AOS3

Question 1

What is Business Planning?

Answer 1

The process of establishing a business’s goals and developing strategies to achieve them.

Question 2

What is the External Environment?

Answer 2

Involves the surrounding factors that can impact a business, which it has some to no control over.

Question 3

What is the Macro Environment?

Answer 3

Social, global, legal, technological and economic conditions that a business works within and has no control over.

Question 4

What are examples of Macro Factors?

Answer 4

• Legal and Government Regulations
• Societal Attitudes and Behaviors
• Economic Conditions
• Technologic Considerations
• Global Considerations
• Corporate Social Responsibility

Question 5

What is the Operating Environment?

Answer 5

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

Question 6

What are examples of Operating Factors?

Answer 6

• Customer Needs and Expectations
• Competitors Behaviors
• Suppliers of Business Resources
• Special Interest Groups

Question 7

What are Legal and Government Regulations?

Answer 7

The laws and rules made by the government, as well as decisions made in the courts.

Question 8

What are Employment Laws and Regulations?

Answer 8

Rules that govern the relationship between employers and employees.

Question 9

What are examples of Employment Laws?

Answer 9

• Wages
• Working Conditions
• Unfair Dismissal

Question 10

What is Environmental Legislation?

Answer 10

The set of laws that aim to preserve the environment.

Question 11

What are examples of Environmental Legislations?

Answer 11

• Reducing Energy Use
• Recycling
• Reducing Waste

Question 12

What are Industry Regulations?

Answer 12

Rules that are specific to businesses within a certain industry.

Question 13

What are Council Regulations?

Answer 13

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

Question 14

What are examples of Council Regulations?

Answer 14

• Location
• Operating Factors
• Renovations

Question 15

What are Taxation Requirements?

Answer 15

Laws and rules related to tax that apply to all businesses.

Question 16

What are examples of Taxation Requirements?

Answer 16

• Obtaining an Australian Business Number
• Applying for a Tax File Number

Question 17

What are Societal Attitudes?

Answer 17

Collective values, beliefs, and opinions held by a group of people.

Question 18

What is Societal Behaviour?

Answer 18

The way people act and respond in various situations.

Question 19

What are Values & Beliefs?

Answer 19

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

Question 20

What is a Trend?

Answer 20

A general development in the way a group of people in society are behaving.

Question 21

What are examples of Trends?

Answer 21

• Advanced Technology
• Greater Focus on Gender Equality
• Focus on Health and Wellbeing

Question 22

What are Economic Conditions?

Answer 22

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

Question 23

What are Interest Rates?

Answer 23

The price paid for money that has been borrowed, expressed as a percentage.

Question 24

What are Employment Levels?

Answer 24

Measured as the percentage of the labour force who are working in paid employment.

Question 25

What are the benefits of Employment Levels?

Answer 25

- Indicate availability of workers - Influence how much a business pays employees to attract new workers

Question 26

What are Tax Rates?

Answer 26

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

Question 27

What is Consumer Confidence?

Answer 27

A measure of consumers' feelings and expectations about current and future economic conditions.

Question 28

What are Technological Developments?

Answer 28

The invention and innovation of tools that solve problems and enhance processes.

Question 29

What are the strengths of Technological Developments?

Answer 29

- Implementing technology in a business can increase the accuracy and precision of the production process, resulting in a consistent level of quality that can improve a business's reputation. - Introducing technology can reduce the labour resources a business requires, thus reducing wage costs. - Customers can purchase a good or service online at their convenience which can increase sales.

Question 30

What are the weaknesses of Technological Developments?

Answer 30

- If technology breaks down, it can halt production completely. - Technology has high initial set-up and maintenance costs. - If business continually replace employees with technology, they may develop a poor reputation for increasing unemployment rates and minimising their contribution to the local economy.

Question 31

What are Overseas Competitors?

Answer 31

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

Question 32

What are Overseas Markets?

Answer 32

Any markets that are outside of a business's own country of operation.

Question 33

What is Offshoring Labour?

Answer 33

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

Question 34

What are the benefits of Offshoring Labour?

Answer 34

- Lower Labour Costs - Increased Efficiency - Access a more diverse range of skills - Cheaper prices for consumers

Question 35

What is an Exchange Rate?

Answer 35

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

Question 36

What are Online Sales?

Answer 36

The buying and selling of goods and services using the internet.

Question 37

What is a Patent?

Answer 37

A license that provides a business with exclusive rights to use innovative devices, substances, methods, and processes.

Question 38

What is Copyright?

Answer 38

A legal framework that is free and automatically attached to creations such as books, documents, web pages, plays, artworks, photos, and songs.

Question 39

What is a Trademark?

Answer 39

An exclusive right granted over a unique aspect of a business, such as a symbol, word, sound, or number, that is used to distinguish the business or its products.

Question 40

What is Corporate Social Responsibility?

Answer 40

The ethical conduct of a business beyond legal obligations, and the consideration of social, economic, and environmental impacts when making business decisions.

Question 41

What are the advantages of Corporate Social Responsibility?

Answer 41

- Implementation can result in a positive business reputation which may attract more customers. - May attract highly skilled employees who value ethical conduct and are committed to achieving business objectives. - Customers may be willing to pay more for ethically produced goods and services.

Question 42

What are the disadvantages of Corporate Social Responsibility?

Answer 42

- Constant focus on corporate social responsibility may decrease productivity levels and the completion of other business tasks. - Can be time-consuming to implement strategies. - Can be expensive for a business to implement initially.

Question 43

What are examples of Environmental Considerations?

Answer 43

- Sourcing environmentally sustainable resources from local suppliers. - Waste management strategies. - Eliminating unnecessary packaging.

Question 44

What are examples of Social Considerations?

Answer 44

- Sourcing from local suppliers, rather than from overseas. - Plan to produce services that are good for society. - Plan to devote a portion of a business' profit to allowing their employees the opportunity to volunteer at a charity organisation.