Sport My Way, The Easy Way!

When establishing a business, there are social, ethical and economic factors you must consider:

​When establishing an online business there are numerous social factors that contribute to the development and formation of society. The use of technology is becoming increasingly popular and as a result there is a constant growing population on social media.  For example, the younger generation prefers to use digital technology to shop online. On the other hand, the elderly people would perhaps stick to their traditional methods of shopping, as they may not own devices allowing them to access the internet, consequently restricting them from purchasing online.  In addition, family, friends, neighbours, colleagues and the media are all sources of social factors, who can affect our customer’s attitudes, opinions and interests into purchasing products online which can determine whether the business is successful or not. In conclusion, when introducing a new business, it is significantly important and relevant that you generate a clear understanding in relation to the influences regarding social impacts.

​The key economic aspect we considered for our business is the pricing and how this would impact on sales and profit margins. Under-pricing products to achieve more sales was not an option because customers can then perceive the products to be ‘cheap’ and of poor quality. This is also risky in the long term as success is dependent on a consistent, large volume of sales. Overpricing to achieve a higher profit was not an ideal option either because most customers are comparison shoppers and will be comparing our prices to all of our competition. With these factors in consideration, we had to decide on a price range to charge in addition to the original price of our products because they are personalised. We ensured our prices were competitive based on a review of the competition in our line of business. When deciding on our promotions in our marketing strategy, we also considered economic factors such as the most cost effective promotional methods. We didn’t want to have an unnecessary amount of promotions that would prove to be expensive but rather a few, simple ones that would be effective. As we endeavoured to have a postage promotion, we had to consider the most inexpensive way to do this. We came to the conclusion of offering free postage to the first 100 customers in Australia only.

​When creating this new business, ‘Sport My Way,’ we considered social, ethical and economic factors that could impact on the success of our business. Every business has the responsibility of developing codes of conduct and ethics which all staff members and the business as a whole must abide by such as workplace health and safety, environmental standards and compliance with government laws and regulations. We have ensured that the manufacture and design of our products and website comply with all government guidelines such as the Trade Practices Act and Australian Competition and Consumer Commission (ACCC). Integrity and trust are the next fundamental factors a business must address. It is vital that our customers have confidence in our integrity which includes conducting our business affairs with honesty and commitment to treating every customer fairly. This is because our reputation as a reliable business will suffer immensely if our customers perceive our business to be exhibiting unethical practices. Lastly, we considered privacy and security factors to ensure our business complies with the Data Protection Act which states that businesses must take all possible action to protect the data they collect from customers. These factors include the collection and storing of our costumer’s details, transactions and prevention of scams to ensure our customer’s rights are protected. In conclusion, we endeavour to ensure that all of our business operations are fair and just, protect the common good and ensure our customers and employees rights and security are protected.