2. Influences On Business Flashcards
2.1 Key terms - E-commerce
Using technology / the internet to advertise or sell a product or service. (M-commerce refers to mobile phone commerce) - these include benefits such as 24/7 international access, little rent cost & facilitated payments. Downsides include logistical issues, shipping costs & employee training / hiring.
2.1 Key terms - Social media
Digital platforms such as tiktok, youtube, snapchat etc - which can be used for advertising or selling goods - they tend to be competitive as they are digital.
2.1 Key terms - Digital communication
Forms of communicating with customers or stakeholders in your business via the use of online platforms or apps such as whatsapp, messages, email etc. - in effort to reach more customers online.
2.1 Key terms - Payment methods
E-commerce uses a variety of payment methods. Payment methods are ways of paying for goods, this includes via cash, bank transfer, credit & debit card, direct debit, contactless card payments & apple pay / samsung pay etc.
2.1 Key terms - sales
Making sales via e-commerce includes many benefits such as reaching more customers and convenience. Downsides include more competition and delivery & tax costs.
2.1 Key terms - costs
The influence of e-commerce on cost, eg. No rent as digital, can work from anywhere - less transport costs
2.1 Key terms - marketing mix
The use of technology for appealing to customers by advertising using social media, communication & e-commerce sites to reach a target market - eventually altering product to appeal more and make more sales.
2.2 Ethics - Ethical considerations
When running a business, ethical considerations are when you are considering moral ethics in all aspects of your business.
2.2 Ethics - benefits of running ethically
Benefits include a good reputability and more customers, as people will not want to support a business that runs unethically.
2.2 Ethics - benefits of running unethically
There are little benefits but some may include more profit and revenue, however this comes with downsides such as less sales and bad reputation, which may lead to higher taxes or bans from government.
2.2 Ethics - examples of running ethically
Examples include making sure workers get the right wages, products are outsourced from trusted distributors, and ensuring they dont take advantage of situations.
2.2 Ethics - examples of running unethically
Examples include not paying full wages, contributing to child labour, and taking advantage of situations for more profit.
2.2 Key Terms - Trade-off
Trade-off refers to the term defining benefits and drawbacks when deciding between 2 options. One option might be ethical but another might make more profit whilst being unethical.
2.2 Environment - Environmental considerations
Environmental considerations include taking the environment into consideration when making business decisions, and through running it.
2.2 Environment - benefits of running environmentally friendly
Benefits include being rebutable, helping the environment, and attracting more customers.
2.2 Environment - benefits of not running environmentally friendly
Benefits include more profit, less employees, and facilitated business logistics, shipping and overall processes.
2.2 Environment - examples of running environmentally friendly
Examples include decreasing pollution, using electric vehicles, and decreasing packaging.
2.2 Environment - examples of not running environmentally friendly
Examples include using unsustainable shipping facilities, using energy from fossil fuels, and using petrol vehicles.
2.3 Key Terms - Economy
An economy is an area of the production, distribution and trade, as well as consumption of goods and services.
2.3 Key Terms - consumers vs customers
Consumers are users of a good or service, a customer is the person who bought it - they can often be the same person.
2.3 Key Terms - economic climate
Economic climate refers to the economic situation surrounding a business, this can include location, customer & employee income rates, inflation and average income.
2.3 Key Terms - interest rates
Interest rates are often a percentage of money a person owes to a bank or similar party as a form of payment when borrowing money, interest will often be pre-determined before hand based on the duration of time and amount of money owed.
2.3 Key Terms - overdraft
Overdraft is when a person spends more money than they have available on a bank account, so the account will show a negative value. Overdraft can be limited and when payed back to the bank an interest rate will be added as a fee.
