1.5 Flashcards
Define what is meant by a stakeholder
Anyone who’s affected by a business
Stakeholders of a business (12 of them)
- Shareholder 7. Government
- Owners 8. Local community/ society
- Managers 9. Competitors
- Employees 10. Banks and lenders / creditors
- Suppliers 11. Trade unions
- Customers 12. Pressure groups
Primary stake holder definition
A stakeholder that does have an impact on their success or failure
Secondary stake holder definition
A stakeholder that doesn’t have an impact on their success or failure
Internal stakeholder definition
Groups within a business
External stakeholders definiton
Groups outside the business
Define shareholder
An owner of shares in a company
Define business owner
The person who runs the company
Define employees
A person who works for the company
Define suppliers
Provide the materials or resources
Define customers
Target market buying the products
Define government
People with the authority to run a country who demanded taxes
Define local community
Group of people who interact within the same environment
Define competitors
Business selling similar products in the same market
Define banks and lenders
Provide a financial loan
Define trade unions
Organisation who work to protect the rights of workers
Define pressure groups
Organisation who aim to protect people/ animals/ environment
What are pros for sales for an e-commerce business
- Use of technology can improve sales
- Customers may be unhappy with slow service in a shop- whereas shopping online is instant
- Customers get the convince of shopping when they want - for shift workers this is a huge bonus as the intent can sell goods 24/7 orders can be processed by staff the next working day
What are pros for costs for an e-commerce business
- Using e-commerce and payment systems means that just about anyone can start their own business online
- All they need is a simple website,a good products and payments account
- One person can run an entire business online
- No need for premises like a shop which reduces costs
What are pros for marketing mix for an e-commerce business
- Technology means that now marketing campaigns have more speed, relevance and reach
- If a business starts a marketing campaign on TV it can back it up with social media and then use targeting to send out e-mails
- It also means that business can respond to events
What are pros for sales for an location business
- Technology allows businesses to reach new economic markets. Rather than just selling consumer goods or services in the local market, businesses can reach regional, national and international markets
- Regional websites are the most common way businesses sell products in several different economic markets
- Websites represents a low-cost option that consumers can access 24/7 when needing to purchase goods or services
- Small business owners can also use internet advertising to reach new markets and customers through carefully placed web banners or ads
What is a disadvantage of technology in a business
Not everybody knows how to use it
What is employment law
The many different law associated with the relationship between employers and employees
What will happen to a business if it pays its employees less then minimum wage
Bad publicity and fines
Are their laws about recruitment
Yes
What are the requirement laws
- Recruitment procedures must not be discriminated against
- Firms must also make sure that any new recruits have a legal right to work in the UK
What does a business have to do if they discriminate
Pay compensation
What does the Health and safety legislation help to do
To make sure that risks to people at work are properly controlled
Do firms need to carry out risk assessments
Yes
What happens to businesses that don’t follow health and safety laws
Can be prosecuted, fined and even closed down. People can get paid compensation if they have been injured and could get bad publicity
The consumer rights act sets conditions for _
products
What is the 3 factors of Consumer Rights Acts
- The product should be fit for its purpose
- The product should match its description
- The product should be of satifactory quality
What can customers do if the product doesn’t meet the legal requirements
Ask fir their money back, a repair or a replacement
Define unemployment
When they are able to work but can’t find a job
Why does unemployment rates impact a business
- People have less disposable income
- They can pay employees lower wages
What happens to a consumer if the amount of income tax they have to pay falls.
They will have more disposable income
Define inflation
An increase in the price of foods and services
What happens to consumer spending when inflation rises
It’s likely to go up in the short-term- people rush to buy more products before prices go p even more
What happens to cost of labour with high inflation
Employees can put pressure on employers to increase wages so that they can afford the higher prices being charged for the things they need
What happens to business growth during inflation
It tends to be low
What are the four things that happen when income rises at a slower rate than inflation
- People will have to spend a greater proportion of their income on things they really need- such as food
- So they’ll have less money left to spend on luxuries
- This means businesses that provide luxuries will suffer
- However, some businesses will benefit if people’s incomes are relatively low. Stores selling goods at discount prices are likely to see sales go up as more customers will be making an effort to buy things as cheaply as they can
What are the three thing that happen when income rises as a faster rate than inflation
- People will be spending a smaller proportion of their income on things they need. this means they’ll have more money to spend on luxuries, and the demand for these goods and services will go up
- Businesses providing luxuries will see an increase in sales and their profits are likely to increase
- Stores selling goods at discounted prices may see their sales and profit go down as people start worrying less about getting things for the cheapest possible price
Define interest
Money Added to loans and savings
Low interest rates lead to _ spending
Increased spending
When the interest rate is cut, it’s _ to borrow money
Cheaper
When interest rates are low what happens to the demand for goods and services
Increases, because people have more money
_ technology allows a business to communicate across borders
Digital
What are the two ways in which businesses will respond in a number of ways to changes in technology
Increased investment
Innovation
How might business change their marketing due to change in technology
Greater use of e-commerce to target markets
New media
Blogs/reviews/company websites
How might business employment be impacted by change in technology
New opportunities
Training
Innovative culture
Business technology start-ups
What are threats to businesses down to change in technology with employment
Monotonous jobs/loss of skills
Redundancies
Out of date skills
Is the economy internal or external
External
Define exchange rates
the price of one currency expressed in terms of another currency
