Influences on Business Flashcards
What is the impact E-commerce has on a business?
E-commerce promotes sales. If more customers are aware of a good/service the more likely they are to buy it.
What is the impact of digital communication on a business?
Digital communication helps suppliers and owners communicate when supplies are coming in a if/in case there are any delays/issues.
Examples of digital technology /communication
Social media, Mobile phone, Internet.
What is ethics?
When businesses have as an aim what is morally right rather than necessarily the most profitable option.
Trade off
The sacrifice you make when choosing one option to the alternative. (opportunity cost)
What is three ways in which businesses can behave ethically?
- Pay reasonable
- Good customer service
- Problem products that do not harm the environment.
One benefit of behaving ethically:
Attracts customers
One drawback behaving ethically:
May cost more
Four environmental considerations are:
- Impact on animals
- Contribution to global warming
- Impact on wildlife’s habitat
- Sustainability
What does ‘scarce resources’ mean?
Lack of resources. The idea that we cannot have everything we want because there is a limited amount of resources in the world.
How might businesses be affected by changes in the rate of interest?
Businesses might have loans to pay off and if interest rates go up they need to pay more.
How and why might businesses be affected by changes in the level of employment?
If there is a high level of employment and businesses are trying to recruit, it will be hard to find the right people to employ.
What is the definition of globalisation?
The increased integration of trade, finance and communications between countries.
What are two drawbacks of globalisation?
- More competition
2. Exchange rates
What are two benefits of globalisation?
- More customers
2. More contacts
Examples of how UK businesses compete internationally:
- By offering better designed, higher quality products at lower prices.
- Globalisation
What is an example of employment law?
National minimum wage
or the Equality act
One example of a health and safety law
Adequate lighting, heating, ventilation and workspace (and keep them in a clean condition)
One example of consumer law:
What should happen when goods are faulty
Impacts of legislation (Laws)
Has an impact on employment, competition, and Health and Safety.
Benefits of providing a safe working environment
Protects workers from injury and illness, increases productivity and quality. Raises employee morale.
Definition of uncertainty
Where a business risks will be increased in a competitive environment, as it does not know the plans of rival firms.
What is a situation where a business faces minimal or no competition?
The business may be selling a product that no one wants.
Why entrepreneurs embark on running a business?
It’s through starting their own business that they get to freely express their creative ideas and fulfil their dreams.
What are some activities that entrepreneurs can undertake to minimise risk?
- Save money
- Develops a solid plan
- Limit loans
- Keep good records
- Perform quality control
tests.
