Chapter 2 Flashcards
Impacts of ICT on businesses
The Location of Employees - Wider locations
Data collection and analysis - Digitalised
What is E-commerce
Goods and services sold using an electronic system such as the internet.
What does e-commerce include?
Businesses selling on websites.
Individuals selling to others through websites such as eBay.
What is M-commerce?
A part of e-commerce which happens when a product is bought over a mobile device.
What constitutes digital communication?
Email Texts Webchat Teleconferencing/Video-conferencing Apps Social media
What does digital communication mean for customers?
A better relationship with the business as they are easier to purchase from and contact.
What does digital communication mean for suppliers and employees.
Improved communication and ease. For employees it makes it easier to get paid, for suppliers it is easier to receive orders and be paid.
What are ethics?
Ethics refers to wether a business decision is thought to be morally right or wrong.
Examples of ethical marketing.
Designing products with reduced environmental damage.
Avoiding targeting children with potentially harmful products, e.g. fast food.
Not using a dominant market position to set unacceptably high prices
Examples of ethical business operations.
The business may not buy resources from unethical suppliers.
Manufacturing recyclable products
Examples of ethical Human Resources
Offering employees opportunities such as high quality training
Paying wages sufficient enough to allow a decent lifestyle
Examples of ethical finance
Paying taxes in full
Investing in the local community
Sources of air and noise pollution.
Agriculture
Manufacturing industries
Transport
Power stations
Examples of environmental considerations for businesses
Traffic congestion
Air and noise pollution
Use of scarce resources
Global warming
Examples of how businesses and consumers can show environmental responsibility.
Sustainability-Production
Disposing of waste
Recycling
Creating and using different methods of transport, eg Car share,
What decisions can consumers take to help protect the community.
Recycle products at home
Reduce amount of waste
Buy environmentally friendly products
Complain to businesses about harmful practices.
Advantages of environmentally friendly and ethical practices.
Advertising points
The ability to charge a higher price for their products
Win new customers
Disadvantages of ethical and environmentally friendly policies.
Increases costs
Ensure that they stick to their claims.
What are interest rates?
Interest rates are the cost of borrowing money, expressed as a percentage.
What would a fall in interest rates mean to consumers?
Less inclined to save as they’d receive less of a return.
More willing to borrow to buy expensive items as the cost of borrowing would be down.
What do rising interest rates mean to businesses?
Increasing costs due to increasing loan repayments.
Impact of falling interest rates to businesses.
Borrowing costs will be reduced, therefore improving businesses profits.
Businesses with large savings would receive reduced returns.
Effects on business of low unemployment.
Lower unemployment means more people will be spending money meaning increased sales revenue and profit, enabling growth to create more jobs and repeat. (Cycle of prosperity)
Effects on business of high employment rates.
The possibility of higher sales
Increased employment costs-Skilled workers become scarse and therefore you have to pay more for them.
