External enviroment Flashcards
Key Legal Regulations
Health Regulations, Employment regulations and Anti Discrimination regualtions
Key Government Regulations
Laws relating to establishing a new business, Taxation laws (income tax), (GST) and laws related to location
Societal Changes and attitudes (Define)
It is important for businesses to understand factors of changing demogrpahic, increased levels of education, different ideas, trends and values and take these into account when planning a business. Keeping up the evolving trends
Economic Conditions (Define)
A number of economic factors to be taken into consideration if looking to start a new venture or expand their business. it is important for businesses to take these into account at a national, state and local level.
Economic Conditions - Interest Rate
The price charged or paid for the use of money. Interest rates are used to calculate the amount of a loan being charged as interest to the borrower. it is usually expressed as an annual percentage
Economic Conditions - Tax Rate
A percentage of income or value of a good, service or asset paid as a tax. taxes include; Income, company and land taxes
Economic Conditions - GST
A broad based tax of 10% on the supply of most goods and services consumed in Australia.
Economic Conditions PAYG
an income tax where employees must calculate the amount of tax to withhold based on employee declaration.
Business Confidence (Define)
The level of business confidence is related to economic growth and activity. if confidence is high, the business is more likely to expand and customers are more likely to spend.
Business Confidence (Business Conditions)
if the economy stays high it will impact small businesses because it gives them greater business confidence which can then help improve their business.
Business Confidence (Business Planning)
would need to aware of current economic conditions because without proper research of the current economy, it would greatly affect consumer confidence
Consumer Confidence (Define)
Consumer confidence can be influenced by ecomonic conditions by losses on the share market amid on going concerning the economic growth.
Consumer Confidence- How it can influence business planning
they can influence desicions about business planning by how the consumers have and trust in what they are purchasing. this lets businesses make descions about the economic conditions.
Technological Issues (Define)
Refers to the growing use of tools, techniques and systems within a business regarding its operation and solving of issues. Businesses can increase their level of production and efficiency through technological advancements and stay on top of competitors .
Technological Issues - (Consideration)
business owners will need to consider the benefits and limitations of tech and must incooperate the buisness opportunities that development in tech provides
Globalisation
The effect of hi tech communications, lower transport costs and unrestricted trade and financial flows turning the whole world into a single market. Globalisation has resulted from growing levels of trade between nations
Global issues - Factors to consider
Overseas Competitors, Overseas market, Outsourcing Labour, Offshoring labour, Exchange rates, Patening, copyright, trademarks and online sales
Global issues- Offshoring Labour
Giving a area of the business’s process or services to the same company located overseas. this is to cheapen manufactoring, labour and distrubution of my products
Global issues- Exchange rates
The price of ones country’s currency expressed in terms of another country’s currency. A fall of a countries currency in relation to another currency will usually make exports cheaper and imports more expensive
Global issues- Intellectual Property
Protection of your product. Patening (On the device) , Copyright (Writing, films, music), Trademark (Logo)
CSR Define
The commitment by organisations too take responsibility for the economic, social and environmental consequences of their activities. it also makes the business be accountable to a wide range of stakeholders.
CSR (Triple Bottom line)
Economic- Profit
Social- People
Enviromental- Planet
CSR (How a Business can be socially responsible)
Ensure that a fair price is paid for all materials, conserving the use of energy, minimising waste material, Ensuring that the business is free of corruption and being involved in the community
CSR - Beneifts
Customers would feel obligated to buy products from a business that manages their practises in a socially responsible manner.
