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business paper 1 > 1.5 Understanding external influences on business > Flashcards

1.5 Understanding external influences on business Flashcards

1
Q

define stakeholder

A

stakeholder is any person or group that have an interest in the business

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2
Q

define internal stakeholder

A

stakeholders that work within the business

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3
Q

examples of internal stakeholders

A

owners
employees
mangers
shareholders

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4
Q

define external stakeholder

A

stakeholders from outside the business who have an interest in it

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5
Q

5 examples of external stakeholders

A 
customers 
suppliers 
pressure groups 
government
local community
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6
Q

explain one conflict that exists between stakeholders of a business

A

conflict can exist between owners and employees, this is because employees want high wages but this is costly for owners and would rather want to increase profit.

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7
Q

define E-commerce

A

E-commerce describes businesses selling their products and services to their customers over the internet.

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8
Q

advantages of e-commerce

A
  • attract customers all across the globe
  • wider range of customers
  • sell at any time
  • accessed 24/7
  • receive payments quicker
  • reduce overheads / extra costs compared to running a physical shop
  • cheaper and easy
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9
Q

disadvantages of e-commerce

A

-more competitors from across the globe
-lack of security
-needs maintenance and update technologies
-which can be expensive
intangible - customers cannot feel/touch/smell the item

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10
Q

define social media

A

a platform which allows the business to communicate with consumers and can be used as advertising

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11
Q

advantages of social media

A
  • to interact and communicate with consumers
  • conduct research cheaply
  • saves time
  • allows business to spot the latest trends
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12
Q

the disadvantage of social media

A
  • damage the reputation of the business from negative feedbacks
  • tarnish the brand
  • security and privacy policy issues - competitors have access
  • need to stay engaged and active
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13
Q

Technology - Digital Communication

A 
emails 
mobile phones /apps 
websites 
social media 
web / video conferences
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14
Q

Define m-commerce

A

any business transaction that takes place through mobile phones eg payment via mobile phone or apps

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15
Q

payment methods

A

contactless payment

chip and pin

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16
Q

How Technology Changes Business Activity Technology can influence business in a number of ways:

A

sales
cost
production
marketing mix

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17
Q

technology can influence business-sale

A

the impact of e-commerce: business can sell products easily to customers all across the globe without setting up a physical store, therefore, saving cost

impact of payment methods :
m-commerce making it convenient for customers to pay for the product
eg contactless payments are quick and easy

impact of social media
social media can increase sales for examples having regular direct communication builds customers relationship with the business

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18
Q

technology can influence business-cost

A

impact of e-commerce
selling online is much cheaper than opening a physical shop not have to spend as much money employing staffs, rent, bills

The impact of social media on costs; provides a quick, cost-effective way for businesses to communicate and interact with customers. It enables even small businesses to reach a wide audience for a minimal cost.

impact of payment methods on costs:more secure and cost-effective way

19
Q

The impact of digital communication systems on the marketing mix

A

Product Products can be adapted and accessed easily in a format that is convenient to the customer.
Price Money saved by using digital communication can help a business to keep its prices low.
Place Customers can access services regardless of where they are, eg through mobile banking apps.
Promotion Businesses can email newsletters, track customer behaviours on social media and their website, and advertise online.

the impact of social media on the marketing mix
Product Product information can be shared using video demonstrations where appropriate.
Price Cost savings may enable a business to lower its prices.
Place Businesses can interact with customers around the world, regardless of location.
Promotion Social media is a cost-effective way of targeting promotions at specific groups of customers.

The impact of payment methods on the marketing mix
Product Online payment methods allow digital products to be purchased easily.
Price Any fees incurred through the use of specific payment methods need to be accounted for when setting the price of a product.
Place New payment methods have facilitated the ability to sell products online.
Promotion Businesses can promote the fact that they offer a variety of ways for a customer to pay, eg cash, card, PayPal.

20
Q

Examples of employment laws:

A

National minimum wage
The Equality Act
The Health and Safety at Work Act

21
Q

national minimum wage

A

ensures that all workers receive a payment above the minimum wage

22
Q

the benefit to national minimum wage

A

Paying workers a higher wage may improve motivation and productivity.

23
Q

the disadvantage to national minimum wage

A

if the minimum wage increases then it can lead to an increase in costs and because of this, lower profits.

24
Q

The Equality Act

A

this protects the people from discrimination in a workplace. business cannot discriminate workers in terms of payment and employment based on race age, gender etc

25
Q

the benefits of the equality act

A

This creates a working environment where everybody feels welcome. Sometimes this is called an inclusive workforce.

26
Q

the act of health and safety

A

legislation around health and safety is designed to keep employees safe while they are at work

27
Q

how to improve health and safety regulations

A

carry out a risk assessment
staff training
safety equipment
first aid kits

28
Q

benefits to health and safety

A

Better health and safety conditions do provide a benefit by reducing the number of workplace injuries. This means that workers will spend less time off work recovering from injury and will spend more time at work.

29
Q

Impact on business - health and safety

A

costly - supply training safety equipment

getting staffs trained is expensive

30
Q

define consumers law

A

These are laws that are designed to protect customers against unfair treatment by businesses. They include laws involving faulty goods, dishonest advertising and warranties.

31
Q

what are the consumer’s law

A
  • goods must be fit for purpose
  • goods must be satisfactory quality
  • repair and refund
32
Q

goods must be fit for purpose

A

goods must do what they are designed to do

33
Q

goods must be satisfactory quality

A

goods should not be damaged or faulty when sold as new

34
Q

Employment

law

A

Laws that give standards about how businesses should treat their employees.

35
Q

The Consumer Rights Act (2015)

A

Laws that are designed to protect customers against unfair treatment by businesses.

36
Q

The Impact of Legislation on Businesses

A
  • costly

- new practices

37
Q

Consequences of meeting and not meeting obligations

A
  • fines
  • compnesation
  • bad repuation
38
Q

explain the consequences of not meeting the laws

A

the business’ reputation could be damaged by bad publicity, which could result in a loss of sales and staff

39
Q

give 2 benefits of meeting the obligation of the laws

A

if workers receive a wage above the minimum wage staff are more likely to work harder, which results in the business being more efficient.
health and safety is important because workers are likely to stay working for the business which reduces recruitment cost t

40
Q

The economic climate affects businesses in six main ways:

A
  • unemployment
  • changes in exchange rates
  • inflation(the rise in the price of goods and services)
  • changes in interest rate
  • changing levels of consumers income
  • government taxation including national insurance contributions (NICs) and value-added tax (VAT)
41
Q

the impacts of high unemployment on the economy

A

a high rate of unemployment would result in lower-income so people are less likely to spend money on products.
but at the same time, people would swap for cheaper goods this could benefit some business to an increase in sales

42
Q

high to calculate interest rate

A

total interest / borrowed amount x 100 = rate of interest

43
Q

impacts on low loans

A

when interest rates are low business will borrow money because it is cheaper to do so

44
Q

impact on consumers spending - low loans

A

when interest is low consumers are more likely to want to save because they get less money in return for saving

business paper 1 (1 decks)

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