Business Examples:

Socioeconomic Roles of Businesses

1.Profit:

- Apple has been very successful and profitable with its innovative and quality products, giving
its its trusted brand identity.

2.Employment:

- Amazon provides a wide range of jobs such as marketing, engineering and operations, and
due to its vast network of warehouses and delivery services it offers warehouse jobs and
delivering. As of 2021, it had employeed over 1.3 million people.

3.Income:

- Etsy is an e-commerce website that provides a platform to small business owners and
unique creators to showcase their productrs and make a living doing what they love.

4. Choice:

- Coles and Woolworths provide a similar range of goods which provide the consumers a
greater choice. This is good as it allows consumers to compare prices, overall getting
products at the lowest possible prices in the highest possible quality.

5. Entrepreneurship and Risk:

- SpaceX by Elon Musk is a company focused on imrpovidng space travel and making it more
affordable. It seems promising and could revolutionise the space industry providing more
opportunities for space explorations and discoveries.

6. Innovation:

- Smart Watches. Eg. The Apple watch which allows you to make/ receive phone calls, check
your email, and do internet searches, while also tracking your fitness and of course being
able to always know the time.

7. Wealth Creation:

- Pokemon Go, owned by Niantic and Nintendo. Its popularity increase (which was short lived)
attracted the attention of investors, which in turn increased Nintendo’s stock value by
approximately 25%. This created wealth for the business, as with an increased value, they
were able to obtain an increased value or number in funds. It also created wealth for
shareholders through dividends or selling shares. And additionally, it created wealth for the
community, as form the profit taxed, the government funded essential services such as
educational, health and transport facilities, also being able to employee more police and
ambulance officers.

8. Quality of Life:

- Big part of this being research and development centres used by research organisation and
pharmaceutical companies, to cater for the diver health issues of Australians. An example of
this is different bread types, one being Abbot’s gluten free white bread.
Classification of Businesses

Size:

- Micro Business = The Grooming Emporium of North Sydney, which is a pet grooming
business.
- Small Business = Dan Murpy’s, which is a liquor store.
- Medium-sized business= Flight Centre which is a travel agency
- Large business= Commonwealth bank of Australia which is a financial institution.

Geographic

- Local= Banksia Bakehouse

- National= Myer, Coles, Woolworths
- Global/ International= Tesla, as it only manufactures in California
- Transnational= Ford or Toyota having different facilities and manufacturing factories in
different countries, while operating globally.

Industry:

- Primar= Sundrop Farms, agriculture business about sustainable farming practices.

- Secondary= Tesla Inc., manufacturing business specialising in electric vehicles, energy
storage and solar panels.
- Terrtiary= Woolworths, Kmart, being retail services.
- Quaternary= Commonwelath Bank of Australia, Facebook, Instagram , Snapchat. PwC
(PricewaterhouseCoopers)
- Quinary= Merry Maids, cleanin service.

Legal Structures:

- Sole Traders: Mr. Electric (Electrician), Sydney Plumbing Hot Water and Gas (Plumber)
- Partnerships: Latham and Watkins (Law Firm), Deloitte or PwC (Accounting firms)
- Private Companies: Woolworths Group Limited and Coles Group Limited (retail)
- Public Companies: Telstra (Telecommunications) and Commonwealth bank of Australia
(fiancnial services)
Business Example of Demutualisation: NRMA formerly National Roads and
Motorists' Association and now MyNRMA, provides roadside assistance, car servicing, car
loans, driver training, batteries, and windscreen replacement.
- Government Enterprises: Defense Housing of Australia (providing housing and support
services for members of the Australian defense force and their families), Australia Post
(postal services)

Influences in the Business Environment

External

Economic: Apple's business can be impacted by a variety of economic factors, such as changes in
consumer spending (due to a specific phase in the economic cycle), inflation, and government
policies that affect taxes and tariffs (tax to be paid on a particular class of import/export) on its
products. For example, tariffs on imported goods can increase the cost of Apple's products, which
may lead to lower demand from consumers.
Finance: One popular business example that has used equity finance is Facebook. The company was
started by Mark Zuckerberg in 2004 and initially funded by his personal savings and contributions
from family and friends.

Tesla, the electric car maker, has used debt finance to fund its operations and growth initiatives,
through a combination of convertible notes and common stock offerings. The convertible notes
allowed investors to exchange their debt for Tesla stock at a future date, while the common stock
offerings gave investors the opportunity to purchase shares of Tesla stock.

Geographic:

One example of a farm located close to major transportation hubs and urban areas in Sydney,
Australia is "The Urban Farm" located in Rosebery, which is just 6km south of the central business
district.

Social: McDonald’s supports the community through its Ronald McDonald House Charities (RMHC),
which are attached to major children’s and women’s hospitals and provide sick children with the
chance to have their parents nearby during hospital treatment.

Legal:

Uber: The ride-hailing service has faced legal challenges in many cities around the world and
established legal frameworks due to regulatory concerns about safety, insurance, and driver
screening and for operating in different jurisdictions.

Political:

Telstra formerly known as Telecom was privatised and is now a public company that provides
telecommunications services across Australia.

Commonwealth Bank of Australia was privatised and is now a public company that offers banking,
financial, and insurance services.

Institutional:

Trade Unions: The Australian Council of Trade Unions (ACTU) representing and advocating for the
rights and interests of workers and their families. The NSW Nurses and Midwives’ association.

Employer Associations: Employers First, National Farmers’ Federation.

Technological:

Airbnb: Like Uber, Airbnb has taken advantage of technological advancements to create a new
market for short-term accommodation rentals.

Competitive Situation:

Oligopolies: Woolworths and Coles, as they account for 85% of the Australian grocery market.

Monopoly: Sydney Water Supply, which is the only org. from which Sydney’s residents are able to
purchase their water supply.

Market:

Qantas has faced numerous challenges in recent years due to the changing market conditions in the
airline industry, such as increased competition from low-cost carriers and fluctuating fuel prices.