external analysis Flashcards
list types of laws business’s have to comply to with regards to competion law
- business’s cannot conpsire to fix prices with other business’s
-business’s cannot utilise predetory pricing
what laws are put in place to protect the enviroment
climate chnage act - regulates how business conduct themsevles with regards to enviroment
-fines can be given for wate on land/water
what do consumer laws do
protect the consumer from business’s doing things like misleading customers via adverts
what do employment laws do
ensure employee has legal right to fair treatment whilst at work
-must not be trated unfairly based on age,race, gender ect
what is GDP what does it mean and what is it used for
GDP is gross dometic product and measures the total vlaue of products produced by a contry, measures economic preformance
what is inflation
inflation is an increase in the price of goods and services
what is demand pull and cost push inflation
demand pull inflation - demand for products/ services increases so prices go up
cost push - business costs go up so equally prices must go up to cover costs
what is deflation
deflation is the oppostite of inflation - when there is not eneogh demand so companies reduce their prices
what are exchange rates
exchange rates is the value of one currency to another
what does spiced stand for
s- strong
p- pound
i- imports
c-cheap
e-exports
d-deer
exchange is 1pound 1.40 euro
convert 420 euro into pounds
420/1.4
(from exteral to pounds you divide)
exchange is 1pound 1.40 euro
convert 47 pound into euro
47 x 1.4
(from pound to external you times )
what is fiscal polacy
this is done by governemt
fiscal polacy does two things - sets tax rates and controls government spending
increasing taxes decreases spending - which could be done to tackle demand pull inflation
lowering taxes means more economic activity
what is monitary polacy
monitary polacy is done by bank of england
monitary polacy is all about altering interest rates in order to control inflation and exchange rates
what is open trade
when inports and exports are not regulated
what is potectionisum
when government protect domestic business’s and jobs from foriegn competitorse.g tariffs
what is globalisation
globalisation is the increase in how connected the business world is
globalisation has lead to business’s opening up in other contries
why has there the been an increase in globalisation
- the internet and e-commerse
-global finacial markets -money can move more easily
-cargo ships
-cheap fast travel
what is urbanisation and how does it impact business
urbanisation is the increase of population living in a certain area
-this effects decsion making as a firm needs to find a way to taylor to this wider audience
how does migration impact decision making
-fill shortages in workforce
-increases demand for certain products
what is CSR
corporate social responceability - concept that business’s should go above and beyond in order to boost enviroment and workforce quality of life
describe Carrolls pyramid of CSR
philanthropic responcabilites- go above and beyond
ethical respnocablilties - to do the morally correct action
legal responcabilities - following law
economic responsibilities - basic business needs for survial like profit
cannot do anything ethical without this
first
what are porters five forces
-barriers to entry
-buyer power
-supplier power
-threat of substites
-rivalry within industry
