Unit 1 AOS 2

Question 1

3 different business environments

Answer 1

Macro factors
Operating factors
Internal factors

Question 2

What are macro factors

Answer 2

An external environment a business works within yet has no control over. It is ever changing and demands the adaptability of a business. They are the various pressures from the macro environment

Question 3

Macro factors (examples)

Answer 3

Legal and government regulations
Societal attitudes and behaviour
Economic conditions
Technological issues
Global issues
CSR

Question 4

What are legal and government regulations

Answer 4

Refers to business related legislation that protect consumers, the economy and environment while encouraging fair trade and competition

Question 5

What are societal attitudes and beliefs

Answer 5

what people currently think about ways of working and how businesses should be operating shown through purchasing patterns.

Question 6

What are values and beliefs

Answer 6

Shared principles and morals of society determining what is good or bad, necessary or unnecessary.

Question 7

What is a trend

Answer 7

A general direction in which peoples attitudes or behaviour in society is changing or developing

Question 8

What are economic conditions

Answer 8

It is the current state of our economy measures by GDP determining economic performance

Question 9

What is technological development

Answer 9

Human labour being replaced in some way by practical applications of machines, computers or automation. It is a macro-environmental pressure over which a business has no control over

Question 10

What are global issues

Answer 10

International concerns that have resulted from world-wide trade. It’s constantly changing and businesses have no control over it but it must be taken into account in business planning.

Question 11

Types of global issues

Answer 11

Overseas markets
Offshoring labour
Exchange rates

Question 12

What is globalisation

Answer 12

The effect of hi-tech communications, lowering transport costs and unrestricted trade and financial flows turning the whole world into a single market, producing a more integrated global economic system

Question 13

What are stakeholders

Answer 13

Individuals / groups that have a vested interest in the performance and activities of a business.

Question 14

Types of stakeholders

Answer 14

Owners
Managers
Shareholders (internal) 
Employees (internal) 
Customers (external)
Suppliers (external) 
General community (external indirect)

Question 15

What is CSR

Answer 15

Corporate Social Responsibility refers to a business going above and beyond what is legally required of them to further the wellbeing and utility of the environment, economy and society.

Question 16

What is appreciation and depreciation

Answer 16

Appreciation -> increased value of currency compared to others
Depreciation -> decreased value of currency compared to others

Question 17

Types of exchange rates

Answer 17

Floating = determined by supply and demand
Fixed = pegged at certain point

Question 18

International competitiveness

Answer 18

When AUD depreciates our exports become cheaper in foreign currency terms = internationally more competitive
When AUD appreciates our exports become more expensive in foreign currency terms = les internationally competitive

Question 19

What is a Customer need

Answer 19

A need that motivates a customer to purchase a product or service

Question 20

Need vs expectations

Answer 20

A need = features of a g/s that makes them satisfactory

Expectations = features of a business that makes it attractive to the consumer

Question 21

What is competitive behaviour

Answer 21

How the direct rivals of a business operate in the business environment. A business needs to monitor what other businesses are doing to ensure that they stay competitive

Question 22

Competitive factors

Answer 22

factors that allow a company to produce g/s better and cheaper than its rivals