1.5 Flashcards
1.5 - Stakeholders
Stakeholders is anyone affected by the business.
- Owners
- Employees
- Suppliers
- Local community
- Customers
- Government
- Pressure groups.
1.5 - Technology, E-commerce and communications
- E-commerce means buying or selling online.
- Reaches wider markets.
- Convenient.
- Online payments, Chip and PIN and contactless payments.
- Safer and easier.
- Faster can serve more customers.
- Communication: websites, email, mobile apps, live chats and video chats.
- Social media.
1.5 - New technology
Technology has changed the way businesses operate.
- New technology can affect a firms costs and sales
> reduced costs (machines can replace people).
> increased sales (e-commerce)
> very expensive to hire and train staff. - New technology can change a business’ marketing mix.
1.5 - NMW and NLW
NMW - 24 and under (National Minimum wage).
NLW - 25 and over (National Living wage).
- Companies can’t cut their costs by paying workers less.
- Can be fined and get bad publicity.
- Increases a firms costs, increased prices, fall in sales, less revenue, fire staff.
- Benefit: better motivated and increased productivity within staff.
1.5 - Recruitment and discrimination
1) Must not discriminate
2) Make sure any new recruits have a legal right to work in the UK.
Equality act
If discriminated against, individuals can claim compensation.
1.5 -Health and safety laws.
Risks at work are controlled. Need to carry our risk assessments. expensive those who don't follow can be fined and closed. pay compensation to whoever is injured. Leads to bad publicity.
1.5 - Consumer laws
1) The product should be fit for its purpose
2) The product should match its description
3) The product should be of satisfactory quality.
1.5 - Unemployment
- Unemployment means that the economy as a whole produces less output than if everyone was employed (everyone suffers).
- Unemployment can help businesses
> can pay lower wages as lots of unemployed people are desperate for a job.
> can fill jobs easily.
> Government may even give grants to businesses who give jobs which can encourage a firm to grow when unemployment is high. - Unemployment can cause issues.
> Less employment means less disposable income.
Can lead to lack of demand and sales can fall.
> people who have been unemployed for a long time so may lose skills so firms may need to retrain them.
1.5 - Government taxes
Changes to income tax affects spending
- if the amount of income tax decreases, consumers have more disposable income.
- This means that consumer spending is likely to increase, leading to increased revenue for firms.
- The opposite is also true.
Raising business taxes causes slower growth
- Reduces the amount they can reinvest.
- tax increase may force them to cut costs elsewhere (e.g. staff).
- May also consider relocating abroad where tax is cheaper.
- if environmental taxes increase, it encourages firms to become environmentally friendly to reduce taxes.
Lowering business taxes causes faster growth
- business will have more money to reinvest and grow.
- lower business taxes may encourage businesses abroad to come to the uk leading to increased competition.
1.5 - inflation
Inflation is an increase in the price of goods and services
1.5 - customer income
1.5 - interest rates
1.5 - exchange rates
Topics that most likely will need revising
Exchange rates interest rates consumer income Inflation Government taxes
