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Business Management Unit 1 > Unit 1 AOS 3 > Flashcards

Unit 1 AOS 3 Flashcards

1
Q

what is the external business environment made up of?

A

operating and macro

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2
Q

what is the macro environment?

A

the broad conditions and trends in the economy and society within which a business operates

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3
Q

factors of the macro environment?

A
  • corporate social responsibility considerations
  • global issues
  • economic conditions
  • legal and government regulations
  • societal attitudes and behaviour
  • technological considerations
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4
Q

what do changes in the macro environment affect and do business have control over them?

A

Changes in the macro environment can affect ALL businesses, therefore, businesses have
no control over these factors.

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5
Q

what is the factor of Legal and government regulations?

A

The laws or regulations made by parliaments and courts, which affect how businesses operate and behave

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6
Q

what is the factor of Societal attitudes and behaviour?

A

The factors relating to changes in the attitudes, behaviour, tastes and lifestyles of communities on a local, national and international scale

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7
Q

what is the factor of Economic conditions?

A

The set of influences that relate to economic activity, including interest rates, wages, unemployment, exchange rates and inflation

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8
Q

what is the factor of Technological considerations?

A

The issues related to the growing use of tools, techniques or systems

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9
Q

what is the factor of Global considerations?

A

The pressures that arise as a result of businesses operating in worldwide markets and competing on a global scale

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10
Q

what is the factor of Corporate social responsibility considerations?

A

The pressures on a business to take into account environmental considerations to ensure broader social welfare

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11
Q

what is the operating environment?

A

The specific outside stakeholders with whom the business interacts in conducting its business.

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12
Q

what do changes in the operating environment affect and do business have control over them?

A

A business has less control over these factors than the internal environment, but does still
have some influence over these stakeholders

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13
Q

what are the factors of the operating environemnt?

A
  • suppliers
  • competitors
  • customers
  • special intrest groups
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14
Q

what is the factor of customers?

A

The people who purchase goods and services from the business, expecting high quality at competitive prices

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15
Q

what is the factor of competitors?

A

Other businesses or individuals who produce and sell rival, or competing, goods or services to the ones offered by the business

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16
Q

what is the factor of suppliers?

A

The businesses or individuals that supply materials and other resources that the business needs to conduct its operations

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17
Q

what is the factor of special intrest groups?

A

The groups of people who attempt to directly influence or persuade a business to adopt particular policies or procedures, including lobby groups, business associations and unions.

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18
Q

what are key legal and governement regulations?

A
  • health regulations
  • weights and measures
  • ownership
    . sole trader
    . partnership
    . company
  • consumer protection
    . refunds
    . misleading and deceptive advertising
    . unconsionable conduct
    . product labelling
  • building permits
  • safe food handling
  • patents
  • signage
  • trade practices and fair trading
  • development applications
  • trading hours
  • taxation
    . pay as you go (PAYG) tax
    . goods and services tax (GST)
    . company tax
    . payroll tax
  • employment of people
    . awards
    . superannuation
    . occupational health and safety
    . unfair dismissal
    . workers compensation
    . equal employment opportunity
  • licenses
  • business registration
  • copyright
  • safety
  • zoning
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19
Q

federal government obligations of business laws?

A
  • payment of taxes for employees (earning above the minimum taxable income level) an for businesses with company tax and GST
  • provision of employee superannuation
  • observance of customs regulations
  • abiding by relevant legislation that would affect business operations
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20
Q

state government obligations of business laws?

A
  • provision of employee entitlements, including workers compensation, work health and safety (WHS) requirements, award rates of pay an entitlements
  • payment of payable tax
  • abiding by relevant state legislation (health, trade practices, employment)
  • abiding by pollution controls
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21
Q

local government obligations of business laws?

A
  • approving new development and alteration (to an existing building) applications
  • fire regulations
  • parking regulations (provision pf parking by new businesses)
  • size, location and shape of business signs
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22
Q

what and why is it essential for businesses to have in relation to legal and government regulations?

A

It is essential that business owners have sound knowledge of the laws that will affect their operations when they are planning their business

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23
Q

what happens when business do not obey the law?

A

risk losing customers and their reputation, being fined or losing the right to continue trading

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24
Q

have their been changes to laws?

A

There have been a number of changes to laws in the
past 20 years which impact businesses

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25
Q

what does the new legislation surround?

A

New legislation (laws) relating to taxation, industrial relations, occupational health and safety, equal employment opportunity, anti-discrimination, protection of the environment

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26
Q

what does society expect with businesses regarding laws and legislation?

A

Society expects business owners to abide by the laws made by parliaments and local councils and in rulings set down by the courts

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27
Q

what do the levels of government do with business laws and legislation?

A

each level of government (federal, state and local) imposes its own direct and indirect regulations to which all businesses must adhere

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28
Q

can laws and legislation be changed?

A

Elected governments also attempt to make or change the laws that have an impact on businesses

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29
Q

Laws related to establishing a new business?

A
  • A business name must be registered with the Australian Securities and Investment Commission (ASIC) unless the owner is trading under their own name, in which registration is optional
  • New business names require an ABN (Australian business number)
  • Companies or partnerships require their own tax file number
  • If the business is established as a company, it is required to register with ASIC to receive a Certificate of Registration and an Australian Company Number (ACN).
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30
Q

Laws related to location?

A

The location and development of a business premises will be influenced by:
- Local government zoning (councils)
- Building regulations
- Regulations surrounding position and size of signage
- Fire regulations
- Parking regulations

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31
Q

what act do local councils impose health regulations under?

A

Food Act 1984 (Vic)

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32
Q

what do local councils supply business with relating to health regulations?

A

supply businesses with the regulations and standards they have to meet in order to obtain a licence to operate

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33
Q

what do health inspectors do?

A

A health inspector will assess premises regularly and often without warning to ensure the business owner maintains standards.

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34
Q

what do some health regulations relate to?

A
  • Temperature of food storage
  • Kitchen layout
  • Employee clothing requirements
  • Correct food handling
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35
Q

what happens if a business does not meet health regulations?

A

If problems occur, the business is given a period of time to rectify the situation or it will be closed down.

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36
Q

what are some employment regulations?

A
  • Conditions of employment eg casual, part-time, full-time
  • Unfair dismissal
  • Dispute settling methods
  • Wages
  • Protection of human rights in employment
  • Paying tax
  • Paying superannuation into employee accounts
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37
Q

how is employee welfare provided?

A

through occupational health and safety legislation

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38
Q

what do business owners need to be aware of with employee regulations?

A

Business owners also need to be aware of their legal responsibilities when recruiting and selecting staff, especially in regard to discrimination and equal employment opportunities.

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39
Q

what will larger business do in relation to employee regulations?

A

Larger businesses will often employ human resource professionals who are responsible for ensuring that the business is acting in accordance with all legislation related to employment.

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40
Q

what act relates to Anti-discrimination regulations?

A

Equal opportunity Act 2010 (Vic)

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41
Q

what does the Equal opportunity Act 2010 (Vic) state?

A

It’s unlawful to discriminate against an employee or potential employee on the basis of age, impairment,
marital status, physical features, political belief, gender, race, religious belief or sexual orientation

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42
Q

what must employers do with anti-discrimination regulations?

A

Employers must take steps to eliminate discrimination, sexual harassment and victimisation, therefore be proactive not reactive

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43
Q

what happens to an employer if discrimination does occur in the workplace?

A

they may be liable

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44
Q

do all places have the same work health and safety regulations?

A

Each state has its own health & safety laws

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45
Q

what is the relevant legislation for work health and safety regulations?

A

Occupational Health and Safety Act 2004
(Vic)

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46
Q

what are the main objectives of the Occupational Health and Safety Act 2004 (Vic)?

A
  • Eliminating risks to health, safety or welfare of employees
  • Ensuring health and safety of the public is not placed at risk
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47
Q

who does taxation laws apply to?

A

Taxation laws apply to all businesses.

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48
Q

what taxation laws do business need to abide by?

A
  • All registered businesses are required to prepare a set of accounts — the business activity statement
    (BAS) — at regular intervals, either monthly or quarterly.
  • The business may also have to pay state government payroll tax, as well as tax payable on its own
    earnings.
  • A business owner will need to plan to comply with tax laws.
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49
Q

what does a BAS detail?

A

The BAS details the collection of the goods and services tax (GST), and payment of pay as you go
(PAYG) income tax instalments on behalf of employees.

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50
Q

what is a Business activity statement (BAS)?

A

records a business’s claims for input tax credits and accounts for GST payable

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51
Q

what is Goods and services tax (GST)?

A

is a broad-based tax of 10% on the supply of most goods and services consumed in Australia

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52
Q

what is the relevant legislation for trade practices and consumer protection?

A

Competition and consumer Act 2010 (Cwlth)

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53
Q

what does the competition and consumer Act 2010 (Cwlth) do?

A
  • Provides guidelines for fair trading, advertising, credit and consumer protection
  • State that consumers have the right to purchase good quality goods and fit for
    purpose
  • If goods are faulty, the consumer is entitled to a replacement or a cash refund
  • Also covers product safety, labelling, unfair market practices, price monitoring
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54
Q

what is the relevant legislation for environmental protection legislation?

A

Environment protection Act 1970 (Vic)

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55
Q

what does the environment protection Act 1970 (Vic) apply to?

A

Applies to noise emissions, preventing pollution and environmental damage to the air, water and land

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56
Q

what will happen if business owners plan to meet their legal responsibility to protect the environment?

A

Likely that the business will benefit in the long
term through cost savings, competitive
advantage and operational efficiencies.
Minimising the environmental impact of the
business will also be good for the health and
safety of employees and customers.

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57
Q

what are societal attitudes?

A

Societal attitudes are the ideas, values and beliefs held by people in society

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58
Q

do societal attitudes and behaviours change?

A

Societal attitudes and behaviours are constantly changing

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59
Q

what are values and beliefs?

A

Values and beliefs refer to the shared principles and
morals of a group of people - ideals about what is good or bad and necessary or unnecessary

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60
Q

what do values and beliefs determine?

A

Values and beliefs determine what people do, what they wear, what and how they eat and where and how they live

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61
Q

what do attitudes affect?

A

the way people behave

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62
Q

what are behaviours?

A

Behaviour relates to the actions that express these ideas, values and beliefs.

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63
Q

what do changing societal behaviours and attitudes affect?

A

affects how individuals live, work and consume products, how businesses operate and how stakeholders view the business in which they have an interest

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64
Q

how are values and beliefs learned?

A

These are often a learned way of life and can be passed on to younger members of society by older members.

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65
Q

how can values and beliefs be reflected?

A

Values and beliefs can be reflected in the way people behave, the way they treat each other and what they prioritise.

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66
Q

what has global access to information and communication done?

A

Global access to information and communication has made the world’s population acutely aware of what businesses are doing.

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67
Q

what are pressures from society doing?

A

Pressure from society continues to force businesses to implement procedures to preserve and protect the natural environment.

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68
Q

what are businesses today expected to do?

A

Businesses today are also expected to contribute to society by giving something positive to the communities in which they operate

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69
Q

what are trends?

A

A trend is the general direction in which people’s attitudes or behaviour in society is developing or changing

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70
Q

what is the trend ‘demographic’?

A

the characteristics of the human population eg ageing, overweight, more educated with uni degrees, health conscious, wanting diverse workplaces and family-friendly workplaces, time-poor

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71
Q

what are businesses that plan for changing demographics likely to do?

A

Businesses that plan for changing demographics are likely to thrive

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72
Q

whats another trend that may affect business planning?

A

Another trend that may affect business planning is the demand for family friendly and flexible workplaces

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73
Q

what are economic conditions?

A

refer to the set of influences that relate to economic activity, including interest rates, wages, unemployment, exchange rates and inflation

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74
Q

what and why businesses need to consider economically?

A

Business owners need to consider the state of the economy when planning a business as economic forces have an enormous impact on both businesses and customers

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75
Q

what does the economy influence?

A

They influence a business’s capacity to compete and customers’ willingness and ability to spend

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76
Q

what does a slump in the economy result in and vice versa?

A

When the economy is in a slump, spending is low & unemployment levels rise. When it is at a peak, spending is high.

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77
Q

What are the phases of the business cycle?

A
  • expansion
  • contraction
  • peaks
  • troughs
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78
Q

what happens in the expansion phase of the business cycle?

A
  • increasing consumer spending
  • business expectations increasingly optimistic
  • increasing business investment
  • sales and profit rising
  • employment increases
  • unemployment decreases
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79
Q

what happens in the contraction phase of the business cycle?

A
  • decreasing consumer spending
  • business expectations increasingly pessimistic
  • decreasing business investment
  • sales and profits falling
  • employment decreases
  • umemployment increases
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80
Q

what happens in the peak phases of the business cycle?

A

-wages and salaries high levels
- business operating at full capacity
- sales and products at higher levels
- high levels of employment
- low levels of unemployment

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81
Q

what happens in the trough phases of the business cycle?

A
  • wages and salaries at low levels
  • business operating at below full capacity
  • sales and profits at lowest levels
  • consumer spending at lowest levels
  • lower levels of employment
  • high levels of unemployment
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82
Q

what happens when the economy is in downturn?

A

When an economy is in a downturn, it will most likely mean that customers are not spending as much. Reduced spending translates to reduced opportunities for business.

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83
Q

what happens when the economy is booming?

A

When an economy is booming, lower levels of unemployment and rising incomes are likely to increase the overall level of spending in the economy. There are many opportunities for businesses to do well in this situation, and business owners may plan to expand as sales and profits increase.

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84
Q

what and how can information economic growth be beneficial?

A

Information on economic growth, and associated indicators such as inflation trends, average weekly earnings, consumer confidence, interest rates, consumer spending and unemployment provide businesses with insight into economic trends.

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85
Q

what does information on economic growth allow businesses to do?

A

This information on the level of economic activity allows businesses to predict possible threats to, and opportunities for, business activity during the planning stage.

86
Q

what are the economic conditions and influences?

A
  • intrest rates
  • employment levels
  • tax rates
  • business and consumer confidence levels
87
Q

what is an intrest rate?

A

is the price charged or paid for the use of money that has been deposited or borrowed

88
Q

when do intrest rates rise?

A

Typically, interest rates rise in periods of inflation

89
Q

what a rise in intrest rates do?

A

A rise in interest rates tend to stifle business activity (because credit becomes more expensive)

90
Q

what do high intrest rates mean for businesses?

A
  • High interest rates can impact a business’s profits as they will be paying more in loan repayments
  • High interest rates also mean that businesses may be less likely to afford to expand or grow as loans will cost more money
91
Q

what do low intrest rates mean for businesses?

A
  • Low interest rates = good opportunity for business growth
  • Low interest rates = consumers have more disposable income to spend
92
Q

what are intrest rates used to calculate?

A

used to calculate the proportion of a loan that is charged as interest to the borrower (or the proportion of a deposit paid to the depositor)

93
Q

how are intrest expressed?

A

typically expressed as an annual percentage of the total amount loaned or deposited

94
Q

what does intrest represent for a business?

A

interest generally represents a cost involved in generating revenue

95
Q

what do employment levels fluctuate with?

A

Employment levels fluctuate with the phases of the business cycle

96
Q

what happens to employment levels during expansion and contraction?

A

During an expansion, employment levels will rise while unemployment levels will fall whereas during an economic contraction, it is the opposite

97
Q

what do changing employment levels affect?

A

business planning

98
Q

during economic expansion what may business find hard to do and why?

A

In times of economic expansion, businesses may find it difficult to hire suitable employees due to labour shortages (most people are already employed) - results in businesses having to pay higher wages to attract suitable staff or consider overseas workers

99
Q

what is a tax rate?

A

is the % of income or the value of a good, service or asset paid as tax

100
Q

what do taxes represent to a business?

A

Taxes represent a cost to businesses

101
Q

how is tax determined for businesses?

A

Depending on how much a business earns, will determine how much tax they pay

102
Q

to find employees what might business have to hold off or change in expansion?

A

plans

103
Q

what may tax rates affect?

A

Tax rates may affect the decisions that the business owner makes when planning the business

104
Q

what may businesses have to consider with tax rates when in the planning stage?

A

Tax deductions may prove to be an attractive option when in the planning stage

105
Q

what happens when consumer confidence is high?

A

they feel stable in their jobs, confident about
their financial situation - consumers are more likely to make more purchases

106
Q

what happens when business owner confidence is high?

A

sense that consumer confidence is high, stable financial situation - owners will make more decisions for business growth/expansion, employ more workers or take on more debt

107
Q

what are the steps in the recessionary cycle?

A
  1. Evidence of a contracting economy is seen with rising unemployment, decreased economic growth and stabilising or falling inflation
  2. Consumers become more cautious. Spending and consumer confidence fall.
  3. Reduced spending by consumers affects business as profits fall.
  4. Cost cutting must occur. Workers may be retrenched, adding to the economic problems.
    *repeat
108
Q

what are the steps in the boom cycle?

A
  1. Evidence of an expanding economy is seen with falling unemployment, increased economic growth and rising inflation.
  2. Consumer confidence returns and spending increases.
  3. Increased spending will increase business profits.
  4. Business can increase production and will require workers.
    *repeat
109
Q

what are technological considerations?

A

methods, systems and devices that are a result of
scientific knowledge being used for practical purposes

110
Q

what does technology in manufacturing do?

A

Technology in manufacturing can increase efficiency and productivity, reduce operating costs, eliminate boring & repetitive tasks, create new product and improve the quality and range of goods and services.

111
Q

what must businesses do with technology?

A
  • Businesses must monitor and adapt to technology innovations or be left behind (failure to adapt can result in obsoletion)
  • Business owners must consider the + and - of -technology
112
Q

what dictates the use of technology in business?

A

The money available to a business will dictate what types and how much technology they use/implement

113
Q

benefits of technology?

A
  • IT tools are increasingly easy to use
  • Internet, mobile phones, online banking, interactive video etc. make it possible for businesses to coordinate design, production and distribution worldwide
  • More efficient
  • Save money in the long run
  • Opens up new markets presenting opportunities for businesses
114
Q

limitations of technology?

A
  • A decrease in the number of employees required
  • The speed of change has resulted in product life cycles becoming shorter and needing to be constantly updated
  • Need to spend more time and money on R&D to remain competitive
  • Maintenance costs
  • Large initial investment
115
Q

what happens when we engage more with technology?

A

As we engage more and more with technology, the potential for gathering and analysing data is a consideration for businesses

116
Q

what does smarter technology mean for business?

A

Smarter technology = robots and computers replacing workers (replaces dangerous, mundane or good jobs)

117
Q

technology innovations being developed for the future?

A
  • Driverless vehicles have been implemented in agriculture and mining industries, now driverless ubers and standard cars are being developed
  • Drone deliveries
118
Q

what is globalisation?

A

means that businesses now operate in a worldwide market

119
Q

what has allowed for the world to become a single market?

A

Better technologies, methods of transportation and unrestricted trade have allowed the whole world to
become a single market

120
Q

what does globalisation present for businesses?

A
  • Globalisation presents challenges and opportunities for businesses
  • Competing on a global scale
  • Allows businesses to buy & sell internationally = increased profit
  • Business owners need to adapt to the constant rapid changes in global issues
121
Q

what are the global considerations?

A
  • Overseas competitors
  • Offshoring labour
  • Exchange rates
  • Patenting, trademarks and copyrights
  • Online sales
122
Q

what knowledge of competitors do businesses need to have?

A

Important to have knowledge of ALL competitors - locally, nationally and overseas

123
Q

what must business owners must do in response to overseas competitors and markets?

A

Business owners must build a competitive advantage based on their strengths, by reducing costs and improving quality

124
Q

what must business owners stay informed on relating to competitors?

A

Business owners must stay informed of their competitors’ strategies, strengths and weaknesses

125
Q

why and how do business owners need to differentiate their businesses?

A
  • Businesses will need to differentiate their goods/services from other businesses in order to be competitive
  • Innovation can be used to differentiate
126
Q

what can local businesses do in overseas markets but what does it expose them too?

A
  • local businesses can also sell their products in overseas markets
  • Doing so spreads risk but allows it to potentially grow
127
Q

issues to consider about overseas markets and competitors?

A
  • transportation & distribution
  • Conversion of currency
  • Taxes
  • Marketing and packaging requirements
  • Different requirements of that market eg customs and cultures
  • Products may need to be modified to suit the needs of that market
128
Q

what does austrade do?

A

The Australian Trade Commission (Austrade) supports businesses in entering and growing in overseas markets

129
Q

how do global competitors exist?

A

Global competition exists because of rival, or competing, businesses that serve customers internationally.

130
Q

what is offshoring?

A

is the practice of moving some of a business’s processes or services to the same or another business located overseas

131
Q

why is offshoring beneficial for businesses?

A
  • There’s the opportunity to use labour in overseas countries
  • Take advantage of lower costs eg cheaper labour, cheaper transportation, favourable economic conditions BUT it comes at the cost of local jobs
132
Q

what do businesses choose to offshore?

A

Many businesses choose to offshore their labour-intensive stages of production and offshore labour-intensive services

133
Q

what do worker’s unuin say about offshoring?

A

Groups such as workers’ unions argue that offshoring labour to nations with lower wages and working conditions often leads to the exploitation of foreign workers, as well as local unemployment.

134
Q

what is an exchange rate?

A

the price of one country’s currency expressed in terms of another country’s currency

135
Q

what factors are exchange rates influenced by?

A
  • Interest rates
  • Rate of inflation
  • Balance of trade
  • Political stability
  • General state of the economy
  • Quality of a country’s governance
136
Q

what do exchange rate affect?

A

Changes in exchange rates affect businesses that
export goods/services or import materials

137
Q

what happens when exchange rates fall and rise?

A

A fall (depreciation) in exchange rates will tend to make exports cheaper but imports more
expensive and vice versa if exchange rates increase (appreciation)

138
Q

what businesses do exchange rates affect?

A

Exchange rates also impact businesses who have overseas suppliers - the supplier is likely to invoice the business in the supplier’s currency therefore prices will frequently change

139
Q

what do exchange rates determine?

A

the exchange rate determines how much of one currency has to be given up in order to buy a given amount of a different currency

140
Q

what happens with depreciation?

A

with depreciation exporting businesses will benefit while manufacturers or retailers importing materials or goods will face increasing costs

141
Q

what happens with appreciation?

A

an appreciation makes exports more expensive (more costs for exporting businesses) and imports cheaper (benefit businesses that import), and reduces the competitiveness of businesses that export

142
Q

what will businesses need to develop with exchange rates?

A

businesses may need to locate or develop a method for converting payments they have received from overseas customers

143
Q

why is it important to protect intellectual property at a global level?

A
  • Important that competitors don’t copy any IP such as new inventions, designs, brands as these provide a competitive advantage
  • Essential to protect IP at a global level
144
Q

how can IP be protected?

A
  • Patents
  • Trademarks
  • Copyrights
145
Q

what is a patent?

A

An exclusive right granted for any device, substance, method or process that is new, inventive and useful

146
Q

how are patents enforceable?

A

A legally enforceable exclusive right granted to the owner for the life of the patent

147
Q

what does an Australian patent do?

A

An Australian patent will generally only protect the rights of the patent owner in Australia

148
Q

are there international patents?

A

No ‘international patent’ exists at the moment

149
Q

how can businesses seek protection through patents in different countries?

A
  • A patent must be obtained in each country the business seeks protection
  • OR a business seeking protection in several countries can file an international application under the Patent Cooperation Treaty administered by the World Intellectual Property Organization
150
Q

what is a trademark?

A

A right granted over a letter, word, phrase, number, sound, smell, shape, logo, picture or aspect of packaging

151
Q

what does an Australian trademark do?

A

An Australian trademark only provides protection in Australia

152
Q

how can businesses seek protection through trademarks in different countries?

A
  • Similar to patenting, business owners need to seek protection overseas by applying for protection in each separate country
  • OR make a single international application filed through IP Australia nominating the Madrid Protocol countries in which protection is required. The Madrid Protocol is a treaty that provides a solution for registering and managing trademarks worldwide.
153
Q

what is copyright?

A

Free and automatic protection of original works such as writing, music, art, films, sound recording, broadcasts and computer programs

154
Q

how is copyright obtained?

A

Generally obtained automatically without the need for registration

155
Q

what doe placing a copyright notice do?

A

Placing a copyright notice in a prominent place on any work can act as a reminder to competitor

156
Q

how does copyright work internationally?

A

To date, 179 out of 190 countries have ratified the Berne Convention — an international treaty that sets a minimum set of standards for the protection of the rights of creators of copyrighted works around the world. However, some countries have not signed the treaty, so a business owner must be aware that it can be a requirement in some countries to establish copyright.

157
Q

what must a business consider in business planning related to online sales?

A

When planning, businesses need to consider the options of selling through a physical store, online, or both

158
Q

what are benefits of online stores?

A
  • Online stores reduce long-term costs as the business does not have to pay for the premises, electricity, water
  • Online allows businesses to reach a wider market
159
Q

what are limitations of online stores?

A
  • Must set up and maintain a professional looking website which can be expensive and some expertise may be required
  • Website crashes occur which means no sales
160
Q

what can a failure to go online result in?

A

Failing to go online at all can result in being uncompetitive

161
Q

what is corporate social responsibility?

A

managing a business in such a way that the broader social welfare of the community, including its employees, customers, suppliers and the environment, is taken into consideration when making business decisions

162
Q

what is done in CSR?

A
  • it means to go above and beyond your legal
    obligations
  • Do more than just exist to earn a profit - benefit
    others in the process
163
Q

what is the Triple Bottom Line?

A

the economic, environmental and social performance of a business

164
Q

what should businesses no longer focus solely on?

A

Businesses no longer should focus on simply making a profit at all costs, they need to consider their environmental and social performance as being just as important

165
Q

what is the traditional view of a business?

A

The traditional view of business is that it exists to create products, earn a profit and provide employment.

166
Q

what happens to the traditional view of a business as societies expectations change?

A

As society’s expectations of acceptable business behaviour change, socially aware business owners recognise the importance and necessity of planning business objectives that incorporate corporate social responsibility

167
Q

ways businesses can be socially repsonsible?

A
  • Avoid conflicts of interest
  • Deal with employees honestly and fairly, and with respect
  • Develop the skills of employees
  • Work with suppliers to ensure that they have socially responsible policies in place
  • Ensure that a fair price is paid for all materials
  • Ensure that the business is free of corruption
  • Minimise waste and pollution
  • Conserve the use of energy
  • Protect the health and safety of customers
  • Become involved in the community
168
Q

benefits of being socially responsible?

A
  • More customers (more inclined to purchase from CSR businesses)
  • Business becoming more competitive
  • Positive reputation and relationships (enhanced image and more profits)
169
Q

limitations of being socially responsible?

A
  • Time consuming
  • Complicated to introduce policies and practices that are CSR
  • Costly
  • Take away the focus from other objectives
170
Q

what is important with CSR and environmental considerations?

A

Important to ensure the business’s production process will not have serious or negative impacts on the environment

171
Q

how can businesses be environmentally CSR?

A
  • incorporate renewable energy initiatives e.g. solar or wind power into its operations
  • Source sustainable ingredients
  • Implement waste reduction strategies e.g. recycling
  • Support suppliers who use environmentally friendly methods of production
172
Q

what is important with CSR and planning production in a way that benefits society?

A

Businesses should ensure the production process does not have serious or negative impacts on community health and social conditions

173
Q

how can businesses be planning production in a way that benefits society CSR?

A
  • Purchase materials from local suppliers (supports the community by providing employment but also is good for the environment due to less transport involved)
  • Use suppliers free from exploitation
  • Have facilities and use technology which contributes to the health and welfare of staff
  • Consider how the product is packaged and marketed (safe, reliable)
  • Treat all customers fairly and equitably
174
Q

what are customers?

A

are the people who purchase goods and services from a business, expecting high quality at competitive prices

175
Q

what must businesses do in response to customers?

A
  • Businesses must respond to the needs of customers
  • A business needs to recognise and assess changes in consumer tastes so it can constantly satisfy consumer needs (for future viability an profitability)
  • Businesses need to produce high quality products and services
  • must make sure right product is delivered at the right time
176
Q

what do consumers do now days?

A
  • Consumers today are better informed and educated
  • Consumers will seek compensation if they feel they’ve been unfairly treated or purchased a product that doesn’t do what its supposed to
177
Q

what do customers pressure businesses to do?

A
  • Consumers put pressure on businesses to be environmentally aware - recycling, environmentally friendly packaging, reduced packaging, reduced emissions etc
  • Consumers put pressure on businesses to treat employees fairly and do not condone exploiting cheap labour eg sweat shops
  • Consumers want healthier food options, gluten free options, fresh food options (forces businesses to change product options)
178
Q

what does high levels of customer service result in?

A

improved customer satisfaction

179
Q

what do consumers do if businesses are not ethical?

A

Consumer groups are also prepared to mount publicity campaigns aimed at embarrassing those businesses that do not act ethically or responsibly.

180
Q

what are competitors?

A

other businesses or individuals who offer rival, or competing goods or services to the ones offered
by the business

181
Q

what should businesses be aware of with competitors?

A

Business need to be aware of existing competitors and new competitors

182
Q

what must businesses do in response to competitiors?

A

Businesses must respond to any change in the actions of their competitors

183
Q

what is competitive advantage?

A

is the ability of a business to develop strategies that ensure it has an ‘edge’ over competitors

184
Q

how do businesses achieve a sustainable competitive advantage?

A

To achieve a sustainable competitive advantage over
competitors the business will need to plan to produce a high quality good or service at the lowest cost

185
Q

what are suppliers?

A

are those businesses or individuals that supply the materials and other resources that the business needs to conduct its operations

186
Q

what do suppliers supply?

A
  • Raw materials
  • Equipment
  • Machinery
  • Finance
  • Information
187
Q

what is important to have with suppliers?

A

a good relationship

188
Q

how many suppliers do businesses have an what does this mean?

A

Businesses tend to have many different suppliers = less vulnerable to supply difficulties BUT this can result in losing control over suppliers and their activities

189
Q

what is a supply chain?

A

is the range of suppliers from which the business purchases materials and resources

190
Q

how does the supply chain work?

A

Typically starts with the sourcing of natural resources, followed by manufacturing activities such as
component construction and assembly. The supply chain moves on to storage facilities before reaching the consumer.

191
Q

how does the supply chain need to be maintained?

A

The supply chain needs to be well managed because production of the business’s good or service depends
on resources.

192
Q

why is supply chain management critical?

A
  • If resources required are not on hand, then nothing can be produced.
  • If resources are of inferior quality, it is difficult or costly to produce quality products.
  • If the right quantities of resources are not available, the business cannot meet demand for its products.
193
Q

what is the supply chain steps?

A

raw materials, supplier, manufacturing, distribution, customer, consumer

194
Q

what must a business consider in the planing stage relating to the supply chain?

A

When in the planning stage, a business must consider where the resources it obtains for production are sourced and how they reach the business

195
Q

how can location of business be assessed?

A

Business owner must also assess the location of the business in terms of distance to suppliers, the efficiency of delivery, consistency of quality and
pricing

196
Q

what do businesses expect of their suppliers?

A

Businesses today expect their suppliers to behave in a socially responsible manner

197
Q

what groups is the operating environment influenced by?

A

The operating environment is affected and influenced by a number of associations, organisations and interest groups

198
Q

what are special intrest groups?

A

are the groups of people who attempt to directly influence or persuade a business to adopt particular policies or procedure

199
Q

examples of special intrest groups?

A
  • Environmental lobby groups
  • Business associations
  • Unions
200
Q

what are environmental lobby groups (specific issue groups)?

A

special interest groups that promote environmental
issues to the public, government and businesses

201
Q

how to businesses respond to environmental lobby groups?

A

companies respond by undertaking environmental impact studies and rehabilitation works, which affects their business planning

202
Q

what are business associations?

A

organisations that support businesses through the
provision of training and education programs, advice and information

203
Q

who represents Australian businesses?

A

Australian Chamber of Commerce and Industry (ACCI) speaks on behalf of Australian businesses at national and international levels

204
Q

who represents family businesses?

A

Family Business Australia represents family businesses

205
Q

who represents small businesses?

A

Small Business Association of Australia represents small businesses

206
Q

what does ACCI publish?

A

The ACCI publishes and distributes research and reports on a range of issues that may be relevant to planning a business.

207
Q

what are unions?

A

organisations formed by employees in an industry, trade or occupation to represent them in efforts to improve wages and working conditions

208
Q

who can join a union?

A

Employee may choose to join a union

209
Q

what are unions called to do?

A

They’re called on to represent their members in the development of new or changed employee
agreements - they fight for the best possible conditions and wages for employees

210
Q

how do unions affect business planning?

A

Business planning may be affected by the considerations of employee safety, rights and
conditions

211
Q

what is a consumer group?

A

These are lobby groups that monitor a business’s performance in terms of its product safety, packaging, pricing and advertising

Business Management Unit 1 (3 decks)

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