Refers to managing a business in such a way that the broader social welfare of the community, including its employees, customers, suppliers and its environment, is taken into consideration when making business decisions
includes those factors over which the business has some degree of control over
includes those factors over which the business has little control
refers to specific outside stakeholders with whom the business interacts in conducting its business
is made up of the broad conditions and trends in the economy and society within which a business operates
people working for a business who expect to be fairly paid, trained properly and treated ethically.
the people who purchase goods and services from the business, expecting high quality at competitive prices
other businesses or individuals who produce and sell rival or competing goods and services
the businesses or individuals that supply materials or other resources that the business needs to conduct its operations
Goods and Services Tax
a broad based tax of 10 per cent on the supply of most goods and services consumed in Australia
Values and Beliefs
shared principles and morals of a group of people or society - often a learned way of life.
The surrounding conditions in which a business operates - can be internal or external.
How the market may change in the future and developments in technology
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
Overseas competitors and markets, offshoring labour, exchange rates, protection of intellectual property at a global level and online sales are all examples of this.
Developments in Technology
The growing use of machinery, techniques and systems in order to improve operations. For example, Australia post is trialling drones to deliver small parcels.
Political and Legal
Society expects business owners to abide by the law made by the government. Some of these include: taxation, OH&S, anti discrimination, environmental protection.
Societal attitudes and behaviours
These are the ideas, values and beliefs held by people in a particular society. Businesses must be aware, plan and respond to change in conditions that impacts society.
The current state of the economy can have a major impact on the business environment. Eg. Level of unemployment, interest rates, exchange rates.
Special interest groups
Groups of people who attempt to directly influence or persuade businesses to adopt particular process or procedure. These can also be called lobby or pressure groups and include organisations such as Greenpeace and Sea Shepherd.
Macro Factors that Affect Business
Global Issues, Corporate Social Responsibility Issues, Political forces, Economic forces, Legal forces, Technological forces, Social forces (GC PELTS).
Elements of the Internal Environment
Employees, Managers, Location, Legal Business Structure
Operating Environment Stakeholders
Customers, Competitiors, Suppliers, Special Interest Groups