aos 3 external environment

Question 1

external environment

Answer 1

the external environment involves the surrounding factors that can improve a business, which it has minimal control over.

Question 2

macro factors

Answer 2

are social, legal, technological, global, and economic conditions that a business operates in and has no control over.

Question 3

operating factors

Answer 3

are the primary external factors impacting a business that it has some control over.

Question 4

legal and governement regulations

Answer 4

are the laws and rules made by parliaments and governments, as well as decisions made by the courts.

Question 5

Employment laws and regulations

Answer 5

are rules that govern the relationship between employers and employees.

Question 6

Environmental legislation

Answer 6

is the set of laws that aim to preserve the environment.

Question 7

Industry regulations

Answer 7

are rules that are specific to businesses within a certain industry.

Question 8

Council regulations

Answer 8

are local government rules made to govern businesses operating in a specific geographic area.

Question 9

Taxation requirements

Answer 9

are laws and rules related to tax that apply to all businesses.

Question 10

Societal attitudes

Answer 10

are the collective values, beliefs, and opinions held by a group of people.

Question 11

Societal behaviour

Answer 11

is the way people act and respond in various situations

Question 12

Values and beliefs

Answer 12

are the principles, standards, and assumptions upheld by individuals or a group of people, which influence how they make decisions.

Question 13

Economic conditions

Answer 13

are the conditions that exist in relation to the productive performance and financial stability of a nation or other geographical area.

Question 14

interest rates

Answer 14

An interest rate is the price paid for money
that has been borrowed, expressed as a percentage

Question 15

tax rates

Answer 15

A tax rate is the percentage of income
or spending that is required to be paid to the government by individuals or businesses.

Question 16

business confidence

Question 17

consumer confidence

Answer 17

is a measure of consumers’ feelings and expectations about current and future economic conditions.

Question 18

Technological developments

Answer 18

are the invention and innovation
of tools that solve problems and enhance processes.

Question 19

Productivity

Answer 19

is the number of goods or services that are produced compared to the number of resources used in the production process.

Question 20

Effectiveness

Answer 20

is the extent to which a business achieves its stated objectives.

Question 21

Automated production lines

Answer 21

are machinery and equipment that are arranged in a sequence, and the product is developed as it proceeds through each step.

Question 22

Overseas competitors

Answer 22

are businesses that are located in other countries that operate in the same industry and offer a similar good or service.

Question 23

Globalisation

Answer 23

is the process by which governments, businesses, and people across the globe are becoming more interconnected, allowing for increased international trade and cultural exchange.

Question 24

Differentiation

Answer 24

involves a business distinguishing its goods and services from competitors that are selling similar items in the market.

Question 25

A free trade agreement

Answer 25

is an international contract that reduces or eliminates trade barriers between two or more countries.

Question 26

Offshoring of labour

Answer 26

involves a business moving its services or processes
to another country.

Question 27

An exchange rate

Answer 27

is the relative price at which
the currency of one country can be exchanged for the currency of another country.

Question 28

CSR

Answer 28

refers to a business’s ability to go above and beyond legal obligations about social, economic, and environmental considerations.

Question 29

customer needs

Answer 29

are the essential requirements that customers intend to fulfil with the purchase of a good or service from a business.

Question 30

Customer expectations

Answer 30

are the values or benefits that customers seek when purchasing a good or service from a business.

Question 31

Competitors

Answer 31

Competitors are businesses that operate
in the same or similar industry and offer a similar good or service.

Question 32

stakeholder

Answer 32

In business, a stakeholder is any individual, group, or party that has an interest in an organization and the outcomes of its actions.

Question 33

Customer retention definition

Answer 33

a company’s ability to turn customers into repeat buyers and prevent them from switching to a competitor.

Question 34

suppliers

Answer 34

are individuals or businesses that provide the resources required to produce goods and services.

Question 35

A supply chain

Answer 35

is the network of individuals
or businesses that are involved in producing and distributing a good or service to customers.

Question 36

Inputs

Answer 36

Inputs are the resources used by a business to produce goods
and services.

Question 37

Outputs

Answer 37

Outputs are the final goods or services produced as a result of
a business’s operations system, that are delivered or provided to customers.

Question 38

A wholesaler

Answer 38

is a business that sells products in large quantities and at lower prices than retailers.

Question 39

A retailer

Answer 39

A retailer is a business that sells products directly to customers.

Question 40

Special interest

Answer 40

Special interest groups
are organisations or a group of people that seek to influence laws, policies, or behaviours to benefit
a specific cause.

Question 41

Unions

Answer 41

Unions are organisations composed of individuals who represent and speak on behalf of employees
in a particular industry to protect and improve their wages and working conditions.

Question 42

An employee strike

Answer 42

An employee strike is a mass refusal by employees to work under particular wages or conditions.

Question 43

Business associations

Answer 43

Business associations are organisations that advise and support businesses in a particular industry.

Question 44

Environmental lobby groups

Answer 44

Environmental lobby groups are organisations that advocate for
the protection of the environment and
promote environmental issues to businesses, the government, and the public.