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.

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.

Complete table outlining the following internal stakeholders:› Shareholders/Owners› Directors› Managers› Employees

Organisational structure – The way in which an organisations activities are divided, organised and coordinated.

Corporate culture – The shared valued and beliefs of an organisation.

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.

› 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.

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.

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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.

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.

› Examples: The Environmental Management

Standard (ISO 140001) International Organisation for

Standardisation (ISO) – International Organisation for Standardisation (ISO) certification

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).

Economies of Scale - The ability to make cost savings through volume or by having significant bargaining power.

Economic Forces› Various stages of the economic cycle

can largely affect some businesses.› The effects vary depending on the

type of business.

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

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.

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.

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.

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

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.

› The Victorian government affects businesses through: Imposition of indirect taxes Requirements to gain ISO 9000 series

certification Incentives and assistance to relocate

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