Influences in Business Environment Flashcards
How does a rise in inflation impact businesses?
It stops major investment and reduces customer spending.
How does a depreciating Australian dollar affect businesses?
It makes exports cheaper and imports more expensive.
What are two financial factors that influence businesses externally?
Interest rate fluctuations and debt finance availability.
How do interest rate increases affect businesses?
Higher rates make borrowing more expensive, reducing investment.
Name three geographic factors that influence businesses.
Climate, natural resources, and topography.
How does an aging population impact businesses?
More people moving into retirement can change consumer demand and workforce availability.
What social factors influence businesses?
Attitudes, behaviors, values & beliefs, tastes, fashions, culture, and traditions.
Why must businesses keep up with changing consumer tastes?
To remain relevant and maintain customer satisfaction.
How do changes in legislation affect businesses?
They may require businesses to adapt policies, such as workplace health regulations during a pandemic.
What is an example of a legal factor that influences businesses?
NSW health regulations.
What are three political factors that impact businesses?
Labour market reforms, social reforms, and environmental management/taxation policies.
How does technology impact businesses?
It improves efficiency through tools, techniques, and systems to solve problems.
What are examples of technological advancements affecting businesses?
Communication devices, meeting software (Zoom), and 3D printers.
What factors influence business markets?
Changes in finance, capital, and labour availability.
Why must businesses adapt to consumer trends?
To satisfy evolving customer needs and preferences.
What product-related factors can a business control?
Range, size, and number of goods/services offered.
What are three types of business locations?
Physical stores, online businesses, and home-based businesses.
What competitive factors can a business control?
Access to sales/consumers, access to supplies, and cost management.
How does competition affect business decision-making?
Businesses must strategize pricing, marketing, and product differentiation.
What resources do businesses rely on?
Human resources, information, physical resources, and financial resources.
What are management structures within a workplace?
Organizational hierarchies that determine roles, responsibilities, and decision-making processes.
What elements define business culture?
Values, symbols, rituals, rites, and celebrations.
Who are business stakeholders?
Individuals or groups with a vested interest in a business’s activities.
List six key stakeholders in a business.
Owners, managers, employees, customers, society, environment, and shareholders.
How do businesses engage with shareholders?
They hold an Annual General Meeting (AGM) where shareholders can ask questions and receive reports.
What financial benefit do shareholders receive?
A return on investment through profit-sharing or dividends.
How should businesses support their managers?
By providing job-specific training, fair pay, and sufficient resources.
How can businesses ensure employee satisfaction?
By offering fair pay, proper training, a safe work environment, and career development opportunities.
What do consumers expect from businesses?
Safe, functional, high-quality, and ethically sourced products.
Why is it important for businesses to follow consumer trends?
To meet changing needs and maintain market relevance.
How can businesses positively contribute to society?
By protecting the environment and participating in community projects.
How can businesses minimize their environmental impact?
By adopting sustainable practices and eco-friendly policies.
