AOS 3

• Business planning


  The process of establishing a business's goals and developing strategies to achieve them
• External environment


  The surrounding factors that can impact a business, which it has minimal control over
• Macro factors


  • Social
  • Legal
  • Technological
  • Global
  • Economic conditions
• Operating factors


  The primary external factors impacting a business that it has some control over
• Legal and government regulations


  The laws and rules made by parliaments and governments, as well as decisions made by the courts
• Employment laws and regulations


  Rules that govern the relationship between employers and employees
• Factors that protect employees


  • Setting minimum wages
  • Outlining working conditions
  • Protection against unfair dismissal
  • Protection against discrimination
  • Providing methods of workplace dispute resolution
• Environmental legislation


  The set of laws that aim to preserve the environment
• Factors relating to environmental legislation


  • Minimising energy use
  • Reducing water use
  • Reusing, recycling, and reducing waste
  • Other matters of national environmental significance
• Industry regulations


  Rules that are specific to businesses within a certain industry
• Factors for industry regulations


  • Certain qualifications
  • Registrations
  • Permits
  • Licenses
• Council regulations


  Local government rules made to govern businesses operating in a specific geographic area
• Factors involving council regulations

  • Location of business (local zoning laws)
  • Operating hours of a business
  • Types of signs the business displays
  • Renovations of business premises
  • Waste disposal of a business
• Taxation requirements


  Laws and rules related to tax that apply to all businesses
• Factors involving taxation requirements

  • Obtaining an Australian Business Number (to identify the business)
  • Applying for a Goods and Services Tax (GST)
  • Applying for a Tax File Number (TFN) at the Australian Taxation Office (ATO)
• Societal attitudes


  The collective values, beliefs, and opinions held by a group of people
• Societal behaviour


  The way people act and respond in various situations
• Values and beliefs


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


  • Greater awareness about improving physical and mental health and wellbeing
  • The wellbeing of employees
  • Environmental sustainability
  • Hygiene practices
• Impact on business and business responses to social values and beliefs


  If a business responds to societal values and beliefs it can attract customers who are interested in them and can grow a strong, positive reputation as they are accommodating for the growing values and beliefs of society. On the other hand, if a business does not respond to societal values and beliefs it can lose customers that are seeking these demands, competitors may act faster when responding, and the business may grow a negative reputation.
• Societal trends


  A general development in the way a group of people in society are behaving
• Examples of trends


  • Increased reliance on advanced technology
  • Greater focus and action on achieving gender equality
  • Increased purchasing of products related to health and wellbeing
• Impact on business and business responses to social trends

  If a business identifies trends and responds to them then it can attract more customers who are seeking to go with the trends and grow a positive reputation by adapting to trends, but if not a business can lose customers and grow a negative reputation since competitors can adapt faster.
• Economic conditions


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


  The price paid for money that has been borrowed, expressed as a percentage
• Impact on business planning

  High interest rates can make creating and owning a business difficult since obtaining a loan as debt capital from banks is very expensive. High interest rates can also discourage customers from buying from a business because they are saving due to high interest.
• Employment levels


  The percentage of the labour force who are working in paid employment
• Impact on business planning


  High employment rates means a business may struggle with finding staff to hire as the business must compete with other job offers to the few who aren't employed. Low employment rates mean there's more unemployed people so it can be easier for a business to find staff.
• Tax rates


  The percentage of income or spending that is required to be paid to the government by individuals or businesses
• Impact on business planning


  A high tax rate is a difficult problem because the higher the tax rate, the more money is taken from the business revenue. The higher the tax rate, the more expensive it is to run a business.
• Consumer confidence


  A measure of consumers' feelings and expectations about current and future economic conditions
• Impact on business planning

  Consumer confidence is how willing customers are to spend money on unnecessary items so the higher the consumer confidence, the more likely customers will be willing to buy from the business. Low consumer confidence can be deadly to a business because customers simply won't purchase from the business and the business will make no revenue.