Business Management

AOS Index and Lesson Structure

  • FLIPPED NOTES

    • Application Lesson

    • Video

    • Textbook

    • Checkpoints

  • Links: Pages and Questions

    • L1 - The External Environment: link to pg. 146, Q1

    • L2 - Legal and Government Regulations: link to pg. 151, Q2

    • L3 - Societal Attitudes and Behaviour: link to pg. 158, Q3

    • L4 - Economic Conditions: link to pg. 163, Q4

    • L5 - Technological Considerations: link to pg. 169, Q5

    • L6 - Global Considerations (Part 1): link to pg. 175, Q6

    • L7 - Global Considerations (Part 2): link to pg. 182, Q7

    • L8 - Corporate Social Responsibility (CSR): link to pg. 188, Q8

    • L9 - Customer Needs and Expectations: link to pg. 194, Q9

    • L10 - Competitors’ Behaviour: link to pg. 198, Q10

    • L11 - Suppliers and the Supply Chain: link to pg. 202, Q11

    • L12 - Special Interest Groups: link to pg. 208, Q12

    • Revision: pg. 214

    • Practice SACs: Unit plan, Task words, Study design, SAC date: 27/5 (W6)

UNIT 1 AOS 3: External Business Environment and Planning

  • Definition: The external environment represents all elements outside a business that may act as pressures or forces on business operations.

  • Factors Considered: Legal, Political, Social, Economic, Technological, Global, Corporate Social Responsibility (CSR) factors and their effects on business planning.

  • Outcome 3: Completion of this unit enables students to describe the external environment of a business and explain how macro and operating factors may affect business planning.

  • Reproduction Source: VCAA VCE Business Management Study Design 2023-2027

Today's Lesson Overview

  • Goal: To understand factors from the external environment affecting business planning.

  • Lesson Numbers: 3A - 3L will cover the detailed lessons sequentially.

The External Environment

  • Key Concept: The external environment encompasses surrounding factors impacting a business minimally controllable by it.

    • Categories: Macro factors and Operating factors.

Macro Factors

  • Definition: Constantly changing factors that a business should predict and plan for.

    • Includes: Social, Legal, Technological, Global, and Economic conditions.

  • Importance: Proper understanding and response can significantly affect business success and activities.

Operating Factors

  • Definition: External stakeholders with whom businesses closely interact, affecting their activities directly.

Differences Between Macro and Operating Factors

  • Similarities: Both conditions are part of the external environment, and failure to recognize both can affect business success.

  • Differences: Control over factors—operating factors are controllable by the business, while macro factors are not. Furthermore, operating factors are specific to each business and industry, whereas macro factors are broader and impact multiple businesses across various industries.

  • FreshBrew Case Study: Impact of rising competition, inflation, and consumer trends on a local cafe's operational dynamics.

  • Macro vs Operating Factors Consideration: Comparison of external pressures affecting FreshBrew's strategies.

Looking at Legal and Government Regulations

  • Categories:

    • Employment Laws: Set minimum wages, protect against unfair dismissal; regulated by the Occupational Health and Safety Act 2004.

    • Environmental Legislation: Mandates reducing energy and waste.

    • Industry Regulations: Specific requirements for different business sectors.

    • Council Regulations: Local laws impacting business operations, such as zoning.

  • Tax Requirements: Implementation of taxation registration such as ABN, GST.

Societal Attitudes and Behaviour

  • Change and Expectation: Businesses must adapt to changing social values and consumer behaviours concerning health and sustainability.

    • Real-World Example: The Body Shop's commitment to ethical practices reflects the demand for eco-friendly products.

Global Considerations and Operational Efficiency

  • Impact Factors: Understanding of overseas markets, competition, labor dynamics, and economic conditions necessary for strategic planning

  • Patents, Copyrights, Trademarks: Innovation protection through effective intellectual property laws that vary by country.

Corporate Social Responsibility (CSR)

  • Benefits: Positive reputation and customer loyalty.

  • Challenges: Implementation costs and employee training.

  • Examples: Sources of sustainable materials vs. environmental impacts, local sourcing for community support.

Customer Needs and Expectations

  • Importance: Constantly meeting evolving customer expectations is critical for maintaining satisfaction and loyalty.

  • Examples: Customer convenience and quality products as essential factors for consideration.

Competitors’ Behaviour

  • Competitive Analysis: Understanding rivals through market research enables differentiation and informed product development.

    • Responding to Pricing Strategies: Evaluation and adjustment accordingly to stay competitive.

Suppliers and Supply Chain Considerations

  • Supplier Relationships: Emphasizing the critical nature of reliable suppliers in production.

    • Sourcing Options: Evaluating local versus overseas suppliers concerning cost, time, and supply chain efficiency.

Special Interest Groups Impacting Business Operations

  • Understanding Groups: Unions advocating for employee rights, business associations providing essential industry information, and environmental groups influencing corporate practices.

Revision and Study Plan

  • Revision Topics: Overview of factors within AOS 3 affecting business planning, with an emphasis on macro and operating factors, societal attitudes, and stakeholders.

  • Upcoming SAC Date: 27/5 (W6) - focus on effective preparation and comprehension of external business environment dynamics.