Business 2 Internal business environment and planning Flashcards
Internal Environment
The factors inside a business that impact on day to day planning. Activities and Success
External Environment
Factors outside the business control include
-impact directly(Operating Factor)
-Indirectly (Macro)
Operating Environment
External Environment
-Includes factors outside business control and have a direct impact on the business
Macro Environment
External Environment
-Factors outside of the business and have no control over has an indirect impact on business
Relationship between internal and external environment
Any change in the external influences business planning and decision making in the internal
-Vise Versa
Unincorporated business
Business itself and owner are one legal entity
Sole Trader
One Owner
-Unincorporated
-Unlimited liability
-Simple/Cheap
Incorporation
Business becomes separate legal entities from it’s owner
Private Limited Company
-Up to 50 shareholders
Private Limited Company
PTY
-Up to 50 shareholders
-Shareholders have limited liability
-Shareholders invited not on ASX
-Common when expanding Solo traders/Partnership
Social Enterprise
-For Profit Private business sector
-Generates income from Commercial trade of goods
-Reinvests 50% of profits back into business to achieve social objective
Government Business Enterprise
Private Sector Business
-Owned controlled by the government and exists to fulfill commercial purpose of making a profit
-Housing/Health
-Generates income from trade of goods with intention of profit
Company
Private Limited
Public Listed(ASX
Business Structures
-Sole trader
-Partnership
-Company
Private Limited
Public Listed(ASX
-Social Enterprise
-Government business enterprise
Business Model
-Online Business
-Direct-Consumer
-Bricks and Mortar
-Franchise
-Importer/Exporter
Online Business Model
-Business carries out main activities and sells products via World Wide Web
-Ecommerce
Transacting(Buying selling) Products online
Direct to Consumer
(DTC)
Sells its products directly to consumers online
-Directly controls user experience, targeted marketing
Bricks and Mortar
A business which has an established physical store or office which it carries out it’s commercial activities face to face interaction with customers
Franchise
An Arragement when a business sells the rights to distribute products and use the business name to others
Import/Export
Import
-Purchases overseas materials/products for production and resale in it’s home country
Export
-Sells Australian made good/services to overseas customers
Purchasing an Existing business
Includes
-Customer Base
-Stock/Equipment/Employe
Beware
-Why business is selling
-Financial health of busines
-Commercial potential
-Assets an Liabilities
-Business goodwill
Goodwill
Reputation of a business which is regarded as a quantifiable asset of the business and calculated as part of its value when it is sold
Business resource needs
Natural Resources
Natural Resources
-Land
-Water
-Raw Materials
-Metals
-Air
-Fish/Livestock
-Plants
Establishing a new business
-Business concept has arisen identified gap in the market
-Indivual wants creative control over business
Business resource needs
Capital Resources
-Tools
-Equipment
-Machinery
-Buildings
-Vehicles
-Inventory
Business resource needs
Labor Resources
-Human Capitol
-Employees
-Knowledge skills
-Experience
-Effort
Business Locations
-Shopping centres
-Retail Shopping strips
-Home Based
-Industrial estates
-Online
Sources of Finance
Equity
-Owners personal savings
-Shareholders equity
-Taking on partner
-seeking investment
-Selling assets
Debt
-Bank Overdraft
-Trade Credit
-Lease
-Morgage
Business Support Services
legal Servieces
-Deciding on ownership structure
-Advice from legal formation of business
-Business registration
-Representation in court
Business Support Services
Financial Support
Accountant
-Taxation advice
-Preparing financial statement
-Legal financing requirements
Business Support Services
Technological
-Establishing/maintaining a website
-Phone set up
-Establishing network of devices
-General IT support
Business Support Services
Community Based
Business owners can access free and low cost comunity based support services
Business Mentor
A person who is experienced or knowledgeable in running a business and who offers support and advice to new business owners
Business Planning
Planning
A process of establishing business objectives over a period of time as well as strategies to achieve them
Strategy
-A course of action a business owner or manager implements in order to achieve a desired aim or objective
SWOT
Swot
-Business planning tool which underpins the plan and guides decision making
Strengths
Weaknesses
Opportunities
Threats
Corporate Social Responsibility
CSR
Actions taken by a business that go above and beyond their legal obligations to display commitment to the community/society environment and economy it operates in
CSR considerations
Environmental Sustainability
-Recycling
-Renewable energy
-Packaging
Ethics
-Morally right/fair
-Fair Trade
Wellbeing of Workforce
-Promote local employment
-Staff Training
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