Business Studies Chap 4 Flashcards
Contemporary socio-economic issues and businesses
What is the impact of Low Income Levels
- Many S.ANS live in poverty, which limits their buying power
-Because of this limited consumer spending, buses. are unable to grow and prosper
-Consumers opt to spend money on cheaper goods and products
-Low-income earners mainly spend their money on basic goods and services, thus leading to lower profits for buses.
What is inflation
-Refers to the general increase of prices. Increaes fall in the purchasing value of money
-Rising inflation causes consumers to spend less because they have less Disposable income
What is the impact of inflation
-Bus. sales will decrease because of reduced consumer spending on goods/services
-Bus. will have less money to spend on producing goods if the cost of raw materials increase
-Reduced sales figures could lead to bus. implementing cost-saving models
-Reduced Bus. profits because of declining sales figures may lead to bus. retrenching staff members
what is the social, cultural and demographic issues
-The way in which people live, work, produce, and consume products(social and cultural factors) can influence the market environment
-S.A diverse population characterized by different race group , religions, creeds
What is the impact of S.C.D issues
-Bus. need to try and accommodate the preferences of the diverse consumer body so that it could lead to increase in sales for the bus.
-Bus. are also encouraged to keep track of latest trends in the different industries so that they can grow their market share.
What is economic crime
-Refers to the money gained through unlawful business dealings covered up under a shell company(or a bus. with a ‘fake name’)
What is the impact of economic crime
-Theft of bus. profits through fraud and deception lead to a decrease in profits for the bus.
-Cyber security poses a huge challenge, especially for bus. who advertise their products on the internet
-Bus. need to spend money on installing additional security features in offices or on the premises. This may result in additional costs.
What is Population Growth
-Refers to the percentage change in the population as a result of births, deaths, relocation to other countries
-The word ‘population’ refers to the amount of people who live in a country
What is the impact of Population Growth
-Bus. are challenged to provide goods/services to meet consumer demands
-Bus. growth may lead to creation of jobs for some people.
-A high population growth may put strain on the natural resources of the country.
-The economy may also be put under strain because of increasing number of individuals who require support from the Gov.
What is Illiteracy
Refers to people who unable to read or write
What is the impact of Illiteracy
-Bus. may find it difficult to enter into written contracts with illiterate individuals
-Little to no literacy skills put people at a disadvantage when trying to find employment or when trying to learn a new skill
- High levels of illiteracy in communities may force bus. to contribute towards edu. programs to minimize its impact
-There is a strong link between unemployment and illiteracy as bus. can’t employ people who can’t read or write
What is the impact of Lack of skills
-This could lead to errors and having to repeat or correct a work task
-Businesses may be required to increase the budget for skills development programme
-Unskilled workers could spend considerable time seeking assistance to perform their work
-The time spent on assisting unskilled workers can reduce productivity levels in the workplace
What is Unavailability of natural resources
-Oil, water, coal are examples of natural resources. The resources are becomming more and more scarce.
What is the impact of unavailability of natural resources
-Oil and coal are examples of natural resources that are not renewable. Once depleted, they cant be recovered
-Bus. will not be able to produce goods due to shortages of natural resources that are used as raw material.
What is inefficiency in the sue of resources
Unnecessary wastage leads to further depletion of the natural environment and threatens the future supply of natural resources.
What id the impact of inefficiency in the use of resources
-Businesses cant produce at optimum levels if resources are not adequately used
-Reduced production levels may lead to a drop in sales and profitability
-Unused stock can become obsolete, increasing losses for businesses
What is dumping
-Occurs when a country/company exports a product at a price that is lower in the international importing market than the price in the exporters local market
What is the impact of dumping
-Local bus. lose profits as they cant compete with cheaper prices
-They may also lose income and forced to close their operations
-This may lead to a decease in local production and a loss of jobs
-Its not possible for local bus. to manufacture the same products at an equal price or lower
What is exhaustion of natural resources
Refers to the over-usage of natural resources, which could lead to depletion of these resources
What is the impact of exhaustion of natural resources
-Exhaustion of natural resources can be devastating for bus. whose operations solely depend on their existence
-Over time, the depletion of these resources will lead to an energy crisis, which gov. will then need to address.
What are strikes
Strike is a result of unresolved disputes for examples, on salary increase between the employer and employees.
What is the impact of strikes
-Strikes actions have a potential of jeopardising relations between the employer and employees
-It can also affect teamwork in the workplace in instances where not all workers are in support of such industrial action
-Bus. suffer financial losses due to low levels of productivity and consumer confidence is adversely affected
Meaning of Piracy
-Is the illegal use or imitation of persons work
What is the impact of Piracy
-Bus. suffer substantial losses in revenue because of the illegal reproduction of artists’, music, movies and branded clothing
-Unlawful copying and streaming of movies and TV series lead to a decline in the sales and profits for the business
-Artists may see no value in producing a new set of music or movies because of reduced sales
-This may affect the artists and producers productivity levels
Copyright
-Refers to an exclusive legal right assigned to the author, artist, or producer of artistic work to print, perform, or record the work
-Laws relating to CR protect authors and allow them to sell their works to make a profit
Patent
-Gives the creator of the product the right to prohibit other people from making or using their invention
-This right is granted by Gov. for a limited period of up to 20 years for the exclusive right to an invention
Trademark
-Refers to a sign, character or word that is protected by law to represent a product or company.
-Damages may be claimed from individuals who make use of the trademark illegally.
Meaning of industrial relations
-Refers to the relation between management and workers in the industry
What are Go-slows
-Are a form of industrial action in which work or progress is deliberately delayed or slowed down as a from of protest
-The goal is to reduce bus. productivity or efficiency
What are Lockouts
-Occurs when the employer prevents striking employees from entering the bus. premises
-When bus. comply with the Labor Relations Act, the lockout is regarded as legal.
What is the purpose of the Labour Relations Act
-The act provides the structure for governing the relations between an employer and their employees.
-It encourages collective bargaining processes to take place in the workplace
-It encourages the establishment of workplace forums to support employees in decision-making
-The transfer of employment contracts between the existing and new employers are explained
Meaning of Trade Unions
-Is an association formed by workers to represent and protect their rights in the workplace
What is the role of Trade Unions
-The main role of trade unions is to represent staff members in the workplace
-They highlight the need for job creation in the country
-Trade unions advocate that the economy should support the working class and the poor
-Hold discussions on poverty reduction programs, reasonable income levels, and job creation strategies with employers
What is the function of Trade Union ?
-Trade unions represent and protect their members against unfair labor practices in the workplace.
-Employees are protected from unfair dismissals and labor practices.
-They may take legal action on behalf of their members when necessary.
-They empower employees about their rights in the workplace and how to apply these rights.
