External Influneces (blackwell) ✔️ Flashcards
Demand and supply
What happens to the demand if the price decreases
-if price goes down demand will increase
-demand on x axis, price on Y axis.
-moves up and down the line not parallel
What happens to demand if income decreases:
-if income decreases demand decreases as people have less money to spend
-price on y axis, quantity on x axis
-the line moves parallel to create a new line.
-there will be more demand for cheaper items and less demand for higher prices
What is a complement and substitute:
-complement: something that you buy with the original peice
-substitute: something that is replaced by the original as the same but different brand
Determinants of supply: What is price and cost
-price: the amount that a customer is willing and able to pay
-cost: the amount spent by a business making/supplying/buying in the products
What happens when price goes up to the supply
-supply increase with increase of price as the business are able to supply more products
-supply graph:
Price on y axis, quantity on x axis. The supply moves up and down 1 line.
What happens when costs goes up. What does this do to the supply
-if costs go up supply goes down as the business can’t supply more with higher costs
Supply graph:
Price on y axis, quantity on y axis. 2 lines with change in costs. The line moves towards the x axis
What is tax and subsidies: and what happens to them if they both increase
-tax: is a mandatory contribution to government pay that is forced
Graph: if tax increase then supply will go down/ towards x axis.
-subsidies: money given out to businesses by the government
Graph: if they increase then supply will increase as they can afford to make more. Line moves away from the x axis
What happens to supply of original product with the decrease of price. And what happens to subsidy products Eg/ Coca Cola
And other way round
-increase in demand of Coke causes a increase in supply of coke. Pepsi supply decreases as demand decreases
-if demand of coke decrease supply will decrease and supply of Pepsi increases as demand increases
What is an energy price cap and why is it effecting suppliers
-a bid to limit the price a supplier can charge per unit of electricity and gas.
-it is effecting suppliers as they can’t increase the price of gas due to teh cap
How does a supply and demand graph look like with an increase in price
-price on y axis
-quantity on x axis
-supply going up
-demand going down with 2 lines.
-Price 1 has a lower Q1 with a lower equilibrium (where the lines cross) and a higher supply
-price 2 has a higher Q2 with a higher equilibrium and higher supply
What happens when there is a decrease in supply.
-price on y axis
-quantity on x axis
-P1 has a lower Equilibrium with a higher demand and quantity
-P2 has a higher equilibrium with a lower quantity sold and lower supply
What does excess and shortage mean and what do each look like in a graph
-excess: more supply then demand, and so if they decrease the price they will have an increase in demand.
Graph: gap at the top of the x from where price line hits demand line to supply.
-shortage: more demand then supply. To reduce demand increase the price.
Graph: the gap in the bottom of the x where the line from price hits supply line to where price hits the demand line.
What is elasticity and inelasticity of demand
Elasticity: measures how sensitive quality demanded is to a change in price. When there is an increase in price demand decreases (luxury goods)
Inelasticity: when there is no change in demand when price increase as they are often necessary items that need to be brought even with the change of price.
What is market size and growth and share:
-size: expressed as the collective value of the goods/services that buyers purchase
-growth: % change in the size of the market measured over a specific period.
Change/original x 100
-share: % of sales an individual business has in a specific market.
What is the definition of competition and a market:
-competition: rivalry amongst sellers in one market
-market: any distraction where buyers and sellers are in contact and establish the prices
What are physical and non physical markets:
-non physical: can be classes as either online (physical but brought online) or Digital (immediately have product downloaded)
-physical: Physical market is a set up where buyers can physically meet the sellers and purchase the desired merchandise from them in exchange of money.
What is barriers to entry and give examples to what they are:
Barriers to entry: the factors that could prevent a form from entering and competing in a market
These include:
-large start up costs
-having the market budget to break customer loyalty
-inability of economies of scale
-price wars of existing businesses
-legal restrictions
What is economies of scale
When output goes up unit costs go down
Market structure: what is a competitive market and it’s features:
A market in which there are a large number of sellers. Businesses in these markets compete mainly on price.
Features:
-many firms
-low prices
-low barriers to entry
Eg/ farming
What is a monopoly and its features
-a market dominated by 1 seller as there are few substitutes. They have more then 25% of teh industries sales
Features:
-low competition
-high prices
-high barriers to entry.
What is oligopolies market structure and it’s features
-exists where a market is dominated by a few firms (Mobil phone firm)
Features:
-products and prices are similar and usually higher
-businesses compete on non price differences
What is a monopolistic competition in market structure and it’s features:
-a market structure with many competing firms each of who supplies a slightly different product
Features:
-quite a lot of firms
-lower/ average prices
-eg/ restaurants
What is a collusion market structure and its features:
-rival companies cooperate for their mutual benefit influences products price levels. It is illegal. They usually keep prices high then if the market was competitive.
What is market power
-the ability of a firm to influence or control teh terms and conditions in which goods are brought and sold
What are synergies and it’s benefits for a business
-When 2 businesses are more valuable working today here then they are apart
Benefits:
-may gain new management with different skills and talents
-increase in revenue due to higher market share
-may be able to meet customer needs more effectively with combination of resources
-experience economies of scales
Disadvantages of synergies
-nah suffer from diseconomies of scale
-may take on extra debt
-could result in redundancies
-could result in higher prices
-could result in a dominant business decaying terms and conditions
What is organic growth and what are the methods:
-growth from within the business
Methods:
-open new stores
-launching new products
-employing more workers
-investing in technology
Advantages and disadvantages of organic growth
+less risk then external growth as it is less financially damaging, able to use profits rather then loans, less expensive, steady growth rate
-slower, market size might be small or not growing so can’t build up more customers, might not be allowed to grow legally.
What does CMA stand for and what do they do
-competition and market authority
-investigate mergers between organisations, to make sure they don’t reduce competition
What is the cartel act and what sanctions can the CMA apply to offenders.
When businesses agree to act together instead of competing with eachother. Includes illegal acts like price fixing, bid rigging and market sharing.
Sanctions:
-fining 10% of global turnover
-customer and competitors can sue the company
-individuals might not be allowed to be company director
-individuals can be fined
What are regulations
Regulations are the legals involved in making sure your business complies with the law.
Separate regulations exits for former nationalised industries like gas, electricity, water, railways and telecoms
What can the CMA do to reduce market dominance
-blocking the merge or growth
-force to sell
-prison
-reputation damage
-fines
What does STEEPLE stand for
-social
-technological
-economic
-environmental
-political
-legal
-ethics
What is GDP and economic growth
-gdp (gross domestic product): total value of output produced in an economy in a year
-economic growth: the annual % change in GDP
What can the government do to facilitate economic growth
-encourage. Investment in physical capital by offering subsidies or lowering taxation
-improve infrastructure through better transport links. This increases the speed with which raw materials and products can be delivered
-improve the quality of human capital by investing in education.
What does GDP include, what does it mean if it goes down/up and what is the impact of it.
1.healthcare, shopping, mortgages, loans, services, transport
2.means economy is shrinking or growing
3.house prices decrease and less employment. House prices increase, more jobs and more wealth
What is standard of living
The amount of goods and services a person can buy with their income in a year.
What is inflation
Persistent general tendency of prices in the economy to rise
What is consumer price index
A measure that examines the weighted average of prices of a basket of consumer goods/services
Causes of change in consumer price index
-tax reductions
-rising wages
-increasing demand
-increase in costs
What is disinflation
Inflation at a slower rate then a year before
What causes inflation
-cost of making/inputs for a product
-demand
-shirt supply
-cycle of rising costs-> prices
What is cost push and demand pull
-cost push: inflation caused because any costs increases
-demand pull: more buyers competing causing a higher demand so costs increase
What are economic indicators
-increase in uk interest rates
-better return in uk saving accounts
-hot money flows in to take advantage of higher interest rates
-increased demand for £
-appreciation in value of £
What are interest rates
An interest rate is the reward for saving and the cost of borrowing expressed as a % of the money saved or borrowed
-the Bank of England sets interest rates
What is the monetary policy and who controls it
-Monetary policy is the manipulation of the level of demand in the economy using the rate of interest
-monetary policy committee
What is fiscal policy.
-Economic policy conducted by the government through taxation and public spending.
-affects the level of demand in an economy
-increased tax will lead to less spending
-decreased tax will generally lead to more spending
What is the multiplier effect
The effect of changes in economic activity in one sectors in other sectors; if one business experiences a rise or fall in demand for its products this has a knock on effect on businesses suppling it.
What is supply side policy and how can they do this:
-Aims to improve the economy’s overall productive capacity
-invest in education and training
-reduce welfare benefits
-income tax cuts
-cuts in corporation tax
-encouraging business start ups
What are exchange rates
The value of one currency in terms of another
Eg £1 to €1.30
What is strengthening and weakening exchange rates
-strengthening: If the pound increase in value it is said to strengthen. This means that £1 will buy more of a foreign currency.
-weakening: if the £1 decreases in value it is said to weaken. This means £1 will buy less in a foreign currency
What does SPICED and WPIDEC
SPICED: Strong pound imports cheap exports dead
WPIDEC: weak pound imports dear exports cheap
What does unemployment mean and what happens when employment increases
-unemployment: situation in which people who are able and willing to find work are not able to find employment
-if employment rates rise then gdp will to
Why does the government want low levels of unemployment
-waste of Human Resources as they could be producing goods for the economy
-bad for society (increased crimes and poverty)
-waste of money could be spent on more important things including health.
-low level of unemployment means gov can tax more people
What is balance of trade.
Difference between the value of exports and imports
What is it called when exports exceed imports and when imports exceed exports
-if exports exceed imports there is a balance of trade surplus
-if imports exceed exports there is a balance of trade deficit
How can a country increase exports and decrease imports
-trade barriers (reduce imports)
-good quality/ unique products (increase exports)
-low/stable inflation (increase export)
-weak pound
-promote passport to exchange programme
What is indirect and direct tax
-indirect: these are taxes on expenditure/spending. They are paid to the tax authorities by suppliers not the customer.
-direct: these are taxes in income and profits, Paine directly by the bearer to the tax authorities
What is income tax, NI and VAT
Income: a tax take out of a persons income.
-NI: this is taken as a contribution towards the state pension and treatment under the NHS
-VAT: value added tax is tax on selling price.
What is corporation tax
A tax on the profits made by companies
What is a subsidy
Payment by the government to suppliers. The effect of a subsidy is to increase supply of particular goods
Benefits of subsidies
-decrease prices
-encourage consumption of goods
-helps businesses survive during the start up period
-helps declining industries
-boost demand during recessions
What is the business cycle and what’s are the 4 stages
-periodic growth and decline of a nations economy, measured in gdp
Stages:
-expansion
-recession
-depression
-recovery
-expansion
What is exchange rate calculations
Money in after exchange/ money before exchange
How can a business use business cycle to its advantage
-asset sharing
-sales of products
-sake sharing
-staff wages reduction
-land buying and selling
What is ethics
Concerned with the judgement about whether something is morally right or wrong but not illegal
Advantages of ethical behaviour
-attract new customers
-attract new and better quality customers
-positive publicity
-encourages employees to stay with a business
-encourages investment from outsiders
Disadvantages of a business behaving ethically
-increased costs
-danger of building up expectations
-less competitive in price
-could lead to less output (due to higher costs of staff)
Why are some businesses more affected by ethical issues
-larger business are more well know and get more media attention
-businesses involved in outsourcing production to counties with different laws
-businesses with low price points as are able to get lower prices due to unethical issues
What is computer hardware: technological factor
Includes the physical parts of a computer
What is computer software: technological factor
Programmes or apps, consist of all the instructions that tell the hardware how to perform a task
Advantages of a business using technology
-systems are usually faster and more effective
-communication is easier
-costs may be reduced due to effectiveness in long term
-remote working is possible
-reduces need for physical storage
-offers convenience for customers
-offers employees new skills
Disadvantages of business using technology
-higher initial costs
-may lead to job losses
-not always reliable
-staff need to be trained
-the business will need to spend time and money developing processes to keep data safe
-may cause demotivation in workers if they can be replaced by technology
What is national minimum wage
It is the minimum pay per hour workers of school leaving age are entitled to by law.
What is national living wage
This is the new minimum wage rate for those aged 23+
Key legal points for a business
-business can be fined for any breaches of civil law
-they will have to reimburse underpayments
-complying with the law will lead to the avoidance of bad publicity which may deter future employees and customers
-an increase in minimum wage can be significant to a business total wage bill
What is intellectual property
Intangible property that is the result of creativity
What is trademark
A company can register a trademark for its business name, slogan, logos, and other items that essentially brand the products or company
What is copywrite
Legal protection against copying for authors, composers and artists (is a automatic right)
What is planning permission and why does it exists
-is when you seek permission to create new buildings or addition to a building from a local authority
-exists so local authority can see if there are problems like size, infrastructure,landscaping
-if planning permission isn’t sought they may have to demolish at their own costs
What is consumer rights act
protect consumers against poor-quality products and unfair business practices or contract terms with regards to transactions, repairs, refunds and delivery.
What is the clean air act
Aims to control domestic and international emissions by introducing smokeless zones. This means that households and businesses need to use smokeless products
What is climate change act
It sets out emissions reduction targets that the government must comply with legally. Act aims to reduce greenhouse gases
How to reduce green house gases
-offset by planting trees
-technological improvements
-electric homes
-reduce meat consumption
-making homes more energy efficient
Why does the environmental legislation exists
-address pollution
-protect human health
-support continued growth of economies
-need healthy workforce
-need resources
What is anti money laundering legislation
refers to the activities financial institutions perform to achieve compliance with legal requirements to actively monitor for and report suspicious activities of laundering money.
-solicitors and accountants and banks have to abide by this
What is the anti bribery legislation
It is illegal to offer, request or accept bribes
-bribery is giving someone a financial or other advantage to someone to encourage a person to do something for them
Why does a financial legislation exist
-encourages professionals to report suspicious activities or known wrong doings
-promote fairness and prevent businesses from gaining an unfair advantage
What is the data protection act
-An act to protect personal stored data on computers about a person. Businesses scant use personal information of customers is not wanted and so can’t use it to help better their service
-fines will be given to businesses that don’t follow this
-gives individuals the power to take control of their own personal data
What is smoking at the workplace act
-employees must by law prevent people from smoking at work if within an enclosed area. Businesses might have to provide smoking breaks and areas
-sanctions can include fines of £200
-purpose of this is to not allow people to smoke in areas that will affect customers
What is the health and safety act
Places a duty on employers to ensure the health, safety and welfare at work of all employees. Businesses just follow this act and ensure equipment is safe
-sanctions include fines, imprisonment
-purpose is to ensure that employees are working in a safe area
What is the weights and measures act
-provide metric units that needs to be the exact same that the product advertises to be
-purpose is to give customers good quality and quantity
What do contract law
Each person on a contract must abide by what they have signed and if they break a contract they are subject to compensate for it
-purpose is to create new relationships and show legal obligations each perosn and business agrees to
What is demographics
The characteristics of human population groups
What are examples of demographic groups
-age
-ethnic diversity
-gender
-occupation
-family status
What is environmental factors
-behaving in an environmentally sustainable way
What are the impacts of change a business to be environmentally friendly
-costs to change business practices
-gaining access to nee markets (May loose or gain markets)
-pressure from consumers (may be made to change by consumers)
-pressure from stakeholders
What is sustainability
Refers to preventing negative impacts from economic systems and production on the earth and its environment
Ways a business can be sustainable
-using all resources and not wasting supplies
-eco friendly travel
-dispose of products properly
-reduce co2 production
-reduce packaging
What are the EU intervening on and why: environmental factors
-cracking down on companies misleading customers with false environmental claims + greenwashing
-manufacturers will have to ensure their clothes are eco frequently and hard wearing
-consumers will be given more info on how to reuse, repair and recycle their clothes
-textiles to be used in the European market
What is the European market
The economic and political union of most European states aimed at reducing trade barriers and harmonising economic policies
What is free trade
The agreement between countries to trade with each other within entering barriers to trade
What are tariffs
A duty paid on imports
What is quota
A limit on the total quality of a product can be supplied to a market
Benefits of being an eu member
-larger numbers of workers to choose from
-no tariffs on importing, reduce costs
-greater exports as there airway taxes/limits
-minimum to no paperwork
-one set of regulations to follow
What are the impacts of paperwork and checks on Uk imports
-costs passed onto consumers
-more administration work
-need plant health certificates
-they will need to increase tehir costs of their products to uncompetitive prices
Impacts of exports in the Uk from paperwork and checks
-loss of product range
-loss of jobs
-need to move its distribution centre in eu
-making process to hard
-drop in sales
Reasons to leave eu
-don’t have to follow certain laws
-encourage Uk employment as it is easiest for firms
-new trade deals with other countries that eu couldn’t
-customers will buy form uk, more domestic trade
Reasons to rejoin eu
-can trade with eu members easier
-free movement if workers
-free movement of money so can invests
-less paperwork-trade will be quicker and cheaper
What is political stability
Means government changes are limited. The same political party with same prime minister in power for an extended period of time
Positive implications of stabilised government for business
-increased confidence to invest
-reduces need to leave domestic markets
-helps to plan for the future
-reduces risks associated with business decisions
Political factors affecting change in trade
-leaving eu
-competition policies change
-privatisation
-legal changes or new legislations
-economic policy
-employment policy
-policymakers manifestos announcements
What is International trade
-refers to the selling across boarders (operations can be in one country)
Why do countries trade internationally
-for variety: other counties have access to different natural resources
-to specialise: a country can specialise in what they do best
-to grow: access to millions of new customers
-to reduce costs: gain economies of scale and cheaper resources
-to avoid conflict: trade leads to cooperation rather then conflicts as nations become dependent on one another
What is logistics
Procurement of supplies, warehousing and transportation
Factors that should be considered in logistics
-culture
-buying habits
-customs
-language
-currency
What is globalisation
-The increase integration and independence of national economies
-when globalisation speeds up/grows there is more international trade
-countries become more independent on each other
Why globalisation increased trade
-globalisation has increased competition resulting in businesses needing it lower prices. This leads to increased international trade because business will import cheaper materials form other countries
-infrastructure has improved as the pace of globalisation has increased international trade because it is easier to transport goods between countries
-globalisation has lead to greater connectedness between markets. this leads to in international trades because both customers and his eases can order and pay for goods anywhere in the world
What is free trade
Trade without tariffs or quotas being imposed on products
Advantages of free trade
-businesses: economies of scale can be obtained if export demand increases.
-businesses: access to greater variety of raw materials at a lower costs
-customers: lower prices through increased competition.
Disadvantages of free trade
-workers: foreign competition can lead to job loss
-environmental: LEDC’s may use up non renewable resources for export
-business: more competition from businesses based in other countries
What is protectionism’s
Opposite of free trade, taxes and quotas on imports to protect home goods
What are the affects of increased tariffs from US
-more expensive for US customers to import China goods
-less variety of choices for US customers
-costs increases
-decrease of sales being exported form US to China
-employees may loose jobs
What are the affects of increased tariffs from China
-more expensive to get US goods for Chinese customers
-less variety of choices for Chinese customer
-less dividend to shareholders
-decrease sales being exported form China to US
-employees may loose jobs
Most imports tariff free under no deal plan
-the government has announced the most imports into the UK would not attract a tariff in the event of a no deal brexit
-under temporary scheme 87% of imports by value would be eligible for zero tariff access
-80% of imports are tariff free
-tariff would be maintained to pricy some industries.
How would the new system on new system of no deal work
-tariff regime would make a shift in favour of products from non EU countries
-would mean 82% of imports form the EU would be tariff free, down from 100% now
-92% percent of imports from the rest of teh world would pay no border duty up from 56%
What is a trading bloc
A trading bloc is a group of countries within a particular geographical region that have reduced or removed trade barriers for its member countries
What is the TPP
-trans pacific partnership
-12 countries
-access to cheaper goods and economic growth
Why would the UK want to join the CPTPP
-access to potential market of hundreds of millions of people, this would increase sales in the UK and grow the Uks economy
-access to multiple countries and markets
-CPTPP are made up of alot of LIC/NEE, countries meaning resources are sold at lower prices.
-lower costs for items also mean they can bulk buy for cheaper and get more resources for less.
Advantages of trading bloc
-businesses gain access to a potential market if hundreds of millions of people
-businesses can import raw materials at a lower cost since tariffs have been removed
-if exports increase, there is the potential for economies of scale
Disadvantages of trading bloc
-memberships may hinder trade with counties outside the bloc. This is especially true if the bloc has common tariffs for non members, as the non members many packs tariffs in retaliation
-competition from firms within members countries nah be too great for domestic businesses. They may loose sales as customers impact goods form member countries instead. As a result regulations may follow
What is an emerging market
Used to describe a country that is a achieving rapid economic growth
What is teh difference between emerging markets and developed economies
-GDP is higher in developed
-car market is higher developed
-larger demand for luxury expensive goods
Key points about trading blocs
-emerging markets are countries experiencing rapid economic growth
-the citizens of emerging markets often have a lower income per capita than citizens in developed economies
-the citizens of emerging markets aren’t often younger then citizens in developed economies.
-infrastructure still needs developing
-emerging market are changing at greater speed then developed economies
What opportunities do emerging markets present for businesses
-can take advantage of a lack of legal constraints
-can move production into these markets and take advantage of cheaper labour
-can access new markets possibly with higher disposable incomes
-proximity towards market they are selling to
Threats of emerging market arise from:
-lower labour costs and therefor the ability of producers in emerging markets to manufacture more deadly then producers in developed economies. Cheaper labour in emerging market may alos lead to less jobs losses in domestic markets may also lead to less jobs losses in domestic markets. Higher unemployment may impact economic growth in developed economies negatively
-fewer exports from developed economies as the emerging economies became able to produce for themsleves
-more competition
Factors that facilitate level of imports
-reduction in trade restrictions
-lower costs of production abroad
-ease of trade
-technology
What is a multinational
A business that has activities and operations in more then one country.
The business needs to have a shop, factory, office ect in at least 1 country and sell abroad
Why are so many companies keen to be multinationals
-economies of scale can be attained as price increases
-ability to take advantage of a back of legal constraints
-they can enter new markets where less competition exits
-ability to take advantage of lower wages
Draw backs of multinationals on LEDC’s
-poor quality of life
-emissions
-take advantage of cheap labour
-low skilled jobs- can’t really benefits from it
Benefits of multinationals on LEDC’s
-jobs provided
-income raised
-training to employees
-trade
Positive effect of multinationals
-provides employment opportunities in LEDC
-employment equips local people with skills
-lead around investment in local infrastructure
-leads to utilisation of local resources to supply factories
Negative effects of multinationals
-employment often in exchange for low wages
-jobs are low skilled
-working practices can be unsafe
-child labour is often used which can mean that the child misses out on education
-local businesses can be driven out of the market
-profits often goes back to domestic country where the multinational is based
Benefits of shell being in Nigeria
-she’ll has invested in ports, pipelines and roads so taht oil can be easily exported
-these infrastructure improvements have benefited other businesses
-provided jobs and rising incomes
-taxes paid form shell to the given meant help the country to reply foreign debt and invest in education and healthcare
Drawbacks of shell being in Nigeria
-only employ small amount of people from Nigeria
-don’t help local villages
-ogoni people suffer from oil leaks
-poisoning of land and water
-loss of local jobs and incomes
Why some businesses are more affected by globalisation
-increased competition
-competing with price
-small businesses have to compete with global that benefit from economies of scale
What is global strategy
A plan of action in a global scale
What is a global brand
A brand that is recognised throughout much of the world. Through the use of logos, symbols, name ect
What threat does the rise of global brands have to local/national businesses
-local and national businesses may be driven out as customers buy from the global brands instead
-may result in downward price pressure as global brands may offer products more cheaply (eos)
How can the presence of global brands refresh local markets /businesses
-new ideas
-improve quality to have a point difference between global brands
-may choose to act ethically
-copy global brand designs
-suppliers in local areas may be asked to product local brand clothing
-more customers to the town
What are the opportunities of globalisation for global brands
-new markets possibly with high disposable income
-opportunity to move production into countries lower labour costs
-investment opportunities in infrastructure and production
What are the threats of globalisation/ global brands
-lower labour costs may damage reputation
-reduced domestic exports as businesses in developing countries begin to produce for themselves
-lack of local knowledge and cultural differences may threaten global growth
What are the challenges of globalisation
-increased competition
-understanding differences in customers ethical standpoints
-cost of expansion
-adapting to different cultures and customer behaviour
-mastering marketing
-language barrier
-communication
What is digital Revolution
Involves the shift from analogue and mechanical technology to digital technology
What is the Information Age
A time when large amounts of information is widely available
What opportunities does the digital Revolution present newspapers with
-to publish articles online and through apps which will reduce the costs of printing and distribution
-to publish newstorys more regularly and in real time
-to access a larger market
-to gather feedback and reactions to articles from readers
What are the opportunities of digital Revolution
-cost saving as information has become more available and information accessed quickly
-range of information has increased
-market research can be carried out using a larger sample
What are the threats of digital Revolution
-increased access to information allows consumers and customers to make informed choices, more competition
-risk of software failure
-keeping up with technology is expensive
The effect of the digital Revolution may depend upon
-the market in which a business operates
-how rivals have responded to the digital Revolution
-the type of product or service being sold
-the budget if the Haines to use digital technology
-the type of customer
