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Business Management Unit 1 Georgie Hrehoresen > AOS3 > Flashcards

AOS3 Flashcards

1
Q

(The external environment) Meaning of P.E.S.T.L.E

A

P - Political
E - Economical
S - Social
T - Technological
L - Legal
E - Environmental

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2
Q

The external environment

A

Factors surround a business that can impact operation, which the business has minimal control over.

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3
Q

External Environment is divided into:

A
  1. Operating environment
  2. Macro environment
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4
Q

(The external environment) The operating environment

A

The primary external factors impacting a business that it has some control over.

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5
Q

(The external environment) Operating factors

A
  • Customer needs and expectations
  • Competitors behaviours
  • Suppliers and the supply chain
  • Special interest groups
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6
Q

(The external environment) The macro environment

A

Social, legal, technological, global and economic conditions that a business operates in and has no control over.

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7
Q

(The external environment) Macro factors:

A
  • Legal and government regulations
  • Societal attitudes and behaviours
  • Economic conditions
  • Technological considerations
  • Global considerations
  • Corporate social responsibility considerations
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8
Q

(The external macro environment, key legal and government regulations) Legal and government regulations

A

Laws and rules that are set out by both parliaments, governments and courts.

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9
Q

(The external macro environment) Business specific rules and regulations: listed

A
  • Employment laws and regulations
  • Environmental legislation
  • Industry regulations
  • Council regulations
  • Taxation requirements
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10
Q

( Business specific rules and regulations) Employment regulations

A

Rules governing the relationship between employers and employees.

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11
Q

(Business specific rules and regulations) Environmental legislation

A

Set of laws that aim to preserve the environment.

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12
Q

( Business specific rules and legislations) Industry regulations

A

Rules that are specific to business within a certain industry.

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13
Q

(Business specific rules and legislations) Council regulations

A

Local government rules made to govern businesses operating in a specific geographic area.

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14
Q

(Business specific rules and legislations) Taxation requirements

A

Laws and rules related to tax that apply to all businesses

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15
Q

Societal attitudes

A

The attitudes and behaviour of the society that surrounds us impacts how we act, what we consume, how we communicate and also, how we interact with businesses.

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16
Q

(Societal attitudes) Societal values and beliefs

A

The principles, standards and assumptions upheld by individuals or a group of people, which influence how they make decisions.

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17
Q

(Societal attitudes) Societal trends

A

A general development in the way a group of people in society are behaving.

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18
Q

Economic conditions

A

The conditions that exist in the relation to the productive performance and financial stability of a nation or other geographic area.

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19
Q

(Economic conditions) Interest rates

A

The price paid for money that’s been borrowed expressed as a percentage.

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20
Q

(Economic conditions) Employment levels

A

Is measured as the percentage of the labour force who are working in paid employment.

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21
Q

(Economic conditions) Tax rates

A

The percentage of income or spending that’s required to be paid to the government by individuals or businesses.

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22
Q

(Economic conditions) Consumer confidence

A

A measure of consumers feelings and expectations about current and future economic conditions.

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23
Q

Technological considerations

A

With technology becoming more prominent in society, businesses have been forced to alter the way in which they operate.

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24
Q

(Technological considerations) Technological developments

A

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

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25
Q

(Technological considerations) Technological developments impact on planning

A

*Production lines
* Eftpos
*Online presence

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26
Q

(Technological considerations) Advantages of tech development

A

*Increase consistency of product
*Production lines remove unsafe repetitive tasks for employees
*Can run 24/7, no need for breaks, holidays etc.
*Can reduce labour costs

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27
Q

(Technological considerations) Disadvantages of tech development

A

*Can develop poor reputation for increasing unemployment rates
*Employees may be replaced by tech
*Technological breakdown can stop production
*High set up costs and maintenance

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28
Q

(Technological considerations) Business responsiveness to technological developments

A

Businesses must monitor and understand the latest tech developments and adapt to them accordingly.

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29
Q

(Global considerations) Globalisation

A

The process by which governments, businesses and people across the globe are becoming more interconnected, allowing for increased trade.

30
Q

(Global considerations) Global considerations

A
  • Overseas competitors
  • Overseas markets
  • Offshoring of labour
  • Exchange rates
  • Online sales
31
Q

(Global considerations) Overseas competitors

A

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

32
Q

(Global considerations) Overseas markets

A

Any markets that are outside of a businesses own country.

33
Q

(Global considerations) Offshoring a labour

A

Business moving its services or processes to another country.

34
Q

(Global considerations) Exchange rates

A

The relative price at which currency of one country is exchanged for the currency of another country.

35
Q

(Global considerations) Online sales

A

Buying and selling goods and services using the internet.

36
Q

Corporate social responsibility (CSR)

A

The ethical conduct of a business beyond legal obligations, considering social, economic and environmental impacts.

37
Q

Corporate social responsibility (CSR) divided into two groups

A
  • Environmental considerations
  • Social considerations
38
Q

(Corporate social responsibility (CSR)) Environmental considerations

A

Businesses should be placing emphasis on environmental sustainability through their business activities.

39
Q

(Corporate social responsibility (CSR)) Environmental consideration during planning

A

*Choice of resources
*Choice of energy source
*Waste management processes
*Method of packaging

40
Q

(Corporate social responsibility (CSR)) Social considerations

A

Businesses must additionally consider their impacts on society.

41
Q

(Corporate social responsibility (CSR)) Social consideration during planning

A

*Choice of suppliers
*Optimising
*Employee work-life balance
*Charity/philanthropic efforts

42
Q

Corporate social responsibility (CSR) Advantages

A

*Positive business reputation = more customers
*May attract more highly skilled employees = making business employer of choice
*Employee loyalty
*Customers may be willing to pay more for more ethically sourced products

43
Q

Corporate social responsibility (CSR) Disadvantages

A

*Too much focus on CSR may result in loss of productivity elsewhere
*May be overwhelming for employees to keep up with CSR processes
*Time consuming
*Expensive

44
Q

(Customer needs and expectations) Customer needs

A

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

45
Q

(Customer needs and expectations) Customer expectations

A

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

46
Q

(Customer needs and expectations) Possible needs and expectations listed

A

*Customer convenience
*High-quality good or service
*Social responsibility
*Responsive customer service

47
Q

(Customer needs and expectations) Customer convenience explanation

A

Customers expect a product or service that saves them time and effort.

48
Q

(Customer needs and expectations) Customer convenience how it impacts business planning

A

Owner should consider convenient options: Click and collect, same day delivery, multiple payment options.

49
Q

(Customer needs and expectations) High quality good or service explanation

A

Owners should ensure their products are high of standards and reflect needs and expectations of customers.

50
Q

(Customer needs and expectations) High quality good or service how it impacts business planning

A

Supplier choices. Business could put in place product standards and expectations.

51
Q

(Customer needs and expectations) Social responsibility explanation

A

Customers are becoming increasingly informed and considerate about the ethical decisions of businesses.

52
Q

(Customer needs and expectations) Social responsibility how it impacts business planning

A

Owner should consider CSR in all business processes.

53
Q

(Customer needs and expectations) Responsive customer service explanation

A

Customers expected quick responses to their queries. Businesses should ensure customers are able to interact.

54
Q

(Customer needs and expectations) Responsive customer service how it impacts business planning

A

Business may optimise technology. Offer multiple communication channels FAQ page.

55
Q

(Competitors behaviour) Competitors

A

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

56
Q

(Competitors behaviour, how competitors behaviour affects planning) Competitors selling similar goods or services at lower prices

A

*Consideration of manufacturing and operating costs, determine if lower production costs are possible.
*Business may need to seek other ways to be competitive (Eg, convenience).

57
Q

(Competitors behaviour, how competitors behaviour affects planning) Competitors selling a highly unique good or service

A

Business may seek to manufacturer product more unique or advanced.

58
Q

(Competitors behaviour, how competitors behaviour affects planning) Entering an industry where businesses have large market share

A

*Business must investigate its own strengths and weaknesses and identify whether they can take advantage of competitor weaknesses.
*Seek to be innovative.

59
Q

(Competitors behaviour, how competitors behaviour affects planning) Threat of new competitors entering the market

A

Business must anticipate new competitors and plan to respond to them.

60
Q

Suppliers and the supply chain

A

Choices of appropriate suppliers must be considered during the planning stages of the business.

61
Q

(Suppliers and the supply chain) Suppliers

A

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

62
Q

(Suppliers and the supply chain) Supply chain

A

The network of individuals or businesses that are involved in producing and distributing a good or service to customers.

63
Q

Supply chain considerations (Listed)

A

*Sourcing considerations
*Retrieving considerations

64
Q

(Supply chain considerations) Sourcing considerations: time

A

*Local suppliers: Resources will be received faster, helps build competitive advantage.
*Overseas suppliers: Less predictability and can take longer.

65
Q

(Supply chain considerations) Sourcing considerations: Shipping costs

A

*Local suppliers: Business should consider total cost of shipping in order to accurately forecast costs.
*Overseas suppliers: Can result in higher shipping costs.

66
Q

(Supply chain considerations) Sourcing considerations: Social responsibility

A

*Local suppliers: Business can support local economy, good for reputation and retention.
*Overseas suppliers: Can harm reputation and customer loyalty.

67
Q

(Supply chain considerations) Sourcing considerations: Access to resources

A

*Local suppliers: May not have needed resources.
*Overseas suppliers: May enable businesses to comply with customs regulations.

68
Q

(Supply chain considerations) Sourcing considerations: Legal regulations

A

*Local suppliers: Business doesn’t have to worry about customs.
*Overseas suppliers: May require business to comply with customs regulations.

69
Q

(Supply chain considerations) Retrieving considerations: Road transport

A

*Local market: Business owner could pick up goods directly from supplier, no delivery costs, traffic can affect, limited capacity on trucks.
*Overseas market: Isn’t available for Aus businesses wanting to retrieve overseas supplies.

70
Q

(Supply chain considerations) Retrieving considerations: Air transport

A

*Local market: Can be costly, method of retrieving resources over short distance.
*Overseas market: Beneficial for businesses that require items to be delivered quickly over long distance, can be expensive due to tax and fuel.

71
Q

(Supply chain considerations) Retrieving considerations: Rail transport

A

*Local market: Can be slower than other methods, cost effective.
*Overseas market: Not available in Aus.

72
Q

(Supply chain considerations) Retrieving considerations: Sea transport

A

*Local market: Cannot be used between states (including TAS).
*Overseas market: Slow, easily disruptive (weather), cost effective, environmentally friendly.

Business Management Unit 1 Georgie Hrehoresen (6 decks)

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