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Business unit 1 and 2 > chapter 3 3A-3F > Flashcards

chapter 3 3A-3F Flashcards

1
Q

business planning

A

process of establishing
a business’s goals and
developing strategies
to achieve them.

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2
Q

external environment

A

involves the surrounding
factors that can impact
a business, which it has
minimal control over.

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3
Q

macro factors

A

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

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4
Q

what are macro factors

A

-global considerations
economic considerations
-legal and government regulations
-technological considerations

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5
Q

who are stakeholders

A

are individuals, groups,
or organisations who have
a vested interest in the
performance and activities
of a business.

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5
Q

operating factors

A

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

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5
Q

what are operating factors

A

-special interest groups
-customer needs and expectations
-competitors behavior
-suppliers and the supplier chain.

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6
Q

what are the similarities of macro and micro factors

A
  • both macro and micro are both factors of the external environment
  • Failure to recognise and plan for both macro and operating
    factors can have repercussions on the success of a business.
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7
Q

what are the differences of macro and micro factors

A
  • Businesses have control over operating factors but do not have control over macro factors.
    -Operating factors are specific to each business, whereas,
    macro factors are non-specific and impact all businesses
    in an industry
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8
Q

legal and government regulations

A

 are the
laws and rules made
by parliaments and
governments, as well
as decisions made by
the courts.

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8
Q

employment laws and regulations

A

 are rules that
govern the relationship
between employers and
employees.

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9
Q

how does the legal and government regulations affect the business

A

these regulations uphold the safety of the community and promote industrial affairs

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9
Q

what are the risks if a business fails to comply with the legal and government regulations

A

receiving fines
damaging its reputation
the federal state makes these regulations.

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9
Q

Explain why it is important that businesses consider taxation requirements and how taxation revenue can contribute to the wellbeing of a nation.

A

One type of key legal and government regulation is taxation requirements, which are laws and rules related to tax that apply to all businesses. Another type is employment laws and regulations which are rules that govern the relationship between employers and employees.

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9
Q

outline how a business should consider council regulations when planning a business

A

Taxation requirements are laws and rules related to tax that apply to all businesses.Every business in Australia must pay tax based on the profits it receives. If a business fails to register with the Australian Taxation Office (ATO) and pay the correct tax, it may be liable for significant penalties from the government.2One way that taxation revenue received by the government from a business contributes to the wellbeing of the nation is by allowing the government to provide public goods and services. For example, the courts and police services are government-funded. Thus, tax contributions assist in funding these necessary services which promote wellbeing.

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9
Q

outline the reasons why the business owners need to consider the employment laws and regulations when planning a business

A
  • because these rules outline the obliagations that the employers and the employees owe to one another.
  • to provide a safe working environment to the employees
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9
Q

employment legalisation

A

protecting the employees against unfair dismissal and discrimination at the workplace.

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9
Q

what is environment legalisation

A

The set of laws that aim to preserve the environment

  • the legalisation protects the environment from harmful activities.
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9
Q

what does the environment laws and regulations relate to

A
  • minimise energy use
  • reducing water use
  • re using , recycling
    and reducing waste
  • matters of nation environmental significance
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9
Q

what does the industry regulations mean?

A

the rules which are specific to business in a certain industry

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10
Q

describe council regulations

A

local government rules are made to govern the business operating a specific geographic area.

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10
Q

why does a business require industry regulations

A

to obtain certain qualifications , registrations, licenses and permits

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10
Q

what are the common rules and regulations that a business must follow

A
  1. location of the business- the local zoning laws largely determine the location of a business because only a few types of business are allowed to operate in a residential area.
  2. waste disposal of a business- local laws govern how a business should manage the waste as the local laws may state when and where the business can dispose of waste.
  3. renovation of business premises - some buildings that are on the heritage list will only have the permit for a limited amount of reservations
  4. operating hours of a business- business may only be allowed to operate in within a certain time set because there are issues such as levels of noise allowed in different times
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10
Q

describe taxation requirements

A

laws and rules that are related to the taxes that apply to all the business

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11
Q

what are the taxation requirements that need to be considered when planning a business

A

-obtaining an Australian business number (ABN- this enables the business to register for goods and services GST when necessary)
-obtaining a tax file number (TFN) to the Australian Taxation Office (ATO)

11
Q

Outline how a business could consider council regulations during business planning.

A

Council regulations are local government rules made to govern businesses operating in a specific geographic area.1One way a business can consider council regulations is by becoming familiar with the specific regulations set out by the local government, such as rules about business operating hours.

11
Q

describe social attitudes

A

collective values and believes and opinions held by a group.

12
Q

describe social behaviour

A

way people act and respond in certain situations

13
Q

how does values and beliefs impact the business

A
  • the well-being of employees: employees are able to have a work-life balance to their job and many businesses have provided their employees flexible working hours and work-from-home options
  • hygiene practices: placing hand sanitisation stations at the front of the store and encouraging employees to wear masks when serving customers if there is an illness
  • improving physical, and mental health and well-being: business providing a wider range of healthy food options.
13
Q

what are values and belief

A

the principles and standards upheld by the individuals or a group of people which influence how they make decisions

14
Q

what are social trends

A

a general development in a way group of people in a society are behaving

15
Q

what is a target market

A

a specific group of consumers that a business aims its marketing efforts towards.

16
Q

what are some societal trends that impact the business planning

A
  1. greater focus and action on achieving gender equality: implementing workplace policies that enable the achievement of gender equality such as implementing quotes.
  2. increasing purchase of products relcreating products to cater for
    customers interested in health and wellbeing. For example,
    more businesses are selling activewear, exercise equipment,
    and workout programmatic to health and wellbeing.
  3. increasing reliance on advanced technology.
17
Q

describe economic condition

A

conditions that exist about the productive performance and financial stability of a nation or a geographical area.

18
Q

describe interest rate

A

the price paid for the money being borrowed, expressed as a percentage.

19
Q

what are the economic conditions that an individual should consider when planning a business

A

interest rates
employment levels
tax rates
level of consumer confidence

20
Q

is economy a macro factor

A

yes

21
Q

If an individual does not have enough savings, they can take out loans to cover initial start-up
and operations costs. Before taking out a loan, business owners should consider the interest
rate. If interest rates are low, business loans are less expensive and loan repayments are easier
to manage. If interest rates are high, business owners will have to pay more for the amount
borrowed.

A

Business owners should ensure they are able to afford the interest rate if they take
out a loan. Interest rates offered by banks and other financial institutions are influenced by
many factors, including Australia’s central bank, the Reserve Bank of Australia (RBA). The RBA
can amend the interest rates it charges commercial banks each month, which then impacts the
interest rates commercial banks charge businesses and individuals.

22
Q

define employment level

A

percentage of the labor force who are working in paid employment

23
Q

unemployment rate

A

percentage of the labour force who are unemployed.
retired individuals and full-time students do not belong under the category of the unemployment rate.

23
Q

what does the employment levels indicate

A
  • Employment levels can indicate the availability of workers and may also influence the wages
    a business needs to offer in order to attract workers. For instance, when low employment levels
    exist in the economy (high unemployment rate), there are many workers willing and able to
    work, but not employed yet. This means it should be easier for a business to attract workers,
    and the business will not necessarily have to offer pay rates higher than the minimum wage.
  • , when employment levels are high (low unemployment rate)
    across the economy, or just in a particular local area or specific industry, a business may
    struggle to find staff and may have to offer higher wages in order to compete with other job
    offers the worker may have.
24
Q

describe taxation rates

A

percentage of income
or spending that is
required to be paid to the
government by individuals
or businesses
- business owners should consider the taxation obligations when planning a business to budget for additional business expenses.

  • the tax rate is different for incorporated businesses compared to unincorporated businesses.
25
Q

define technological development

A

invention and innovation tools that solve problems and enhance processes
- technological developments increase the speed of production and provide greater convenience to the customers.
-advancing technological developments increase the productivity and effectiveness of a business.

26
Q

what are advantages and disadvantages for a business using technological developments

A
  • adavantages -
    1. increase accuracy and precision in the production process.
    2.maitain a high quality level.
    3. Businesses can easily connect and listen to customers because the technology is easily accessible.
    4. websites can provide consistent information about customers’ prices, sales, and policies.

disadvantages
1. poor reputation for increasing unemployment rates and minimising their contribution to the local community.

27
Q

what are the technological developments that impact the business planning

A
  1. automated production lines reduce the need for human labour.
    impact- faster and more precise compared to human labour.
  2. online presence- many businesses have both online and physical presence.
28
Q

advantages and disadvantages for employees using technological developments

A

advantages
1. automated production lines remove the unsafe tasks for employees employing them to be more creative, challenging, and safe jobs in other business areas.

disadvantages
1. employees may lose their roles if the technology is used in their position

29
Q

define overseas market

A

markets that are outside of a business own country of operation.
- can have a diverse customer base

29
Q

what are advantages and disadvantages for time and money when using technological developments

A

advantages
- improve the productivity of the customer service of staff by publishing information on their website such as their refund policies.
- reduce the labour resources a business requires.
- purchase a good or service online at their convenience which can increase the sales.

disadvantages
- time-consuming to develop and maintain a technology
- has high initial setup and maintenance costs.

30
Q

define offshoring of labour

A

business moving its services and processes to another country
-low labour cost

30
Q

define free trade agreement

A

it is a contract between international countires to reduce the trade baries between two or more countries

30
Q

what are the factors that affect the exchange rate

A

political events and economic conditions
by planning exchange rate fluctuations businesses can maintain their profit margins when the changes occur

31
Q

consideration for offshoring of labour when planning a business

A
  1. time zone difference- the time difference a business has with its offshore country.
  2. business reputation- sending labour overseas can increase the unemplyoment rates in the local economy which can impact the reputation
    - sending workers overseas with poor work management is unethical
  3. communication and cultural barriers- the oweners should consider the cultural norms and reduce the miscommunication.
    eg-peloton
31
Q

what are the considerations associated with expanding into overseas market can impact the business planning

A
  1. legal and government regulation- tax implications
    - consider expanding into overseas markets where a free trade agreement exists.
  2. economic conditions- expand into countries with favorable tax rates and high levels of consumer confidence
  3. transportation and distribution- consider the transportation and distribution in overseas markets to ensure that the cost is not too high.
  4. staffing- hire locally or redeploy Australian employees overseas
  5. different customer needs and expectations- adapting to its products to satisfy customer expectations
    eg - Westfield
31
Q

define overseas competitors

A

a business that are located in other countries but operate in the same industry and offer a similar good or service.
- identifying overseas competitors when planning a business will help the business owners to consider how they achieve lower costs or implement differentiation to develop a competitive advantage.

31
Q

define currency appreciation

A

increased the value of currency against the foreign country

32
Q

online sales

A

involve in buying and selling goods and services using the internet and also referred to as e-commerce.

32
Q

advantages of online sales

A

-a wide range of customers from both local and overseas markets.
-customers and conviently purchase products 24/7

33
Q

currency depreciation

A

decrease the value in the currency against another foreign country

34
Q

exchange rates

A

the exchange rate is the relative price at which the currency of one country that can be exchanged for the currency of another country.

35
Q

consideration associated with online sales which can impact a business

A
  1. website development- the owner should consider that the website is easy to use for customers if not it can reduce sales,
  2. technical issues- consider hiring a web developer to ensure that the business website functions properly all the time.
  3. shipping cost- consider what shipping strategy to use according to the location
    consider different shipping services which is the most suitable freight company for the business.
  4. legal regulations- develop policies and regulations to shipping, refunds, and returns.

eg; chemist

Business unit 1 and 2 (2 decks)

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