Internal and External Influences Flashcards
What is the difference between the internal and external influences on a business?
Internal can be controlled.
External can’t be controlled.
Identify 5 internal influences on a business.
Products, location, resources, management and business culture.
Identify 6 external influences on a business.
Competition, the economy, financial, geographic, institutional, technology, social, legal, political, markets.
How can controlling products influence a business?
Products must suit a target market that exists within an area they will be attracted from. The larger this market is, the higher sales will be.
Identify four things the location of a business influences.
Proximity to suppliers, support services, customers and maintenance.
Describe zoning.
Zoning restricts the use of locations for only residential, commercial, industrial or agricultural use.
Identify the three types of resources, and give an example of each.
Human resources - Staff
Physical resources - Materials
Financial resources - Money
Identify 7 properties of a Classical Scientific management structure.
Hierarchical Top down information flow Autocratic leadership Narrow span of control Close supervision Role specialisation Centralised authority
Identify 7 properties of a Behavioural management structure.
Delayering Two way information flow Democratic leadership Wide span of control Less supervision Multi skilled roles Decentralised authority
Identify 4 strengths and weaknesses of a Classical Scientific management structure.
Good for mass production
Consistent production
Regulation
Unadaptive
Identify 4 strengths and weaknesses of a Behavioural management structure.
Good for big projects
Inconsistent production
Innovative
Flexible
Define business culture.
The values, codes of conduct and ethics of a business.
What are two gauges of good business culture?
Average number of sick days
Productivity
What is CSR?
Corporate Social Responsibility refers to the responsibility of businesses to self-regulate the ethics of their practices.
What is a Code of Conduct?
A statement of ethical rules that a business enforces within their business.
Identify 6 things that business culture can affect.
Staff turnover Quality of production Customer service Customer satisfaction Public relations Community support
What are the typical effects of boom and bust cycles on businesses?
Booms are generally positive
Busts are generally negative
Identify two advantages and two disadvantages of a boom cycle.
Advantages - Unemployment down consumption up
Disadvantages - Interest rates up, wages up
Identify two advantages and two disadvantages of a bust cycle.
Advantages - Interest rates down, wages down
Disadvantages - Unemployment up, consumption down
What does it mean when we say that financial systems have now become more deregulated?
It is easier to borrow money.
State three aspects of Australia’s location that has an impact on Australian businesses.
It is far away from traditional markets such as the USA and Europe.
It is close to India and China, which are large markets.
It also makes outsourcing easy and cheap.
State three influences that globalisation has had on businesses.
There is a trend towards monoculturalism, affecting consumers.
Trade barriers are decreasing.
Made outsourcing easier.
What is the aim of Trade Unions?
To represent workers’ rights.
What does ASIC stand for, and what is its role?
The Australian Securities and Investment Commission is a federal body that ensures the ASX and public companies follow all legal requirements and also provides consumers with protection.
State three influences that technology has had on businesses.
Assisted the ability to outsource.
Assisted logistics (stock, shipping, storage) management.
Increased consumer activity online.
Describe three social issues that have influenced businesses.
The environment has influenced green bags, free range eggs and environmental standards.
The work/life balance has influenced paid maternity leave, on site child care, flexible hours and job sharing.
Factory closure causes crime, drug abuse violence and homelessness, as blue-collar workers often lack skills for other jobs.
What are compliance costs?
The cost of meeting regulations.
State four ways that Australian businesses are regulated.
Workplace Health and Safety (WHS)
WorkCover
Award Rates
Refund/Warranty Policies
What is the main influence Australia’s high compliance costs have on businesses?
It makes Australian businesses less competitive.
Identify two taxes that can add costs to goods production.
GST and the Carbon Tax.
List three things that environmental regulation can restrict.
Carbon emissions, pollution and waste disposal.
How does the labour market affect wages?
The less candidates for a job, the higher the wages.
What influence has the internet had on the market?
Consumers are now global. Electronic businesses can now reach a global market.
Identify four things that the financial market includes.
Interest rates
Exchange rates
Investment
The ability to borrow
What is ‘market concentration’?
The number of competitors in a market.
Describe the four types of market concentration.
Monopoly - Dominated by one business
Oligopoly - Dominated by few businesses
Monopolistic Competition - Many businesses use differentiation
Perfect Competition - Only differentiation is price
.
List three internal and four external stakeholders.
Internal
Employees, Managers, Owners
External
Consumers, Customers, Government, Society
