when economic performances improve how do buienesses respond

Question 1

Summary of Economic performance

Answer 1

The GDP (Gross Domestic Product) is the total monetary value of all the finished goods and services within a country. ​

In 2022, Australia’s GDP was $527.7bn​

The more goods and services businesses sell, the higher the GDP. ​

In Australia, the mining industry makes a substantial (large) contribution to our GDP. However, we may not be able to rely on the mining industry forever. Why not?

Question 2

Improving Australia’s GDP

Answer 2

In order to improve Australia’s GDP, businesses could adopt the following four strategies: ​

Increasing their research and development spend​

Adjusting marketing strategies​

Improving the skills of your workforce​

Stepping up the production capacity

Question 3

Increasing R@D spending

Answer 3

In order to respond to the pressures of customers and competitors, businesses are encouraged to conduct research and development (R&D). For example, undertaking new product or software design. ​

R&D can help businesses gain a competitive advantage. ​by developing new and innovative products, processes, or services.

Not all businesses are able to afford R&D. Fortunately, federal and state governments are offering grants and tax incentives to businesses who can prove they’re undertaking R&D.

Question 4

adjusting marketing strategies

Answer 4

Businesses rely heavily upon marketing strategies when attempting to increase market share (the proportion of the market controlled by a business). ​

The internet is a valuable tool for businesses. It allow businesses to adjust their marketing strategies to reach a particular audience. ​

In your exercise book, answer the following two questions:​

Question 5

improving the skills of the workforce

Answer 5

Employees MUST be well-skilled and possess the abilities to perform their role. This will improve business survival and productivity in a rapidly changing economic environment. ​

For example: ​

The ability to work in a diverse environment ​

Cross-culture competency (being aware of other cultures and their differences)​

Flexibility and openness to learn​

Strong communication skills​

Effective in conflict resolution

Question 6

improving production capacity

Answer 6

In order to improve productivity, businesses are encouraged to update / replace / maintain equipment. ​

This may be an expensive upfront cost, but in the long-term may reward the business, such as through increased productivity and production capacity.