Globalisation
Name 3 factors of gloablisation
Overseas competitors, overseas markets, offshoring of labour, exchange rates, Intellectual property, online sales
What occurs when businesses fail to meet government legal requirements?
Fines, losing customers and reputation
What happens when interest rates rise? Will businesses be more likely or less likely to take out a loan?
Interest rate rise - more expensive to take out a loan, businesses may not look to plan when interest rates rise
What is the definition of corporate social responsibility
Businesses going above and beyond legal requirements, and considering social, economic and environmental impacts when making business decisions
Define societal attitudes and societal behaviour
Societal attitudes are the collective values, beliefs, and opinions held by a group of people.
Societal behaviour is the way people act and respond in various situations.
Discuss offshoring of labour as part of business planning
Pro: less costs of labour and transportation
Con: doesn't meet CSR duties - jobs leave Australia
Minimum wage, working conditions
Do businesses want the unemployment rate to be low or high? Why
High - they want more people to be looking for jobs, wages lower
Describe 2 CSR impacts that businesses can consider when making decisions for their business
Environmental impact - reducing pollution
Social impact - welfare of staff, customer satisfaction
Describe how society's values and beliefs impact the decisions to visit and purchase from
Societies values and beliefs dictate how we feel about certain activities that businesses do as we are more aware of it. Thus, if businesses are not having a positive impact on the environment or the community, people might be less likely to visit these shops
Describe 2 ways in which Australian businesses can prepare to beat overseas competitors and markets
Lower prices, higher quality
Identify and explain the two forms of taxation that businesses must pay to the government
GST - goods and services tax, 10% tax on all products sold
Business tax - unincorporated companies pay income tax, incorporated companies pay company tax
Describe the effect of tax deductions or subsidies on business planning
If a business activity offers tax deductions or subsidies, business may be more likely to do this activity in their planning
Describe the difference between customer needs and customer expectations
Customer needs - essential requirements of a good or service
Customer expectations - values or benefits that can come from purchasing a good or service
Identify three different values and beliefs which customers might have when deciding what businesses to interact with
Physical and mental health awareness, wellbeing of employees, environmental sustainability, health practices
What are three ways businesses can protect themselves against overseas competition
Trademarks, patents, copyright
By implementing environmentally conscious procedures in the planning stage
If consumer confidence is high, what is the likely thing that consumers will do? How does this effect business planning
Consumers are more likely to spend money on goods and services. Will result in businesses more likely to plan their business when consumer confidence is high
Pick a business of your choice. Describe what is a customer need and a customer expectation of that business
Up to discretion
What are two advantages and disadvantages of technological advancement
Adv - higher productivity, higher quality of goods
Disadv - loss of employees, lower reputation
Explain the impact on business planning if there is an appreciation in the exchange rate
Exports more expensive, imports cheaper
Reduces competitiveness of Australian businesses to export
Describe the effect of health regulations on business planning using a business of your choice
Restaurant business - must make sure that everything is of a clean nature when preparing food
What are key economic indicators that suggest an expansion and a recession (think interest rates, unemployment and consumer confidence)
Interest rates low, unemployment low, consumer confidence high
Describe the effects that technological innovations have had on business with an example. What would happen if businesses did not keep up with technological innovations
Technological innovations - more productive, higher quality, more products.
Businesses will not be able to compete
Explain how societal trends impact decisions in business planning with an example
When business owners plan their business, they must be aware of the trends that are occurring in society. For instance, phone designs have been trending towards smartphones over the past 15 years. When planning a business to sell phones, smartphones must be considered as it is a societal trend which is impacting business planning