unit 1 chapter 2 Flashcards
what should a new business plan include
a clear direction of the business
goals and how they will be achieved
business enviroment:
surrounding conditions in which the business operates
stakeholders:
groups or individuals with an interest in, or affected by the activities of a business
internal environment
micro enviroment
things over the business has control over, for example company polices, culture, staff and management style
external enviroment
things the business has little control over for example government polices, taxation and superannuation levels , competitors and economic conditions
operating enviroment
stakeholders external to the business that have a direct impact on individual businesses for example customers competitors suppliers special interest groups
macro enviroment
external changed can mean owners have to make changes to the business plan
for example
laws and regulations changed by governments
economic conditions
global facts
technology
corporate social responsibilities
Legislation and government regulations
federal, state and local government laws must be obeyed by business owners
for example
taxation laws, health and safety, anti discrimination
new businesses must
- register with Asic
- obtain an ABN
- contact the tax office for a tax file number
Location regulations
laws exist relating to where buildings can be located, their height, size and parking
health regulations
food act, laws around storage, serving and handling of food
health inspectors conduct regular checks and can force businesses to close if not compliant
employment regulations
businesses must comply with employment regulations and laws
- when recruiting staff
- equal opportunities act
- occupational health and safety act
taxations laws
businesses must submit a business activity statement (BAS) to the taxation office monthly or quarterly
-pay roll tax
trade practices and consumer protection laws
competition and consumer act, protects goods and services so that they aren’t faulty
environmental protection
laws prevent pollution and environmental damage to the air and water and land
attitudes and beliefs
business owners need to consider the communities values, beliefs and trends
values and beliefs
-they influence the way people behave for example what they eat, do wear, and how they live
trends:
reflecting trends in society is important for example ageing population and diverse workplace
economic conditions
-the influences that relate to economic activity in a region
name the four phases of the business cycle
expansion= increasing consumer spending, sales rising
Contraction = decrease consumer spreading and sales falling
Peak= operation at full capacity, sales at highest level
Trough = operation at lowest level
sales at lowest level
Interest Rates
the price charged or paid for the use of money
expressed as a percentage of the total amount
Tax rates
a percentage of a business’s income
income tax
varies with respective income or profits
the more you earn the more pay you pay
business and consumer confidence levels
when people feel confident about the economy, they will spend more money
Technological issues
- the growing use of tools, techniques systems to solve problems or an operations purpose
- improved technology can provide improved effciency and productivity, new products and improve the quality of goods and services
developments in technology
improve productivity
faster global communication
-loss of jobs, products dont last as long so more money is needed for research and development
globalisation
the effect of high-tech communications lower transport costs and the unrestricted trade and flow of money turning the world into one large market
issues:
overseas competitors
offshore labor
moving some business processes or services to another country due to lower costs.
- loss of Australian jobs
- exploitation of foreign workers
exchange rates
the price of one currency expressed in terms of another currency for example how much one currency is to be given up to buy a given amount of different currency.
protection of intellectual property
from overseas competitors can be achieved through:
patents- a legal exclusive right for any device substance method or process.
trademarks: a right over a letter word phase sound
copyright: a free automatic protection of original music art
