1.5 UNDERSTANDING EXTERNAL INFLUENCES ON BUSINESS

Question 1

stakeholders? 1m

Answer 1

any individual or group that is affected by a business

• stakeholders do not have to be connected to the business either e.g. the government receive taxes if the firm makes a profit, the more profit the more taxes have to be paid,

Question 2

different stakeholders? 5m

Answer 2

1. Owners = most important stakeholders as they decide what happens to a business and make a profit if the business is successful. in a Ltd company the shareholders are the owners and usually want the highest dividends
2. Employees = managers and other employees want decent wages and good working conditions, so they also benefit when most objectives are met
3. Suppliers = if a firm is profitable and grows more then more materials is needed and the supplier gains more business so suppliers also benefit
4. Local community = if the firms cause much pollution and noise then the community will suffer. They may gain if local people are employed causing them to be able to spend in the local community shops, which is good for the local economy
5. Customers = customers want high quality products at low prices. They benefit when business objectives are based on customer satisfaction

Question 3

different technologies in business? 4m

Answer 3

● e-commerce
● social media
● digital communication
● payment systems.

Question 4

e-commerce? 4m

Answer 4

e-commerce = using the internet to buy or sell products
- this allows firms to reach wider markers compared to just traditional shops e.g. a small shop in Gorton can end up selling to someone in New Zealand
- e-commerce is very conveniant for consumers, allowing them to buy from all over the world at any time of the day without hvaing to queue up for ages over a product.

Question 5

payment systems in tech? 3m

Answer 5

examples of different paying systems that use technology
- these are fast paying methods and allow businesses to serve customers at a faster rate

1. Online payments = using apps such as PayPal, which allow you to enter your debit/credit card details and make payments
2. Chip and Pin = where you can put your card into a chip then enter your pin to make a payment
3. Contactless Payments = this is where you pay for something just by holding your debit/credit card or smart device near a terminal and it allows payments to happen