Unit 1 AOS 2 Flashcards
3 different business environments
Macro factors
Operating factors
Internal factors
What are macro factors
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
Macro factors (examples)
Legal and government regulations Societal attitudes and behaviour Economic conditions Technological issues Global issues CSR
What are legal and government regulations
Refers to business related legislation that protect consumers, the economy and environment while encouraging fair trade and competition
What are societal attitudes and beliefs
what people currently think about ways of working and how businesses should be operating shown through purchasing patterns.
What are values and beliefs
Shared principles and morals of society determining what is good or bad, necessary or unnecessary.
What is a trend
A general direction in which peoples attitudes or behaviour in society is changing or developing
What are economic conditions
It is the current state of our economy measures by GDP determining economic performance
What is technological development
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
What are global issues
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.
Types of global issues
Overseas markets
Offshoring labour
Exchange rates
What is globalisation
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
What are stakeholders
Individuals / groups that have a vested interest in the performance and activities of a business.
Types of stakeholders
Owners Managers Shareholders (internal) Employees (internal) Customers (external) Suppliers (external) General community (external indirect)
What is CSR
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.
What is appreciation and depreciation
Appreciation -> increased value of currency compared to others
Depreciation -> decreased value of currency compared to others
Types of exchange rates
Floating = determined by supply and demand Fixed = pegged at certain point
International competitiveness
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
What is a Customer need
A need that motivates a customer to purchase a product or service
Need vs expectations
A need = features of a g/s that makes them satisfactory
Expectations = features of a business that makes it attractive to the consumer
What is competitive behaviour
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
Competitive factors
factors that allow a company to produce g/s better and cheaper than its rivals
