exam focus Flashcards

Question

7P's- PHYSICAL EVIDENCE

Answer 1

Physical evidence is the environment in which the business and customers interact. It involves the non-human elements customers engage with when browsing and purchasing from a business. FACILITIES: The items a business uses to conduct everyday activities. e.g equipment INTERIOR DESIGN: The design of a business’s physical location and website. AMBIENCE: The atmosphere of the environment where a business and customer interact. EVIDENCE OF SERVICE: The physical elements that can be seen when a service is performed that allow customers to assess the quality of the service, prior to purchase. DIGITAL WORLD: A business’s reputation within the digital world which may be shaped by the revies and feedback from customers.

Answer 2

Process is the procedure set in place throughout the entire customer purchasing experience at a business. This includes all steps from the customer discovering the product, to receiving it. The Process element of the marketing mix directly impacts customer satisfaction, customer value and business reputation. It includes how the customer: finds out about the product chooses the product over alternatives purchases the product receives the product INFORMATION: Customers should be well-informed about the product they are interested in, and its features. PURCHASING OPTIONS: Customers should be provided with a variety of purchase options such as cash, EFTPOS, or ‘buy now pay later’ payment methods. EFFICIENT SERVICE: A business should have fast and responsive communication with customers. KNOWLEDGEABLE STAFF: Staff should be knowledgeable about products and able to help customers make informed decisions.

Answer 3

The Product Life Cycle is a series of stages a product will pass through from when it is introduced to the market, until it becomes obsolete or replaced. The product life cycle consists of four stages: Introduction, Growth, Maturity and Decline. Businesses must recognise each stage of the Product Life Cycle, identify where its products currently sit in the cycle, and adapt its marketing mix accordingly. A business can extend a product’s life cycle through extension strategies which aim to prevent the product entering decline.

Answer 4

INTRODUCTION The first stage where the product is introduced to the market. Sales and market share are low as customer demand must be built. Marketing strategies focus on increasing customer awareness. Many products fail due to lack of demand, or interest. Many businesses choose to adapt products already in the market to reduce the risk of wasting time/ money on a failed business venture. GROWTH The second stage, where customers have accepted the product, resulting in rapid sales growth. This may attract competitor’s attention as other businesses develop their own version of the product. Successful marketing is vital during the Growth stage to establish and retain customers. MATURITY The third stage where the business will reach its peak level of product sales before they begin to plateau due to market saturation (when a product no longer attracts new customers & has reached maximum growth in the market). The business will face high competition due to the popularity of the product and marketing will need to focus on retaining its position in the market. DECLINE The fourth stage where a business will experience a steady decrease in sales as its product becomes obsolete, or outdated. This is often due to other innovations that replace the existing product, competitors producing a superior product, or lack of customer interest.

Answer 5

INTRODUCTION Product: Basic version launched. Price: Penetration to gain share or premium to recover R&D. Place: Limited, selective distribution. Promotion: Educate early adopters. People: Staff trained to explain features. Physical Evidence: Clear proof/testing of product reliability. Process: After-sales service promoted to build trust. GROWTH Product: Quality, design, features improved. Price: May decrease due to mass production; may rise if penetration used first. Place: Wider distribution as demand grows. Promotion: Targeted to a broader audience. People: Staff more experienced at explaining features. Physical Evidence: Social proof increases as product becomes popular. Process: More after-sales services offered. MATURITY Product: Differentiation and improvements to stand out. Price: Lowered to compete and maintain share. Place: Maximum distribution across many outlets. Promotion: Focus on brand image + standing out from competitors. People: Staff emphasize unique product attributes. Physical Evidence: Strong proof of unique value. Process: Efficient, well-established sales & customer service systems. DECLINE Product: No new updates; sell remaining stock. Price: Reduced to clear inventory. Place: Limited, low-cost distribution channels. Promotion: Minimal or discontinued. People: Staff push promotional deals to clear stock. Physical Evidence: Still show product usefulness. Process: Basic sales processes remain.

Answer 6

Extension: Instead of going through the decline stage, a business can implement strategies to lengthen the product life cycle. There are a range of extension strategies a business can pursue to prevent its product from becoming obsolete. This allows a business to reinvigorate the product life cycle and re-establish its products amongst its competitors, leading to further increases in profit, market share, and success. Extension strategies to extend the product life cycle: Exporting to new countries: marketing the product to new locations allows the business to reach new customers and face less competition. Creating a new, innovative version of the product: can prevent the product from lagging behind competition. Continuous improvement of a product can also prevent the product from becoming obsolete. Changing promotion techniques: can allow a business to recover sales growth. New and innovative advertisements can entice new customers, whilst increasing customer recognition and perception of the product.

Answer 7

Technological developments are the invention and innovation of tools that solve problems and enhance processes.

Answer 8

Online platforms used to connect with others & share content. There are approx 4.48 billion active social media users so advertising through platforms such as Facebook, Instagram & TikTok allows businesses to reach a wider audience and increase brand awareness. Social media enables businesses to target customers based on demographics to increase sales & market share.

Answer 9

Personalised electronic messages to existing customers to promote a business’s products & increase brand awareness & loyalty. Different emails are sent depending on circumstances e.g. promotional emails to advertise new products, or exclusive offers. Informational emails can detail improvements/ changes to existing products. Re-engagement emails reconnect with customers/ subscribers who haven’t purchased for a while.

Answer 10

Used by businesses to ensure their website ranks higher in online search results. As online competition increases businesses can improve website viability & traffic, making businesses more prominent when customers search online through platforms such as Google, Bing and Yahoo.

Answer 11

Software that mimics human behaviour. It allows businesses to collect & analyse data which can be used to gain customer insights & predict customer behaviour. AI enables businesses to predict needs/ wants of customers enabling automated, personalised advertising messages to be sent at the most appropriate times to improve the success of marketing campaigns. AI includes chatbots for customer assistance, & product recommendations based on prior purchases.

Answer 12

The process of examining information collected by businesses to draw conclusions & make effective decisions. Businesses analyse the information to understand customer behaviour and implement marketing strategies in response. Data based on previous marketing campaigns can be analysed to draw conclusions about their success, to inform future campaigns. Analysing past purchases & search histories is used to send personalized, targeted advertisements to customers, to increase brand awareness & sales.

Answer 13

The practice of collecting, organising, using & storing data securely to make effective decisions. Businesses adopt hardware & software tools to create customer databases of specific information relevant to customer preferences & purchasing. This enables businesses to implement accurate, targeted marketing. Data management ensures data collected is secure & backed up to avoid data breaches, losses, thefts & comply with privacy law.

Answer 14

Public relations (PR) is communicating an intended message to the public to create and sustain a positive business reputation. A PR campaign is the coordination of PR activities to improve a business’s reputation, including events, community involvement and social media. PR involves a business sharing information to attract attention from the public, or media (publicity). It also involves a business maintaining a relationship with its publics (individuals or groups who interact with and can be impacted by a business’s activities). Publics can be internal, or external to a business. PR aims to promote a desirable business image, while developing and maintaining a positive reputation with a business’s publics. Business image is vital in the business gaining support from customers and generating sales. By aligning PR goals with business objectives, PR can support the achievement of these objectives and improve business performance.

Answer 15

IMPROVED BUSINESS REPUTATION effective PR can lead customers to associate a business with positive characteristics, such as reliability or environmental sustainability, which can improve its reputation. increases likelihood of customers purchasing goods and services, increasing sales and market shares INCREASE CUSTOMER DEMAND effective PR can inform individuals of a business's products and attract customer attention, increasing customer demand -increase in customer demand means that more goods and services are sold, increasing market share -increased sales and market share can also enable a business to make profit IMPROVED PUBLIC RECOGNITION effective PR can lead a business to gain a well-established place in the market and across the public. this means the business is more reputable and can stand out against competitors. -improve customer confidence, more likely to make a purchase, enabling increase profit -make a business more noticeable than competitors, allowing business to increase market share IMPROVE AN UNFAVOURABLE BUSINESS IMAGE effective PR can help a business slowly reduce a negative public perception -reducing a business's negative image can enable a business to repair its business reputation and slowly regain customers, increasing its sales and market share

Answer 16

Planned public relations is a business proactively communicating intended messages to various publics. In planned PR businesses have some control over how information is conveyed and received in relation to a business change, or new activity. Planned PR involves businesses selecting and implementing appropriate PR strategies that align with business objectives. They must then engage with and respond to feedback from their publics to develop strong long-term relationships and improve their business performance. MEDIA RELEASES Developing & distributing written statements to print and electronic news reporting organisations with the intention that they will publish this information through TV, radio, online website, or other internet-based platforms. Inform publics of new business activities, or changes. This may attract attention and new customers which may lead to improved performance & achievement of business objectives. PUBLICATIONS Publications can involve a business distributing information to news reporting organisations which can be included in newsletters, online, or print media. Businesses may also distribute information direct to the public through brochures which express a business’s commitment to social responsibility. Publications aim to inform publics of business changes, new products, or upcoming events. This encourages a positive perception of the business to enhance its reputation. EVENTS When a business engages with its publics & the general public, to present its products in person, or through live online demonstrations. Businesses may develop events to encourage news reporting organisations to cover the event. Examples of events include seminars, conferences & open day tours. Events are used by businesses to interact with the public and enhance customer perception of the business to ultimately develop strong relationships. SPONSORSHIPS Involve a business financially supporting a team, individual, or group in exchange for publicity benefits. For example, a business may sponsor a charity or sports team in exchange for its logo being displayed on its products. Businesses establish sponsorships with a team, individual, or group to build public awareness of their brand and products. This can be positively perceived by publics as the business is giving back & aiming to support the community, further developing its positive reputation. SOCIAL MEDIA Using online platforms, such as Instagram and Twitter, to communicate a message to both internal & external publics. Social media enables businesses to respond quickly to issues & promote their brand in a cost-effective manner. Businesses use social media to directly inform internal and external publics of new business changes or activities and develop a positive image.

Answer 17

Crisis public relations is a business reactively communicating to various publics in response to an issue that can negatively affect its reputation. Crisis PR requires a business to act immediately in response to emergency situations such as product failures, negative employee actions, poor publicity, and emergencies in the external business environment, such as the COVID-19 pandemic. Businesses that fail to swiftly respond to a crisis publicly may face backlash from internal publics, customers, action groups, media organisations, and suppliers. Some may even face legal action. Crisis management involves identifying potential risks a business may face and determining how it will deal with them. When a crisis occurs, a business should have a crisis communication plan which describes the processes a business will follow during an emergency and when handling negative publicity, to ensure it operates according to business goals, legal requirements and considers its relationship with its publics. Businesses should aim to avoid crises by proactively responding to situations in the business environment. However, when a negative situation arises, implementing effective crisis management strategies is important.

Answer 18

Business reputation is influenced by customer perceptions which can impact the achievement of business objectives e.g. profit, growth and market share. A customer’s perception of a business can influence their purchasing decisions and loyalty to the business. A customer’s experience with a business may be shared with others and can influence decisions of potential customers CONSEQUENCES A business may lose customers. Irreparable reputational damage may occur, making it difficult to regain customers. Negative word-of-mouth can be spread about the business as customers express their frustration, which can negatively impact purchasing of potential customers. Profits can decline. Employees may leave the business.

Answer 19

PROS Can reach a large audience May be viewed as more trustworthy given business information is spread through unpaid media e.g. third party product reviews which are viewed as objective Engaging in activities that benefit the community may improve business reputation. Employees are likely to be more satisfied if a business focuses on positive activities to benefit the community. Businesses may be able to spread information quickly to media reporters due to increased use of the internet and social media. Can engage a larger range of people at once and lead to increased sales. Improvements in a business’s reputation may attract customers and increase sales and market share. CONS Business information or news may not be picked up by the media, reducing public exposure. Businesses are unlikely to have any control over how individuals receive a message. Businesses may not implement the appropriate PR strategies to effectively communicate the intended message or showcase new products. Can worsen business image/ reputation if the response to a negative event is inappropriate. May not be able to measure how many people have viewed a media release, or other strategy. An incorrect PR strategy may lose the trust of employees and negatively impact business productivity. May be time-consuming to implement some PR strategies, such as media releases, as a business needs to spend time creating written documents for media organisations. Building positive PR may require a long-term commitment. May need to purchase extra resources, such as printing paper, to create brochures to implement PR strategies. May need to hire PR specialists to manage public image.

Answer 20

Green marketing is an advertising strategy that involves highlighting the environmental benefits of a product. This can: attract customers generate positive publicity establish a loyal customer base. Green marketing can also influence customers to be more aware of their environmental impact. This encourages a sustainable society, while increasing repeat purchases from the business. For example, cafés giving discounts to those using reusable coffee cups. Businesses who falsely advertise products or processes as environmentally friendly to persuade customers to purchase a good or service are greenwashing and could face legal and reputational consequences resulting from their unethical behaviour. Examples of activities that enable businesses to engage in green marketing include: sourcing inputs locally to reduce carbon emissions during transportation producing recyclable goods using recyclable or renewable materials during production removing use of harmful chemical ingredients in goods reducing water and energy usage across operations reducing or utilizing sustainable product packaging

Answer 21

PROS Allows businesses to gain access to new markets & a larger audience as eco-friendly consumers are likely to be interested in the business’s offerings. An increase in customers may allow a business to differentiate and gain competitive advantage. Customer loyalty may be generated as the business is committed to promoting environmental wellbeing Potentially increased employee satisfaction from working for a socially responsible business, which may result in greater employee commitment to achieve business objectives. Increased sales and profit as new and current customers are likely to pay more money for sustainable products. CONS It may be considered greenwashing if the product is incorrectly advertised as being sustainable, or eco-friendly. It may be time-consuming to develop a marketing mix to effectively portray a business’s environmental initiatives. Changes to a business’s marketing tactics can be costly when first implemented. It can be costly for a business to get certifications, such as green certification (a certificate that proves a business’s processes or products are environmentally friendly).

Answer 22

Staffing needs are the requirements a business has for employees. Most businesses require staff, but their requirements for these staff will differ. For example, some businesses may require staff to have formal qualifications, technical skills, or industry experience.

Answer 23

Businesses may choose to recruit new staff where there is a requirement for new knowledge (the theoretical or practical understanding of a specific subject) & skills (the ability to complete a specific task to a certain level of quality) EXPERIENCE: Some jobs require employees to have completed work in a related field for a number of years. EDUCATION: Some jobs require specialized education, such as a diploma or bachelor’s degree. QUALIFICATIONS: Some jobs require legally recognised licenses & certificates. It may also be necessary to have experience or specific education before receiving a qualification.

Answer 24

Employees contribute new ideas and strategies. New staff may have fresh ideas, and existing employees may drive process improvement. Recruiting a diverse workforce (gender, ethnicity, age) will mean employees have their own unique personal and professional experiences. This promotes creativity, innovation and different perspectives to contribute new ideas to the workplace.

Answer 25

Software is the programs used on computers and other electronic devices. Software is used by businesses to complete specific tasks or enhance business processes. Software enables businesses to work faster with fewer errors than manual completion. However, staff often need to be trained on how to use software, which can be difficult and time-consuming. COMMUNICATION SOFTWARE: Used to exchange information & messages over the internet. Includes online services such as email, instant message & video calling. effects- Businesses may need to hire less staff because employees can connect and share information instantly from any location & tasks can be quickly completed at short notice. Businesses may be more likely to offer flexible working such as working remotely. MOBILE AND COMPUTER APPLICATIONS: These applications are constantly developing. Widely used applications include Microsoft Word and Microsoft Excel. effects- Fewer staff may be required because tasks can be automated and completed significantly faster than human labour. ACCOUNTING SOFTWARE: Assists businesses with bookkeeping and recording and reporting of financial transactions. Examples include Xero and MYOB. effects- May need to hire less staff with specialised accounting knowledge because the software completes the tasks more efficiently, with fewer errors.

Answer 26

Artificial intelligence (AI) is software that is able to mimic the behaviour of humans. It is a powerful tool that allows machines to perform functions that would otherwise require human input. AI enables computerized machines to learn from past experience, problem solve, process and understand language and reason with logic. Business activities that were previously performed by employees may be completed by AI resulting in some staff members being required to complete other roles such as the coding and maintenance of the systems. CHATBOTS: Chatbots use artificial intelligence systems to engage in natural conversations with humans. They are often used to assist online customers 24/7. effects- Chatbots can act as virtual assistants and may reduce staffing requirements in roles, such as taking food orders, answering FAQ’s and guiding customers through online payment. FACIAL RECOGNITION: Facial recognition technology could be used in workplaces to confirm the identity of individuals. effects- Facial recognition technology reduces the need for security for staff members. For example, at the airport, there are fewer security members checking passports and this is instead done by AI technology. RECRUITMENT PROCESSES: Online tests and simulations have been created to test individuals throughout their recruitment process to provide a more standardised recruitment process. effects- More automated recruitment processes make it easier for Human Resources staff to select the most suitable employees. AI can scan resumes for specific qualifications and roles and save staff time in recruitment. Staff may therefore be able to perform different roles in the recruitment process

Answer 27

Robotics are programmable machines that are capable of performing specified tasks. These specialized devices can be organised within a business’s operations system to efficiently complete specific tasks with high precision and accuracy. Robotics can reduce risk of workplace injury and ensure tasks are completed with greater precision, efficiency, and stamina than with human labour. However, employees will need to be trained to oversee and troubleshoot issues with the technology. DRONES: Drones are a type of flying robot that can be remote-controlled or automated. Drones can be used to inspect large areas and pick up or drop off items. effects- Businesses may require less staff to complete business activities, such as picking and packing products. However, businesses may require staff with specialised knowledge to operate drones. SELF-SERVICE CHECKOUT: Self-service checkouts allow customers to scan and purchase goods with minimal staff assistance. effects- Businesses may require less staff to process customer purchases if they use self-service checkouts. However, employees with specialised knowledge to fix, oversee, or assist customers with this machinery are likely to be needed. AUTOMATED PRODUCTION LINES: Automated production lines often involve the use of robotics, where autonomous robots are programmed to perform various tasks along a production line. effects- Businesses may no longer need staff to manually manufacture products. However, businesses may need staff with specialised knowledge to operate automated production lines.

Answer 28

Recruitment is the process of attracting and selecting qualified candidates for a vacant job. Recruitment can be internal, or external. Internal recruitment is the process of filling job vacancies with existing staff at the business. For example, at Luther College, our Director of People and Culture resigned, and Mr Martin took over the role under a new title, ‘Director of People and Development’. External recruitment is the process of filling job vacancies with individuals outside of a business. For example, if our Director of People and Culture had left and Luther College had advertised externally through a website such as Independent Schools Victoria for a new Director.

Answer 29

Internal recruitment provides opportunity for a current employee to take on a new role, and different responsibilities, e.g. they may be promoted to a higher position within the business, but in a similar area of work. Internal recruitment may also involve a business transferring employees to new roles in different departments. The original roles of internally-recruited employees typically must be filled after the transition. A business may fill these through internal, or external recruitment.

Answer 30

An intranet is a private computer network used to share information with a business. A HR Manager may use a business’s intranet to advertise job vacancies. The ads often include a job description and specification that indicates the skills and knowledge required of an employee to fulfil the job’s tasks. Qualified employees often submit their application for the vacancy through the intranet.

Answer 31

Word of mouth is the verbal communication of information between individuals. This recruitment method can involve employees and managers verbally sharing information about vacant job positions within the business. A HR Manager may fill vacant roles with existing employees who were directly recommended to them by another member of the business. Word of mouth is also often used by managers who want to promote junior employees. It allows Managers to directly communicate with the most appropriate employee for the role, instead of receiving multiple applications.

Answer 32

ADVANTAGES BUSINESS: The business is familiar with the employee, their skills, and whether they align with business culture. EMPLOYEE: If employees are promoted, then job satisfaction/ motivation improves because of career advancement. The employee is already familiar with business culture. Employees can learn different skills & gain experience in different roles. TIME: The business can save time by reviewing only a limited number of applicants. Therefore, the vacancy can be filled faster. Employees may require less training time as they are already familiar with some business processes. MONEY: There are minimal costs associated with internal recruitment as the business doesn’t have to pay for external job ads to the public.

Answer 33

BUSINESS: There are limited candidates to select from. Existing employees may not have the required skills/ knowledge for the role. The business may not gain new ideas, or perspectives from existing employees. EMPLOYEE: Employees who fail to receive internal promotions may become demotivated and resentful of their fellow employees, and managers. TIME: When an employee is selected, a business may have to spend time to fill the role they vacated in the business.

Answer 34

External recruitment is the most common method businesses use to fill vacant job positions. Job positions often become vacant when a business grows and creates new roles that need to be filled, or when existing employees leave the business. To select the best candidate for a vacant job position, businesses should advertise the role to a wide audience. HR managers can use a variety of methods to reach a large pool of external candidates.

Answer 35

Websites are a collection of web pages and content, published on at least one web server, that is identifiable by a common domain name. Businesses can use their own website or an online employment marketplace (e.g. SEEK) to advertise vacant job positions. Candidates can access these websites from anywhere and apply online which enables businesses access to a large number of candidates and streamlines the application process. Fees may be attached.

Answer 36

Online recruitment agencies are businesses that work on behalf of employers to find suitable job candidates. Businesses can advertise vacant jobs to the public through the agency. The public can apply for jobs they find, or the agency may contact individuals who fit the role. Online recruitment agencies assess and shortlist candidates before informing the business of the most suitable applicants. The business then interviews candidates to make a hiring decision based on their criteria.

Answer 37

Social media are online platforms used to connect with others and share content. Social media enables businesses to create profiles and advertise vacant positions. Businesses can give candidates information about the business, as well as job descriptions and specifications. Job ads on social media may instruct applicants to apply through the business website or contact the business by phone or email.

Answer 38

BUSINESS: A business can advertise to a large pool of candidates. External candidates are more likely to have the required skills and knowledge for the vacant role. External candidates can offer new ideas and improvements to the business. TIME: Businesses do not have to create advertisements if they use an online recruitment agency, saving time. As online recruitment agencies filter through applications, businesses save time by only reviewing applications of suitable candidates MONEY: Social media applications such as Instagram or Facebook, are often free to download, enabling a business to promote job vacancies without incurring expenses.

Answer 39

BUSINESS: The candidate may not align with the business’s culture. The candidate may not have the required skills and knowledge to perform the role. EMPLOYEE: Existing employees may be resentful if the vacant role goes to a new employee. Career advancement of existing employees may be limited by new employees entering the workplace. TIME: Businesses may need to assess a large number of applications to determine a suitable candidate which will be time-consuming. Businesses may need to spend additional time training the new employee. MONEY: Businesses may have to pay to advertise through social media or websites, increasing expenses and lowering profit. Businesses have to pay online recruitment agencies to use their services, increasing expenses and lowering profit.

Answer 40

An interview is a meeting that occurs between an employer and a job candidate to determine whether they have the necessary knowledge, skills, and ideas for the position. This is the most common selection method used by businesses and provides employers and job candidates an opportunity to ask questions, learn more about each other, and determine whether a working relationship can be established. Interviews may be conducted face-to-face or through an online video conferencing platform: in a group setting, with other job candidates over the telephone one-on-one with an interview panel.

Answer 41

Psychological testing is a scientific method of examining a job applicant’s behavioural style and reasoning skills. It includes a number of different tests, with the most common being aptitude tests (measures competency levels) and personality tests (characteristics, traits and behavioural style). Employers use the information collected to determine characteristics that are difficult to determine from a face-to-face interview, such as problem solving. Psychological tests are usually completed online using specialised systems, under timed conditions.

Answer 42

Work testing is the process of administering practical or written assessments to determine the suitability of a job candidate for a position. These tests are generally job-specific, and candidates may be required to complete tasks they would perform during a typical day on the job. Conducting work testing can allow a business to instantly assess the practical knowledge and skills of job candidates and determine how well each applicant would perform in a work setting. An employer can also use work testing to evaluate a candidate’s work ethic, willingness to learn, and how well they fit in with the business’s corporate culture. Examples of work testing could include making a coffee or pitching a product to a sales panel.

Answer 43

Online selection is the process of choosing an employee based on online forms completed by the job applicant. Online forms are increasingly popular because they are quick and easy to administer and provide information to a business about the applicant, such as their background, education and work experience. Online selection can enable a business to reach a wider range of potential candidates, as it is administered through the internet, increasing the likelihood of finding a suitable individual for the job.

Answer 44

Employers expect employees to show loyalty which is when an employee is committed to supporting the business to achieve its objectives. Employees are more likely to be loyal to an employer that acts in employee interests and behaves ethically. This inspires motivation in staff and improves productivity and overall performance of business objectives. Employers expect employees to uphold business reputation. They may even include terms in an employee’s employment contract prohibiting them from making negative comments that harm the business reputation.

Answer 45

Terms of notice are written communications that an employee must provide to a business within a certain amount of time before leaving their position. Employment contracts typically outline employees’ terms of notice, which can differ depending on the relevant award or agreement. Employees are expected to provide adequate notice if they intend to leave. This allows the business to make necessary adjustments and hire a replacement employee if required. Once notice is provided an employee will continue completing their work tasks until the end of the notice period.

Answer 46

Conditions of employment are what an employer has agreed to offer the employee in return for the work they complete. These conditions are detailed in an employment contract and can vary depending on the award/ agreement. Employers must comply with the minimum conditions of the National Employment Standards. However, it is becoming increasingly common for employers to provide more than minimum conditions of employment to satisfy the needs of their employees.

Answer 47

Remuneration is the money an employee receives from an employer in exchange for the work they complete. The amount of remuneration is usually determined by an award, or an enterprise agreement. Types of remuneration include: Salary (an annual fixed payment made by an employer to an employee typically paid in equal instalments on a fortnightly, or monthly basis). Remuneration package (the total sum of an employee’s salary and other financial benefits). Bonus (a one-off payment made for meeting a set objective that is paid in addition to an employee’s salary). Commission (payment provided to an employee for selling a good or service, paid as a percentage of the price of the good/ service being sold). Offering attractive remuneration can make employees feel valued and motivated, which can increase job satisfaction and improve achievement of business objectives.

Answer 48

Job security is the likelihood of an employee keeping their job. In the current economic climate job security is becoming an issue. A lack of job security may mean employees are worrying about the future, which can negatively impact their productivity and the achievement of business objectives. Employees that feel secure in their jobs feel more valued and are more motivated to achieve business objectives. To try to create job security for staff an employer may offer training to improve performance, rather than resort to demotion or termination of employees.

Answer 49

Work life balance is the division of a person’s time between the demands of their job and their personal life. Modern employees place more value on having a healthy work-life balance. Many employers have begun offering flexible working arrangements to help employees achieve this. Prioritising work-life balance for staff can help a business: retain valued employees who require flexible hours of work, such as parents and carers improve productivity and motivation reduce employee stress improve a business’s ability to achieve objectives

Answer 50

WorkSafe Victoria is the main body responsible for monitoring and enforcing workplace compliance with the OH&S Act 2004 and the OH&S Regulations 2017. WorkSafe Victoria has legal authority to inspect workplaces to ensure they are complying with OH&S laws. Significant penalties apply to businesses who fail to meet obligations under OH&S laws and regulations.

Answer 51

Equal employment opportunity (EEO) is the fair treatment and participation of all individuals in the workplace. Under the Equal Opportunity Act 2010 (Vic) it is illegal for employers to discriminate on the basis of personal characteristics such as age, physical features, race, and gender. Employers have a duty to take reasonable steps to eliminate discrimination, sexual harassment, and bullying in the workplace. EEO laws must be complied with during all stages of staffing (including recruitment and selection). Failure to comply will result in significant penalties.

Answer 52

The Victorian Equal Opportunity and Human Rights Commission is an independent body that assists people with complaints regarding discrimination and harassment in the workplace, by administering the Equal Opportunity Act. The Commission helps employers understand their legal obligations under the Act by offering education, training and support services. The Commission offers a free dispute resolution service to help people resolve complaints of discrimination. Creating a diverse workforce is increasingly important not only to comply with legal obligations but to enhance business reputation.

Answer 53

Employee induction is the process of introducing a new employee to the business. Employees who have a positive induction experience are more likely to remain at the business. The purpose of an induction is to support new employees and provide them with essential business information relevant to their new roles. Induction means employees are immediately productive and can begin contributing to the achievement of business objectives.

Answer 54

E-learning: A digital training method where information is delivered through computers or devices. New employees complete online modules, interactive videos, and quizzes about company policies, such as Occupational Health and Safety. It’s flexible, cost-effective, and allows learning to occur at any time or location, making it ideal for remote or large-scale inductions. On-the-job training: A practical method where employees learn by performing real tasks in the workplace. New staff are coached or supervised by experienced employees or managers and may also shadow others to observe how work is done. It helps employees quickly gain role-specific skills and understand workplace processes, promoting confidence and productivity. Mentoring: A development method where a senior or experienced employee supports and advises a new employee over time. Mentors provide ongoing feedback, share knowledge, and help the new staff member adjust to the business culture. This method reduces anxiety, improves job satisfaction, and builds long-term professional skills. Induction pack: A physical or electronic folder containing essential information for new employees. It includes policies, procedures, codes of conduct, and forms such as tax, banking, and superannuation documents. Induction packs help employees understand expectations, complete necessary paperwork, and settle into the workplace efficiently. Meetings with key staff: Formal or informal meetings arranged between new employees and key team members, such as managers, supervisors, or HR representatives. These meetings help build relationships, promote communication, and provide an opportunity for new employees to ask questions, clarify responsibilities, and feel welcomed into the organisation.

Answer 55

LEGAL/GOVERNMENT RESTRICTIONS ON TRADE -a business may purchase from overseas suppliers whose resources can be cheaply imported with minimal fees - a business may prioritize using suppliers located in countries that have free trade agreement with its home country CSR -a business may prioitise souorcing inputs from ethical, socially responsible suppliers who promote environmental sustainability TYPES OF INPUTS - a business may purchase resources from suppliers that sell inputs that are not readily available in its home country LAMGUAGE BARRIERS - a business may choose to establish a relationship with suppliers that speak the same or similar language to improve communication - may introduce multiple communciation channels to reduce language barriers

Answer 56

STRENGTHS - A business has a wider range of suppliers to choose from. -A business’s reputation may improve if overseas suppliers provide ethically-sourced inputs. -A business may gain access to resources that are not readily available domestically. -A business may have access to cheaper overseas resources. LIMITS -A business may face negative public perception if its overseas supplier engages in unethical behaviour. -Cheaper inputs may be of a lower quality which can decrease customer satisfaction. -Employees may be required to travel overseas to visit suppliers and check on their operations, disrupting their workflow. -It may be challenging to maintain communication with overseas suppliers due to timezone differences. -Delivery may be time-consuming depending on where the supplies are being sent from. -Government restrictions may require a business to pay higher prices and incur extra costs to obtain supplies. -Supplies can be damaged during delivery, increasing expenses associated with waste.

Answer 57

LEGAL/GOVERNMENT RESTRICTIONS ON TRADE -a business may choose to sell its products to overseas retailers in countries that have minimal fees and extra costs associated with the goods and services it exports - a business may favour retailers that operate in countries that have established a free trade agreement with respective country MEETING RETAILER EXPECTATIONS -a business may change its processes to suit the requirements of overseas retailers, such as labelling products in a specific way CSR - a business may choose to work with retailers that operate in a socially responsible manner and encourage CSR goals

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