Business Management AOS 3 Flashcards

Flashcards from lecture notes.

External Environment

The environment outside of a business, broken into two main parts: the macro and the operating environment.

Macro Environment

Factors outside of a business which they have no control over, that will impact the planning of a business.

Operating Environment

Factors outside the business which they have a little control over, that will impact the planning of a business.

Employment Laws and Legislation

Includes issues such as correct pay, break times, break areas, and health and safety of the employees.

Environmental Legislation

Laws to protect the environment.

Industry Regulations

Laws and regulations that have to be followed depending on what a business is involved in. The business must have a registered name and may need an Australian Business Number in order to legally trade

Council Regulations

Various laws that can impact a business, such as permit requirements for placing items on the footpath.

Taxation Requirements

Requirement for every business to adhere to taxation laws, such as GST (a tax of 10% on most goals and services).

Societal Attitudes and Behaviors

Shared ideas and beliefs that a community holds, which are always changing and can influence what products a business sells.

Values and Beliefs

Factors that affect how people behave, what they eat, what they wear, and how they live; constantly changing and impacting businesses.

Trends

Something popular during a point of time.

Economic Conditions

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

Employment Level

Percentage of the labor force who are working in a paid environment.

Tax Rate

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.

Technological Developments

The invention and innovation of tools that solves problems and processes.

Overseas Competitors

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

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

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

Online Sales

Involves buying and selling goods and services using the internet and is also referred to as e-commerce.

Copyright

Free and automatic protection used on original ideas such as writing art, sound, films and photographs

Trademark

An exclusive right granted over a business, such as a symbol, word, sound or number that is used to distinguish the business or its products.

Patent

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

CSR

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

Customer Needs

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

Customer Expectations

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

Competitors

Businesses that operate in the same or similar industry and offer a similar good and service.

Suppliers

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

Supply Chain

Network of individuals or businesses that are involved in producing and distributing a good and service to a customer.

Special Interest Groups

Organizations or a group of people that seek to influence policies or benefit a specific cause.

Unions

Organizations 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

Organizations that advise and support business in a particular industry.

Environmental Lobby Groups

Organizations that advocate for the production of the environment and promote environmental issues to businesses, the government and the public.

Business Responses to Technological Developments

When planning a business, business owners must monitor, understand and adapt the latest technological developments in order to remain competitive within the market.

Environmental Considerations

A business should consider the welfare of local, national and global societies by protecting and preserving the environment

Social Considerations

Another element of CSR that businesses need to consider is their impact on society

Sourcing Considerations

A business may choose to source its resources locally or a supplier located overseas.

Retrieving Considerations

After deciding what resources will be required and where to source them from, a business owner must plan how the resources will reach the business.