Unit 1 AOS 3 Flashcards
what is the external business environment made up of?
operating and macro
what is the macro environment?
the broad conditions and trends in the economy and society within which a business operates
factors of the macro environment?
- corporate social responsibility considerations
- global issues
- economic conditions
- legal and government regulations
- societal attitudes and behaviour
- technological considerations
what do changes in the macro environment affect and do business have control over them?
Changes in the macro environment can affect ALL businesses, therefore, businesses have
no control over these factors.
what is the factor of Legal and government regulations?
The laws or regulations made by parliaments and courts, which affect how businesses operate and behave
what is the factor of Societal attitudes and behaviour?
The factors relating to changes in the attitudes, behaviour, tastes and lifestyles of communities on a local, national and international scale
what is the factor of Economic conditions?
The set of influences that relate to economic activity, including interest rates, wages, unemployment, exchange rates and inflation
what is the factor of Technological considerations?
The issues related to the growing use of tools, techniques or systems
what is the factor of Global considerations?
The pressures that arise as a result of businesses operating in worldwide markets and competing on a global scale
what is the factor of Corporate social responsibility considerations?
The pressures on a business to take into account environmental considerations to ensure broader social welfare
what is the operating environment?
The specific outside stakeholders with whom the business interacts in conducting its business.
what do changes in the operating environment affect and do business have control over them?
A business has less control over these factors than the internal environment, but does still
have some influence over these stakeholders
what are the factors of the operating environemnt?
- suppliers
- competitors
- customers
- special intrest groups
what is the factor of customers?
The people who purchase goods and services from the business, expecting high quality at competitive prices
what is the factor of competitors?
Other businesses or individuals who produce and sell rival, or competing, goods or services to the ones offered by the business
what is the factor of suppliers?
The businesses or individuals that supply materials and other resources that the business needs to conduct its operations
what is the factor of special intrest groups?
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.
what are key legal and governement regulations?
- 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
federal government obligations of business laws?
- 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
state government obligations of business laws?
- 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
local government obligations of business laws?
- 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
what and why is it essential for businesses to have in relation to legal and government regulations?
It is essential that business owners have sound knowledge of the laws that will affect their operations when they are planning their business
what happens when business do not obey the law?
risk losing customers and their reputation, being fined or losing the right to continue trading
have their been changes to laws?
There have been a number of changes to laws in the
past 20 years which impact businesses