3.1.4 Impact on External Influences Flashcards
What is Regulation?
Regulation is undertaken by government to create competitive markets
What can Privatisation lead to?
Privatisation leads to monopoly power as most firms privatised operate in markets with barriers to entry such as economies of large scale
What id de-regulation?
De-regulation is the opening up of markets to new competition through the removal of rules and regulations that created barriers to entry
What are some arguments for deregulation?
The creation of competitive markets will lead to greater efficiency
Less government intervention allows firms to produce to the needs of the market
What types of infastructure will Governments look to improve?
Transport network
Provision of utilities
Provision of information
How does a Low Pound Effect the enconomy and Tourisum?
Less people go abroud, “Staycation”. Tourism benefits in the UK.
The government can provide training to start up businesses in a variety of areas, What diffrent types of training can be offerd?
Financial
Marketing
Operations management
People
What are some Gonvernment tactics to help UK Businesses
Grants
Training
Subsidies (Encourage Supplier to increae supply)
How do Entrepreneurs and SMEs have an impact on the economy?
Provide employment
Pay taxes
Social benefits
Who uses regulation?
Regulation is undertaken by government to create competitive markets
Who regulates Telecoms?
Oftel
What is inflation?
A general rise in price beond wages
What are interest rates?
The rate a lender would charge a borowwer (Set by the Bank on England)
Cost of borrwing/ reward for saving
What is the Business Cycle?
The boom and bust economy
What is the social environment influenced by?
The social environment is influenced by the make up of humans within a specific area or business
What are the different demographics?
Gender
Age
Ethnic background
Education
What is Urbanisation?
A general movement of people towards cities and away from rural areas
What us Migration?
The movement of people between countries
What is Net Mirgration?
Net migration = relationship between migration and immigration
What is the term for when 3 or more companys dominate the market?
Oligopoly
What is a Technological environment?
Technological environment describes the ongoing development of invention, innovation and sharing of technology or processes.
What is Inflation?
A general rise in prices beyond wages?
Health and fitness and healthy eating have led to increased ______________?
Health and fitness and healthy eating have led to increased demand for related businesses such as gyms and health foods
What is the legal environment?
The legal environment describes the collection of legislation that impact on the activities of organisations
What are Michael Porters 5 Forces?
Entry Threat Buyer Power Supplier Power Rivalry Subsitute Threats
What does Vertical competition look at?
Vertical competition looks at threats from suppliers and customers
What does Horizontal competition look at?
Horizontal competition looks at threats from competitors
What is Perfect competition?
When many businesses are in the market with no claim to market share
