business economy Flashcards
bottom line
The idea that in addition to ‘profit’ businesses are also taking into account the impact of their decision on the planet as well as the people
planet people profit
Corporate social responsibility
businesses go above and beyond legal obligations to improve health and wellbeing of community as well as environment and shareholders
CSR sustainabalilty
Working to meet the present w/o compromising the ability of the future generation to meet their own needs
Strategies:
recycling
decrease fossils
CSR community involvement
Allows firms to give back to the community that led to their success in the first place
eg.) Maccas supports various rural and other community health programs
CSR gender equality
Traditionally the board of directors and senior positions of responsibility in Australian business were filled by males
Strategies:
blind recruitment
childcare facilities
developing staffing and management policy
CSR Innovations and research and development
Changing processes / creating more effective processes products and ideas
eg.) Ikea flat paced furniture
government can provide subsides and tax concessions to business who undertake R & D
Technology and consumer behavior
Sharing economy/ collaborative consumption-
rental scheme that enables people to earn income from expensive, underused assts such as power tools, cars spare rooms
eg. Airbnb
impact of technology on consumers- pros
provide consumers with more choices
easy access to products
impact of technology on consumers- cons
due to easy access to renting assets it doesn’t encourage people to buy and actively own assets
impact of technology on business-pros
decreases cost of production
better meet customers needs
improve efficiency with marketing
impact of technology on business-cons
cost
Technology=expensive/ quickly our of date therefore need to spend regularly
impact of technology on business-cons
training
if employees do not know how to use technology it is a waste
need some employees trained to repair technology to be effective
impact of technology on business-cons
repairs
often required–> slows down production cost money
impact of technology on business-cons
redundancies
tech can replace workers / quicken service meaning the organisation requires less workers. results in demise of some businesses
eg.) Netflix + stan have put cd shops out of business
legal strategy’s to improve profit: price discrimination
businesses charge consumers different prices for the same product
eg.) apple giving discounts to students on certain products creates brand loyalty
legal strategy’s to improve profit: multi-branding
individual companies marketing their products under separate and distinct brand names
business making it harder for new businesses to enter the market t/f increasing market power
legal strategy’s to improve profit: know and develop good relations with customers
finding out what customers want and expect and develop good relationship with them
quality and courteous customer service including prompt delivery
legal strategy’s to improve profit: product is technically superior
product being sold needs to be superior in design and more technically advanced then rival firms
continuous product improvement innovations and R&D must be apart of thinking
illegal strategy’s to improve profit: predatory pricing
sets prices as sufficiently lower levels with the purpose of damaging a competitor or forcing a competitor to withdraw from the market
once competitor is eliminated the company is able to dominate the market and increase price for customers
illegal strategy’s to improve profit: price fixing
where firms in an industry collaborate to set prices
illegal strategy’s to improve profit: Cartel conduct
two or more businesses joining forces to maximize profits
develop joint strategy to manipulate the market at the expense of consumers
illegal strategy’s to improve profit: collusive bidding
competing firms meet secretly beforehand to agree who’s tender should be more attractive, cheapest and likely to win the contract
illegal strategy’s to improve profit: market zoning
where competing firms in a region divide up the market into zones, areas or regions within which they agree not to compete with each other
