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Published byEvelyn Howard Modified over 7 years ago
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Internal Operating Macro
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For any business to succeed, it must be able to respond quickly to changes or pressures that come from it internal, operating and macro environments.
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Stakeholder – An individual or group that has a direct or vested interest in the activities of an organisation. Best Practice – A method of comparing performance of one organisation against the leading firms and taking on board their practices.
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Internal Stakeholders: › Employees › Managers › Directors › Shareholders Operating Stakeholders › Customers › Competitor › Suppliers › Trade Unions › Lobby/Pressure Groups › Financial Institutions › Regulatory Bodies
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Macro Forces: › Economic › Government › Legal › Technological Developmental › Globalisation › Political › Social and Cultural › Environmental
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Complete table outlining the following internal stakeholders: › Shareholders/Owners › Directors › Managers › Employees
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Organisational structure – The way in which an organisations activities are divided, organised and coordinated. Corporate culture – The shared valued and beliefs of an organisation.
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Activity 2.2 › Page 31
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Customers › Pose potential uncertainty to the profitability and ongoing success to any business. › The philosophies, ‘the customer is always right’ and ‘the customer come first’ are important for organisations to adopt. › Customers are now more educated in their consumer choices.
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› Customers may look at the following before making a decision to purchase a product or service: Whether the product is Australian made. Whether the product has received the Heart Foundation tick of approval. Whether the organisation acts ethically and socially responsible.
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Competitors › A competitor is a business rival in the same market for products or services offered by an organisation. › It is crucial that all organisations keep up with their competitors or else they will fall behind, losing customers and market share. › One way organisations endeavour to gain a competitive edge is by offering inducements and incentive programs.
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Complete activity 2.3 › Pages 33 & 34 › Questions 1 – 5 Complete activity 2.4 › Pages 35 › Questions 1 & 2
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Suppliers › Supply the inputs (resources) required for the production process. › A good relationship needs to be developed with suppliers to ensure that resources are being delivered efficiently. Trade Unions › An organisation formed to represent and protect the rights of workers in a particular industry.
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Activity 2.5 › Page 37 › Questions 1 – 4
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Lobby / Pressure Groups › Can attempt to influence the actions of organisations. Environmental issues Safe work conditions › Examples: The Cancer Council has been instrumental in ensuring workplaces implement non-smoking and SunSmart policies. International Fair Trade Association Page 37
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› If the community does not like the way a business is operating, it can cause it to lose brand value. › Example: Nike sales dropped dramatically when it was accused of using child labour in its factories. Financial Institutions › To ensure they are not incurring excessive costs, businesses need to ensure they are keeping up with changing interest rates, loan arrangements and electronic banking.
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Regulatory Bodies › All three levels of government place pressure on businesses in the conduct of their operations. › Businesses need to ensure that they respond to bodies such as the Australian Taxation Office and the Australian Competition and Consumer Commission (ACCC). › Standards have also been established with which businesses must comply.
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› Examples: The Environmental Management Standard (ISO 140001) International Organisation for Standardisation (ISO) – International Organisation for Standardisation (ISO) certification
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Fair Trade – Contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalised producers and workers. International Organisation for Standardisation (ISO) certificate – Quality assurance standard established internationally (9000 series).
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Economies of Scale - The ability to make cost savings through volume or by having significant bargaining power.
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Economic Forces › Various stages of the economic cycle can largely affect some businesses. › The effects vary depending on the type of business. Activity 2.7 Pages 39 & 40 Questions 1 – 3
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Legal Forces › It is imperative that organisations comply with all legislation in the operation of their businesses. › Examples: Workplace relations Equal employment opportunity Anti-discrimination
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Technological Development Forces › Advances in technology may force an organisation to change. › Technological developments have assisted organisations lower costs, improve quality and deliver goods and services to customers more quickly.
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Globalisation Forces › Rapid improvements to communication and other forms of technology have broken down trade barriers between countries. › The concept of global markets means that organisations must now compete internationally. › This would entail making changes to the way business is conducted, making better use of the internet, e-commerce and economies of scale.
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Political Forces › Political forces can affect the general stability of the country in which an organisation operates. › When deciding whether to operate or expand a business overseas, the political stability of that country must be considered.
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Social and Cultural Forces › Organisations must be aware or and respond to the changing conditions which affect society. › Examples: Increase in female work participation rates Aging workforce Levels of unemployment Expectations to be more socially responsible
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Environmental Forces › Organisations are under increasing pressure to take care of our environment. Government Forces › Federal and state governments can have a large impact on the operations of organisations.
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› The Victorian government affects businesses through: Imposition of indirect taxes Requirements to gain ISO 9000 series certification Incentives and assistance to relocate › Outline the following: Monetary policy Fiscal policy Microeconomic reform Page 40
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