B2 - Influences On Business Flashcards
What is E - Commerce?
Any form of business activity conducted electronically
What are some methods of E-Commerce?
- online advertising
- online auctions
- online bookings
- online purchases
- online shopping
- websites
- mobile apps
- electronic payments
- internet banking
- social networking
- contactless transactions
What are some methods of Digital Communication?
- Mobile phone call
- Text
- Video conference
- Social media
- Skype
- Blogs
What is Ethics in Business?
Ethics are moral guidelines which govern good behaviour
- Most businesses operate to meet the needs of the owners or shareholders
- Ethical businesses operate to meet the wider needs of their stakeholders, and try to act in a way that is honest and fair
What are some ways Businesses can be more Ethical?
- Paying workers higher wages
- Improved working conditions
- Reducing pollution
- Buying Fairtrade supplies/agreeing to pay more to suppliers
- Donations to the community
- Reducing packaging
What are advantages of a Business trading ethically?
- Increased sales from their reputation of ethical trading, may mean higher sales revenue, may mean higher profits
- Possibly more loyal and motivated staff
What are disadvantages of a Business trading unethically?
- May mean the business is unable to maximise profits for the shareholders
What is a trade off?
A trade-off is a compromise between one thing and another
• There has to be a trade-off between making a profit and being ethical so everyone’s happy
What are some environmental considerations of a business?
- Traffic congestion
- Recycling
- Waste disposal
- Noise pollution
- Air pollution
What are benefits of a business trading with the environment in mind?
- Businesses can use their green credentials to market their products, it can be the unique selling point for the product
- More environmentally product might meet customer needs
- Investing in greener energy can result in a cost saving eventually
What are disadvantages of a business trading with the environment in mind?
- May involve more expensive production methods, could mean the goods are more expensive for customers
What is “ economic climate “?
The general condition of the economy, the way that the resources and the production and consumption of goods are managed
What are interest rates?
The percentage of a loan that’s charged as the price for borrowing
How does an increasing Interest Rate affect businesses?
- Cost of borrowing will rise
- Costs for a business may increase
- This could lead to a fall in profits
How does an decreasing Interest Rate affect businesses?
- Cost of paying loans
- May lead to an increase in profits
What is Disposable Income?
- The personal income that remains after direct taxes and government charges have been paid.
What is Discretionary Income?
Amount of an individual’s income that is left after paying taxes and personal necessities
How does unemployment affects business?
- Weakens consumer buying as people have less money
- Lower wages costs, a business can pick and choose the candidates as there are more people out of work looking for work, it can also lower the wage rates
How does consumer income affect a business?
As consumer incomes rise, demand for better products increases
As consumer incomes falls , demand for better products decreases
What is globalisation?
The process by which the world is becoming increasingly interconnected as a result of more international trade
What is multinational?
A multinational is a business which trades in more than one country, often shortened to MNC
How does globalisation benefit UK businesses through Wider Markets?
Trading on a global level (rather than just the UK) means access to more customers, and opportunities to trade in bigger markets:
How does globalisation benefit UK businesses through Specialisation?
- Globalisation can mean that some economies start to specialise at what they are good at
• This makes the country very efficient at producing those goods, they can be better quality and more innovative than other countries, which gives them competitive advantage
How does globalisation drawback UK businesses?
- Foreign Competition : competing in a global market can mean that UK businesses will have to compete against foreign imports
- Loss of UK staff : globalisation and migration means that UK staff can be poached by overseas companies
