2329199
Description
Flashcards by Chanel Cutelli, updated more than 1 year ago
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Created by Chanel Cutelli
about 9 years ago
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| Question | Answer |
| External Influences - Economic | The changes in consumer and business spending over a period of time. - level of employment and investment - profitability - amount of G&S produced |
| External Influences - Financial | - Deregulation is about removing rules to increase competition; this happened in the financial sector of the economy - Globalisation has allowed businesses to borrow or raise money from overseas which will influence a business’ choice when borrowing: it can either borrow domestically or from overseas |
| External Influences - Geographical | - Australia is close to Asia, which is the fastest, growing part of the economic world. - As the population gets larger and older, this presents challenges for Australian businesses |
| External Influence - Social | Tastes in fashion and culture can lead to sales and profit opportunities, & growth. - There is consumer demand for environmentally friendly products. |
| External Influences - Legal | - All businesses must follow the law - The Consumer and Competition Act is a major Australian law that places obligations on all businesses |
| External Influences - Political | Changes of government can create business uncertainty; sometimes governments need to make certain decisions which may harm certain businesses eg: certain taxes |
| External influence - Government | Federal, state and local governments have developed laws concerning the conduct, legal structure and competitive behaviour of business. - Local: Health regulations - State: occupational health and safety requirements - Federal: employee superannuation. |
| External Factor - Technological | Gains a competitive advantage by reducing costs. Includes: hi-tech robotics, information and communications. |
| External Influence - Competitive Situation | The number of competitors (including overseas) & ease of entry to the market, all affect the competitive situation - may make it difficult. |
| External Influence - Market | - Money flows around the world today because of technology eg: you can invest in overseas shares, an overseas bank account etc. - Governments have removed barriers and made this flow of money easier - All major markets today (financial, consumer and labour) are global; consumers are able to buy over the internet; workers often work overseas; and financial flows are easy with technology |
| Internal Influence - Products | - type and range of goods and services produced - type of business (service, manufacture or retail) - size will be based on range & type of G&S, level of technology & volume of G&S |
| Internal Influence - Location | - Businesses in better locations are more convenient for customers, have better visibility and have more of a chance of making profit - consider costs such as renting or purchasing a location - visibility - cost - proximity to customers - proximity to suppliers - proximity to support services |
| Internal Influence - Resource | Human: employees Information: knowledge & data Physical: equipment, raw materials Financial: funds used to meet its liabilities |
| Internal Influence - Management | Two types: Classical/hierarchy: the chain of demands & span of control Flat Structure: short chain of demands & wide span of control |
| Internal Influence - Business Culture | - Policies, goals and slogans - unwritten/informal rules guide how people behave in the business - values, symbols and rituals |
| Stakeholders | Anybody who has an interest in/is affected by the operations of a business including management, staff, shareholders, local community, suppliers, customers, government and even the natural environment. |
| Stakeholders - Environment | The surrounding conditions in which the business operates, & can be divided into broad categories; internal and external. |
| Stakeholders - Managers | Must give honest & accurate amount of their management of the business resources |
| Stakeholders - Employees | Legally they are entitled/rewarded safe workplace, awarded wages, holiday pay, compensation & long service leave. |
| Stakeholders - Customers | Provide saleable goods that perform as specified, match their description & are saleable according to their description. |
| Stakeholders - Suppliers & Creditors | Businesses have the ethical obligation to pay the S&C (people/business owed money in the short or long term) |
| Stakeholders - Society | Socially responsible business will participate in a range of community projects and activities |
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