LO6 Flashcards
Define social factors
Social factors are factors relating to the population and their lifestyles
Define demographic issues
Issues relating to the size and the structure of the population
Define disposable income
Disposable income is a person’s total income minus taxes
What factors are demographic issues and disposable income?
Demographic issues and disposable income are ‘social’ factors.
List 3 social factors which are externally effecting a business’s enviroment.
1) Attitudes to work
2)social trends
3)cultural beliefs
Define automation (Within technological factors externally effecting a business’s enviroment)
Automation is the replacement of human labour with machines.
Define technological factors
Advacing technology changing the way we work, pay, learn and shop
Define CAD/CAM (In terms of technological factors externally effecting a business’s enviroment).
CAD/CAM stands for a computer aided design/computer aided manufacture.
Define e-commerce (in terms of technological factors externally effecting a business’s enviroment).
E-commerce are websites which allow purchases to made online.
Define EPOS (In terms of technological factors externally effecting a business’s enviroment).
EPOS means electronic point of sale.
List 2 technological factors which externally effect a business’s enviroment.
1)Mobile technology
2)Communication technology
List a enviromental factors which externally effects a business’s enviroment.
Enviromental factors are factors which relate to minimising the damage to the planet.
Define video conferencing (In terms of technological factors which externally effect a business’s enviroment)
Video conferencing is holding virtual meetings using audio and video screens.
List 5 factors of Economic factors which can externally effect a business’s enviroment
1)Interest rates
2)Exchange rates
3)Inflation
4)Unemployment
5)Taxation
Define political factor.
Polictical factocts which relate to the goverment policy and practices
Define imports (in terms of technological factors externally effecting a business’s enviroment)
Imports are buying goods from abroad.
Define exports (economic factors externally effecting a business’s enviroment).
Exports are selling goods to other countries,
Define Sterling (in terms of economic factors externally effecting a business’s enviroment)
Sterling is the UK currency - the British Pound
Define legal facors which externally effect the business’s enviroment.
Legal factora are the current largislations.
What two types of legislation is Business framework?
1) companies act
2)partnership act
What key factors are within the Business framework with the companies act? List 3.
1)Governs all types of companies
2)Files accounts annually
3)Limited liability for all shareholders
What key factors are within the Business framework with the partnership act? List 2.
1)Governs business partnerships
2)Jointly and severally liable-all partners responsible for business debts.
What 2 types of legislation is the Consumer protection - laws that protect customers
1)Consumer rights acts
2)Consumer protection act
What is the consumer protection in terms of consumers right act? List 2
1) Right for a refund, repair, or replacement
2)services should be provided with reasonable skill, and reasonable care with reasonable time frame
What is the consumer protection in terms of consumer protection act? List 2.
1)Businesses must not manufacture or sell goods which are unsafe
2)Local conuncils have the right to seize unsafe goods and ban them from sale
What are the 4 legisations in the employee protection act?
1)equailty act
2)health and safety at work
3)working time directive
4)national minimum wage
Define the data protection act.
The data protection act is governing the storage and use of personal data
Define the copyright, Design and Patents Act
Protects the interests of the creator of original work
Define planning permission
Businesses must obtain planning consent before making significant changes to land or property
Name 2 non-legal implications of failing to meet the legal requirements
1) Bad publicity
2)poor employer-employee relations
Name 2 legal implications of failing to meet the legal requirements
1) law suits
2)fines
Define ethical factor
Issues concerned about what is right, beyond what the law requires
Define sustainability
Sustainability is when a business will preserve the planets natural resources for future generations
Define corporate social responsibility
A business which behaves in a way to improve welfare of society
Give 2 example of corporate social responsibility
1) Giving donations to charity
2)providing humanitarian aid
Give 2 example of a business being sustainable
1) Using non-fossil fuels for transport
2)green energy
Name 2 positive impact of the business when operating ethically
1) reduced stakeholder conflict
2)better reputation
Name 2 negative consequences of a business not behaving ethically
1) damage to reputation
2)loss of customers
Define niche market
A small subset of the market that has specific needs that the business taps into
What is the effect of high unemployment?
Lower levels of disposible income
What type of business will benefit to lower levels of disposible income?
A discount store store (e.g a 50p shop)
What type of business will face the disadvantage of lower disposible income and why?
A new car showroom
there is a reduced demand for expensive products
What is the effect of social trends of eating out?
More meals will be eaten at restaurants
What type of business will benefit from more meals being eaten at restaurants and why?
Well-known restraurant chains -> increaisng revenue from more customers
What type of business will be at a disadvantage of more meals being eaten a restaurant and why?
A supermarket chain because of falling profits
What 2 type of stakeholders will benefit from high interest rates and why?
Lenders->more revenue
customers with savings -> more money avaliable to spend
What type of stakeholder will be at a disadvantage of high interest rates and why?
customer with a morgage -> they will have less money to spend
What types of stakeholders will benefit from an increased in living wage and why?
Employees -> better standard of living
What 2 type of stakeholders will be at a disadvantage of increases in living wage?
shareholders -> lower dividends
customers -> higher prices
What is meant by the term ‘market share’
The percentage of aan industry’s total sales earned by one business
Which one of the following is most likely to be a key operative of a local goverment?
1) collecting taxes
2)making a profit
3)providing a service
4)selling goods
3) providing a service
Employees at a convience store will want:
high wages
Which one of the following changes in the external environment is not an economic factor?
(a) A fall in the value of the pound
(b) A reduction in unemployment
(c) A rise in inflation
(d) An increase in the national minimum wage
d
