3.1.4 Impact on External Influences

Question 1

What is Regulation?

Answer 1

Regulation is undertaken by government to create competitive markets

Question 2

What can Privatisation lead to?

Answer 2

Privatisation leads to monopoly power as most firms privatised operate in markets with barriers to entry such as economies of large scale

Question 3

What id de-regulation?

Answer 3

De-regulation is the opening up of markets to new competition through the removal of rules and regulations that created barriers to entry

Question 4

What are some arguments for deregulation?

Answer 4

The creation of competitive markets will lead to greater efficiency

Less government intervention allows firms to produce to the needs of the market

Question 5

What types of infastructure will Governments look to improve?

Answer 5

Transport network
Provision of utilities
Provision of information

Question 6

How does a Low Pound Effect the enconomy and Tourisum?

Answer 6

Less people go abroud, “Staycation”. Tourism benefits in the UK.

Question 7

The government can provide training to start up businesses in a variety of areas, What diffrent types of training can be offerd?

Answer 7

Financial
Marketing
Operations management
People

Question 8

What are some Gonvernment tactics to help UK Businesses

Answer 8

Grants
Training
Subsidies (Encourage Supplier to increae supply)

Question 9

How do Entrepreneurs and SMEs have an impact on the economy?

Answer 9

Provide employment
Pay taxes
Social benefits

Question 10

Who uses regulation?

Answer 10

Regulation is undertaken by government to create competitive markets

Question 11

Who regulates Telecoms?

Answer 11

Oftel

Question 12

What is inflation?

Answer 12

A general rise in price beond wages

Question 13

What are interest rates?

Answer 13

The rate a lender would charge a borowwer (Set by the Bank on England)

Cost of borrwing/ reward for saving

Question 14

What is the Business Cycle?

Answer 14

The boom and bust economy

Question 15

What is the social environment influenced by?

Answer 15

The social environment is influenced by the make up of humans within a specific area or business

Question 16

What are the different demographics?

Answer 16

Gender
Age
Ethnic background
Education

Question 17

What is Urbanisation?

Answer 17

A general movement of people towards cities and away from rural areas

Question 18

What us Migration?

Answer 18

The movement of people between countries

Question 19

What is Net Mirgration?

Answer 19

Net migration = relationship between migration and immigration

Question 20

What is the term for when 3 or more companys dominate the market?

Answer 20

Oligopoly

Question 21

What is a Technological environment?

Answer 21

Technological environment describes the ongoing development of invention, innovation and sharing of technology or processes.

Question 22

What is Inflation?

Answer 22

A general rise in prices beyond wages?

Question 23

Health and fitness and healthy eating have led to increased ______________?

Answer 23

Health and fitness and healthy eating have led to increased demand for related businesses such as gyms and health foods

Question 24

What is the legal environment?

Answer 24

The legal environment describes the collection of legislation that impact on the activities of organisations

Question 25

What are Michael Porters 5 Forces?

Answer 25

Entry Threat
Buyer Power
Supplier Power
Rivalry
Subsitute Threats

Question 26

What does Vertical competition look at?

Answer 26

Vertical competition looks at threats from suppliers and customers

Question 27

What does Horizontal competition look at?

Answer 27

Horizontal competition looks at threats from competitors

Question 28

What is Perfect competition?

Answer 28

When many businesses are in the market with no claim to market share