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14 Cards in this Set
- Front
- Back
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How can a business be classified?
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- Size
- Local, National Global - Industry - Legal Structure (e.g. Public, govt enterprise) |
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What is Fiscal Policy?
(External- Economic Influence) |
Govt actions on revenue and expenditure (e.g. tax).
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What is Monetary Policy?
(External- Economic Influence) |
Action by the Reserve Bank (Fed Govt) to influence interest rates.
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What is Microeconomic Reform?
(External- Economic Influence) |
Govt developed policies to promote greater comp in an industry.
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What did the deregulation of the Aus Financial Sector (1983) do?
(External- Financial Influence) |
- Reduce govt control (credit, interest, exchange rate).
- Foreign Financial Institutions entered market. |
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Two main sources of business finance?
(External- Financial Influence) |
Debt Finance (Borrowed Funds)
Equity Finance (Internal Funding) |
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What are geographical influences on a business?
(External- Geographical Influence) |
- Changes in demography (age, gender, ethnicity, income).
- Aging pop - Asia-Pacific - Coastal area dominant |
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What are significant social influences on a business?
(External- Social Influence) |
- Environmental Awareness (e.g. recycling, sustainable materials, reducing carbon emission).
- Work Life (reduces high turn over rate, working from home, paid parental leave etc). |
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What are legal influences on a business?
(External- Legal Influence) |
- Regulations (e.g. WH&S, comp).
- Increase (charted accountants, law society) / Removal of Regulations. |
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What are political influences on a business?
(External- Political Influence) |
- Who is elected (e.g. trade negotiations entered).
- Company Tax (36% to 30%)- stimulate private sector. |
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What are institutional influences on businesses?
(External- Institutional Influence) |
- Govt
- Regulatory bodies e.g. ACCC , Office of Fair Trading |
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What impact does technology have on businesses?
(External- Technological Influence) |
- Increased efficiency
- Creating new products & innovation. - E.g. Email Comm, Internet, Mobiles, E-com |
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How does a businesses competitive situation effect them?
(External- Competitive Situation Influence) |
- Number of competitors (perfect comp, monopolistic comp, oligopoly, monopoly).
- Ease of Entry - Local & Foreign Competitors. - Marketing Strategy (size of market, number of competitors, product nature). |
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Name 3 Market Influences businesses must consider?
(External- Market Influence) |
- Finance flows more easily between countries, lesser trade barriers.
- Can now access overseas share markets. - Changes in consumer markets (growth in amount & value world trade). |
