1.5 - Understanding External Influences On Business Flashcards
What are stake holders and who are they? (7 groups/people)
People that are affected by the business. Examples are:
- Owners
- Employees
- Suppliers
- Local communities
- Government
- Customers
- Pressure groups
What is E-Commerce?
The buying and selling of products or services online. Improves convienience
How can businesses communicate with customers online?
- Websites
- Emails
- Mobile apps
- Live chats
- Video calls
Why is social media important?
- Really easy to share information
- Easy to communicate
- Easy to advertise on
How has technology affected businesses?
- Easier for customers to pay (online payments)
- Technology has replaces humans
- E-Commerce
- buy equipment
How employment law has affected business?
- National minimum wage
- Businesses cannot discriminate
- Health and safety, needs to be safe
What is consumers law?
The law restricting firms from being dishonest about a product or service.
- The product should be fit for purpose
- The product should match its description
- The product should be of satisfactory quality
How does unemployment affect a business?
If there is a high unemployment rate customers will have less disposable income and they will not spend as much money, less revenue
What is inflation
The increase in the price of a good or service.
How does interest rate affect business?
- High interest rates will cause businesses to not borrow money
- low interest rates will cause businesses to borrow money
What is exchange rates and how do they affect business?
When money is converted between currencies (pound to dollar)
A weak pound is good for exporters, but bad for importers
A strong pound is bad for exporters, but good for importers
