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unit 1/2 business management > unit 1 outcome 2 > Flashcards

unit 1 outcome 2 Flashcards

1
Q

define corporate social responsibility

A

the ability for a business to go above and beyond their legal obligations, to consider the impact of their operations on their employees, the community and the environment.

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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

what is the operating environment?

A

the specific outside stakeholders with whom the business interacts in conducting it’s business. (sometimes called the task environment)

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4
Q

what is the internal environment?

A

factors over which the business has some control. Can be called the micro environment.

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5
Q

what is the overall external environment?

A

factors over which the business has no control. (divided into macro and operating)

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6
Q

what factors from the macro environment affect business planning?

A
  • CSR status (pressure on a business to consider social welfare)
  • global issues (competing in worldwide markets)
  • economic conditions
  • political and legal influences (laws and regulations)
  • societal attitudes (popular tastes)
  • technological developments
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7
Q

what are factors from the operating environment that affect business planning?

A
  • suppliers
  • competitors
  • customers
  • special interest groups (unions, lobby groups etc.)
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8
Q

what are factors from the internal environment that affect business planning?

A
  • employees (better work environment = high output)
  • managers (skills = achieving business objectives)
  • location (visible / accessible to potential customers)
  • legal business statements (sole trader, partnership, private, public listed)
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9
Q

list the key legal and government regulations affecting business planning

A
  • laws relating to location
  • health regulations
  • employment regulations (anti discrimination + work health and safety)
  • taxation laws
  • trade practises and consumer protection
  • environmental protection legislation
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10
Q

describe the laws relating to location

A

regulations relating to zoning and building, signage position and size, and fire and parking regulations

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11
Q

describe health regulations

A

regulations including temperature for food storage, kitchen layout, employee clothing, and food handling.
A health inspector will do random assessments.
OHS act of 2004

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12
Q

describe employee regulations

A

legislations such as conditions of employment, unfair dismissal, protection of human rights, and employer responsibility for tax payments.
This includes anti discrimination and work health and safety regulations)

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13
Q

describe taxation laws

A

all businesses are required to prepare a set of accounts (the business activity statement, goods and services, and payment as you go)

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14
Q

describe trade practises and consumer protection

A

goods and services cannot be faulty as the consumer is entitled to good quality products.
There are legislations on trade practise, fair trade, advertising, and credit.

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15
Q

describe environmental protection legislation

A

includes environmental protection laws by federal, local, and state governments.
This includes noise and pollution emissions and environmental damage to air, water and land.

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16
Q

what are the societal attitudes and behaviours?

A

values, beliefs, and trends, can be constantly changing

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17
Q

explain values and beliefs in society

A

society’s attitude about what is right and wrong; for example protecting the natural environment by sourcing sustainable meat products or biodegradable packaging.

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18
Q

explain trends in society

A

the general direction in which people’s attitudes or behaviour is developing or changing.
Businesses may want to consider a family friendly, diverse workplace, keeping up with demographics in the community

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19
Q

what are economic conditions?

A

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

20
Q

what are the key features of expansion?

A
  • increasing consumer spending
  • business expectations increasingly optimistic
  • increasing business investment
  • sales and profit rising
  • unemployment falling
    THIS LEADS TO PEAKS
21
Q

what are the key features of contraction?

A
  • decreasing consumer spending
  • business expectations increasingly pessimistic
  • decreasing business investment
  • sales and profit falling
  • unemployment rising
    THIS LEADS TO TROUGHS
22
Q

what are the key features of peaks?

A
  • wages and salaries at high levels
  • business operating at full capacity
  • sales and profit at highest levels
  • low levels of unemployment
23
Q

what are the key features of troughs?

A
  • wages and salaries at low levels
  • business operating at below full capacity
  • sales and profit at lowest levels
  • high levels of unemployment
24
Q

what happens when there is a downturn in the economy?

A
  1. there is evidence of a contracting economy
  2. customers become cautious and spending falls
  3. profit falls as spending does
  4. wages fall and employees may be cut

THE CYCLE STARTS OVER AGAIN

25
Q

what happens when there is a boom in the economy?

A
  1. there is evidence of an expanding economy
  2. consumers gain confidence and spend more
  3. increased spending = increased profits
  4. businesses employ more staff
26
Q

define and explain interest rates

A

the price charged or paid for the use of money that has been deposited or borrowed.
Changing interest rates can affect a business’s planning as high interest rates will reduce the likelihood of a large profit, while falling interest rates might make business loans more affordable.

27
Q

define tax rates

A

the percentage of income or the value of a good, service or asset paid as tax.

28
Q

define technological issues

A

issues relating to the growing use of tools, techniques or systems businesses to solve problems or serve a purpose

29
Q

what are the benefits of technological development?

A
  • improving productivity
  • reducing operating costs
  • eliminating boring and repetitive tasks
30
Q

what are the limitations of new technology?

A
  • decrease in required employees

- product life cycles becoming shorter

31
Q

define globalisation

A

the effect of hi tech communication, lower transport costs, unrestricted trade and financial flows turning the whole world into a single market, producing a more integrated global economic system.

32
Q

define exchange rates

A

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

33
Q

what is the triple bottom line?

A

the economic, environmental, and social performance of a business (people, planet, profit)

34
Q

define environmental considerations?

A

it is important that the business’s production process will not have a serious or negative impact on the environment

35
Q

how can a business plan the production of goods and services in society’s best interest?

A
  • purchasing materials from local suppliers (supporting the community)
  • sourcing suppliers free from exploitation
  • fair treatment of customers
  • producing a safe a reliable product
36
Q

define customers

A

the people who purchase good and services from the business, expecting high quality at competitive prices.
Customers are the reason businesses exist.

37
Q

list some customer expectations and needs

A
  • businesses should be environmentally aware (recycling etc.)
  • businesses should be ethically responsible (no child labour etc.)
  • healthier options in the food industry (vegan, low in fat and salt etc.)
  • fresh, natural and organic products
  • businesses should keep up with trends and customer wants
38
Q

define competitors

A

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

39
Q

what is competitive advantage?

A

the ability of a business to develop strategies that ensure it has an edge over its competitors. Customers will utilise the business that they believe has the competitive advantage over others.
(e.g. netflix over blockbuster)

40
Q

what are suppliers?

A

the businesses or individuals that supply materials and other resources that the business needs to conduct it’s operations.

41
Q

define and outline the supply chain

A

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

raw materials > supplier > manufacturer > distribution > retailer > consumer

42
Q

what factors affect the supply chain?

A
  • multiple suppliers of the same raw material
  • if resources required are not on hand, nothing can be produced
  • if resources are of inferior quality, it is difficult or costly to produce quality products
  • if the right quantity of resources are not available, the business cannot meet demand for ir’s products
43
Q

how do suppliers affect the business planning

A

businesses must consider:

  • location of business to supplier
  • efficiency of delivery
  • rate that stock is used
  • consistency in quality
  • pricing
  • comparison to other suppliers of similar products
  • CSR or “green” supply chains
44
Q

define special interest 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.

45
Q

explain business associations

A

these are organisations that support businesses, interested in the provision of training and education programs, advice and education. They can affect businesses by supplying training courses and new technology etc.

46
Q

explain unions

A

organisations formed by employees, improving wages and working conditions.

47
Q

explain consumer groups

A

lobby groups that monitor a businesses performance. Interested in product safety, packaging, pricing and advertising.

unit 1/2 business management (4 decks)

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