U1 AOS3 - External business environment and planning Flashcards
Three environments
Internal environment - has control over
External/operating environment - little control over
External environment - no control over
What will successful businesses watch
Successful businesses will watch societal attitudes, behaviours and trends closely to ensure they are in tune with changing customer preferences
What are tax rates
the percentage of income or value of a good, service or asset paid as tax.
If tax rates increase, a business may be concerned by the increase in costs, which might mean they put off expanding or look at reducing their workforce.
If tax rates decrease- the opposite could occur
What are some global considerations
overseas competitors, overseas markets, offshoring of labour, exchange rates, patenting, copyrights, trademarks and online sales
What is Corporate Social Responsibility (CSR)
where a business goes above and beyond legal requirements to improve the welfare of all it stakeholders; employees, customers, the environment and the community.
What is the triple bottom line
the economic, environmental and social performance of a business
Positives and negatives of CSR
Positives - Become a business of choice. More competitive (customers want to purchase from this type of business). Reputation (good for marketing). Relationships with stakeholders. More loyal staff (want to work for you and become the employer of choice).
Negatives - Cost (in the short term. E.g. recycled materials can be expensive). Time consuming (to introduce policies).
BUT IN THE LONG RUN, CSR DOES TURN OUT TO BE THE BEST INTERESTS OF BOTH THE BUSINESS AND SOCIETY.
What is a supplier
are those businesses or individuals that supply the raw materials and other resources that the business needs to conduct its operations
What is a supply chain
a system involved in the movement of products and services from suppliers to manufacturers and then on to consumers. The supply chain needs to be efficient so as to reduce the level of inventory or stocks
What is a specific issue group
Groups that focus on 1 specific area like unemployment, anti globalisation or environmental protection.
E.g. environmental lobby groups.
What are business associations
These are organisations that support businesses through the provision of training and education programs, advice and promotion of business interests to the public and government
What is a union
Organisations formed by employees in an industry, trade or occupation to represent them in efforts to improve wages and working conditions
