AOS3 The External Environment (All cards) Flashcards
(33 cards)
What is the external environment?
Factors outside a business that can affect its operations and over which the business has little to no control.
What are macro factors?
Broad external factors which businesses have no control over, including legal, social, economic, technological, global, and CSR influences.
What are operating factors?
External stakeholders that a business has some control over and interacts with directly, e.g. suppliers, customers, competitors.
What are legal and government regulations?
Laws and rules made by parliaments and courts to ensure businesses operate fairly and safely.
What are employment laws and regulations?
Rules governing the employer-employee relationship, including pay, working conditions, safety, and fairness.
What is environmental legislation?
Laws aimed at reducing the negative impact of business activities on the environment.
What are industry regulations?
Rules specific to particular industries, often involving permits, qualifications, and safety standards.
What are council regulations?
Local government rules about zoning, signage, waste, and building changes that businesses must follow.
What are taxation requirements?
Legal obligations to pay tax, including obtaining an ABN, TFN, and registering for GST.
What are societal attitudes?
Shared values, beliefs, and opinions in society that influence consumer expectations and behaviour.
What is societal behaviour?
How individuals act in certain situations, shaped by values and influencing their interactions with businesses.
What are economic conditions?
The current financial state of the economy, including factors like employment, interest rates, and consumer confidence.
What is an interest rate?
The percentage charged on borrowed money. Affects loan repayments for businesses.
What is the employment level?
Percentage of the labour force employed. High employment can make it harder to find workers.
What is a tax rate?
The proportion of income or profit that must be paid to the government.
What is consumer confidence?
The level of optimism consumers have about the economy and their financial situation.
What are technological developments?
Innovations that improve business operations, production, or customer experience.
What are overseas competitors?
Businesses from other countries selling similar goods/services, often at lower costs.
What are overseas markets?
International markets where businesses can sell their goods/services to grow.
What is offshoring of labour?
Moving parts of operations overseas to lower costs, often for manufacturing or support services.
What is an exchange rate?
The value of one country’s currency compared to another. Affects import/export prices.
What are online sales?
Selling products or services through the internet, expanding market reach.
What is copyright?
Legal protection for original creative works, preventing unauthorised copying.
What is a trademark?
A legally registered name, logo, or symbol that identifies a business or product.
