DISHA MITTAL NBST3 44/03/23 Part A. Media File Article Proforma Article One Booktopia ordered to pay $6 million fine for falsely stating customers' rights @ ores sor | sonora 202 Source: 9 News article Date: March 10th, 2023, Title of Article: Booktopia Ordered To Pay $6 Million Fine For Falsey Stating Customers’ Rights. Syllabus Dot and Dash Point(s): influences in the business environment = __ external, internal, shareholders Justification of link to syllabus: Many businesses have been fined due to the ignorance of internal & external influences in their environment. In this case, Booktopia was ordered to pay $6 million dollars in penalty for false statements. A major internal influence that led to this was the deceitful information resources that were passed to the customers by the managers. Poor resource quality impacts Booktopia negatively leading to inefficiencies, bad customer support, and compliance issues which can sicw down the whole business. There's also a legal and institutional external influence where the managers of Booktopia did net oblige to the legal regulations of customers’ rights. As a result, The Federal Court ordered Booktopia to pay $6 million dollars for the ignorance of the Competition and Consumer Act law. This negatively affects the health of their business financially, and socially. Many consumers will be reluctant when purchasing from this company, making the business performance low. In addition, this can result in financial debt with many costs to pay off. 4 Article Two‘Misleading’: Telstra, Optus, TPG ordered to pay $33.5m Three major Australian telcos have been ordered to pay $33.5m for making “false or misleading” claims to consumers, Jack Evans. [Foies w Guaciensreport © amined Nowntern2-2390m {james Source: News website article Date: November 11, 2022 Title of Article: ‘Misleading’: Telstra, Optus, TPG ordered to pay $33.5m Syllabus Dot and Dash Point(s): influences in the business environment = external, internal, shareholders Justification of link to syllabus: Many competitive issues between business companies have affected the external and internal influences in their environment In this case, three Australian telco companies were ordered to pay $33.5m for making false and misleading representations to consumers concerning internet plans in hopes of gaining more attention. The external influence was demonstrated legally as Telstra, Optus, and TPG, were found to have breached Australian ‘Consumer Law by making false and misleading statements to consumers. This has a negative impact on their business performance as internal sales and customer numbers decrease due to many people finding out about these claims, therefore also tempting the customers to switch to another network. There's also an external competitive situation influence shown in which there's a strategy to release a cheaper plan for internet. The managers were each trying to create greater success and capture a larger portion of the market across the spread of the three major telco companies. As a result, the marketing strategy of each company was unsuccessful. 4Article Three Supermarkets seek to safeguard supply as Scott's Refrigerated Logistics goes under with loss of 1,500 jobs ‘ABC Goulburn Murray / By Mikaela Ortolan and Anna Chisholm Posted Mon 6 Mar 2029 at 11:20am, updated Mon 6 Mar 2029 at 1:53pm Source: News website article Date: 6 Mar 2023, Title of Article: Supermarkets seek to safeguard supply as Scott's Refrigerated Logistics goes under with loss of 1,500 jobs Syllabus Dot and Dash Point(s): influences in the business environment - external, internal, shareholders Justification of link to syllabus: Many Australian supermarkets rely on freight companies to deliver their goods but the collapse of one can deeply affect the internal and external influences inside of their environment. In this case, Australian-owned Scott's Refrigerated Logistics company collapsed after failing to find a buyer. This is a major internal influence as it cannot deliver refrigerated products to supermarket giants Aldi and Coles. The influence of the reduced number of products is negative for these businesses. A low stock of products comes with reduced customers which eventually leads to reduced sales. This can downgrade a business's performance majorry. In regard to Scott's Refrigerated Logistics being folded, around 1500 will lose their jobs. This is an economic impact that externally influences the business through its recession stage as a result of fluctuations in the general level of economic activity. This negatively impacts the business as it depicts a poor performance of its economy and influences the functioning of its business in the long run. In the end, it is more than likely after this the business will be shut down. 4Article Four Qantas cuts flights on domestic routes through to March 2023 Posted Fri 24 Jun 2022 at 14pm, updated Fri 24 Jun 2022 at 20pm Source: News website article Date: 24 June 2022 Title of Article: Qantas cuts flights on domestic routes through to March 2023, Syllabus Dot and Dash Point(s): influences in the business environment : external, internal, shareholders Justifica \n of link to syllabus: ‘There are many external and internal influences that affect the way in which flight companies control their airlines. In this case, Qantas needed to cut fights due to the high cost of fuel, insufficient profit, and staffing shortages. The major extemal economic influence that Qantas faced was in the recession period where Qantas had to cut many flights, therefore, leading to insufficient proft to sustain themselves and their employees. This creates a negative effect as unempioyment rates rise and the quality operation of the Qantas business decline making consumers reluctant to purchase fights due to the increase of fight distrupt ments. There is also an external institutional influence upon Qantas as the managers of the business have to follow The Fair Work Act (2008) which is intended to improve the rights of workers. This act which is issued by the Federal Government impacts Quantas's business as it increases their operating costs, further resulting in an insufficient profit. As a result, the way they control and internally manage their airlines influences customer demand for their services, 14Article Five The best frozen foods rivalling fresh alternatives amid cost of living crisis ©] rere reece semee res | 7mm rent 200 ‘Source: News website : 8 Feb, 2023 Title of Article: The best frozen foods rivalling fresh alternatives amid cost of Syllabus Dot and Dash Point(s): influences in the business environment = external, internal, shareholders k to syllabus: ing crisis Justification of ‘With the cost of living rising, many frozen foods companies have turned to a competitive matter and as a result, many internal and external influences have affected the way they perform, either for the better or good. In this, case, the most important influence from the internal environment of these frozen food companies is the products that they are producing. Canstar Blue resolved the impact this influence had on its products as the managers didn't decide to develop products to compete with the other top frozen food companies. Instead, the managers chose to develop a product that used a different technology to provide quicker, more delicious, ready meals that better met the needs of specific groups of customers in this living crisis. The way the managers responded to the internal environmental influence of products is one of the main reasons the business is growing strongly. Although this major frozen food company has its solutions, many don't and continue to deepen their rivalry. This leads to the external influence of competitive situations inside the frozen food environment. Many strive to achieve a higher customer appeal whilst trying to take the majority of the market share across the spread of frozen businesses. This creates a negative outcome as reducing the prices of their products to better suit the needs of customers amid the cost of living crisis, severely damages the financial factor of their business. It also further leads to insufficient profits and debts. 4 Total 120PART B — Short Answer Question Proforma Question: Evaluate the effectiveness of Australian businesses in responding to influences in the business environment. Use examples from the FIVE (5) media articles to support your response. itis clearly evident that Australian businesses have been very effective in responding to many influences inside of business environments, There are many external and internal influences that significantly impact the response of businesses. Competitive situations, product resources, economic conditions, and legal and institutional factors are seen to have the most influence on Australian businesses today. Vast effects of these influences are shown through business issues and businesses such as Booktopia, Telco companies, supermarkets, Gantas, and frozen food companies. BELL // External factors such as economic conditions, competitive situations, and legal and institutional influences affect businesses in Australia. In response, many businesses have adopted flexible strategies to adapt to such changes. For example, Booktopia was ordered to pay a $6 milion fine for falsely stating customers’ rights. This caused a legal impact on its business because it didn't follow the Competition and Consumer Act law. Booktopia responded positively to the situation and made most oftheir books free for ‘month. This strategy was effective as it drew in more customers after the loss of many from the incident. Three telco companies were also affected by legal influences in which they were ordered to pay $33,5m. This was due to breaching Australian Consumer Law, Even tho they misfollowed the law they all responded to this by giving the customers monetary compensation for the information that they wrongly stated. This was effective in making sure they don't comply again the law again and satisfying customers. Competitive situations have also been demonstrated in many Australian businesses today. This influence can make or break a company depending on how you respond to other businesses around you. Canstar Blue for example saw that there was a rivalry between many top brands of fresh frozen foods and created its own strategy to overcome this. They ended up developing a product that used a different technology. This ended up providing quicker, more delicious, ready meals that better met the needs of specific groups of customers in ths living crisis. This was an effective response to the situation as by doing this, many customers were satisfied with their purchase and assisted towards their needs and wants. This also grew Canstar Blues’ star rating and ‘customer approach, Economic factors can also negatively impact and influence a business in its environment as high ‘unemployment rates and increased costs can bring down and make it hard to manage their business. For example, Qantas had to Cut its fights on domestic routes, this was a result of economic damage and further resulted in insulficient profits to sustain itself Qantas responded to this and strategically allowed customers to get free coupon cards for future fights making the customers Satisfied. This was effective in not extra losing customers on top of losing employees. Internal factors such as product resources also impact the effectiveness of Australian Businesses. For example, a news article Stated ‘supermarkets had to seek safeguard supply as Scott's Refrigerated Logistics goes under with the loss of 1,500 jobs’ shows how the loss of products can influence many great supermarket branks in selling to their customers. In this accident, their company collapsed after not being able to find a buyer. This resulted in a low stock of products which lead to reduced customers and eventually lead to reduced sales. Although this was a major issue in the business environment, the company managed to control it by working with other suppliers to correctly deliver all the missed products that weren't able to be delivered. This effective ‘management led to the restocking of shelves inside these stores and happy customers, Alin all, Australian businesses are very effective in responding to many influences inside of the business environment. These businesses have been able to come up with various strategies to fulfil many business issues, Competitive situations, product resources, economic conditions, and legal and institutional factors shape businesses into being more attentive to consumers and responding correctly to them.