AOS3: External Environment Flashcards
What are some key legal and government regulations that affect a business? (8)
- Laws related to establishing a new business eg. Registration with Australian Securities and Investments Commission
- Laws related to location eg. zoning, building, parking, fire, signage
- Health regulations eg. food distribution and handling license
- Employment regulations eg. Laws about conditions of employment, anti-discrimination
- Work Health and Safety regulations
- Taxation Laws
- Trade practices and consumer protection eg. fair trading (not false advertise), consumers have right to refund.
- Environmental protection Legislation eg. noise, air, water and land emissions
What are societal attitudes and behaviour that affect a business?
- societal values and beliefs can affect business procedure and goods and services based on what the society believes to be right and wrong (eg. against overfishing)
- societal trends refer to development of attitudes, behaviour or opinions. eg. A trend being the demand for family friendly workplaces
What are interest rates and how do they affect a business?
Interest rates are the cost of borrowing money. They are expressed as a percentage of the principle amount of money borrowed.
If interest rates are low, businesses are more likely to borrow money for business development as repayments are easily managed.
What is meant by progressive tax system?
Bonus points for proportional and regressive.
The progressive tax system refers to the concept of charging a greater tax rate as an individual’s income increases. The term progressive refers to the way the tax rate progresses from low to high.
Also, there is proportional tax system (in which tax rate remains the same even with income increase)
And regressive tax system (in which low income earners and high income earners pay the same rate – as tax rate increases as persons ability to pay it decreases.)
What is business and consumer confidence?
Business and consumer confidence refers to the way businesses and consumers feel about the economy. If confidence of consumers is high, due to a healthy economy, or secure employment for example, then consumers are more likely to make purchases and therefore provide businesses with opportunity to expand or develop due to greater income.
What is a tax rate?
The percentage of income or value of a good, service or asset paid as tax. This percentage is based on an individual’s taxable income and is imposed by the government.
What are technological issues?
Technological issues refer to the growing use of tools, techniques or systems by businesses to operate. This technology can increase the efficiency of operations and improve the quality of the provided good or service. Failure to adapt to technological advancement can cause a business to become obsolete.
What are some developments that will be made in the future of technology?
- personality detection (determines insurance by stalking online presence)
- robotics / artificial intelligence
- back doors (sneaky access to any account)
- drones
- quantum computing (very advanced computing)
- Augmented knowledge (assist with brain function if problem with brain)
What are overseas competitors?
Rival or competing businesses that serve customers internationally. They force businesses to build competitive advantage based on the competitions strengths, weaknesses, costs and quality.
What is offshoring labour?
Offshoring labour is the opportunity to use labour in other countries. It is the practice of moving some of a business’s processes to the same or another business overseas.
Define exchange rate
An exchange rate is the price of one country’s currency expressed in terms of another country’s currency. It determines how much money has to be given up in order to buy a given amount of a different currency.
What are three protection methods of intellectual property at a global level
- patenting: exclusive right granted for any device, substance, method, or process that is new
- trademarking: right granted over a letter, word, phrase, number, sound, smell, shape, logo, picture or aspect of packaging
- copyrighting: automatic protection of original works such as writing, music, art, films, sound recording, broadcasts and computer programs.
What is triple bottom line business planning?
Businesses that plan for the triple bottom line no longer simply focus on its economic performance, rather also recognise its environmental and social performance.
The triple bottom line refers to the economical, environmental and social performance of a business.
What is a supply chain?
The range of suppliers from which a business purchases materials and resources. This typically starts with a natural resource (ie. apple orchard), followed by manufacturing and component construction (packaging and cleaning of apples). This is then proceeded by storage facilities before reaching the consumer.
What is a special interest group?
Groups of people who attempt to directly influence or persuade a business to adopt particular policies or procedures. These can include;
- environmental lobby groups who respond and criticise environmental issues (eg. Mining)
- Business associations that support businesses through education, advice and information programs.
- Unions that represent employees
- consumer groups that monitor business product safety, packaging, pricing and advertising.
