Internal Influences +Stakeholder Flashcards
What are the 5 main internal influences on a business?
Product, Location, Management, Resources, Business Culture.
How does the type of product influence a business?
It impacts volume, variety, demand variation, visibility
Why is location one of the most important decisions for business owners?
It can determine business success by affecting sales, proximity to competitors, cost, and ease of delivery or supply.
What does ‘visibility’ in location mean for a business?
Being in a location where customers can easily see and access the business, like retail stores or fast food outlets.
Why is proximity to support services important in business location?
Businesses benefit from being close to suppliers, maintenance, or professional services like legal or financial advisors.
What are the four types of business resources?
Human resources, Information resources, Physical resources, Financial resources.
What are examples of physical resources in a business?
Machinery, equipment, buildings, and raw materials.
What is the difference between ‘top down’ and ‘flat’ management systems?
Top down is centralised and hierarchical, flat is decentralised with shared power and flexibility.
What is business culture?
The values, beliefs, expectations, and behaviours shared by staff and management in a business.
What are the four elements of business culture?
Values, Symbols, Rituals & Celebrations, and Heroes.
What is a stakeholder?
Any person or group who has an interest in or is affected by the activities of a business.
Why are employees considered a business’s greatest asset?
Their performance and motivation directly impact productivity and success.
What are internal and external stakeholders?
Internal are inside the business (e.g., employees, managers), external are outside the business (e.g., customers, society).
Why are shareholders important stakeholders?
They own part of the company and have influence over major business decisions.
What is the main objective of shareholders?
To gain a return on their investment through capital growth or income.
How can a manager’s style influence a business?
It affects company culture, staff morale, and overall business performance.
Why are customers powerful stakeholders?
Because without them, the business cannot exist or succeed.
How does society influence businesses today?
Businesses are expected to be socially responsible and contribute to the community.
Why is the environment considered a stakeholder?
Businesses are expected to adopt sustainable practices to reduce their environmental impact.
What is an example of a stakeholder conflict?
Owners may want to cut costs by moving production overseas, but this may lead to staff losing jobs and worse service for customers.
