Unit 1 Chapter 3 Flashcards
External business environment and planning
external environment
- the surrounding factors that can impact a business
- has minimal control over
- need to consider both factors when planning and making decisions
external environment
- the surrounding factors that can impact a business
- has minimal control over
- need to consider both factors when planning and making decisions
macro factors
social, legal, technological and economic conditions that a business operates in, no control
macro factors (6)
csr considerations, global considerations, technological considerations, legal and government regulations, societal attitudes and behaviours, economic conditions
operating factors
- primary external factors
- has some control over
- involves external stakeholders
operating factors (4)
customer needs and expectations,
competitors’ behaviour, suppliers and the supply chain, special interest groups
legal and government regulations (5)
employment laws and regulations,
environmental legislation, industry regulations, council regulations, taxation requirements
societal values and beliefs (attitudes)
principles, standards and and assumptions upheld by people, which can influence how they make decisions
societal values and beliefs (4)
awareness about improving physical and mental health and wellbeing, wellbeing of employees, environmental sustainability, hygiene practices
societal trends (behaviour)
a general development in the way a group of people in society are behaving
- can be identified by analysing data and looking for patterns
societal trends (3)
increased reliance on advanced technology, greater focus and action on achieving gender equality, increased purchasing of products related to health and wellbeing
economic conditions
the conditions that exist in relation to the productive performance and financial stability of a nation
economic condition factors (4)
interest rates, employment levels, tax rates, consumer confidence
employment levels
low unemployment rate > high employment levels > may struggle to find workers
high unemployment rate > low employment levels > easier to find workers
consumer confidence
a measure of consumers’ feelings and expectations about current and future economic conditions
high confidence = willing to spend
technological developments
The invention and innovation of tools that solve problems and enhance processes, can enhance a business
common technology inventions (3)
automated production lines, eftpos, online presence
global considerations: part 1 (5)
overseas competitors, overseas markets, offshoring of labour, exchange rates, online sales
global considerations: part 2 (3)
copyrights, trademarks, patenting
copyrights
free and automatic protection used on original ideas e.g. writing art sound films photos
trademarks
an exclusive right granted over a unique aspect of a business e.g. symbol or word to distinguish the business
patent
A licensed that provides a business with exclusive rights to use innovative devices, substances, methods, and processes
corporate social responsibility
The ethical conduct of a business beyond legal obligations and the consideration of social economic and environmental impacts when making business decisions
environmental and social
csr - environmental considerations (5)
environmentally sustainable resources, waste management strategies, planning product packaging, planning for energy sources, plan to donate to organisations that save the environment
csr - social considerations (4)
source resources from local suppliers, adopt technology to replace human labour, produce products to benefit society, devote a portion of profit to volunteers
customer needs
The essential requirements that customers intend to fulfil with purchases
customer expectations
The values and beliefs that customers seek when purchasing from a business
expectations are not requirements
types of customer needs and expectations (4)
customer convenience, high-quality goods and services, social responsibility, responsive customer service
competitors
businesses that operate in the same or similar industry and offer a similar good or service
types of competitor behaviour (4)
selling a similar product for a lower price, selling a highly unique product, entering an industry with businesses with a large share, the threat of new competitors
competitors behaviour - must consider:
- local and overseas suppliers
- differentiation
- market research
- responding to changes in competitor behaviour
suppliers
individuals or businesses that provide the resources required to produce goods and services
supply chain
A network involving suppliers, manufacturers wholesalers retailers and customers
sourcing considerations (5)
Time, shipping costs, social responsibility, access to resources, legal regulations
retrieving considerations (4)
road transport, air transport, rail transport, Words because I did my homework that’s I think you should do general next year general general general and pre-method will automatically get pre-sea transport
Special interest group
organisations or groups that seek to influence laws, policies or behaviours to benefit a specific cause
special interest groups (3)
unions, business associations, environmental lobby groups
union issues
remuneration provided, working conditions, treatment of employees
business association issues
legal requirements, industry information and news, connecting with businesses
environmental lobby group issues
sustainability of operations, compliance with legislation
