external influences Flashcards
buying materials online - advantages
- order 24/7
- no travelling - save costs
- wider choice
buying materials online - disadvantages
- misleading images
- delivery delays
- fraud possibility
customer data benefits
- more effective data handling
- mailing merge
business environmental costs
- pollution - NAWL
- congestion
- climate change
- finite resources
sustainability
carrying out business activities without damaging the environment
sustainable production examples
- biodegradable packaging
- promote recycle schemes
- use renewable packaging
- fair trade
- minimise waste
environmental policies - advantage
- reduce costs
- avoid legal penalties
- good rep
- ethical customer loyalty
- employee motivation
environmental policies - disadvantages
- costs - resources more expensive
- employee training - increase costs
- material issues - finding alternatives
international trade - advantages
- bigger market - more sales
- economies of scale
- wider customer range - downturn in one market
- exchange rate - rise in GBP value
international trade - disadvantages
- transport issues => costs, strikes - restrict distribution
- lang barriers => translation costs eg. magazines
- different laws => eg. environmental laws
- foreign markets - demands
globalisation
the increased interdependency of people around the world
- result of increased trade and cultural exchange
- led to increased production of goods and services worldwide
globalisation opportunities
- wider recognition
- wider employee choice - diff skills & knowledge
- wider customer choice
- investment opportunities
globalisation threats
- more competition
- lose employees to competitors => think another countries conditions are better
- exchange rates - may rise when importing - decrease profit
globalisation customer advantages
- more choice
- lower prices
- better service - better workers
- mass production
globalisation customer disadvantages
- different qualities
- exchange rates - pay higher price
employment law
laws protecting the rights of employees
legal responsibilities to its workers
- health and safety
- don’t work over working hours
- equality laws
- minimum wage
contract of employment
legal document stating:
- rates of pay
- working hours
- holiday lengths
minimum wage
- a minimum hourly pay rate set by gov => all employees must receive this pay => diff for diff ages
- adv - inc pay=> inc motivation=> inc productivity
- disadv - inc labour costs=> dec profit
- ignore - fines=> bad rep=> low sales
equality act
- employees can’t be treated differently based off: age, disability, gender, belief, race etc.
- adv - diverse workplace=> good rep
- disadv - training=> more costs
- ignore - discrimination compensation=> bad rep
health and safety act
- employees health, safety and welfare must be safeguarded eg. installation of machines, protection against danger substances.
- adv - lower absenteeism=> inc productivity
- disadv - training=> inc costs
- ignore - prosecution=> bad rep
unfair dismissal
- when employer ends employees contract:
=> job doesn’t exist
=> can’t do job properly
=> long-term illness
consumer laws
- laws to prevent business from treating customers unfairly eg:
- selling unsafe product
- selling poor quality products
- selling products described wrong
legal responsibilities to customers
- safe environment
- good conditions of product
- accurate description of product
consumer rights act
- gives rights when buying goods => all products must be: of satisfactory quality, fit for purpose & as described.
covers: - refunds
- returns
- repairs & replacements
advertisement law
- marketing must be: accurate, legal, decent, truthful, socially responsible
-can’t: include false messages, leave out important info
ASA
- regulate advert content=> ensure they’re following code
- investigate complaints=> can remove ad
intellectual property
- property that can’t be touched as a result of a persons creativity eg:
- brand names
- inventions
- designs
