2. Influences On Business Flashcards
What is Information and communication technology?
It is the computing and communications systems that a business might use to exchange information with stakeholders
What is a Stakeholder?
Individual and organisations that are effected by, and effect, the activites of a business
What are Intranets?
Communication networks which can only be accessed by an organisation’s employees
What are Extranets?
They are similar to intranets but can also be accessed by other organisations such as suppliers
What is M-commerce? (Mobile)
The buying and selling of products through wireless handheld devices such as smartphones
What is Digital Communication?
The transmission of information electronically between computing devices
What is a Webchat?
Communicating in real time using only web browsers such as firefox or internet explorer
What are Apps (Applications)
Pieces of software designed for a specific purpose and for use on smartphones and tabletp
What is Social media?
A method of online communication such as websites and applications. They share information and help to develop social and proffesional contacts
What is E-commerce? (Electronic)
The act of buying or selling a product using an electronic system such as the internet Example: online advertising and online auctions
Why do firms need to keep up with technological progress?
The firm will fall behind their competitors. Firms must pay for new technology and also train themselves and their staff in how to use it effectively. It will pay off however the increase in productivity and/or sales revenue outweighs the initial costs of installation, upgrading and training.
Technology should decrease unit costs of production if it leads to significant productivity increases.
What is Ethics?
It refers to wether a business decision is thought to be morally right or wrong. An ethical decision is made on the basis of what is judged to be morally right
What is profit?
It measures the difference between the values of a business’s revenue (sales) and its total costs
What are Fair trade products?
Are those for which customers pay higher prices and offer better trading items, such as payments with orders. The aim is to improve the living standards of people in poorer countries where the products are produced.
What is Social responsibility?
Its an approach to managing businesses in which the interests of all groups in society are taken into account when making decisions
What are external costs?
External costs of production arise when a business’s activities result in harmful effects on other people not directly involved in production
What are Non-renewable resources?
Those of which only a limited amount exists such as coal and oil
What are Consumers?
Individuals who buy goods and services from businesses
What is an interest rate?
They refer to the cost of borrowing money or the reward for saving money, expressed as a percentage.
What is an overdraft?
An overdraft is a flexible loan which businesses can use, whenever necessary, up to an agreed limit.
What is Legislation?
Legislation is a set of rules that govern the way society operates, its another term for ‘laws’?
What is a national living wage?
Its an hourly rate of pay which is set by the government. All employees above a certain age must recieve at least this rate of pay.
What is a part time employee?
An employee that works for a proportion of the week
What is a contract of employment?
Its a legal document stating the hours, rates of pay, duties and other conditions under which a person is employed.
What is Enviornmental responsibility?
The taking of decisions by businesses, consumers, governments and other groups with the intention of protecting the enviornment
What is Sustainability?
Methods of production which can be continued in the long term without damage to the enviornmnent
What is Globalisation?
The trend for markets to become worldwide in scope
What is International trade?
The selling of goods and services across national borders
What are Exports?
Goods and services produced by a business in one country and sold in another
What is Tariff?
A tax on foreign goods imported into a country
What is growth?
Occurs when a business sells increased quantities of its products
What is Economies of scale?
Occurs when the cost of producing a single unit falls as output increases
What is a takeover?
Occurs when one business buys control of another one
What is Product design ?
Translates the needs of consumers into a saleable product
What is quality?
The extent to which a consumer is satisfied with a product
What is price?
The amounnt a business asks a customer to pay for a single product
What is competition?
When more than one business is attempting to attract the same customers
What is monopoly?
When a business does not face any competition in a particular market
What is market share?
The percentage of sales in a particular market recorded by a business
What is a business plan?
A document setting out what a business does and what it hopes to achieve in the future
What is Diversification?
Occurs when a business starts selling new products in new markets
What is a recession?
Occurs when the value of an economy’s output of goods and services falls for six months or longer
What is consumer law?
Provides protection to the consumer against issues like fraud or mis-selling when they purchase a product or service.
