Analysing External Environment Flashcards
What are 4 key areas of focus?
Competition Law
Labour Law
Environmental Legislation
Governmental Policy
What do I need to know for political and legal change?
Need to understand the impacts of different types of legislation
What must businesses adhere to?
To ensure a fair and sustainable trading environment
What are 3 Scope and effects of competition law?
Anti-competitive agreements
Abuse of dominant market position
Merger control
What are anti-competitive agreements?
Stops any collusion or arrangements e.g price fixing, discounts, sharing suppliers or markets
What is abuse of dominant market position?
Any businesses with 40%+ market share would be considered dominant. Businesses can’t abuse that power
What is merger control?
Any mergers or acquisitions will be reviewed to ensure they don’t have a significant impact on reducing competition
Who governs competition law?
The CMA and FCA
What does CMA stand for?
Competition and Markets Authority
What does FCA stand for?
Financial Conduct Authority
What is a benefit for suppliers of competition legislation?
Encourages suppliers to differentiate
What is a benefit for consumers of competition legislation?
Range of price points
What is an example of employment law?
The Equality Act 2010
What are 2 aims of employment legislation?
To protect individuals from unfair treatment
To advance equality of opportunity
What is the national minimum wage’s purpose?
Covers young people and apprentices
What is the national living wage’s purpose?
Older workers - liveable amount
What is SWOT?
Strengths
Weaknesses
Opportunities
Threats
What is PESTLE?
a tool that is used to assess/analyse external factors of a business.
Why do core competences make the business more competitive?
Hard for competitors to copy
What is the idea of Elkington’s TBL?
That businesses are responsible to all their stakeholders and to the planet
What is the circular flow diagram?
A model that shows how an economy functions. It illustrates how money moves from producers (businesses) to consumers in a endless loop.
What is GDP?
Gross Domestic Product
What does GDP mean?
Measures all of the economic activity of companies, governments and people in a country
What is GDP Growth caused by?
3 points
Capital investment
Technological Advances
Population Growth