7 - Social & Technological

Question 1

What Are The Opportunities Of Technological Change?
(4 Points)

Answer 1

~ Ability to communicate easier and more efficiently.

~ Capital improvements, leading to more choice and quality.

~ Automation from labour to capital, improving long term efficiency of a business.

~ Can give a business first mover advantage, allowing them to price skim.

Question 2

What Are The Threats Of Technological Change?
(3 Points)

Answer 2

~ Decreased barriers to entry.

~ Costs to keep up with trends.

~ Automation, can lead to industrial action.

Question 3

What Does Social Change Include?
(6 Points)

Answer 3

~ Demographic and population changes.

~ Changes in consumer lifestyle and buying behaviour.

~ Growth of online businesses.

~ CSR.

~ Stakeholder vs shareholder concepts.

~ CSR pyramid.

Question 4

Describe ‘Demographic & Population Changes’ As Part Of Social Change
(3 Points)

Answer 4

~ Age, sex and race changes, impacts decision making.

~ Migration, increases supply of labour, increases spending.

~ These create opportunities and threats.

Question 5

Describe ‘Changes In Consumer Lifestyles & Buying Behaviour’ As Part Of Social Change
(2 Points)

Answer 5

~ More use of the internet, means more businesses operating on the internet.

~ More trends expressed for businesses to follow.

Question 6

Describe ‘Growth Of Online Businesses’ As Part Of Social Change
(3 Points)

Answer 6

~ More e-commerce.

~ More digital marketing.

~ More information symmetry.

Question 7

Describe ‘CSR’ As Part Of Social Change
(3 Points)

Answer 7

~ Responsibilities of an organisation, to put initiatives in place to benefit society.

~ Companies nowadays face more pressure to act responsibly.

~ E.g. M&S, ensuring suppliers have good working conditions.

Question 8

What Are The Reasons For CSR?
(3 Points)

Answer 8

~ Improved brand image.

~ Increased sales.

~ Increased employee retention and brand loyalty.

Question 9

What Are The Reasons Against CSR?
(4 Points)

Answer 9

~ Higher costs.

~ Higher prices.

~ Loss of shareholder satisfaction.

~ Put smaller businesses at a disadvantage.

Question 10

Describe ‘Shareholder Concept’ As Part Of Social Change
(2 Points)

Answer 10

~ Business responsibilities are solely aimed at reaching the requirements for shareholders.

~ Meaning the business is only concerned with profit.

Question 11

Describe ‘Stakeholder Concept’ As Part Of Social Change
(2 Points)

Answer 11

~ Business creates as much value for stakeholders as possible.

~ Business should seek to align the interests of all stakeholders, so that everybody benefits.

Question 12

Describe ‘CSR Pyramid’ As Part Of Social Change
(5 Points)

Answer 12

~ Shows what society expects from a business.

Bottom To Top:
~ Economic responsibilities. E.g. To be profitable.

~ Legal responsibilities. E.g. Obey laws and regulations.

~ Ethical responsibilities. E.g. Do what is right and fair and avoid harm, focus on stakeholders.

~ Philanthropic responsibilities. E.g. Good corporate citizen, help out society.

Question 13

What are Pressures In Place To Ensure A Business Is Being Socially Responsible?
(4 Points)

Answer 13

~ Consumer and pressure group actions.

~ Government actions.

~ Media coverage.

~ Investors.