7.6 Social and Technological Change Flashcards
How can businesses be effected by social change?
Demand of different good and services
The way businesses produce goods and services
What impacts does an ageing population have on a business?
Demand for a wide range of goods and services could increase rapidly - dependent on income per head
Strategic decisions about entering new markets might need to be taken
Create new or expand existing market segments or niches
Increase and larger competitors
What impact does technology have on lifestyles?
Development that synchronise home appliances and control domestic appliances from outside the home
Wearing technology that monitors factors such as blood pressure
What impact does technology have on consumer behaviour?
Technology can provide consumers with details about a businesses operations
Social media provides a vast amount of information about the activity of businesses and apps
Health and well being - exercise, eating healthier
Consumer confidence
What are the implications of online growth?
Decrease in store numbers
Share of online retail sales will increase
Decreasing employment
Increase in companies that cease trading
Lower costs - labour, storage, property etc
Amount of consumers that can be reached by all businesses
Easy and cheap to start up online
What is CSR?
Corporate Social Responsibility- a business philosophy that emphasises that firms should behave as good citizens
What are the four sections of Carroll’s triangle?
Philanthropic
Ethical
Legal
Economic
What is the shareholder concept?
Meet the responsibilities of shareholders through maximising profits
This should increase share price and dividend payments
Encourages short termism and increased risks to generate profits - including falsifying financial statements
What is the stakeholder concept?
A business takes into account the obligations it may have to society in general in all its decision making
What are corporate social reports?
Documents that set out a business’s targets for meeting its social obligations
What are the pressures for socially responsible behaviour?
Consumers expect it and are more aware of business behaviour Social media - impacting reputation Attract employees Build a stronger brand Support in accessing new markets Support growth Improve revenue
What are the ways in which technology has effected business performance?
Marketing - new products, communicating with customers
Production - CAD/CAM
Communication within a business
HR - redundancy, skill sets
