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Business In Australi Business Analysis

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Business is essential to any developed and developing society as it makes various contributions to the economy and the progress of the society. In Australia, business is considered as a driving force for social progress. There are currently 2.1 million businesses actively trading in Australia, as of 2016. This is an increase of 2.4% from 2015. In the last couple of years, business entry rates have increased from 13.4% to 14.6% while exit rates have decreased from 12.4% to 12.3%. This shows that there has been business growth in Australia recently. At the moment, the industry classification with the highest survival rate is Health Care and Social Assistance, which has a survival rate of 74.2%. On the contrary, Accommodation and Food Services …show more content…

One of the main success factors for most businesses is the profit it creates. “Profits are like oxygen to a business — required to live and grow”. If a business is seeing an increase in their profit, it means that they are growing and improving. This is why profits are considered as a success factor. However, it is important to keep in mind that there are other arguably more important success factors. Many businesses claim that it is important to “make products people love, [and] build and manage a great team”. Making a product that people truly love is considered as a success factor, as a business can increase its customer base and loyalty. Also, some businesses take pride in what they provide for the community, and consider that to be success. Building “a team that is focused, passionate, and cared for by management” is also a success factor. Employees are the engines and faces of a business, which is why their treatment and wellbeing are considered important. Therefore, having a productive and passionate team is what some businesses consider to be success. Although there are many other factors that could lead to success, the most important ones for the majority of businesses are stated above. Naturally, if a business has great products and a well-managed team, profit can follow, which means that all of these factors can contribute to business …show more content…

The first factor is the failure to react to changes in society or the marketplace. Many business owners think that their success in the past will continue to work and help their business grow, but in reality, society and demands change all the time, especially with the development of technology. Failure to adapt to these changes will cause many businesses to become outdated and lose to their competition. Another factor for failure is the inability to price a product or service correctly. There are many examples of this, one including a business making a product expensive for customers even though it isn't of high quality. This mistake will make businesses lose their customer base and eventually fail. Another example is if a business tries to make a high quality product, but also sell it for a cheap price. This will make the business lose money, therefore narrowing its chances of achieving business success. Although there are many failure factors, one important one that means the difference between a successful business and a failed one is the lack of financial management. Good financial skills are needed in a business in order to control and track the money that it earns and spends. An example of this failure factor is if a business chooses to spend more money than it can earn, and also chooses to spend it on something unproductive. This will cause the business to lose its money and fail. Overall, there are

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