3.2 Influences on Business Flashcards
2.6 What is E-commerce
Business transactions carried out electronically on the internet
2.6 What is Digital Communication
Transmission of information electronically between computing devices
2.6 What is a stakeholder
All individual and organisations that are affected by and affect a business
2.6 6 Digital Communications methods
Instagram
Texts
Twitter
Email
Facebook
Website
2.6 What information is communicated to Employees and how
latest updates, facts and ideas
Teams chat, conference
2.6 What information is communicated to Customers and how
Products and services, sales and promotion
Emails, Website
2.6 What information is communicated to Suppliers and how
Quantity and quality
Emails
2.6 What information is communicated to Government and how
Tax, legislation, subsidies
Meetings
2.6 Where do markets exist?
When there are buyers and sellers
2.6 Markets can be…
Geographical
Online
Local
2.6 What is competition
When more than one business is attempting to attract the same customers
2.6 What is a monopoly
When a business does not face any competition in a particular market
2.6 8 Methods of competing
Online
Quality services
Prices
Advertisement
Location
New products
Promotions
2.6 Monopoly facts
Little to no competition
Charge higher prices
Less choice of consumers
Regulated by the government
2.6 What is an Entrepreneur
Someone who creates their own business in order to fill a gap in the market
2.6 Competition cane make businesses more efficients, which means…
Costs are reduced, leading o higher profits and lower prices and increased sales
2.6 Competition can encourage business to innovate, which means…
Products and services are more likely to appeal to customers, sales increase
2.6 What is a Risk
The possibility of something going wrong
2.6 What is Uncertainty
Occurs when there is a lack of information about a situation. means the outcome or consequences are difficult to predict.
2.6 Internal Risks?
Workers refusing to work
Fire
Theft
Bad publicity
Employees leaving to work for a competitor
2.6 External risks?
New competitors
Natural Disasters
Government laws
Technological change
Economic changes
2.6 All business face uncertainty due to…
PESTLEC
Political Environment
Economic Uncertainty
Social changes
Technology changes
Legal changes
Environment
Competition
2.6 How can risk be reduced
Making a business plan
Training workers
Using experts
Diversification of products
2.2 What are Ethics
Refers to whether a business decision is thought to be morally right or wrong. An ethical decision on the basis of what is judged to be morally right
2.2 Some Key ethical issues for a business
Treating workers fairly
Reducing environmental impact
Reducing waste
Paying Tax
Giving back to the community
Setting fair prices
2.2 Ethical behaviour reduces profits because…
However…
Environmentally friendly resources cost more
Training employees costs money
Account for all stakeholders
It can attract customers and good quality employees
2.2 Effects of business in the natural world
Traffic congestion
Air & Noise pollution
Scarce resources
Global warming
Wastage
2.2 Sustainability definition
Methos of production which can be continued in the long term without damaging the environment
Meeting our needs today without compromising the needs of future generations
2.1What is ICT
Information and Communication technology
2.1 How does ICT impact a business
Location of employees
Employees work
Suppliers
Stakeholders
M-commerce
Information analysis
customer base
E-commerce
2.1 Employees location
However..
Employees can work from home, no matter where they are in the world
Makes a business efficient as people can work anytime anywhere.
However… if ICT continues improving people will lose their jobs as robots take over.
2.1 Employees work
Manager can monitor effectiveness of marketing campaigns
Get data on shop visitors, time spent in shops, repeat customers
Ensure sufficient staff by predicting customer numbers
2.1 Information Analysis
Collect data via google
target customers with appropriate goods and services
Improve services
No storage equipment
Respond swiftly and make quick changes
2.1 Customer Bases
Far more contact with clients
Q and As
FAQ
Create social media accounts & websites
Can damage a business with bad publicity
2.1 Suppliers
re-order supplies whenever
Business becomes efficient
Reduces storage
2.1 Stakeholders
Hold meetings online
More shareholders can attend
Monitor attendance and participation
Opinions of large numbers of stakeholders
2.1 E-commerce
Help monitor customer needs
Small business reach customers all over the world
The website MUST be easy to navigate and clear
2.1 What is M-commerce
Buying and selling of products and services using wireless handheld devices.
2.3 What is the economy?
Made up of consumers, businesses and governments. These groups make decisions on what to buy, sell, produce, import and export. All of these decisions decide what is produced, bought and sold.
2.3 What is the economic climate?
The state of the economy
Is it producing more or less goods and services?
Is it providing bigger or smaller incomes?
Is it creating more or less jobs?
2.3 What is an interest rate?
The cost of borrowing money and reward for saving money
Expressed as a percentage
Paid by borrowers
Paid to Savers
2.3 What happens if there is a rise in interest
1. Saving by customers
2. Spending by consumers
3. Borrowing by customers
4. Borrowing by consumers
- Interest increase
- Interest decrease
- Interest Decrease
- Interest Decrease
2.3 rising interest rates mean…
Reduces spending by consumers
Reduces investment by business
Leads to a weaker economy
2.3 Fall in interest rates means…
Increase in spending by consumers
Increase in businesses investments
Lead to a stronger economy
2.3 What is unemployment
A situation where someone is of working age but it not able to get a job and would like to be in full-time employment
2.3 Rising Employment levels lead to
Higher sales
Increased costs
2.3 What is income elasticity of demand?
Elastic demand
Inelastic demand
Measures how much demand for a product changes as income changes
Always a big change in demand
Always a small change in demand
2.4 What is Globalisation
The trend for markets to become worldwide in scope
2.4 Impacts of globalisation
Increase in multinational countries
Increased international trade
People moving across international borders
2.4 How can UK markets compete in international markets
Improving product design to give a USP
Quality products ensuring satisfied customers
Good customer service
2.4 What is an exchange rate?
The price of one currency expressed in terms of another
eg £1= $1.20
2.4 A currency rise?
A currency fall?
When you get more for your £
£1= $1.50
When you get less for your £
£1 = $1.05
2.4 What is SPICED
Strong
Pound
Imports
Cheap
Exports
Dear
2.4 What is WPIDEC
Weak
Pound
Imports
Dear
Exports
Cheap
2.4 Fall in exchange rate means
Export prices…..
Import Prices….
Export prices fall and sales increase
increased profits
Import prices rise increasing costs and decreasing profits
2.5 What is Legislation
A set of rules that governs the way society operates
another term for law
2.5 Employment law
National minimum wage
Wages matched to inflation and rising prices
Change every October
2.5 National Living wage
hourly pay set by the government
changes every April
receive this at minimum for over 25s
2.5 Equality act 2010
prevents discrimination on grounds of race gender or age
cannot be treated any differently because of this
Age
Disability
Race
gender
Marriage
Religion
pregnancy
Sexual orientation2
2.5 Impact on business
Increases cost to pay workers more
Profits fall
2.5 Contract of employment
all employees must have this contract
legal document stating the hours, pay rate, duties and other conditions of a persons employment
2.5 Health and Safety
Prevents businesses putting an employee in danger
Protects work force
Installation and maintenance of safety equipment
2.5 consumer law
Protect consumer by preventing unfair practices taking place
2.5 what does consumer law protect from?
False advertising
Sales of unsafe products
unfairly priced products
selling misinformation of business
2.5 Trade descriptions act?
legislation designed to prevent incorrect information on packaging, labels and advertisements
2.5 What is the 1974 health and Safety at work act?
lays out all the responsibilities that employers and employees have to maintain a safe and healthy workplace.
