Influences in the business environment Flashcards
What are the main external influences on a business as represented by SPLIT GEM FC?
Social, Political, Legal, Institutional, Technological, Geographical, Economic, Markets, Financial, Competitive Situation.
How do social influences affect a business?
Businesses need to contribute ethically, be aware of, and respond to the community’s needs, opinions, and attitudes.
How do economic conditions influence a business?
Determined by consumer and business spending levels, economic cycles, and factors like unemployment and inflation.
How can political changes impact a business?
Changes in government can lead to new laws, causing business uncertainty or confidence
What is the role of legal influences on a business?
Businesses must adhere to laws and legislation to ensure fair conduct.
Name some institutional influences on a business.
Environment Protection Authority (EPA), Australian Taxation Office (ATO), Australian Securities and Investments Commission (ASIC).
How does technology influence a business?
It increases efficiency and productivity, creates opportunities, and drives innovation.
What geographical factors affect businesses?
Location, demographics, and changes in population features like sex, age, and income background.
Explain the financial influences on a business.
Businesses rely on debt finance (borrowed funds) and equity finance (internal funds).
What impact do markets have on a business?
Globalization affects markets and can lead to expanded opportunities for businesses.
What is the competitive situation influence in business?
The ability to become a market leader through marketing strategies; includes oligopoly (few competitors) and monopoly (no competitors due to high start-up costs).
How do management and business culture influence a business?
The attitudes and values of managers and employees shape corporate culture, which affects profitability.
How do products influence a business?
Competitive products can lead to business growth and success.
What are the main internal influences on a business as represented by Piss Like My Red Bear?
Products, Location, Management and Business Culture, Resources, Stakeholders.
Why is location important for a business?
A good location can lead to high profits and sales, while a bad location can be a liability.
What are some key factors for a successful business location?
Customer convenience, visibility, cost, proximity to suppliers, support services, and customers.
What are the essential elements of a good corporate culture?
Values (hard work, honesty), symbols (events or objects), rituals (rites and celebrations), heroes (successful employees or role models).
How do resources affect a business?
The way managers control resources such as finance, employees, equipment, and raw materials impacts quality and success.
What are the main types of resources a business must manage?
Human resources, information services, physical resources (equipment, buildings), and financial resources (funds).
Who are considered internal stakeholders?
Employees, management, suppliers, and shareholders.
What are the responsibilities of a business towards its employees?
Treat employees according to award or enterprise agreement and ensure a safe working environment.
What responsibilities do businesses have toward management?
Abide by the code of conduct and provide adequate staff, budgets, training, and development.
How should businesses treat their suppliers?
Pay suppliers according to administrative agreements and maintain positive relationships to handle unforeseen circumstances.
What are the responsibilities of a business to its shareholders?
Provide accurate information and ensure investors do not lose funds.
Who are considered external stakeholders?
Government, society, and the environment.
What responsibilities do businesses have towards the government?
Pay the correct tax and abide by legislation.
How should businesses contribute to society?
Uphold corporate responsibility and help lift the standard of living, for example, through donations.
What responsibilities do businesses have towards the environment?
Ensure that their activities do not compromise the well-being of future generations and promote sustainability.
