AOS3- external business environment and planning

Question 1

external environment

Answer 1

the elements outside of the business, which can impact a businesses’ operations

Question 2

operating environment stakeholders

Answer 2

-customers
-competitors
-suppliers
-special interest groups

Question 3

macro environment factors

Answer 3

-legal and government regulations
-societal attitudes and behaviours
-economic conditions
-technological considerations
-global considerations
-corporate social responsibility considerations

Question 4

customers

Answer 4

the people who purchase goods and services from the business, expecting high quality at competitive prices

Question 5

competitors

Answer 5

other businesses or individuals who produce and sell rival, or competing, goods or services to the ones offered by the business

Question 6

suppliers

Answer 6

the businesses or individuals that supply materials and other resources that the business needed to conduct its operations

Question 7

special interest groups

Answer 7

the groups of people who attempt to directly influence or persuade a business to adopt particular policies or procedures, including lobby groups, business associations and unions

Question 8

legal and government regulations

Answer 8

the laws or regulations made by parliaments and courts, which affect how businesses operate and behave

Question 9

societal attitudes and behaviour

Answer 9

the factors relating to changes in the attitudes, behaviour, tastes and lifestyles of communities on a local, national and international scale

Question 10

economic conditions

Answer 10

the set of influences that relate to economic activity, including interest rates, wages, unemployment, exchange rates and inflation

Question 11

technological considerations

Answer 11

the issues related to the growing use of tools, techniques or systems

Question 12

global considerations

Answer 12

the pressures that arise as a result of businesses operating in worldwide markets and competing on a global scale

Question 13

corporate social responsibility
considerations

Answer 13

the pressures on a business to take into account environmental considerations to ensure broader social welfare

Question 14

federal government obligations

Answer 14

-payment of taxes for employees and businesses with company tax
-provision of superannuation
-customs regulation

Question 15

state government obligations

Answer 15

-provision of employee entitlements
-payment of payroll taxes
-abiding by relevant legislation

Question 16

local governments have control over?

Answer 16

-approving new development
-fire regulations
-parking regulations

Question 17

key laws and regulations

Answer 17

-new business laws
-location laws
-health regulation laws
-employment regulations
-anti-discrimination laws
-os&s laws
-tax laws
-trade practices
-environmental legislation

Question 18

societal attitudes

Answer 18

the ideas, values, and beliefs that people in a particular society hold

Question 19

societal behaviours

Answer 19

relates to how people express their ideas, values, and beliefs (societal attitudes)

Question 20

why are societal attitudes and behaviours important for business?

Answer 20

-they dictate what is socially acceptable behaviour, therefore businesses need to align with these to be successful
-they can change regularly and businesses need to keep up

Question 21

why are trends important for business?

Answer 21

-businesses that plan for these changing demographics (trends) are likely to thrive, while those that don’t may struggle

Question 22

societal values and beliefs

Answer 22

-shared principles and morals of a group of people or society
-eg protecting environment and the expectation that businesses will contribute positively to society

Question 23

trends

Answer 23

the general direction in which people’s attitudes or behaviours in society are developing or changing

Question 24

economic conditions

Answer 24

-the many influences that relate to economic activity in a country, region, or the world
-includes interest rates, wages, exchange rates, and inflation

-changes in taxes directly affect business profits
-higher employment levels lead to increased business activity

Question 25

interest rates

Answer 25

-the cost of borrowing money (extra money to be paid back) -rises negatively affect business activity and customer's lives (expensive for businesses to take out loans)

Question 26

business and consumer confidence levels

Answer 26

-how they feel about the economy -when consumer confidence is high consumers will be optimistic about their financial condition -when business owner confidence is high they can feel positive about the future and may plan to expand business

Question 27

technological considerations

Answer 27

-relates to the growing use of, and dependence on, tools, techniques, or systems by businesses to solve problems or to serve a purpose in operations -technology continues to advance, and businesses need to adapt to new technology to stay relevant and profitable

Question 28

what do businesses use technology for?

Answer 28

-increase efficiency and productivity -create new products -improve the quality and range of goods and services -hopefully make a profit

Question 29

globalisation

Answer 29

means that businesses now operate in a worldwide market facing challenges (competing on a global scale) and opportunities (selling to a global market)

Question 30

global issues

Answer 30

-overseas competitors and markets -offshoring labour -exchange rates -protection of IP at a global level -online sales

Question 31

movement in exchange rates

Answer 31

-depreciation: fall in value of country's currency in relation to another (exports cheaper, imports expensive) -appreciation: rise in value of country's currency in relation to another (exports expensive, imports cheaper)

Question 32

offshoring

Answer 32

-moving some of a business' processes or services overseas under same or different business)

Question 33

how can a business be socially responsible?

Answer 33

-avoid conflicts of interest -ensure business is free of corruption -become involved in community -minimise waste and pollution -develop skills of employees

Question 34

how do customers affect/influence businesses?

Answer 34

-customers needs change over time, so businesses must respond, and these needs have to be prioritised

Question 35

competitive advantage

Answer 35

something unique to the business which it does better than its competitors

Question 36

how do competitors affect business planning?

Answer 36

businesses will need to create new strategies and/or products/services to counter competitors

Question 37

how do businesses deal with competitors?

Answer 37

businesses will need to respond by either becoming highly efficient, or offering a valuable/unique product/service

Question 38

supply chain

Answer 38

-the network of suppliers from which the business purchases resources -management is critical, as if there are problems in the chain it can affect the final product

Question 39

why should businesses care about suppliers?

Answer 39

-guarantees efficient running of the business -having number of suppliers makes it less vulnerable to supply difficulties

Question 40

how do suppliers affect business planning?

Answer 40

businesses need to ensure stability with suppliers to avoid any problems which could arise

Question 41

main types of special interest groups

Answer 41

-specific issue groups -environmental lobby groups -business associations -unions -consumer groups

Question 42

why do specific interest groups (eg environmental lobby groups) exist, effect on business planning, and example?

Answer 42

-interest: to focus on an issue important to the local community -effect: causes businesses to take actions to improve operating (eg undertaking environmental impact studies) -example: youth unemployment, environment groups

Question 43

why do business associations exist, effect on business planning, and example?

Answer 43

-interest: supports businesses -effect: provides reports on relevant issues etc -example: australian chamber of commerce and industry (ACCI), speaks on behalf of Australian businesses at both national and international levels. ACCI publishes and distributes research and reports on a range of issues that may be relevant to planning a business

Question 44

why do unions exist, effect on business planning, and example?

Answer 44

-interest: represents employees -effect: businesses focus more on looking after employees -example: cfmeu (union for people in construction industries etc)

Question 45

why do consumer groups exist, effect on business planning, and example?

Answer 45

-interest: to monitor business performance in product safety, packaging, pricing etc -effect: holds businesses accountable, ensures products are high quality etc -example: choice

Question 46

positive of advances in technology

Answer 46

-helps businesses creates new products -increases efficiency -improves quality of goods and services

Question 47

negatives of advances in technology

Answer 47

-decrease in number of employees needed -products have short life cycle and may not last long -businesses may have to spend more money to ensure online spaces are safe