Influences on business Flashcards
what is the definition of ethical?
concerned with what is right and wrong or behaving in a morally correct way
how do you ethically treat workers?
not employ child labour, fair wages, safe working conditions
how do you source materials ethically?
not buying from suppliers who do not produce in a sustainable way, avoid buying from business that employ child labour
how do treat customers ethically?
not overcharging, avoid making false claims
how do you treat suppliers ethically?
avoid late payment, pay fair prices
what are the advantages of behaving ethically in business?
sales may be higher because of their reputation, increased retention
what are the disadvantages of behaving ethically in business?
higher costs because paying a fairer wage
investment may be lower due to lower profits
what is the definition of climate change?
what average temperatures rise or fall and patterns of weather change
what is the definition of environmentally friendly?
describes consumers and businesses that act to make production sustainable
what is the definition of pollution?
causing harm to the environment, including air, land and water
what is the definition of sustainability?
production that does not lead to the depletion of natural resources
what is the definition of waste disposal?
the process of getting rid of unwanted materials
what are the advantages of being environmentally friendly for a business?
costs may be lower due to less waste, lower taxes
what are the disadvantages of being environmentally friendly for a business?
production costs may be higher, sales may be lower if the business charges a higher price
what is the definition of consumer income?
the amount of money consumers receive from work and from assets they own
what is the definition of economic climate?
refers to how well the country is doing in terms of levels of income and employment
what is the definition of level of income?
the average income of people in a country
what is the definition of level of unemployment?
the number of people out of work in a country and aren’t looking for work
how could a rise in incomes and employment impact a business?
increase in sales, sales of luxury goods will increase, cheaper goods and services may fall in sales
how could a business change its strategy of production when income and employment fall?
try reduce costs by reducing waste and motivating workers
how could a business change its strategy of human resources when income and employment fall?
try reduce costs by improving works productivity or laying off workers
how could a business change its strategy of finance when income and employment fall?
try reduce costs by taking out cheaper loans or reducing its overdraft
how could a business change its strategy of marketing when income and employment fall?
try increase sales by increasing advertising or lowering prices and producing cheaper products
what is the definition of globalisation?
the process by which business activity around the world has become increasingly interconnected
how are businesses connected by global buying and selling?
businesses buy and sell goods and services from and to each other
how are businesses connected by global production?
businesses may produce all or part of a product in different countries
how are businesses connected by global movement of people?
businesses may recruit workers from other countries and send workers to do work abroad
how are businesses connected by global movement of capital?
businesses may raise investment money from other countries by borrowing money and selling shares
what is the definition of international brand?
an image or values for a product that are communicated in countries around the world
what is a definition of multinational companies?
businesses that operate in different countries around the world
what are the advantages of locating abroad?
lowering production costs, different skilled workers
what are the disadvantages of locating abroad?
transport costs may be higher, sales may be lost
