External influences on business activity Flashcards
Types of laws (4)
Consumer Laws
Employment Laws
Competition Laws
Planning and environmental laws
Monopoly
Theoretically a situation in which there is only one supplier, but this is very rare: for government policy purposes this is usually redefined as a business at least 25%
How do monopolies develop? (4)
Invention of new products
Merging or takeovers
Legal protection
The existence of ‘barriers to entry’ into an industry
Social Audit
A report on the impact a business has on society ( pollution levels, health and safety…)
Information technology
The use of electronic technology to gather, store , process and communicate information
Innovation
Creating more effective processes, products or ways of doing this in a business
Computer-aided design ( CAD )
Using computers and IT when designing products
Computer-aided manufacturing
The use of computers and computer-controlled machinery to speed up the production process and make it more flexible
Limitations Applying tech to business
Capital costs Maintenance/updating costs Training costs Reliability/ security Data protection Need for adapting
Applying tech to business opportunities
New product development Improved efficiency More effective communication Efficient data processing Smarter market knowlegde
Social changes
Rapidly increasing population
Ageing population
Increased numbers of women in workforce
Increased multiculturalism
Pressure groups
Organisation created by people with common interest or aim who put pressure on businesses and government to change policies so that an objective is reached.
Exalples of pressure groups
Greenpeace
Fairtrade Foundation
WWF
What do pressure groups want
Gov to change policies and pass laws supporting the aims of the group
Businesses to change policies
Consumers to change buying habits so that businesses who are ethical increase sales
Pressure groudps achieve goals by
Publicity through social media
Influencing consumer behavior
Lobbying of government
