External business environment - technological developments

Question 1

Advantages of internet/personal computing

Answer 1

• video conferencing makes it cheaper to operate globally, as there is less need for expensive air travel
• internet means that sales can be made 24/7, not restricted to shop opening
• cloud software e.g. OneDrive allows for files to be easily shared and accessed

Question 2

Disadvantages of internet/personal computing

Answer 2

• easy for competitors to see firm’s prices/services online
• employees constantly checking for emails is inefficient
• viruses can cause systems to crash, leading to downtime so areas of business cannot function

Question 3

Effects on operations

Answer 3

• CAD allows more accurate and precise product design
• computerised inventory system make process of inventory control more accurate

Question 4

Effects on HR

Answer 4

• spend less on wages as accepting orders, checking inventory can be automated
• training costs increased as employees need to be trained in new ways of working
• unsociable hours for a 24/7 help desk

Question 5

Effects on finance

Answer 5

• no cash transactions, sales updates quicker
• investment in website increases costs short term
• payments for wages reduced as no need for physical outlet

Question 6

Legislation - GDPR description

Answer 6

• the general data protection regulation (GDPR)
• if you are running a business and hold info on third parties it is your responsibility to register business under act and follow rules

Question 7

Legislation - GDPR seven principles

Answer 7

• data minimisation
• purpose limitation
• storage limitation
• accuracy
• integrity and confidentiality (security)
• accountability
• lawfulness, fairness, and transparency