 | Economic cycles: the periods of growth (boom) and
recession (bust) that occur as a result of fluctuations in the general level
of economic activity. |
| Boom periods:
 | have higher levels of employment |
| inflation may increase |
| ages increase |
| levels of consumer spending increase |
|
| Bust periods:
| unemployment levels rise |
| inflation may remain stable or fall |
| wages are less likely to rise |
| the level of spending usually decreases |
|
| Consumer tastes are influenced by:
| age |
| fashion ' |
| food trends |
| popular sports |
| celebrities |
| culture |
| peer pressure |
| income levels |
|
| Multiculturalism provides opportunities for business
owners to sell products and services that meet the needs and wants of the
various cultures. |
| Product diversity refers tot he range of products that
are produced by a business. Businesses need to do this because of:
| competitors |
| consumers' tastes and fashion |
| technology |
|
| A sustainable Competitive Advantage refers to the
ability of a business to develop strategies that will ensure it has an 'edge'
over its competitors for a long period of time. |
| Factors relating to Sustainable Competitive Advantage
include:
| the number of competitors ease of entry into a market
for a new firm |
| the local and foreign competition |
| marketing strategies employed by competitors
|
| the substitutes available for your product
|
|
| the number of competitors: market concentration may be:
| monopoly: complete concentration by one firm in the
industry |
| oligopoly- a small number of larger firms have a
greater control over a market |
| monopolistic competition- where there is a large
number of buyers and sellers in a particular market |
| perfect competition- where there is a large number of
small firms that sell similar products. They are unable to differentiate
products from each other and so can only use price as a way of achieving
market share. |
|
| ease of entry- the ability of a person to establish a
business within a particular industry- determined by the type of market
concentration. |
| Local and foreign competitors:
| local- produce and/or sell a product or service in
the same market. They have to deal with the same influences as your
business- labour costs, transport costs, the economy, the cost of stock/raw
materials. |
| Foreign competitors- are located overseas and
therefore are affected by differing influences. |
|
| Deregulation- the reduction or removal of the amount of
restrictions that are in place in a particular industry. This is done to
improve competition. |
| Enterprise bargaining- encourages wages to be
determined between employer and employee within each individual workplace.
This is part of a more decentralised approach to determining rates of pay.
|
| Marketing strategies- a total system of interacting
activities designed to plan, price, promote and place products to present and
potential customers. It depends on:
| the size of the market |
| the size of the business |
| the number of competitors |
| the nature of the product |
|
| Substitutes- those products or services that a consumer
can purchase as a direct alternative. Product differentiation is when similar
products are made different or better than those of competitors. It can be
achieved through packaging, quality and brand. |
| Federal government laws relating to business:
| provisional tax and fringe benefits tax |
| income tax |
| employee superannuation |
| sales tax |
| customs regulations |
| unfair dismissal laws |
|
| State government laws relating to business:
| registration of factories under the Factories,
Shops and Industries Act |
| provision of employee entitlements such as workers
compensation, OHS requirements, award levels of pay and conditions and an
accurate record of employees |
| payment of payroll tax |
| not engaging in misleading or deceptive advertising
|
| abiding by any pollution controls |
| adequate and non-deceptive labeling of products
|
| regulations relating to sale of food, cigarettes and
alcohol |
|
| Local government laws relating to business:
| approval of new development applications and
alterations |
| fire regulations |
| parking regulations |
| regulations relating to signs and advertising
|
|
| Regulatory bodies include:
| Environment protection agency |
| Department of fair trading |
| Australian securities and investments commission
|
| The Australian competition and consumer commission
|
|
