1.5 Understanding External Influences Flashcards
What is a stakeholder?
Any individual or organisation who has a vested interest in the activities and decision making of a business
What are some different possible stakeholders of a business and their objectives? (9)
SHAREHOLDERS: they hold a share of the business (a PLC or LTD) - they want to invest to get a dividend, can vote on key issues and sell their shares
EMPLOYEES: does the business work and gets an income
COMPETITORS
OWNERS: look to make a profit and make decisions for business success (sole trader or partnership)
MANAGERS: responsible for the day to day operations , maximes profits minimise costs
SUPPLIERS: provides goods and services, make a profit and long term relationship w business
CUSTOMERS: purchases good or services, high quality, good price, good service
PRESSURE GROUPS: influence the policies of a business (animal testing)
LOCAL COMMUNITY: wants the business to make a pos impact
GOVERNMENT: grow the local economy
Which stakeholders would be in conflict w each other?
Wants business success: shareholders (dividend) , employees(secure jobs), owners( profit), managers (success), suppliers (profit), customers, government
What’s business failure: competitors
What is e commerce?
The buying and selling of goods through the internet
What are advantages of a business using e commerce?
Access to wider markets, reduces costs, sales increase, customer convenience
What are disadvantages of e commerce?
Costs increase, staff training, distribution costs, contact w loyal customers lost
What is m commerce?
Using wireless handheld devices
What are advantages of a business using social media?
What are disadvantages of a business using social media?
What is digital communication in businesses
Communication through devices
What are some advantages of a business using digital communication?
Cheap to operate, data can be stored, video conference can save money and time, high quality advertising
What are some disadvantages of a business using digital communication?
Unreliable, delays and failures, training
What are advantages of a business using e payments
Reduces costs, quicker resciept, convenience
What are disadvantages of a business using e payments
Cost of payment systems, some prefer cash, risk of fraud
How can technology increase a business’s costs?
Initial investments, staff training, specialist, maintenance
How can technology decrease a business’s costs?
Reduced employees, efficiency, good for small businesses
What is the employment law?
Provides rights for employees to be protected in the workplace
What is the consumer law?
Protests customers when the purchase goods
What are the advantages of a business following consumer law?
Improves rep, no bad publicity, no repair costs, no high fines
What are the disadvantages of a business following consumer law?
Increased quality control, higher quality materials, employee training
