1.5 Understanding External Influences on Business Flashcards
3 internal stakeholders
Shareholders
Managers
Employees
5 external stakeholders
Customers
Local community
Suppliers
Pressure groups
Government
Managers objectives
A good salary and opportunities for career progression
Owner objectives
Business success and profits
Employee objectives
Good pay, job satisfactio and security, career progression
Customer objective
Meet customer needs and value for money
Supllier objectives
Ontime payments, regular orders
Local community objectives
Labour and minimal disruption to the area
Pressure gorups objectives
Increase knowledge of cause
Government objectives
More jobs and more taxes
Stakeholder conflicts eg
Managers and owners
Government and owners
Customers and suppliers
4 types of technolgoy used in business
E-commerce
Social Media
Digital Communication
Payment Systems
Advs of ecommerce
Large market
Sell at any time
Recieve payments instantly
Reduced fixed costs
Disadvs of ecommerce
More competition
New employee skills
Delivery procedures needed
Maintain and update software
3 social media uses in business
Sales and marketing
Interacting and recieving feedback from customers
Communicating with stakeholders
Digital communication allows for
Quick and easy communication internally and externally
Payment method advancements eg
Chip and Pin
Contactless payment
How does technology affect sales
It is easier to contact a business so more sales
Bigger markets to sell to
Better promotion
More convenient to buy things
How does technology affect costs
Transport costs decreased due to digital comms
Fewer staff and premises needed
Cheaper promotion
A percentage fee on some payment methods
Consumer law is
Any piece of government legislation designed to protect consumers from poor products and poor business practices
The two UK consumer legislations
Consumer rights act 2015
Consumer protection act 1987
The Consumer Rights Act (2015)
states goods must be
Described accurately
Fit for Purpose
Satisfactory quality
The Consumer Rights Act (2015)
states services must be
Care and skill during the service
Accurate verbal and written info
Provided in reasonable time
Reasonable price
The Consumer Rights Act (2015)
returns rules
Available to customers within 30 days with a full refund
(only if it violates the legislation)
Responsibility for faults falls on customer after 6 months
Consumer protection act(1987) states that
Any consumer can claim against a producer if there is a manufacturing defect
4 parts of employment law
Recruitment
Pay
Discrimination
Health and Safety
Recruitment in emplyment law
responsibilities and job description listed correctly, and what an employee can and cant od during the process
Pay in employment law
Ensures the employees are recieving at least the minimum rate
Discrimination in emplyment law
Employers must treat people without bias and ot based on their personal aspects
Health and safety in employment law
Ensures employees are safe at work
The equality act(2010) states
People have protected characteristics that cant have an impact on recruitment
Legislation leads to
Extra costs for businesses
Avantages of meeting legislation
Staff are more productive
Reduced employee churn
Better reputation
Disadvantages of not meeting legislation
Expensive fines
Bad publicity
Suppliers and stakeholders reluctant to involve themselves in the business
The economic climate impacts the business in 6 main ways:
Unemployment
Consumer income
Interest rates
Inflation
Tax
Exchange rates
Effect of new technology on business
New opportunities by using it
Threats from competitors using it
Effect of new legislation on business
Adapting products
Changing operations and systems
Increased costs
More money to reinvest
Business response of economic climate changes
Change in prices
Chnage in products
Chnage in promotion
Change in place
