External enviroment

Question 1

Key Legal Regulations

Answer 1

Health Regulations, Employment regulations and Anti Discrimination regualtions

Question 2

Key Government Regulations

Answer 2

Laws relating to establishing a new business, Taxation laws (income tax), (GST) and laws related to location

Question 3

Societal Changes and attitudes (Define)

Answer 3

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

Question 4

Economic Conditions (Define)

Answer 4

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.

Question 5

Economic Conditions - Interest Rate

Answer 5

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

Question 6

Economic Conditions - Tax Rate

Answer 6

A percentage of income or value of a good, service or asset paid as a tax. taxes include; Income, company and land taxes

Question 7

Economic Conditions - GST

Answer 7

A broad based tax of 10% on the supply of most goods and services consumed in Australia.

Question 8

Economic Conditions PAYG

Answer 8

an income tax where employees must calculate the amount of tax to withhold based on employee declaration.

Question 9

Business Confidence (Define)

Answer 9

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.

Question 10

Business Confidence (Business Conditions)

Answer 10

if the economy stays high it will impact small businesses because it gives them greater business confidence which can then help improve their business.

Question 11

Business Confidence (Business Planning)

Answer 11

would need to aware of current economic conditions because without proper research of the current economy, it would greatly affect consumer confidence

Question 12

Consumer Confidence (Define)

Answer 12

Consumer confidence can be influenced by ecomonic conditions by losses on the share market amid on going concerning the economic growth.

Question 13

Consumer Confidence- How it can influence business planning

Answer 13

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.

Question 14

Technological Issues (Define)

Answer 14

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 .

Question 15

Technological Issues - (Consideration)

Answer 15

business owners will need to consider the benefits and limitations of tech and must incooperate the buisness opportunities that development in tech provides

Question 16

Globalisation

Answer 16

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

Question 17

Global issues - Factors to consider

Answer 17

Overseas Competitors, Overseas market, Outsourcing Labour, Offshoring labour, Exchange rates, Patening, copyright, trademarks and online sales

Question 18

Global issues- Offshoring Labour

Answer 18

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

Question 19

Global issues- Exchange rates

Answer 19

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

Question 20

Global issues- Intellectual Property

Answer 20

Protection of your product. Patening (On the device) , Copyright (Writing, films, music), Trademark (Logo)

Question 21

CSR Define

Answer 21

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.

Question 22

CSR (Triple Bottom line)

Answer 22

Economic- Profit
Social- People
Enviromental- Planet

Question 23

CSR (How a Business can be socially responsible)

Answer 23

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

Question 24

CSR - Beneifts

Answer 24

Customers would feel obligated to buy products from a business that manages their practises in a socially responsible manner.

Question 25

CSR- Costs

Answer 25

The products to be manufactured in that manner can be 3-4 times the price that other brands pay for their products.

Question 26

ISO (Define)

Answer 26

A seal of approval from an external body where a company complies to one internationally recognised iso management system. Benefits of having an Iso is that it shows proof of a company’s credibility, ensures higher level of customer service and high satisfaction

Question 27

ISO- Enviromental Manaagment system

Answer 27

Demonstates the company’s commitments to on going envriomental issues on both a local and national scale. it enchances your company images, customers will know that you are environmental aware.

Question 28

ISO- Energy Managment System

Answer 28

A systematic and process driven approach to controlling aspects of the organisations energy consumption. reduced carbon footprint, increases energy awareness

Question 29

CSR- Expecations and strategies that a buisness can use

Answer 29

Customers demand healthy lifestyle products (make sure the food is certified fresh) ,Society wants a clean environment (Handle waste properly/reduce, reuse and recycle approach) , Society expects businesses to treat employees approitaly (Deal with employees honestly and fairly/ follow ethical guidelines) customers expect businesses to understand their needs(Provide the customers with what they are expecting with your product)

Question 30

Competitors (Dealing with them)

Answer 30

Fowarding in new marketing approaches, cost cutting measures, discounts and a new redesign.

Question 31

Competitors (Affecting business plans)

Answer 31

The business must always respond to any change in the actions of competitors. You must keep up with the trends in society and offer better versions of what the competitor offers.

Question 32

Customers (Influence with a Buisness)

Answer 32

They determine how a business plans. They put pressure on businesses for them to be environmentally friendly, socially responsible and ethical

Question 33

Customers (Affecting Business planning)

Answer 33

If customers are not satisfied with high quality products that were promised to them, they seek compensation by either not purchasing those products or sueing.

Question 34

Suppliers (Define)

Answer 34

They provide the resources that are needed for use in the production process. Resources can include raw materials, machinary and finance.

Question 35

Suppliers (Factors to consider)

Answer 35

Good relations with suppliers to guarantee efficient running of business.
Prefer to have a number of suppliers which means they are less vulnerable to supply difficulties

Question 36

Supply chain is critical because

Answer 36

If resources required are not on hand then nothing canv be produced. If resources are of inferior quality, it is difficult or costly to produce quality products.

Question 37

Special interest group (define)

Answer 37

Groups of people who attempt to directly influence or persuade a business to adopt particular polices or procedures. they try to convince a business to change or adopt particular polices.

Question 38

Special interest group- Enviromental Lobby groups

Answer 38

Promote environmental issues to the public, government a and business. they influence the business to follow basic environmental practises.

Question 39

Special interest group- Business associations

Answer 39

Support businesses through the provision of training and education programs.

Question 40

Special interest group- Unions

Answer 40

formed by employees to improve wages and working conditions.

Question 41

Special interest group- Consumer Groups

Answer 41

Monitor a businesses perfomance in its produts packaging, pricing and advertising