1.5.2 Technology and the Business

Question 1

Name 4 ways that Business could use Technology

Answer 1

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

Question 2

how would technology influence business activity

Answer 2

• Increases Sales
• Increases costs
• Expands the marketing mix

Question 3

How could social media help the business

Answer 3

• because the business can promote using social media which can go worlds wide

Question 4

Give a Advantage of a Business Using E-Commerce (3 Marker)

Answer 4

E-commerce reduces a businesses overhead costs (P) This is because they do not have to have a physical store and pay overheads such as rent (S) This leads to the business being able to charge a cheaper price for their product or service (S) Therefore the business will be more price competitive, helping to attract a large market share (S)

Question 5

Give a Disadvantage of a Business Using E-Commerce (3 Marker)

Answer 5

There are high levels of competition (P) This is because other retailers take advantage of e-commerce as well (S) This means it is easy for customers to compare prices with competitors (S) Therefore there is pressure on the business to be competitive on price (S)

Question 6

Give a Advantage of a Business Using Digital Commutation (3 Marker)

Answer 6

PDigital communication can reduce a businesses fixed costs (1) This is because the use of Google Meet etc. means employees can work from home (S) This leads to employees being more motivated as a result of the flexible working environment (S) Therefore productivity of employees should increase (S)

Question 7

Give a Disadvantage of a Business Using Digital Commutation (3 Marker)

Answer 7

Equipment may not work (P) This is because there may be issues with the WIFI connection (S) This will result in messages being delayed between the sender and the recipient (S) As a result decisions between colleagues may take longer (S)