1.5-Understanding external influences on businesses

Question 1

What are the examples of stakeholders?

Answer 1

• Shareholders (owners)
• Employees
• Customers
• Managers
• Suppliers
• Local community
• Pressure groups (NSPCC)
• Governemnt

Question 2

What are the different areas of technology used by businesses?

Answer 2

• E-commerce
• Social media
• Digital communication
• Payment systems

Question 3

What activities does a business influence?

Answer 3

• Sales
• Costs
• Marketing mix

Question 4

What are the influences in costs of using technology?

Answer 4

• Cheaper to run the business
• Less paperwork due to online record keeping
• Enables real-time monitoring of business performance

Question 5

What are the influences on sales of using technology?

Answer 5

• Open 24/7

- Access to a wider market

Question 6

What are the influences on the marketing mix using technology?

Answer 6

Price
-They have access to price comparison websites
Product
-Businesses can use technology such as robots
Place
-Use of social media to promote brands
Promotion
-Businesses can target advertising using cookies

Question 7

What is the purpose of legislation?

Answer 7

• Protecting the rights of consumers through consumer law

- Protecting the rights of employers and employees through the employment law

Question 8

What are the principles of the Consumer Rights act?

Answer 8

• Products must be of satisfactory quality
• Customers can reject goods within 30 days of purchase
• Digital content must be of good quality
• The retailer is responsible for the safe delivery of goods
• The business must provide services with reasonable care

Question 9

What are the principles of employment law?

Answer 9

• Recruitment (business must fairly advertise jobs and conduct fair job searched)
• Pay (meet minimum wage)
• Discrimination
• Health and Safety (employees must be safe)

Question 10

What are the impacts of legislation in terms of costs?

Answer 10

• Training
• Equipment
• Pay
• Administration
• Licences or professional services

Question 11

What are the consequences of not meeting legal legislation?

Answer 11

\+
-Good reputation
-Higher sales
-Better candidates for jobs
—
-Business may be taken to court
-Bad reputation
-Business is shut down

Question 12

What are the impacts of economic climate on a business?

Answer 12

• Unemployment
• Changing levels of consumer income
• Changes in exchange rates
• Government taxation
• Changes in interest rates
• Inflation

Question 13

What are the external influences on a business?

Answer 13

• Change in Technology (no more VHS tapes)
• Changes in legislations
• Changes in the economy (Brexit)

Question 14

What is the definition of an Exchange rate?

Answer 14

The value of a currency expressed in another countries currency