Impacts On Business Flashcards
What is a stakeholder ?
Someone who is interested in the success of the business
Examples of stakeholders?
Employees Customers Suppliers Managers/owners Governments Banks
Interest of employees/ customers/suppliers/managers?
Employees- interested in wage rise and job security
Customers- interested in quality of good and value for money
Suppliers- success of business, will reflect on success of supplier
Manager- reputation and job security
Interest of owners/banks/government?
Owners- interested in level of profit made
Bank- interested in payback of loans.
Government- interested in growth of business- money given by government is used appropriately
How employees/customers/suppliers/managers can influence a business?
Employees- work rate/ quality of production/ ideas shared
Customers- complaining or buying product
Supplier- altering price of materials or quality of materials
Managers- making decisions which could affect the success/ failure of the business
How owners/banks/government influence a business?
Owners- can affect end profit or growth of business depending on amount of capital invested
Banks- refusing or giving loans
Government- changing laws or increasing levels of tax
Impact of employees/customers/suppliers/managers?
Employees- ideas lead to improvement in the business- work rate could increase quality of product and profits
Customers- if customers choose to buy product it could impact sales and if they complain it could impact by reducing profit
Suppliers- could impact by dissatisfying customers and if unreliable could make production slow and customers unhappy because materials haven’t been delivered
Managers- if they make poor decision could lose profit
How owners/ banks/ governments impact a business?
Owners- if a lot of capital is invested it could expand the business
Banks- if they refuse to give loans it could setback the business as they can’t follow through with plans
Governement- if new laws are made it could cost business money to meet these laws- if tax increases could decrease sales because customers have less spending money
Examples of PESTEC (external factors)
Political- changing of laws- tax increasing
Economic- (BOOM)economy is high, high employment, consumer spending is high
(RECESSION) economy is low, employment is low, customer spending is low, businesses make employments redundant
Social- changing in society’s attitudes could affect businesses
Technological- keeping up to date on technology so competitors don’t take the lead
Environmental- reducing the amount of packaging used, finding ways to reduce waste, recycling, storing waste safely, packaging that uses environmental friendly substances
Competitive- if competitors are using better techniques and methods this could harm your businesses image and reputation and customers may choose other businesses to buy from
Internal factors?
Not enough advertising- reduces sales
Not enough money to buy automation- fall behind competitors
Not having enough cash- asking for loans- pay back interest
Work rate- more produced more sales- more profit made
Carrying out industrial action e.g strike, go slow, sit in could give business a bad reputation
Poorly trained staff could lead to poor quality goods
