business economy

Question 1

bottom line

Answer 1

The idea that in addition to ‘profit’ businesses are also taking into account the impact of their decision on the planet as well as the people

planet people profit

Question 2

Corporate social responsibility

Answer 2

businesses go above and beyond legal obligations to improve health and wellbeing of community as well as environment and shareholders

Question 3

CSR sustainabalilty

Answer 3

Working to meet the present w/o compromising the ability of the future generation to meet their own needs

Strategies:
recycling
decrease fossils

Question 4

CSR community involvement

Answer 4

Allows firms to give back to the community that led to their success in the first place

eg.) Maccas supports various rural and other community health programs

Question 5

CSR gender equality

Answer 5

Traditionally the board of directors and senior positions of responsibility in Australian business were filled by males

Strategies:
blind recruitment
childcare facilities
developing staffing and management policy

Question 6

CSR Innovations and research and development

Answer 6

Changing processes / creating more effective processes products and ideas

eg.) Ikea flat paced furniture

government can provide subsides and tax concessions to business who undertake R & D

Question 7

Technology and consumer behavior

Answer 7

Sharing economy/ collaborative consumption-
rental scheme that enables people to earn income from expensive, underused assts such as power tools, cars spare rooms

eg. Airbnb

Question 8

impact of technology on consumers- pros

Answer 8

provide consumers with more choices
easy access to products

Question 9

impact of technology on consumers- cons

Answer 9

due to easy access to renting assets it doesn’t encourage people to buy and actively own assets

Question 10

impact of technology on business-pros

Answer 10

decreases cost of production

better meet customers needs

improve efficiency with marketing

Question 11

impact of technology on business-cons
cost

Answer 11

Technology=expensive/ quickly our of date therefore need to spend regularly

Question 12

impact of technology on business-cons
training

Answer 12

if employees do not know how to use technology it is a waste
need some employees trained to repair technology to be effective

Question 13

impact of technology on business-cons
repairs

Answer 13

often required–> slows down production cost money

Question 14

impact of technology on business-cons
redundancies

Answer 14

tech can replace workers / quicken service meaning the organisation requires less workers. results in demise of some businesses
eg.) Netflix + stan have put cd shops out of business

Question 15

legal strategy’s to improve profit: price discrimination

Answer 15

businesses charge consumers different prices for the same product

eg.) apple giving discounts to students on certain products creates brand loyalty

Question 16

legal strategy’s to improve profit: multi-branding

Answer 16

individual companies marketing their products under separate and distinct brand names

business making it harder for new businesses to enter the market t/f increasing market power

Question 17

legal strategy’s to improve profit: know and develop good relations with customers

Answer 17

finding out what customers want and expect and develop good relationship with them

quality and courteous customer service including prompt delivery

Question 18

legal strategy’s to improve profit: product is technically superior

Answer 18

product being sold needs to be superior in design and more technically advanced then rival firms

continuous product improvement innovations and R&D must be apart of thinking

Question 19

illegal strategy’s to improve profit: predatory pricing

Answer 19

sets prices as sufficiently lower levels with the purpose of damaging a competitor or forcing a competitor to withdraw from the market

once competitor is eliminated the company is able to dominate the market and increase price for customers

Question 20

illegal strategy’s to improve profit: price fixing

Answer 20

where firms in an industry collaborate to set prices

Question 21

illegal strategy’s to improve profit: Cartel conduct

Answer 21

two or more businesses joining forces to maximize profits

develop joint strategy to manipulate the market at the expense of consumers

Question 22

illegal strategy’s to improve profit: collusive bidding

Answer 22

competing firms meet secretly beforehand to agree who’s tender should be more attractive, cheapest and likely to win the contract

Question 23

illegal strategy’s to improve profit: market zoning

Answer 23

where competing firms in a region divide up the market into zones, areas or regions within which they agree not to compete with each other