1. INFLUENCE OF THE OPERATING ENVIRONMENT ON BUSINESS PLANNING
CHAPTER 5
INFLUENCE OF THE OPERATING ENVIRONMENT ON BUSINESS PLANNING

2. Customer needs and expectations
The operating environment is the environment immediately external to a business with which it has close interaction. Business planning is directly impacted by factors from the operating environment.
It includes customers, competitors, suppliers and other special interest groups.

4. Customer needs and expectations
Customers are an important part of the operating environment.
Businesses need to manage customer needs and expectations

5. Customer needs and expectations
Customers
someone who buys goods or services
consumer
a person or group who uses a product. Note: a customer may be a consumer, but not all consumers are customers; that is, the person consuming a product is not necessarily the one who purchased it.

6. Customer needs and expectations
Businesses must ensure in their planning that they are taking into account important needs and expectations of customers, such as:
providing high-quality goods and services at an attractive price
delivering high levels of customer service (pre- and post-sale)
being ethical and socially responsible in the way they operate
being able to establish long-term positive relationships with the customers
ensuring that the products are Australian made or grown
providing an opportunity for customers to support an Australian-owned business.

7. Competitors’ behaviour
Businesses need to continually monitor the actions of their competitors.
It is important to notice when a competitor expands, contracts, changes their pricing or introduces new products.

8. Competitors’ behaviour
A business rival in the same market for products or services offered by the business
businesses to gain a competitive advantage can offer things such as:
inducements,
Incentives,
memberships
loyalty schemes

9. Suppliers and the supply chain
A supplier provides inputs into a business’s operations. It is important that businesses have stable relationships with suppliers that are good value.
Businesses should establish and monitor their supply chain, which takes raw materials or inputs and ultimately delivers a product/service to the customer.

10. Suppliers and the supply chain
Businesses can plan to optimise their supply chain using a variety of different strategies, including:
liaising directly with suppliers to eliminate bottlenecks
entering into long-term contracts with suppliers to tie them into speci c prices and quantities
sourcing resources and products locally
outsourcing their transportation and distribution to a third-party logistics provider
implementing just-in-time techniques to optimise manufacturing flow
creating a mix of locations of factories and warehouses to best serve customer markets
using technology, such as global positioning systems (GPS), to analyse transportation routes
optimising their logistics to maximise distribution efficiency.

11. Special interest groups
Special interest and lobby groups can influence the actions of the business.
Special interests groups can, for example, put pressure on a business to improve environmental outcomes or create safer working conditions for employees.

12. Special interest groups
Some major special interest groups include:
RESEARCH, FIND SPECIFIC GROUPS and explain what they do how they impact a business.
Environmental lobby groups (Lachlan x2, Max, Warner, Euan)
Business/industry associations (Olivia, Georgie, Chelsea)
Unions (Daniel, Paris, Chloe)