U1 AOS3

• Macro environmental factors


  • Corporate social responsibility considerations
  • Global issues
  • Economic conditions
  • Legal and government regulations
  • Technological considerations
• Operating environmental factors


  • Suppliers
  • Customers
  • Competitors
  • Special interest groups
• Legal


  Business owners are expected to abide by the laws made by parliaments and local councils and in rulings set down by the courts
• Federal legal requirements


  • Payment of taxes for employees and for business
  • Provision of employee's superannuation
  • Observance of customs regulations
• State legal requirements


  • Provision of employees
  • Payment of payroll taxes
  • Abiding by pollution controls
• Local legal requirements


  • Approving new development and alteration
  • Fire regulations
  • Parking regulations
• Health regulations


  • Temperature for food storage
  • Kitchen layout
  • Correct food handling
• Employee regulations


  • Work health and safety
  • Anti-discrimination
• Taxation laws


  • Businesses are required to prepare a set of accounts either monthly or quarterly
  • Pay state government payroll tax
• Trade practices and consumer protection

  • Promotes fair trade and competition
  • Explicit guidelines for trade practices, fair trading, advertising and credit
• Environmental protection legislation


  Preventing pollution and environmental damage to the air, water and land
• Social attitudes and behaviours

  Influence a business by shaping consumer behaviour, guiding corporate responsibility, and impacting brand reputation
• Legal regulations


  Influence a business by dictating compliance requirements, operational standards, and risk management practices, which can affect costs and strategic decisions
• Values and beliefs


  Shared morals and principles of a group of people or society (what is good or bad and necessary or unnecessary)
• Values and beliefs


  • Affect the ways in which businesses plan and the way they are managed
  • Forces businesses to implement procedures to preserve and protect the natural environment
• What social attitudes and behaviours influence


  • What people do
  • What people wear
  • What and how they eat
  • Where and how they live
• Workplace trends


  The general direction in which people attitudes or behaviour in society is developing or changing
• Workplace trends


  • Businesses should consider demographics when planning
  • Demand for businesses to provide family-friendly and flexible workplaces
• Economic conditions


  The set of influences that relate too economic activity, including interest rates, wages, unemployment, exchange rates and inflation
• Economic conditions


  • Employment levels
  • Tax rates
  • Interest rates
• Employment levels


  • Decrease with the phases of the business cycle
  • Rise in economic expansion, difficult to hire due to labor shortages
  • Decrease in economic contraction, increase in unemployment
• Tax rates


  • Progressive tax - rate rises as taxable amount increases
  • Proportional tax - rate stays the same as amount rises
  • Regressive tax - low-income earners pay the same rate as high-income earners
• Interest rates


  The price charged or paid for the use of money, cost of borrowing
• Technological considerations


  Methods, systems, and devices that are the result of scientific knowledge being used for practical purposes
• Technological considerations


  • New communication technologies allow instant information transmission to many customers
  • Decrease in employment rates as employees replaced by technology
  • Reduce costs, improve quality, and delivery speed
  • Need to spend more on R&D to remain competitive
  • Open new markets and more opportunities
• Global considerations


  The effect of hi-tech communications, lower transport costs and unrestricted trade and financial flows turning the whole world into a single market producing a more integrated global economic system
• Global considerations


  • Overseas competitors and market
  • Offshoring of labor
  • Exchange rates
  • Patenting
  • Copyrights
  • Trademarks
  • Online sales
• Corporate social responsibility


  Managing a business in such a way that the broader social welfare of the community including its employees, customers, suppliers and the environment, is taken into consideration when making business decisions
• Triple bottom line


  The economic, environmental and social performance of a business
• Triple bottom line


  • Recognises that environmental and social performance are also important
  • Can run business more effectively and efficiently
  • 'Profit' bottom line - measure of traditional financial performance
  • 'People' bottom line - measure of social responsibility
  • 'Planet' bottom line - measure of environmental responsibility
• Environmental considerations


  Ensuring the business's production process will not have a serious or negative impact on the environment
• Sustainability within a business

  Managing it in a way that maximises the bottom line but optimizes environmental, economic and social benefits for society
• Socially responsible business


  Takes its obligations to the community seriously to try and achieve two goals: expanding the business and providing for the greater good of society
• Socially responsible business


  • Be mindful of the welfare of its employees through providing benefits such as childcare or flexible working arrangements
• Customers


  The people who purchase goods and services from a business, expecting high quality at competitive prices
• Customers


  • Business's must respond to the needs of customers, making sure the right product is delivered at the right time
  • High levels of customer service = improved customer satisfaction
  • Recognise and assess changes in consumer tastes to constantly satisfy needs and wants